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KIWISAVER SCHEME

Group Investments

FirstChoice KiwiSaver Scheme Investment Statement and Enrolment Form8 December 2011

Provided by

Distributed by

Welcome to the FirstChoice KiwiSaver

Scheme (“FirstChoice KiwiSaver 1”),

the scheme that offers you the benefits

of KiwiSaver through a unique range

of sophisticated investment options.

By taking the time to read about

FirstChoice KiwiSaver, you’ve made both

an important step and a smart move

towards saving for your retirement.

The FirstChoice KiwiSaver Scheme is provided and managed

by ASB Group Investments Limited, a leader in the field of

investments and superannuation. We have significant experience

in managing and administering superannuation schemes,

currently managing superannuation investments on behalf of

over 325,000 New Zealanders.

We pride ourselves on researching and developing the best

investment options to meet different investment needs. The

environment and sustainability is something many investors

are passionate about, which is why we are delighted to offer

FirstChoice KiwiSaver members the Global Sustainability Fund.

The Global Sustainability Fund invests solely in world shares

and is part of our responsible investment strategy.

I hope you find the information contained in this Investment

Statement useful, and you agree that FirstChoice KiwiSaver is

the smart way to save for your future.

If you have any questions, contact us on 0800 1ST CHOICE

(0800 178 246) or email [email protected]

John Smith

Head of ASB Group Investments

1 The term “FirstChoice KiwiSaver” may be used in this Investment Statement as an abbreviation for “the FirstChoice KiwiSaver Scheme” and readers should view those terms

interchangeably.

The FirstChoice KiwiSaver Scheme is provided and managed by ASB Group Investments Limited (referred to in this Investment Statement as “ASB Group Investments” and the

“Manager”) and is available through Sovereign Services Limited (“Sovereign”).

Investment Statement for the purposes of the Securities Act 1978 dated 8 December 2011.

Important Information(The information in this section is required under the Securities Act 1978)

Investment decisions are very important. They often have long-term consequences. Read all documents carefully. Ask questions.

Seek advice before committing yourself.

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

Page

What sort of investment is this? 16

Who is involved in providing it for me? 17

How much do I pay? 17

What are the charges? 20

What returns will I get? 21

What are my risks? 25

Can the investment be altered? 26

How do I cash in my investment? 27

Who do I contact with enquiries about my investment? 27

Is there anyone to whom I can complain if I have problems with the investment? 27

What other information can I obtain about this investment? 28

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.

1

Section OneAbout KiwiSaver

What is KiwiSaver? 3

Why should I join KiwiSaver? 3

How does KiwiSaver work? 4

How do contributions work? 5

KiwiSaver Scheme

2

What is KiwiSaver?KiwiSaver is a voluntary savings initiative set up by the

Government to encourage Kiwis to save for their retirement.

That’s why the Government is offering attractive incentives to

help as many Kiwis as possible to save for a better standard of

living in retirement.

KiwiSaver has many features, including:

• A $1,000 kick-start contribution from the Government when

you join a KiwiSaver scheme for the first time;

• A member tax credit of 0.50¢ for every $1.00 of member

contributions, up to a maximum of $10.00 a week or $521.43

per annum paid to your KiwiSaver scheme (subject to

eligibility) (see How much do I pay? on page 17);

• After three years or more of saving in KiwiSaver, you may be

eligible (see What returns will I get? on page 21):

> For a first home deposit subsidy (through Housing New

Zealand Corporation) of $1,000 per year of saving, up to

$5,000 in total; and

> To withdraw contributions (except the Government

kick-start contribution and member tax credit) for

a first home purchase.

Both of these facilities will also be available to second-

chance home buyers that meet certain criteria;

• After 12 months of contributing, you can apply for a

KiwiSaver contributions holiday;

• Your employer will also contribute where you are contributing to

KiwiSaver from your gross salary or wages (subject to eligibility

criteria). The minimum employer contribution is generally 2% of

your gross salary or wages. Prior to 1 April 2012, these employer

contributions will not be subject to employer’s superannuation

contribution tax (“Contribution Tax”). The Government

announced in the 2011 Budget that the compulsory employer

contribution rate will increase from 2% to 3% of your gross salary

or wages, with effect from 1 April 2013;

• You become eligible to withdraw your KiwiSaver savings

when you reach the age of eligibility for New Zealand

Superannuation (currently age 65) or five years after

you become a member of a KiwiSaver scheme and/or a

complying superannuation fund (whichever is later); and

• You can apply to withdraw your contributions in

circumstances of significant financial hardship, serious

illness or if you permanently emigrate2 (note this may exclude

the $1,000 Government kick-start and member tax credit

depending on the circumstances).

Why should I join KiwiSaver?Most New Zealanders want a comfortable retirement with enough

money put aside to do the things they enjoy. Unfortunately, many

of us aren’t saving enough to make this possible.

KiwiSaver is a great way to put money aside to help you have

the future you want. It has been designed specifically to help

you save for retirement and, as well as the many benefits and

incentives offered, it also means that you get to take advantage

of two of the major benefits of long-term regular savings:

KiwiSaver helps through regular investing

By making contributions regularly, KiwiSaver makes the most of

one of the best ways of investing. Not only will the value of your

investment grow each time you add to it, but you also get to

take advantage of a useful investment approach.

Here’s how it works. Many investments go up and down in value

fairly regularly, and investors can make money by buying when

asset values are low and selling when they are high. In the long-

term, values generally trend upwards, but picking the perfect

time to buy and sell is very difficult. By investing regularly,

for example into a managed fund, you can avoid having to

pick the right time because over time the cost of your regular

investments average out. You may hear some experts refer to

this as dollar cost averaging and you gain full advantage of it by

making regular investments. Also, by investing regularly into a

managed fund, rather than individual assets, due to their scale

you may gain access to a wider range of investments than a

single investor would normally be able to invest in.

KiwiSaver and earning returns on returns

When it comes to long-term savings, the earlier you start the

better. That’s because the longer you save, the more your

savings should grow. But it’s not just your savings that should

add up. Any money you earn on those savings should start to

grow as well.

Here’s why. Imagine you put some money in an ordinary savings

account. In the first month you’ll earn interest on that money.

Then, in the next month you’ll earn interest on your original

money, plus interest on the interest you’ve already earned.

And so on, month after month. This is called compounding

interest and a similar effect applies to returns on your KiwiSaver

investment. So the earlier you start, the more chance you’ll have

to earn compounding investment returns and the better your

savings should grow.

2 Once the trans-Tasman portability arrangements come into effect, (as summarised on page 22), members permanently emigrating to Australia will not be able to withdraw their

KiwiSaver contributions in cash, as can be done if the member emigrates to a country other than Australia.

3

*

Investment Earnings

Employer Contribution

Government Contribution

Member Contribution

$250,000

$200,000

$150,000

$100,000

$50,000

$0

Saving

s

Years

$300,000

KiwiSaver offers the best of both worlds

When you combine the power of compounding returns with

regular contributions, you have the potential to build up a

valuable nest egg for your retirement so you can do the things

you want. The chart below shows you an example of what you

may have after saving for 40 years:

Potential accumulated KiwiSaver savings after 40 years

This graph is an example only and is not a prediction of future returns. The results shown are in “today’s dollars” which means the projected value of savings has been adjusted for the effect of rising prices over time (inflation) and shows you the buying power in today’s dollars. This graph assumes gross (i.e. pre-tax) salary of $40,000 (including “real” (net of inflation) increases of 1.5% per year); employee contributions of 2% of pre-tax salary (increasing to 3% from 1 April 2013); employer contributions of 2% (increasing to 3% from 1 April 2013) of pre-tax salary and taxed at 17.5% from 1 April 2012; “real” (net of inflation) investment earnings of 3.0% per year (after tax and fees). This graph also assumes no significant decline in the funds generally (as experienced in the world wide markets from time to time) over the 40 year period. Maximum member tax credits of $521.43 and $1,000 kick-start payments are included. The graph assumes no withdrawals or contribution holidays. The graph assumes membership commenced on 1 July 2011.

How does KiwiSaver work?Choosing a KiwiSaver provider and KiwiSaver scheme

Keep in mind that there are many different KiwiSaver providers

with different KiwiSaver schemes and funds.

The process you go through to choose a KiwiSaver provider and

KiwiSaver scheme will depend on your personal circumstances.

Employed

If you are currently employed, i.e. earning salary or wages,

you have to proactively opt in to KiwiSaver unless you are

automatically enrolled when you change jobs. You will need to

enrol using one of the following options:

Option One: Join through a KiwiSaver provider

You can select your own KiwiSaver scheme. You can research

the various KiwiSaver providers and KiwiSaver schemes and

then choose the KiwiSaver scheme you like the best. To do this,

you can request an investment statement from your chosen

KiwiSaver provider and complete the enrolment form. Your

KiwiSaver provider will notify Inland Revenue that you have

joined KiwiSaver. Inland Revenue will then notify your employer

so that your employer can start deducting your contributions

from your salary or wages; or

Option Two: Join through your employer

Request a KS2 form from your employer, complete it and return

it to your employer. Your employer will notify Inland Revenue that

you have joined KiwiSaver.

From here you have two further options:

• Select your own KiwiSaver scheme by completing, then

returning your chosen KiwiSaver provider’s enrolment form

to your chosen KiwiSaver provider. Inland Revenue will hold

your contributions for the first three months. If you have

completed a KiwiSaver enrolment form within this time, your

contributions will be forwarded to your chosen KiwiSaver

scheme; or

• Do not select a KiwiSaver scheme. If you don’t select your

own KiwiSaver scheme then you will be enrolled in your

employer’s chosen KiwiSaver scheme, if they have one. If

your employer does not have a chosen KiwiSaver scheme,

then Inland Revenue will automatically select a KiwiSaver

scheme from one of six KiwiSaver default providers, and you

will be enrolled in that scheme.

New employee

You have the same options as above but the pathway is a bit

different. If your employer has chosen a KiwiSaver scheme,

you will be automatically enrolled in your employer’s chosen

KiwiSaver scheme, unless you select a KiwiSaver scheme.

If your employer has not chosen a KiwiSaver scheme, you

will be automatically enrolled by Inland Revenue into a

KiwiSaver scheme provided by one of the six default KiwiSaver

providers, unless you select a KiwiSaver scheme. You will

not be automatically enrolled if your employer is exempt from

this requirement (please contact your employer for more

information).

In either case, you can change to a KiwiSaver scheme of your

choice at any time by requesting an investment statement from

the relevant KiwiSaver provider and completing an enrolment form.

Opt out notice

You can choose to opt out of KiwiSaver by giving an opt out

form to your employer or Inland Revenue, between the end of

the second and eighth week after starting your new job.

Self-employed or not employed

You will need to select your own KiwiSaver provider. You

can research the various KiwiSaver providers and KiwiSaver

schemes then choose the KiwiSaver scheme you like the best.

To do this, you can request an investment statement from your

chosen KiwiSaver provider and complete the enrolment form.

Your KiwiSaver provider will notify Inland Revenue that you have

joined KiwiSaver.

If you would like to choose FirstChoice KiwiSaver, you can do

so by reading this Investment Statement and filling out the

Enrolment Form in section four.

If you have any questions about FirstChoice KiwiSaver or

KiwiSaver in general, contact us on 0800 1ST CHOICE

(0800 178 246), email [email protected] or visit

www.firstchoiceinvestments.co.nz

KiwiSaver Scheme

4

*

How do contributions work?Whether you are employed, self-employed or not employed,

you can join and contribute to KiwiSaver, provided you meet the

eligibility criteria. If you are employed, your employer will deduct

your contributions from your salary or wages. You can also make

additional regular contributions or lump sum contributions. If

you are self-employed, or not employed, you can contribute any

amount, at any time you wish (subject to any minimum set by your

KiwiSaver scheme provider). For FirstChoice KiwiSaver, this can be

by direct debit or lump sum payment.

Employed

If you are an employee, you can elect to contribute 2%*, 4% or

8% of your gross salary or wages.

• Your regular contributions to KiwiSaver will start from your first

pay after commencing employment or requesting to be enrolled.

• Contributions will be paid by your employer to Inland

Revenue and then passed on to your chosen KiwiSaver

scheme provider.

• For the first three months, your contributions will be held

by Inland Revenue before being paid, with interest, to your

KiwiSaver scheme provider for investment in your KiwiSaver

scheme.

• You can choose to contribute amounts in addition to the

required rates of 2%*, 4% or 8% (subject to any minimum

set by your KiwiSaver scheme provider), but you will need

to contribute the additional amounts to Inland Revenue or

directly to your KiwiSaver scheme provider. Some KiwiSaver

scheme providers may let you set up a direct debit if you

wish to make regular additional contributions.

• If you earn less than $52,000 per year and are contributing

at 2%*, your contributions from your salary or wages over

a year will be less than $1,042.86. To receive the maximum

member tax credit (if you are eligible) you will need to

contribute at least $1,042.86 for the period 1 July to 30 June.

After 12 months of contributing, you can apply for a

contributions holiday to stop contributions for between three

months to five years at a time.

• Contributions resume at the end of the contributions holiday

unless you apply for a further contributions holiday.

• You may be able to apply for a contributions holiday in the

initial 12 month period on the grounds of financial hardship.

* The Government announced in the 2011 Budget that the

minimum employee and compulsory employer contribution

rates will increase from 2% to 3% of your gross salary or

wages, with effect from 1 April 2013.

Self-employed or not employed

If you are self-employed or not employed, you can enjoy the

same KiwiSaver benefits as someone that is employed, other

than the employer contributions. Some KiwiSaver schemes may

have minimum contribution rates. FirstChoice KiwiSaver has no

minimum contribution rate.

• FirstChoice KiwiSaver allows you to save regular amounts by

setting up a direct debit, or you can simply make lump sum

contributions at any time.

• You can contribute as little or as much as you wish (subject

to any minimum set by your KiwiSaver scheme provider).

• To be eligible for the maximum member tax credit, you need

to contribute at least $1,042.86 from 1 July to 30 June.

• You can start or stop your contributions at any time so

contributions holidays do not apply to you while you are self-

employed or not employed.

• If you are self-employed and pay yourself a salary or wages

as explained on page 17, you may be treated as an employee

and employer for the purposes of KiwiSaver contributions.

5

Section TwoAbout the FirstChoice KiwiSaver Scheme

FirstChoice KiwiSaver Scheme 7

How to choose the right Investment Fund for you 8

Selecting your investor profile (questionnaire) 9

Investor profiles and matching Investment Funds 10

Investment Fund details 13

Joining the FirstChoice KiwiSaver Scheme 14

KiwiSaver Scheme

6

Section TwoAbout the FirstChoice KiwiSaver Scheme

FirstChoice KiwiSaver SchemeFirstChoice KiwiSaver has been designed to help Kiwis make

choices about saving for retirement.

• FirstChoice KiwiSaver Investment Funds (“Investment

Funds”) offer both active and index-tracking investment

styles which gives our investors investment choice.

• You have the assurance of knowing that FirstChoice

KiwiSaver is managed by ASB Group Investments, a

recognised expert in retirement savings, and available

through Sovereign.

FirstChoice KiwiSaver has ten Investment Funds (each an

“Investment Fund” and together the “Investment Funds”) that

are open to investment, each with a distinct risk/return profile.

Seven of the ten Investment Funds invest in a pre-set mix of

asset classes including cash, fixed interest, property and shares

(“Diversified Investment Funds”). The other three Investment

Funds invest in single asset classes (“Single Sector Investment

Funds”). Full details of the Investment Funds are set out later in

this section.

How are the Investment Funds managed?

The Investment Funds offered under FirstChoice KiwiSaver offer

two distinct investment management styles – index-tracking

and active management. Investors may choose to invest in

Investment Funds using either index-tracking (“Tracker Funds”)

or active management styles (“Active Funds”), or a mixture of

both.

Index-tracking

Index-tracking investment funds follow an investment style

that aims to track the return of the markets in which they are

invested. For example, investments in New Zealand shares aim

to track the NZX 50 Index, which is made up of New Zealand’s

50 largest listed companies. This type of investment fund has

two major benefits:

• Firstly, index-tracking investment funds give investors

confidence that they will get a return similar to the market

that their funds are invested in; and

• Secondly, index-tracking investment funds generally have

lower investment management fees than actively managed

investment funds. This is important because fees may have a

big impact on returns over time.

Active management

An active management style means that investment managers

buy and sell assets with the aim that the portfolios they

construct should produce a better return than the market in the

long-term. Actively managed funds generally have higher fees

than index-tracking funds.

Diversification

Another important consideration is diversification. This is the

word used to describe the way investments are spread out

among different asset classes such as cash, fixed interest,

shares and property. Seven of the Investment Funds invest

in more than one asset class so that overall returns are not

determined by one particular market’s performance. This is a

good idea because different markets perform best at different

times. For example, the share market may perform well at one

time, but the property market may perform better at another.

How to find the right balance of investment risk and return?

For a little word, ‘risk’ can pack quite a punch. It can often be

the thing that puts people off investing. But it doesn’t need

to. When we use the term ‘risk’ in the investment world, we

are referring to the extent to which returns will vary over time.

Generally, if the investment return over the short-term is fairly

predictable, the investment is said to be of lower risk. While if

the return has a greater potential to move up and down over the

short-term, the investment is said to be of higher risk.

Investors may choose higher risk investments because

historically the returns on higher risk investments in managed

funds have been greater over the long-term than lower risk

investments. What’s important is that you find a level of risk that

you’re comfortable with so that your savings can grow without

giving you any undue worry.

Income versus growth assets

The proportion of your Investment Fund that is invested in

income assets versus growth assets determines the level of risk

that investment has.

• Income assets (cash and fixed interest such as bank

deposits and government bonds) are lower risk investment

types that primarily generate a regular income.

• Growth assets (shares and property) are higher risk

investment types that have the potential over time to increase

in capital value and deliver higher returns to investors.

Investment time horizons

When we refer to investment time frames of short, medium or

long-term, we mean:

• Short-term – periods of up to five years;

• Medium-term – periods of five to ten years; and

• Long-term – periods of more than ten years.

First home buyers (or second-chance home buyers)

If you intend to use your KiwiSaver savings to help you buy

your first home (or you are a second-chance home buyer who is

someone in the same financial position as a first home buyer and

is certified as such by Housing New Zealand Corporation), you

may wish to consider investing in one of the more conservative

Investment Funds, such as the NZ Cash Fund (the most

conservative of the Investment Funds offered in FirstChoice

KiwiSaver). If you decide that this is your investment strategy,

there’s no need for you to complete the investor profile on page 9.

7

How to choose the right Investment Fund for youBefore you can choose an Investment Fund, you should know

what type of investor you are by completing the investor profile

questionnaire opposite. This is really important since everybody

sees things a little differently when it comes to investments. If

an investment going up and down in value is likely to keep you

awake at night, it is unlikely to be the right one for you.

So you need to understand how you feel about the balance

between how much an investment may fluctuate (called

investment risk) and the potential returns you might expect. We

can then help you match your investor profile to an Investment

Fund in FirstChoice KiwiSaver that best suits your needs.

Remember, there are no right or wrong answers; just choose the

answer that best describes how you feel.

Don’t want to choose?

If you prefer not to choose an Investment Fund, your savings

will be invested into the Tracker Conservative Fund. Even if you

don’t make a choice initially, you can always change your mind

later and ask us to change your investment to one or more of our

other Investment Funds.

Responsible Investment Policy

(see Who is involved in providing it for me? on page 17.)

The Global Sustainability Fund is ASB Group Investments’

responsible investment option. The fund invests in companies

that demonstrate sustainable practices and policies, recognising

that environmental, social and/or governance factors can impact

a company’s long-term performance.

Further information about ASB Group Investments’ Responsible

Investment Policy can be found at:


KiwiSaver Scheme

8

Selecting your investor profile

1. How long before you reach retirement age? Score

Less than five years 0

Five to 15 years 8

16 to 30 years 16

More than 30 years 25

2. For me KiwiSaver is mostly about keeping my money safe (making sure the value of my savings

does not reduce). I am more concerned about protecting my savings than achieving high returns. Score

I strongly agree, keeping my money safe is most important to me. 0

I agree, I want to keep my money safe, but I am also interested in returns. 8

I disagree, I’m mostly concerned with achieving returns. 16

I strongly disagree, my goal is to get the best possible return and I accept my investment value may go up and

down.

25

3. Outside of the money you are saving through KiwiSaver, do you have other savings? Score

I have no other savings. 0

I have some savings but I will not continue to add to these savings in addition to KiwiSaver. 8

I have some savings which I will continue to add to as well as saving into KiwiSaver. 16

I have at least one year of salary already saved or invested outside of KiwiSaver which I may or may not continue to

add to.

25

4 Imagine your KiwiSaver savings have built up to $10,000 and over the next year they drop in

value to $9,000. What would you do? Score

Consider switching to a lower risk Investment Fund. 0

Monitor my investment closely. 5

Do nothing and expect that my investment will recover at some time in the next one to two years. 10

Consider increasing the amount I am saving. 15

5. Which of these statements most closely describes how much you know about investments? Score

I’m only familiar with bank term deposits and savings accounts. 0

I know a little bit about investments other than bank term deposits and savings accounts and understand why

diversification is important for investing.

3

I understand different types of investments have different levels of risk and return which cause them to rise and fall

in value at different times.

6

I understand all types of investments well (including shares and property) and understand the various influences on

their returns.

10

TOTAL

Important informationThe investor profile questionnaire below is not personalised advice and should not be your only source of information and advice when you are making investment decisions. It should be treated as a guide only and is not a personal investment or financial plan. You may wish to seek advice from a financial adviser.

9

Your score and investor profile Matching Investment Fund(s) Key information summary

Your score 29-45

Conservative Investor

You seek comparatively stable returns. You are prepared to accept comparatively lower returns to achieve this objective. Returns may vary from year to year and may be negative. Tracker

Conservative Fund

Objective To provide investors with conservative returns over the medium to long-term, using an index-tracking investment style

Investment focus Invests in a high proportion of income assets (cash and fixed interest) and a low proportion of growth assets (shares).

Current benchmark investment asset mix

Cash NZ Fixed Interest World Fixed Interest Australasian Shares World Shares

25% 25% 30%

9% 11%

Your time frame Medium to long-term

Your risk profile Lower risk/return

Active Conservative Fund

Objective To provide investors with comparatively stable returns over the medium to long-term, using an active investment management style.

Investment focus Invests in a high proportion of income assets (cash and fixed interest) and a low proportion of growth assets (shares).


Cash Global Fixed InterestAustralasian Shares World Shares

10%60% 15% 15%

Your time frame Medium to long-term


Your score and investor profile Matching Investment Fund Key information summary

Your score 0-28

Defensive Investor

You are a cautious investor and seek stable or consistent returns. You accept that over time, your investment may not grow as fast as inflation. NZ Cash Fund

Objective To provide investors with low risk returns consistent with short-term wholesale New Zealand bank deposits.

Investment focus Invests in short-term cash and securities.

Current benchmark NZ Cash 100%

Your time frame Short to medium-term


Now add up your score, and read through the investor profile

that matches your score. The questionnaire is only a guide, so if

you don’t agree with the description, you may wish to read the

profiles above and below and see if they sound more like you.

The matching Investment Fund is shown next to the investor

profile.

You can choose to invest in more than one Investment Fund

if you want to. However, when considering your investment

selection, it’s important to note that seven of the ten Investment

Funds are diversified. As the diversified Investment Funds have

exposure to a mix of different asset classes (such as cash, fixed

interest, property and shares) selecting more than one of these

Investment Funds can result in an overall asset allocation that

may not match your investor profile.

You can also choose to switch between Investment Funds at any

time. Remember that if you don’t choose an Investment Fund,

your savings will be invested in the Tracker Conservative Fund.

Investor profiles and matching Investment Funds

KiwiSaver Scheme

10

Your score and investor profile Matching Investment Fund Key information summary

Your score 46-64

Moderate Investor

You seek moderate returns from your investment and are prepared to accept some fluctuation in the value of your investment to achieve this. Returns may vary from year to

year and may be negative.Tracker

Moderate Fund

Objective To provide investors with moderate capital growth over the medium to long-term, using an index-tracking investment style.

Investment focus Invests in a relatively high proportion of income assets (cash and fixed interest) and a lower proportion of growth assets (shares and property).


Cash NZ Fixed Interest World Fixed Interest Global Property Australasian Shares World Shares

12% 21% 27%

9% 14% 17%

Medium to long-term

Medium risk/return


Your score 65-81

Balanced Investor

You seek medium to high returns from your investment. In achieving growth, you are willing to accept fluctuations in the value of your investments. Returns may vary from year to year and may be negative. Tracker

Balanced Fund

Objective To provide investors with long-term capital growth, using an index-tracking investment style.

Investment focus Invests in a relatively high proportion of growth assets (shares and property) and a lower proportion of income assets (cash and fixed interest).



5% 16% 19% 10% 20% 30%

Your time frame Long-term

Your risk profile Medium risk/return

Active Balanced Fund

Objective To provide investors with medium to high level of investment return over the long-term, using an active investment management style.

Investment focus Invests in a relatively high proportion of growth assets (shares and property) and a lower proportion of income assets (cash and fixed interest).


CashGlobal Fixed Interest Global PropertyAustralasian SharesWorld Shares

10% 30% 10% 20% 30%


Your risk profile Medium risk/return

11

-


Your score 82-100

Growth Investor

You are a long-term investor seeking a high return from your investment. You are prepared to accept significant fluctuations in returns from year to year to achieve this objective. Returns may be negative.

Tracker Growth Fund

Objective To provide investors with higher long-term capital growth, using an index-tracking investment style.

Investment focus Invests in a high proportion of growth assets (shares and property) and a low proportion of income assets (cash and fixed interest).



2% 6%

12% 10% 25% 45%


Your risk profile High risk/return

Active Growth Fund

Objective To provide investors with higher levels of investment return over the long-term, using an active investment management style.

Investment focus Invests in a high proportion of growth assets (shares and property) and a low proportion of income assets (cash and fixed interest).


CashGlobal Fixed InterestGlobal PropertyAustralasian SharesWorld Shares

5% 15% 10% 25% 45%



Active High Growth Fund

Objective To provide investors with higher long-term capital growth.

Investment focus Uses an active management style and invests solely in growth assets (world shares).


World Shares 100%


High risk/return

Global Sustainability Fund

Objective To provide investors with higher long-term capital growth.

Investment focus Uses an active management style and invests in companies that demonstrate sustainable practices and policies. Recognises that environmental, social and governance factors can affect a company’s ability to successfully operate over the long-term. The Global Sustainability Fund `invests solely in growth assets (world shares).

Current benchmark World Shares 100%



KiwiSaver Scheme

12

-

*An Investment Fund may invest in the asset classes either directly or indirectly, including through managed funds.

**An underlying investment manager is a person who manages the assets of an Investment

Fund or a managed fund that an Investment Fund invests into (directly or indirectly).

Active Funds market indices and underlying investment

managers

The table below shows for each asset class, the market index

(or combination of indices) that the performance of the relevant

asset class will be measured against and the underlying

investment managers for each asset class as at the date of this

Investment Statement.

Asset class* Market index Underlying investment manager**

Cash ANZ 90 Day Bank Bill Index

• ASB Group Investments Limited

NZ Fixed Interest 50% ANZ NZ Government Stock Index; and 50% ANZ A-Grade Corporate Bond Index

• Colonial First State Asset Management (Australia) Limited

World Fixed Interest Citigroup World Government Bond Index

• State Street Global Advisors, Australia, Limited

Global Property UBS Global Real Estate Investors Index

• Vanguard Investments Australia Limited

Australasian Shares 50% NZX 50 Index; and 50% S&P/ASX 200 Index


World Shares MSCI World (ex Australia) Index

• Vanguard Investments Australia Limited

Investment Fund detailsTracker Funds market indices and underlying investment

managers

The table below shows for each asset class, the market index (or

combination of indices) that the asset class will aim to closely

track and the underlying investment managers for each asset

class as at the date of this Investment Statement.

*An Investment Fund may invest in the asset classes either directly or indirectly, including through managed funds.

**An underlying investment manager is a person who manages the assets of an Investment Fund or a managed fund that an Investment Fund invests into (directly or indirectly).

Important informationThe market indices, investment asset mixes, objectives and policies, may change from time to time. This flexibility is required to ensure

that the Investment Funds can adapt to changes in the investment environment. The underlying investment managers may change from

time to time without notice to you.

While it is intended that the investment asset mix of each Investment Fund will remain in line with the benchmark, from time to time

depending on market conditions, trading efficiency, rebalancing trade-offs and the Manager’s ability to invest or divest in accordance with

minimum trading restrictions, the actual asset allocations may differ from the benchmark. The Manager will take reasonable steps to return

the Investment Fund to benchmark in a manner that is as efficient as possible. The Manager will hold a portion of cash in each Investment

Fund for liquidity purposes.

Asset class* Market index Underlying investment manager**

Cash ANZ 90 Day Bank Bill Index

• ASB Group Investments Limited

Global Fixed Interest (a combination of the NZ Fixed Interest and World Fixed Interest asset classes)

50% Citigroup World Government Bond Index; and 50% ANZ NZ Government Stock Index

•

•

•

•

Colonial First State Asset Management (Australia) LimitedState Street Global Advisors, Australia, Limited Colonial First State Investments LimitedPIMCO Australia Pty Limited

Global Property UBS Global Real Estate Investors Index


Australasian Shares 50% NZX 50 Index; and 50% S&P/ASX 300 Index

•

•

•

•

Devon Funds Management Limited

Harbour Asset Management Limited

BNP Paribas Investment Partners (Australia) Limited

Perennial Value Management Limited

World Shares (excluding the Global Sustainability Fund)

MSCI World Index • Colonial First State Investments Limited

World Shares (Global Sustainability Fund)

MSCI World (ex-Australia) Index

• Generation Investment Management LLP

13

• Vanguard Investments Australia Limited • Vanguard Investments

Australia Limited

Joining the FirstChoice KiwiSaver SchemeJoining the FirstChoice KiwiSaver Scheme is easy. First read

the rest of this Investment Statement which contains important

information about FirstChoice KiwiSaver, including the fees you

will pay and details about when you can withdraw your savings.

If you have any questions or need any additional information you

can contact us on:

Phone 0800 1ST CHOICE (0800 178 246)

Email [email protected]

Web www.firstchoiceinvestments.co.nz

Then it’s simply a matter of completing the Enrolment Form in

section four and returning it to us at the address below. Note,

if you are self-employed or not employed and wish to make

regular contributions to FirstChoice KiwiSaver, you will also

need to complete the Direct Debit Form and return it with the

Enrolment Form to arrange for contributions to be deducted

from your bank account. Alternatively, you may make lump sum

contributions at any time.

The address to return completed Enrolment Form(s) to is:

FreePost Authority ASB

FirstChoice KiwiSaver Scheme

ASB Group Investments

PO Box 35

Shortland Street

Auckland 1140

New Zealand

You can only be a member of one KiwiSaver scheme at a

time. If you are already a member of a KiwiSaver scheme

with another provider, you can join FirstChoice KiwiSaver and

transfer your savings to FirstChoice KiwiSaver (we will arrange

the transfer for you). Simply complete and return the Enrolment

Form in the back of this Investment Statement. You will need

to select the second tick box in section three of the Enrolment

Form to request that your KiwiSaver savings be transferred to

FirstChoice KiwiSaver.

What happens next?

Once we have received your Enrolment Form, and providing we

accept your application, we will send you an acknowledgement

letter confirming your membership. We will also contact Inland

Revenue to advise them you are a member of FirstChoice

KiwiSaver. If you are a new FirstChoice KiwiSaver member

joining KiwiSaver for the first time and employed, Inland

Revenue will let your employer know that you have joined

KiwiSaver and advise them to start making deductions from

your pay. You can also let your employer know yourself that they

need to start making deductions if you don’t want to wait for

Inland Revenue.

If you are employed and a new member of KiwiSaver, Inland

Revenue will hold your first three months of contributions before

sending them onto FirstChoice KiwiSaver. When we receive your

contributions, shortly after three months, we will send you a New

Member Certificate.

On-going communications

We will also send you regular communications about your

investments and you can contact us to answer any of your

questions at any time.

• If you wish to change between Investment Funds at any time

in the future, just complete and return the Switch Request

Form which we will provide to you when you join. This form

is also available at www.firstchoiceinvestments.co.nz or by

contacting us.

• Our member website allows you to monitor your contributions

and track your progress online at any time. We will provide

you with details of how to register for our member website

once you have joined.

Where can I find more information about KiwiSaver?

You can find more information at:


– information about FirstChoice KiwiSaver;

www.kiwisaver.govt.nz

– information about KiwiSaver generally;

www.sorted.org.nz

– information about retirement savings and KiwiSaver

calculators; and

www.hnzc.govt.nz

– information about the first home deposit subsidy and second-

chance home buyers.

KiwiSaver Scheme

14

Section ThreeSpecifics of the FirstChoice KiwiSaver Scheme

What sort of investment is this? 16

Who is involved in providing it for me? 17

How much do I pay? 17

What are the charges? 20

What returns will I get? 21

What are my risks? 25

Can the investment be altered? 26

How do I cash in my investment? 27

Who do I contact with enquiries about my investment? 27

Is there anyone to whom I can complain if I have problems with the investment? 27

What other information can I obtain about this investment? 28

15

What sort of investment is this?This Investment Statement offers membership in the FirstChoice KiwiSaver Scheme. FirstChoice KiwiSaver is a registered KiwiSaver scheme under the KiwiSaver Act 2006 (“KiwiSaver Act”).

FirstChoice KiwiSaver is designed to help individuals save for their retirement. The amount that you receive when a benefit is payable is determined by the contributions made to FirstChoice KiwiSaver, the investment returns of the Investment Funds that you have invested in, and the tax and fees deducted from your investment.

What is the nature of the FirstChoice KiwiSaver Scheme?

FirstChoice KiwiSaver allows investors to pool their savings into a selection of Investment Funds. Contributions are accepted from a number of investors and then collectively invested in specified asset classes.

Your investment in FirstChoice KiwiSaver is measured in “Units” in the various Investment Funds. Your contributions to FirstChoice KiwiSaver buy a number of Units at what is known as a “Unit Value”. As the investments made by an Investment Fund rise or fall in value, so too does the value of each individual Unit.

Who can join the FirstChoice KiwiSaver Scheme?

You are eligible for membership of FirstChoice KiwiSaver if you:

• are a New Zealand citizen or entitled to permanent residency in New Zealand; and

• are aged below the qualifying age for New Zealand superannuation (currently 65); and either:

• live or normally live in New Zealand; or

• fulfil all of the following criteria:

- are an employee of the State services; and - are serving outside New Zealand; and - are employed on New Zealand terms and conditions; and - are serving in a jurisdiction where offers of KiwiSaver scheme membership are lawful.

You can only be a member of one KiwiSaver scheme at any one time.

How do I join the FirstChoice KiwiSaver Scheme?

You may be enrolled as a member of FirstChoice KiwiSaver if you:

• are not already a member of another KiwiSaver scheme; or

• transfer from another KiwiSaver scheme to FirstChoice KiwiSaver; and

• the Manager accepts your application.

To enrol to be a member of FirstChoice KiwiSaver, complete the Enrolment Form in section four of this Investment Statement and return it to:

FreePost Authority ASB FirstChoice KiwiSaver Scheme ASB Group Investments PO Box 35 Shortland Street

Auckland 1140.

If your employer has chosen FirstChoice KiwiSaver as its chosen

KiwiSaver scheme and you do not actively choose another

KiwiSaver provider within three months of first joining KiwiSaver,

you will become a member of FirstChoice KiwiSaver.

Admission Deeds

Your employer may enter into a deed with the Trustee (called an

“Admission Deed”). An Admission Deed may contain terms and

conditions particular to the offer of membership made to you

via your employer. If so, then this Investment Statement must

be read together with the relevant accompanying supplement

(“Supplemental Investment Statement”).

To become a member under an Admission Deed, please complete

the Enrolment Form at the back of the Supplemental Investment

Statement, which you should request from your employer.

An Admission Deed may also record the employer’s choice of

the Scheme as its employer’s chosen KiwiSaver scheme.

Employer’s Chosen Scheme Agreement

An employer may enter into an agreement (“Employer’s

Chosen Scheme Agreement”) with the Manager (as the

Trustee’s delegate) under which the employer chooses

FirstChoice KiwiSaver as its employer’s chosen KiwiSaver

scheme and records that the Trustee and the Manager will

provide access to FirstChoice KiwiSaver for employees of

the employer.

If your employer has entered into an Employer’s Chosen Scheme

Agreement, your membership of FirstChoice KiwiSaver will be as

described in this Investment Statement.

Investment Funds

The Investment Funds available through FirstChoice KiwiSaver

are outlined in the guide at the front of this Investment

Statement. Refer to page 9 for the guide to choosing your

Investment Fund(s). If you become a member under an

Admission Deed, not all Investment Funds may be available to

you. If that is the case, the Supplemental Investment Statement

(if applicable) will outline the Investment Funds available to you.

You can specify which Investment Fund(s) your contributions will

be invested in (“Investment Strategy”) on the Enrolment Form.

Your Investment Strategy will determine how your contributions

in FirstChoice KiwiSaver will be allocated to the one or more

Investment Funds available to you.

If you do not choose an Investment Strategy, your contributions

will automatically be invested in the Tracker Conservative Fund

(or such other fund set out in the Supplemental Investment

Statement (if applicable)).

KiwiSaver Scheme

16

Who is involved in providing it for me?The FirstChoice KiwiSaver Scheme was registered on 14 June 2007 under the KiwiSaver Act. FirstChoice KiwiSaver was established and is governed by a Trust Deed dated 11 June 2007, as amended on 1 April 2008 (the “Trust Deed”). FirstChoice KiwiSaver has accepted members since 1 July 2007.

Trustee, Administration Manager and Promoters

Public Trust is the Trustee of FirstChoice KiwiSaver. You may contact Public Trust by writing to its registered office at Level 10, 141 Willis Street, Wellington 6011.

ASB Group Investments is the Administration Manager and Investment Manager of FirstChoice KiwiSaver. However, ASB Group Investments has entered into arrangements whereby it receives investment advice from First State Investments (NZ) Limited, investment administration services from Sovereign Services Limited and all other administration and distribution services from ASB Bank Limited. The principal place of business of ASB Group Investments is Sovereign House, 33-45 Hurstmere Road, Takapuna, Auckland 0622.

ASB Group Investments and ASB Bank Limited (“ASB”) are Promoters of FirstChoice KiwiSaver. ASB’s principal place of business is ASB Bank Centre, 135 Albert Street, Auckland 1010.

The directors of ASB Group Investments and ASB also are Promoters of FirstChoice KiwiSaver in terms of the Securities legislation. As at the date of this Investment Statement, the directors of ASB Group Investments are:

K C McDonald C A McGrath S R Bryant

The principal place of residence of each of the directors of ASB Group Investments is Auckland, New Zealand.

You may contact ASB Group Investments, ASB or any of their directors, by writing to the following address:

ASB Group Investments Limited/ASB Bank Limited Level 28, ASB Bank Centre 135 Albert Street (PO Box 35) Auckland 1010 New Zealand

You may also contact ASB Group Investments, ASB or any of their directors, by phoning (09) 377 8930.

As at the date of this Investment Statement, the directors of ASB are: B J Chapman, J P Ling, D M Elder, J P Hartley, R M McEwan, G R Walker and G L Mackrell. The principal place of residence for B J Chapman, J P Ling and G R Walker is Auckland, for D M Elder is Christchurch, for J P Hartley is Wellington and for R M McEwan and G L Mackrell is Sydney, Australia.

The directors of ASB Group Investments Limited and ASB may change from time to time, as may the address of both companies. A current list of the directors and the current address of both companies is available online at www.business.govt.nz/companies on the relevant company file.

In certain cases, an employer who enters into an Admission Deed will also be a promoter of FirstChoice KiwiSaver in terms of the offer of membership to employees of that employer. This information is disclosed in the relevant Supplemental Investment Statement (if applicable).

Law Reform

The KiwiSaver Amendment Act 2011 provides that from 1 October 2012, every manager of a KiwiSaver scheme will become the issuer of that scheme, with the trustee retaining a supervisory role and the manager assuming primary responsibility for the investment and administration of the scheme. KiwiSaver scheme providers electing to adopt this new regime prior to 30 September 2012 must give the Financial Markets Authority and Inland Revenue 20 working days’ notice of their chosen implementation date. The manager will then have three months following the implementation date to send a written statement to all members explaining the changes.

The Securities Trustees and Statutory Supervisors Act 2011 (“Act”) came into effect on 1 October 2011 and requires the Trustee to apply to the Financial Markets Authority for a licence to act as a trustee for a range of financial products.

The Trustee lodged its licensing application with the Financial Markets Authority on 28 October 2011 and is required to provide additional supporting information to the licensing application by the Financial Markets Authority deadline of 12 December 2011.

The Trustee holds a temporary licence to act as a trustee of financial products under the transitional provisions of that Act. The temporary licence expires on 30 September 2012 or such earlier date on which the new licence is granted or the Financial Markets Authority approves or declines the Trustee’s application. If the Financial Markets Authority were to decline the application or revoke the temporary licence, then the Manager would be obliged to seek and appoint another scheme trustee.

Responsible Investment Policy (see also Responsible Investment Policy on page 8)

Responsible investment, including environmental, social and governance considerations, is taken into account in the investment policies and procedures of the scheme as at the date of this Investment Statement. You can obtain an explanation of the extent to which responsible investment is taken into account in those policies and procedures on the issuer’s website at www.publictrust.co.nz, which is publicly accessible at all reasonable times; and from the issuer, free of charge, upon request. This explanation is also available at www.firstchoiceinvestments.co.nz or from the Manager, free of charge upon request, by calling 0800 1ST CHOICE (0800 178 246).

Responsible investment is only taken into account in the investment policies and procedures of the Global Sustainability Fund. Responsible investment is not taken into account for any other Investment Fund.

How much do I pay?You will be required to make contributions to FirstChoice KiwiSaver as prescribed in the KiwiSaver Act and the relevant Admission Deed (if any).

If you are an employeeEmployee contributions

As at the date of this Investment Statement, if you are an employee you can elect to contribute 2%, 4% or 8% of your gross (i.e. before tax) salary or wages (“the required contribution rate”). Your contribution rate will be 2% if you do not elect a contribution rate. The Government announced in the 2011 Budget that the minimum employee contribution rate will increase from 2% to 3% of gross salary or wages, with effect from 1 April 2013.

Salary or wages is as defined in the KiwiSaver Act and includes most employment-related income that is subject to the PAYE tax regime – for example, total salary, bonuses, gratuities, overtime or commission. Salary or wages excludes amounts such as redundancy payments and expenditure or allowances for accommodation overseas or other costs of living overseas.

Your employer will deduct your contributions from your after-tax salary or wages and will pay them to the relevant office of Inland Revenue electronically or by cheque. Inland Revenue will then pay the contributions to FirstChoice KiwiSaver. Inland Revenue will hold the first three months’ of your contributions when you first join KiwiSaver. Shortly after the end of that three-month period, your contributions plus interest and the Government’s $1,000 kick-start contribution will be forwarded to the Manager. This three-month period may be extended until your balance reaches the applicable minimum amount that the Trustee will accept (as notified to Inland Revenue from time to time).

Employer contributions

If you are contributing at the required contribution rate and you are eligible for compulsory employer contributions, your employer must also contribute 2% of your gross salary or wages to a KiwiSaver scheme for your benefit.

17

The Government announced in the 2011 Budget that the compulsory employer contribution rate will increase from 2% to 3% of gross salary or wages, with effect from 1 April 2013.

The amounts of employer contributions will be reduced by any amount that your employer is required to contribute to a complying superannuation fund3 or, if the “double dipping” provisions in the KiwiSaver Act apply, to another registered superannuation scheme, for your benefit. Your employer will be able to tell you if these restrictions apply to you.

For the purposes of employer contributions, salary or wages excludes ACC compensation and statutory parental leave payments.

You may be eligible for compulsory employer contributions if you are an employee aged 18 years or over, are not yet eligible to be paid your KiwiSaver retirement benefit and are contributing to a KiwiSaver scheme from your salary or wages. You are eligible to be paid your KiwiSaver retirement benefit on the later of New Zealand Superannuation age – 65 as at the date of this Investment Statement – or after five years’ membership of KiwiSaver schemes and/or complying superannuation funds.

Before 1 April 2012, your employer’s contributions (less any tax free contributions your employer makes to a complying superannuation fund for your benefit) will not be subject to Contribution Tax up to a maximum of 2% of your salary or wages, provided they are matched by contributions from you.

This means, for example, that if you contribute 2% of your salary or wages to FirstChoice KiwiSaver before 1 April 2012, then the first 2% of any contribution from your employer (less any tax free contributions from your employer to a complying superannuation fund for your benefit) will not be subject to Contribution Tax (resulting in greater retirement savings).

Before 1 April 2012, any other contributions made by your employer are subject to Contribution Tax. This tax is generally payable at a rate of 33%, but in some cases it may be deducted at a rate determined by your marginal tax rate. Your employer will be able to confirm the rate of tax it will deduct from any employer contributions.

From 1 April 2012, there will be no exemption from Contribution Tax for any employer contributions. From 1 April 2012, Contribution Tax will be deducted at your marginal tax rate before employer contributions are sent to the Trustee for crediting to your account.

Changes to contribution rate

You can change your contribution rate to 2%*, 4% or 8% and take a contributions holiday (see Can the investment be altered? on page 26).

Additional contributions for employees

Employees can make additional lump sum contributions to Inland Revenue at various locations, depending on where in New Zealand they live, or by way of an internet banking payment. Alternatively, employees can make additional lump sum contributions directly to FirstChoice KiwiSaver by cheque made out to the FirstChoice KiwiSaver Scheme and sent to FreePost Authority ASB, FirstChoice KiwiSaver Scheme, PO Box 35, Shortland Street, Auckland 1140. Additional regular contributions can be paid to FirstChoice KiwiSaver by completing the Direct Debit Form attached to this Investment Statement and sending it to FreePost Authority ASB, FirstChoice KiwiSaver Scheme, PO Box 35, Shortland Street, Auckland 1140. There is currently no minimum amount for additional contributions. The Manager may change the minimum additional contribution amount at any time. Members will be notified if a minimum additional contribution amount is introduced.

Further information about making additional contributions can be obtained by contacting us on 0800 1ST CHOICE (0800 178 246) or email [email protected]

* The Government announced in the 2011 Budget that the minimum employee contribution rate will increase from 2% to

3% of gross salary or wages, with effect from 1 April 2013.

If you are self-employed or not employed

If you are not employed or self-employed, you may contribute

to FirstChoice KiwiSaver at any rate that you choose. There is

currently no minimum contribution amount or rate. Members will

be notified if a minimum contribution amount is introduced.

Lump sum contributions may be paid to Inland Revenue at

various locations, depending on where in New Zealand you

live (or by way of an internet banking payment) or directly to

FirstChoice KiwiSaver by cheque made out to the FirstChoice

KiwiSaver Scheme and sent to FreePost Authority ASB,

FirstChoice KiwiSaver Scheme, PO Box 35, Shortland Street,

Auckland 1140. Please attach your cheque to your Enrolment

Form if you are a new FirstChoice KiwiSaver member or write

your name, phone number and KiwiSaver account number

on the back of the cheque if you are an existing FirstChoice

KiwiSaver member. Regular contributions can be paid to

FirstChoice KiwiSaver by completing the Direct Debit Form

attached to this Investment Statement and sending it to

FreePost Authority ASB, FirstChoice KiwiSaver Scheme,

PO Box 35, Shortland Street, Auckland 1140.

If you are self employed and pay yourself a salary or wages as

furthered explained on page 17, you may be treated as an employee

and employer for the purposes of KiwiSaver contributions.

Member tax credits

If you are eligible, the Government will contribute to FirstChoice KiwiSaver a maximum of $10.00 per week or $521.43 a year (from 1 July to 30 June). These contributions are based on your period of eligible membership in a KiwiSaver scheme and will be paid on a reduced basis if you are not eligible for the full 1 July to 30 June year. You will need to be eligible for a full year and contribute $1,042.86 a year to receive the maximum member tax credit.

If you also contribute to a complying superannuation fund, the member tax credits will be apportioned over both schemes.

You are eligible for member tax credits from age 18 until you are eligible to receive a KiwiSaver retirement benefit (i.e. the later of New Zealand Superannuation age – 65 at the date of this Investment Statement - or five years’ membership of KiwiSaver schemes and/or complying superannuation funds) and if you reside mainly in New Zealand. If you do not reside mainly in New Zealand, you will be required to give the Manager written evidence of why and for what period you are overseas.

The member tax credit will be paid into FirstChoice KiwiSaver once a year, and will be credited across the Investment Funds that are part of your Investment Strategy in place at the time the contributions are received by FirstChoice KiwiSaver. Member tax credits are not subject to tax.

Crown contribution

If FirstChoice KiwiSaver is the first KiwiSaver scheme you join, the Crown will pay a tax free contribution (currently $1,000) to FirstChoice KiwiSaver on your behalf approximately three months after you first join FirstChoice KiwiSaver. The Crown kick-start contribution will be credited across the Investment Funds that are part of your Investment Strategy in place at the time the contribution is received by FirstChoice KiwiSaver.

3 Complying superannuation fund means a superannuation fund that is approved as a complying superannuation fund by the Financial Markets Authority under section 35 of the Superannuation Schemes Act 1989. It is essentially a registered superannuation scheme that has a materially KiwiSaver equivalent lock-in benefit facility that has been approved by the Financial Markets Authority.

KiwiSaver Scheme

18

What happens to contributions?

The Trustee will open a Cash Account* and an Investment Account

(“Accounts”) in your name.

Your Cash Account balance will be used to meet Administration

Fees and any other fees which are not deducted from the

Investment Funds or your Investment Account. (See What are the

charges? over the page).

ASB Group Investments will operate your Cash Account so that

it retains the minimum balance set by the Trustee from time to

time. Any excess will be transferred to your Investment Account.

As at the date of this Investment Statement, the minimum balance

will be equal to the total of up to three months’ of the applicable

Administration Fee and two months’ Mortgage Diversion payments

(if applicable). If your Cash Account balance falls below the set

minimum, the Trustee may transfer the difference from your

Investment Account into your Cash Account.

Interest will be credited to your Cash Account as determined by

the Manager from time to time. As at the date of this Investment

Statement, the interest rate is in line with ASB’s on-call deposit rates.

Your Investment Account balance will comprise the current value

of the Units that you hold in the relevant Investment Funds. Your

Investment Account is used to meet the Investment Management Fee.

If excess contributions are credited to either of your Accounts by

mistake, the Trustee can deduct the overpayment from the relevant

Account and repay that amount to the Commissioner.

If your enrolment is declined by the Manager, any contributions

received by the Manager from you will be returned to you with

interest (if any) for the period your contributions were held by the

Manager. As at the date of this Investment Statement, the interest

rate is in line with ASB’s on-call deposit rates.

Failure to make contributions

If you do not make contributions at the required contribution rate,

or a contribution which you have made is dishonoured, and if the

Trustee has already recognised this contribution in one (or more)

of your Accounts, the Trustee will amend the appropriate Accounts

accordingly.

If you fail to contribute as you have agreed or as required by

the KiwiSaver Act, it may affect your membership in FirstChoice

KiwiSaver.

*It is anticipated that the Manager will cease to operate a Cash

Account in the next year (see Review of fees on page 20).

19

Investment Management Fee

You pay an Investment Management Fee calculated in respect

of each Investment Fund. The Investment Management Fee is

calculated monthly and is a percentage of the gross value of your

balance in the Investment Fund on the first day of the relevant

month. The Investment Management Fee is payable in arrears on

the second Friday of the following month. It is paid by deduction

from your Investment Account, unless otherwise determined by

the Trustee.

The percentage used to calculate the Investment Management Fee

varies between Investment Funds. The percentage applicable for

each Investment Fund in any month is the annual percentage set

out in the table alongside, divided by twelve.

The Manager uses the Investment Management Fee it receives

to pay for the fees and expenses (excluding brokerage, any

performance fees and the Administration Fee) involved in the

operation, investment management administration and marketing

of FirstChoice KiwiSaver. This includes a Trustee Fee of 0.03%

per annum, calculated as a percentage of the gross asset value of

each Investment Fund.

Administration Fee

The Trustee may pay the Manager an administration fee on

your behalf for the administration services it performs for the

FirstChoice KiwiSaver Scheme (“Administration Fee”). The

Manager may pay First State Investments (NZ) Limited, Sovereign

Services Limited and ASB a fee for the investment advisory,

investment administration and other administration and distribution

services they provide to the Manager in respect of FirstChoice

KiwiSaver. The Manager will meet these costs. The Administration

Fee is $3.00 (plus GST (if any) and any other taxes) per member

per month.

The Administration Fee (if applicable) will be deducted from your

Cash Account monthly in arrears, unless otherwise advised by

the Manager.

What are the charges?The following fees are, or may be, payable by you.

Brokerage & Performance Fees

Brokerage in respect of the buying and selling of securities of an

Investment Fund may be charged to members or met from the

assets of an Investment Fund. The Investment Funds may invest

in other managed funds in which performance fees and brokerage

may be charged, which may affect returns to investors in the

Investment Funds.

Other expenses of the FirstChoice KiwiSaver Scheme

Under the terms of the Trust Deed, the Trustee and the Manager

are entitled to be reimbursed for all costs, charges and

expenses properly and reasonably incurred for the operation,

administration and marketing of FirstChoice KiwiSaver.

As stated above, the Manager pays such costs and expenses

(except for performance fees and brokerage) out of the

Investment Management Fee it receives.

The Investment Funds may invest in other managed funds. Fees

and expenses may be charged or deducted in respect of these

funds which may affect returns to investors in the Investment

Funds. The Manager reimburses the Investment Funds for all such

fees and expenses (except performance fees and brokerage).

The Manager does this by accruing a rebate for these fees and

expenses (excluding any performance fees and brokerage) on a

daily basis, and paying these accumulated daily amounts to each

particular Investment Fund on a monthly basis. This timing difference

means that the accumulated rebate is not subject to the gains or

losses of the Investment Fund for the month. Any such gains or

losses are, however, considered to be immaterial.

Other fees

No other fees are currently charged to you. However, under the

Trust Deed the Trustee may introduce other fees such as entry fees,

exit/transfer fees, switching fees, contribution fees, transaction

fees, custodial fees, exceptional services fees and adviser fees.

Review of fees

Subject to the provisions of the KiwiSaver Act, the Trustee, in

consultation with the Manager, is entitled to review the fees

payable from time to time. You will be notified in writing four

weeks before any fee or charge that you are liable to pay, or

which affects your returns, is introduced or increased.

Under the KiwiSaver Act, all fees and expenses charged to you

must be “reasonable”. You can apply to the Court (within one

year of an unreasonable fee being imposed or debited) for an

order to annul or reduce the fee.

It is anticpated that the Manager will cease to operate the Cash

Accounts in the next year. You will be notified if the Manager

makes this decision. If the Manager ceases to operate your Cash

Account, then all fees, costs, charges or indemnities previously

payable from your Cash Account will be paid by debiting Units

on a pro rata basis across the Investment Funds in which your

balance is invested.

Investment Fund Investment Management Fee (gross per annum)

Administration Fee

NZ Cash Fund 0.35% $3.00 per member per month

Tracker Conservative Fund

0.40%

Tracker Moderate Fund

0.60%

Tracker Balanced Fund 0.65%

Tracker Growth Fund 0.70%

Active Conservative Fund

0.80%

Active Balanced Fund 0.85%

Active Growth Fund 0.90%

Active High Growth Fund

1.00%

Global Sustainability Fund

1.50%

GST (if any) and any other taxes are additional to the above amounts.

KiwiSaver Scheme

20

What returns will I get?Your contributions to FirstChoice KiwiSaver are invested in your chosen Investment Fund(s), your share of which is calculated in Units. The Unit Value is the price you pay or receive when your contributions are invested in Units in, or are redeemed from Units from, an Investment Fund.

The amount of return on your contributions to an Investment Fund will be reflected as an increase or decrease in the Unit Value. A Unit Value incorporates both capital growth and loss of the assets in an Investment Fund, as well as any income earned after payment of expenses and taxes (excluding any PIE tax – see the Tax summary on page 23). FirstChoice KiwiSaver does not make income distributions.

As at the date of this Investment Statement, no amount of returns has been promised to members.

The key factors that determine your returns are:

• the investment performance of the assets purchased by each Investment Fund;

• the amount contributed to FirstChoice KiwiSaver by you or on your behalf;

• fees, charges and expenses payable (see What are the charges? on page 20); and

• taxation (see the Tax summary on page 23).

How do I find out the value of my Accounts in the FirstChoice KiwiSaver Scheme?

To find out the current value of your Accounts in FirstChoice KiwiSaver you can:

• Check your balance online at www.firstchoiceinvestments.co.nz We will provide you with details of how to do this once you have joined; or

• Contact us on 0800 1ST CHOICE (0800 178 246) or email [email protected]

KiwiSaver benefits

Unless you satisfy the early withdrawal criteria (see below) you may not make a withdrawal from FirstChoice KiwiSaver until the later of:

• the date you reach the age of entitlement to receive New Zealand Superannuation (currently age 65); or

• the date on which you have been a member of any KiwiSaver scheme and/or complying superannuation fund for five years. A complying superannuation fund is a registered superannuation scheme with a KiwiSaver equivalent lock-in approved by the Financial Markets Authority.

The actual dates on which, and frequency with which, the benefits from FirstChoice KiwiSaver are due and paid are unknown.

After that date, you can withdraw all or part of the value of your Accounts at any time. You cannot make a partial withdrawal if it would result in the balance of your Accounts falling below $2,000. The Manager can change this amount and introduce other restrictions from time to time. You will be notified of any changes. You may be required to provide evidence that you are eligible for a withdrawal. When you make a withdrawal, your Accounts may be adjusted for tax (see Tax summary on page 23).

Early withdrawals

You may apply to the Trustee for an early withdrawal from

FirstChoice KiwiSaver under the circumstances listed below.

You may be required to provide evidence of your right to make

the withdrawal. If your application is accepted, when you make

a withdrawal the balances in your Accounts may be adjusted for

tax (see the Tax summary on page 23).

Withdrawal to purchase a first home

You may apply to the Trustee to withdraw all or part of the value of

your Accounts (excluding the Government’s kick-start contribution

and the member tax credits) to purchase a first home if:

• at least three years have passed since Inland Revenue

received your first contribution or you have been a KiwiSaver

member for three years or more; and

• the land is, or is intended to be, your principal place of

residence; and

• you have never held an estate in land (there are some

detailed rules regarding when a person “holds an “estate” in

land”); and

• you have never made a withdrawal from a KiwiSaver scheme

for purchasing a home before.

This withdrawal facility is also available to second-chance home

buyers who meet the relevant criteria. For more information, see

www.hnzc.govt.nz

If your application is accepted, and you make a withdrawal for

this purpose, you will remain a member of FirstChoice KiwiSaver

and you may continue contributing to FirstChoice KiwiSaver.

The withdrawal will be paid to your solicitor. The Trustee may

require certain information from your solicitor before paying

the withdrawal.

Australia-sourced retirement savings may not be withdrawn to

use for a first home purchase.

A first home deposit subsidy of up to $5,000 is available to

members of any KiwiSaver scheme who meet the relevant

eligibility criteria as determined by Housing New Zealand

Corporation, including minimum contribution levels and certain

income and regional house price caps. Any subsidy will be

payable by the Government and not FirstChoice KiwiSaver.

This subsidy is in addition to the facility allowing you to

make a withdrawal for the purchase of a first home. The first

home deposit subsidy will be administered by Housing New

Zealand Corporation. This subsidy will also be available to

second-chance buyers who meet the relevant criteria. For more

information, see www.hnzc.govt.nz

Death

If you die while still a member of FirstChoice KiwiSaver, the

Trustee will, on the application of your personal representative,

pay the total value of your Accounts to your personal

representative once the application is accepted as part of your

estate. Or, if the requirements of section 65 of the Administration

Act 1969 are met, pay the total value of your Accounts to the

relevant person(s).

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Significant financial hardship

You may apply to the Trustee to make a significant financial

hardship withdrawal. The Trustee will require documentation to

support your application. If your application is accepted, you can

withdraw a lump sum up to the value of your Accounts less the

Government’s kick-start contribution and the member tax credits.

You will remain a member of FirstChoice KiwiSaver and you may

continue contributing to FirstChoice KiwiSaver.

If your application is accepted, the amount withdrawn may be

limited to the amount that, in the Trustee’s opinion, is required to

alleviate hardship.

Serious illness

You may apply to the Trustee to make a serious illness

withdrawal. If your application is accepted, you can withdraw a

lump sum up to the total value of your Accounts. The Trustee will

require evidence to support your withdrawal request.

As at the date of this Investment Statement, serious illness

means an injury, illness or disability:

• that results in you being totally and permanently unable

to engage in work for which you are suited by reason of

experience, education, or training, or any combination of

those things; or

• that poses a serious and imminent risk of death.

Permanent emigration

You may apply to the Trustee to make a withdrawal on the

grounds of permanent emigration one year after your permanent

emigration from New Zealand. If your application is accepted,

you can withdraw a lump sum up to the value of your Accounts,

less the member tax credits.

Alternatively, if you permanently emigrate from New Zealand,

you may apply immediately to the Trustee to transfer the value

of your Accounts (less the amount of the member tax credits) to

a foreign superannuation scheme authorised for that purpose

under regulations made under the KiwiSaver Act. As at the date

of this Investment Statement, no such regulations have been

made.

If you make a permanent emigration withdrawal or transfer,

the amount of the member tax credits will be repaid to Inland

Revenue. If you withdraw or transfer all of the balance of your

Accounts for a permanent emigration withdrawal, you will cease

to be a member.

The Trustee will require evidence of your permanent emigration

(for example, evidence of confirmed travel arrangements,

passport evidence, evidence of any necessary visas and

evidence that you have resided overseas during the year), along

with a statutory declaration to support this evidence.

Trans-Tasman Portability

The Government has passed legislation to give effect to the

trans-Tasman portability of retirement savings. The portability

arrangements will allow a person who has retirement savings in

both Australia and New Zealand to consolidate them in one

account in their current country of residence.

The key features are:

• Participation is voluntary for KiwiSaver members and scheme

providers;

• Retirement savings may only be transferred between

a KiwiSaver scheme and an Australian complying

superannuation fund regulated by the Australian Prudential

Regulation Authority;

• A KiwiSaver member must permanently emigrate to Australia

to be able to transfer his or her retirement savings;

• A KiwiSaver member must transfer the full amount of their

savings, not a partial amount;

• A KiwiSaver member will be able to transfer all of their

Government contributions – their member tax credits will not

be recovered by the Crown;

• A KiwiSaver member will not be able to withdraw any

retirement savings in cash after one year upon permanent

emigration to Australia, as can be done if the person

emigrates to a country other than Australia;

• Funds transferred under this arrangement may not be

transferred to a third country;

• Transferred amounts from Australian-sourced retirement

savings will be subject to Australian complying

superannuation fund rules and can be withdrawn once you

have reached age 60, and where retirement is taken to

have occurred; and

• The requirements for proof of permanent emigration to

Australia will be the same as for permanent emigration to

other countries.

The arrangements will come into effect approximately two

months after the month in which the Governments of Australia

and New Zealand exchange notes informing each other that the

necessary legislation has been enacted as provided by the

arrangement between them on trans-Tasman portability. As at

the date of this Investment Statement, it is unknown when this

will occur.

As at the date of this Investment statement, it is unknown

whether or not FirstChoice KiwiSaver will accept transfers of

Australia-sourced retirement savings.

Application for withdrawal of FirstChoice KiwiSaver

Scheme benefits

To make a withdrawal request, you need to complete and

return a Withdrawal Form. You can obtain this form by

contacting us on 0800 1ST CHOICE (0800 178 246) or

email [email protected]

KiwiSaver Scheme

22

Mortgage diversion

The Manager no longer accepts applications from FirstChoice KiwiSaver members for mortgage diversion.

Payment of FirstChoice KiwiSaver Scheme benefits

FirstChoice KiwiSaver benefits will be paid out of your investment in the Investment Funds. Your benefit will also include the remaining amount in your Cash Account.

It is intended that payments of benefits will normally be made within seven to ten days of your request. Payments will usually be made by direct credit to your nominated bank account. The Trustee is legally liable to pay your benefit. The Manager will pay your benefit as a lump sum.

For more information, contact us on 0800 1ST CHOICE (0800 178 246), email [email protected] or visit www.firstchoiceinvestments.co.nz. Information on mortgage diversion is also available at www.ird.govt.nz

Tax summary

Portfolio Investment Entity

FirstChoice KiwiSaver is a Portfolio Investment Entity (“PIE”). This means that FirstChoice KiwiSaver will pay tax on your share of the taxable income earned by the Investment Funds at your elected Prescribed Investor Rate (“PIR”).

Prescribed Investor Rate

Your PIR can be determined as follows: (See page 33 for a chart to assist you with calculating your PIR.)

Examples of non-PIE taxable income:

• Salary, wages, bonuses, commission, NZ Super, student allowances, parental leave, tips and gratuities; • Rent; • Royalties;• Withholding payments; and• Dividends and interest.

Examples of PIE taxable income:

• Taxable income from a PIE compliant KiwiSaver scheme; and

• Taxable income from other PIE compliant managed funds.

Deductions are available for PIE tax losses.

New Zealand Tax Resident Individuals Your PIR is :

You are eligible for this rate if in either of the last two tax years to 31 March:

your taxable income was $14,000 or less;

AND

your taxable income plus your PIE income was $48,000 or less.

10.5%

You are eligible for this rate if the above rate does not apply to you and in either of the last two tax years to 31 March:

your taxable income was $48,000 or less;

AND

your taxable income plus your PIE income was $70,000 or less.

17.5%

You are eligible for this rate if in both of the last two tax years to 31 March:

your taxable income was more than $48,000;

OR

your taxable income plus your PIE income was more than $70,000.

28%

Other Investors

Non-New Zealand Tax Resident Individuals 28%

If you do not provide the Manager with your PIR and IRD number, then any taxable income allocated to you will be taxed at 28%.

If you advise us of a change in your PIR, the new PIR will apply to your share of taxable income earned in FirstChoice KiwiSaver that has not already been taxed.

If your PIR changes and you do not advise us during the current tax year, or you provide us with the wrong PIR, you may end up paying too much tax on your share of taxable income or you may have to file a tax return and pay further tax (together with any interest and penalties). Where tax on your share of taxable income has been overpaid as a result of you providing an incorrect PIR, the overpaid tax cannot be recovered.

There is no impact on eligibility for family assistance, student loan repayment obligations or child support payment obligations as a result of investing in FirstChoice KiwiSaver.

From 1 April 2012, the PIR for individuals who have recently become New Zealand tax resident will be calculated based on their worldwide income and not their New Zealand taxable income.

As at the date of this Investment Statement, the Manager does not intend to elect for FirstChoice KiwiSaver to become a zero rate foreign investment PIE or a variable rate foreign investor PIE.

For further information on PIRs and how to calculate your PIR, please refer to the chart on page 33. Additional information can also be obtained by contacting us on 0800 1ST CHOICE (0800 178 246) or email [email protected]

Adjustment of the balances in your Accounts and payment of tax

At tax year end:Generally, the Manager (on behalf of the Trustee) will pay the tax on your share of the Investment Funds’ taxable income at the end of each year (shortly after 31 March). The Trustee will meet this tax payment by cancelling the required Units in your Investment Funds or debiting your Cash Account. The Manager (on behalf of the Trustee) will pay the tax deducted from your Accounts to Inland Revenue.

The Manager (on behalf of the Trustee) will apply to Inland Revenue for a rebate for any tax loss or excess tax credit attributable to you (except any foreign tax credit). In most cases, you will be provided with additional Units to reflect the loss or excess credits. In other cases, you may receive a cash payment to your Cash Account.

On the withdrawal, switch, transfer or sale of Units: An adjustment for tax will be made to your Accounts if you make a full or partial withdrawal from FirstChoice KiwiSaver, switch part or all of your investment between Investment Funds, transfer to another KiwiSaver scheme, or if your Units are sold during the year for any other reason. The Manager will deduct the tax attributed to the amount that is withdrawn, switched, transferred or sold.

The Manager (on behalf of the Trustee) will apply to Inland Revenue for a rebate of any tax loss or excess credit (except any foreign tax credit) attributable to you in respect of Units that are withdrawn, switched, transferred, or sold. In most cases, you will be provided with additional Units to reflect the loss or excess credits. In other cases, you may receive a cash payment to your Cash Account.

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No guarantors None of the Crown, the Trustee, the Promoters, the Manager (or any other manager), any underlying investment manager, ASB Bank Limited and its subsidiaries (the “Banking Group”), Sovereign Services Limited or its subsidiaries, the Commonwealth Bank of Australia, any other company in the Commonwealth Bank of Australia Group, or any of their Board members or directors (as the case may be), nor any other person or party guarantees the securities offered in this Investment Statement (including the repayment of any capital invested) or the performance of those securities (including any of the investments or returns made in respect of the securities). The securities offered in this Investment Statement do not represent bank deposits or liabilities of the Banking Group or the Commonwealth Bank of Australia Group and are subject to investment risk, including the loss of income and principal invested.

No Crown guarantee There is no Crown guarantee in respect of any KiwiSaver scheme or investment product of a KiwiSaver scheme.

Investment incomeInvestment Funds that invest in offshore equities and unit trusts (excluding shares in companies and units in unit trusts (if any) which are taxed in Australia as Australian resident companies and included on an approved ASX index) (“Offshore Investments”) will be taxed on these Offshore Investments under the fair dividend rate (“FDR”) method.

Under FDR:

• The Investment Funds will pay tax on 5% of the daily average market value of the Offshore Investments;

• The Investment Funds will not pay tax on any dividends or profits from selling Offshore Investments;

• The Investment Funds will not be able to claim a tax deduction for any losses on those Offshore Investments; and

• Tax credits on those Offshore Investments may be available to offset any tax payable.

Where an Investment Fund invests in a foreign global bond fund which is hedged 80% or more directly or indirectly into New Zealand dollars, FDR cannot be used. The comparative value (CV) method will be used to calculate the Investment Fund’s taxable income from this investment.

Under CV:• The Investment Funds will pay tax on realised/unrealised

investment gains and losses; and• The Investment Funds will pay tax on any distributions

received.

Under the PIE regime:• The Investment Funds will not pay tax on any profit or loss

from the sale of New Zealand shares and certain Australian shares and units which are not subject to FDR or CV (“Onshore Investments”);

• The Investment Funds will pay tax on any dividends from Onshore Investments; and

• Any taxable income earned from other investments, not listed above, will be subject to tax.

Where FirstChoice KiwiSaver invests in a PIE, any taxable income earned by the underlying PIE will be taxed in the same way as if they had been held directly by FirstChoice KiwiSaver.

The Trustee will calculate your portion of the taxable income (or loss) of each Investment Fund (after allowing for applicable fees and expenses) and the taxable income (or loss) of your Cash Account each day. This calculation is based on the number of Units you hold. Any Administration Fee which is deducted from your Cash Account will be subtracted from your share of the taxable income (or loss) of FirstChoice KiwiSaver. The Trustee will also allocate to you any tax credits from tax deducted at the source of the income and any other amounts required to prepare an individual daily tax calculation.

Tax summary

This tax summary is based on the Trustee’s and the Manager’s understanding of New Zealand tax law at the date of this Investment Statement. Taxation rates and legislation may change. For specific tax advice, we recommend you talk to a professional tax adviser. Neither the Trustee nor the Manager accept any responsibility for the tax consequences of your investment in FirstChoice KiwiSaver.

KiwiSaver Scheme

24

What are my risks?It is important to note that investment returns from the Investment Funds will fluctuate up or down. Returns can be negative or insufficient to cover charges and costs. This means that it is possible for you to get back less than the total amount you contribute to FirstChoice KiwiSaver. This risk is increased if you make a withdrawal or transfer to another KiwiSaver scheme shortly after joining FirstChoice KiwiSaver. The key risks are outlined below.

Asset class risksThere are specific asset class risks that can be reduced by taking a diversified approach to investing, by spreading your savings across several asset classes.

Currency risk Some of the Investment Funds available through FirstChoice KiwiSaver invest in international investments. This means that currency movements will affect the investment performance of these Investment Funds. To reduce the impact of currency movements, the Trustee may currency hedge to New Zealand dollars from time to time in respect of the international investments.

Performance of the parties Various parties are involved in the operation of FirstChoice KiwiSaver including the Trustee, the Manager and, from time to time, other underlying administration managers, investment managers or investment advisers. If any of these parties fail to perform their obligations, it could adversely affect members.

Economic risk Future economic conditions may have an impact on FirstChoice KiwiSaver which cannot be predicted. Future economic conditions may result in negative returns from the Investment Funds from time to time and negative returns may continue for a period of time.

Legislative risk Changes in tax rates and tax rules in New Zealand or the countries in which investments are made by the Investment Funds, as well as changes to KiwiSaver or superannuation legislation can affect the value of your investment or returns from it.

Liquidity risk There is a risk that FirstChoice KiwiSaver may not be able to meet monetary obligations in a timely manner. This risk arises when there is a mismatch between the maturity profile of investments and the amounts required to pay benefits.

Administration risk A technological or other failure may impact FirstChoice KiwiSaver or financial markets in general.

We encourage investors to consult an investment adviser before making a decision to invest.

Insolvency of the Trustee There are no circumstances in which you will or may be liable to pay money to any person as a result of the insolvency of the Trustee of FirstChoice KiwiSaver.

The FirstChoice KiwiSaver Scheme may be wound upThe Trustee and the Manager may agree to wind up FirstChoice KiwiSaver, which may mean you do not recover all of the balances in your Accounts and the remainder of your balance is transferred to another KiwiSaver Scheme. You will be sent notice of this at least three months before the date of the proposed winding up. Alternatively, the Financial Markets Authority may order that FirstChoice KiwiSaver be wound up in the circumstances set out in the KiwiSaver Act.

If FirstChoice KiwiSaver is put into liquidation or wound-up, the Trustee will meet liabilities (including contingent liabilities) properly incurred or payable by FirstChoice KiwiSaver to the extent of the proceeds arising from the sale of the Funds’ assets. This includes costs and expenses relating to the winding up. A pro rata share in relation to the value of each Member’s Accounts on the winding up date of the remaining funds (if any) will be transferred to another KiwiSaver scheme in accordance with the KiwiSaver Act. The KiwiSaver scheme

HIGHER RISK Australasian and World Shares - have risks of poor performances by the companies invested in; economic, political and legislative risk of the country invested in; and share market risks (for example, changes in investor sentiment or economic growth).

suitable for a longer time frame

MEDIUM RISK Property - has a risk that the value of the properties invested in may change due to factors such as use, location, quality, or a reduction in property values generally. General share market conditions will impact the value of the listed property share investments.

suitable for a medium to long time frame

LOWER RISK Fixed Interest - has the risk that borrowers may not meet their obligations of interest or debt as well as a risk that due to interest rate rises the value of the investment may decrease.

suitable for a medium time frame

LOWEST RISK Cash - has a risk that the return is eroded by inflation meaning that your purchasing power may be eroded over time.suitable for a

short time frame

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to which your funds are transferred will be either your chosen KiwiSaver scheme, your employer’s chosen KiwiSaver scheme (if any) or the default KiwiSaver scheme chosen for you by the Commissioner. Transfers will be made in accordance with the Trust Deed and the KiwiSaver Act.

Claims on the assets of FirstChoice KiwiSaver that will rank ahead of you in the event of FirstChoice KiwiSaver being put into liquidation or being wound up will include any outstanding Trustee expenses (including Trustee Fees), Manager expenses or liabilities of FirstChoice KiwiSaver, any claims preferred at law, tax and the costs of winding up FirstChoice KiwiSaver. Members will rank equally regarding claims on assets.

Can the investment be altered?There are several ways in which your investment in FirstChoice KiwiSaver can be altered.

Contributions

If you are an employee, you may change your required contribution rate to 2%*, 4% or 8% by giving notice to your employer. The change will take effect from the next payment of salary or wages after your employer receives your notification. However, you may not change your required contribution rate more frequently than every three months, unless your employer agrees.

If you are an employee, you may apply to the Commissioner to cease making contributions (i.e. take a “contributions holiday”) if:

• you are suffering, or are likely to suffer, financial hardship and Inland Revenue has received at least one contribution from you - in which case your contributions holiday (if granted) will be for a maximum of three months (unless the Commissioner agrees otherwise); or

• 12 months have passed since Inland Revenue or any KiwiSaver scheme received your first contribution – in which case your contributions holiday can be for a period of between three months and five years.

You may at any time revoke or reinstate your contributions holiday by giving notice to your employer. You can apply for another contributions holiday when one expires.

If you would like to apply for a contributions holiday, please visit the KiwiSaver website at www.kiwisaver.govt.nz, complete the application form and send to Inland Revenue or your employer.

If you are not employed, you may make lump sum contributions, or change your regular contribution amount at any time.

* The Government announced in the 2011 Budget that the minimum employee and compulsory employer contribution rates will increase from 2% to 3% of gross salary or wages, with effect from 1 April 2013.

Fees

The Trustee may introduce, increase or reduce the level of fees payable or introduce a new fee from time to time. You will be given at least four weeks’ notice before any charge or fee that you are liable to pay, or which affects your returns, is increased or introduced.

Under the KiwiSaver Act, all fees and expenses charged to you must be “reasonable”. You can apply to the Court (within one year of an unreasonable fee being imposed or debited) for an order to annul or reduce the fee.

Switching

Switching is when you choose to transfer all or part of your investment from one or more Investment Funds to another Investment Fund(s). You can do this at any time, provided that the Trustee agrees to your switch request. A switch will be treated as a redemption of your existing Units and an application for Units in a new Investment Fund.

Alternatively, you may request to alter your Investment Strategy going forward (but leaving your existing balance invested as it currently is) by directing future contributions to different Investment Fund(s). The Trustee has the right to agree to or decline such an alteration, without giving reasons for its decision.

There is no minimum switch amount or minimum Investment Fund balance following a switch. There is also no maximum number of switches per year. As at the date of this Investment Statement, switching is free. However, the Manager may introduce or change the minimum switch amount or Investment Fund balance or the maximum number of switches. The Manager may introduce a fee for switching from time to time.

There may be tax consequences when switching Investment Funds (see Tax summary under What returns will I get? on page 21).

To request a switch or redirection, simply complete a Switch Form, available at www.firstchoiceinvestments.co.nz or contact us on 0800 1ST CHOICE (0800 178 246) or email [email protected]

Dissolution, closure or amalgamation of Investment Funds

Subject to the KiwiSaver Act, the Trustee may decide to dissolve, close or amalgamate Investment Funds. You will be given notice of this decision if you have invested in the affected Investment Fund.

If the Trustee resolves (with the Manager’s consent) to dissolve an Investment Fund in which you have invested, the Trustee will notify you and adjust your Investment Strategy accordingly. Any amount that you are entitled to receive from the dissolved Investment Fund will be allocated pro rata across your other chosen Investment Funds according to your (then current) Investment Strategy.

Amendments

The Trustee is able (with the Manager’s consent) to amend the provisions of the Trust Deed relating to FirstChoice KiwiSaver, and any Establishment Deed and/or Admission Deed, at any time. However, such changes must comply with the KiwiSaver Act and the Superannuation Schemes Act 1989. These

amendments may have retrospective effect.

The Trustee is required to vary or amend the relevant provisions

of the Trust Deed and/or Admission Deed, to comply with the

KiwiSaver Act.

KiwiSaver Scheme

26

Change in legislation

Since the KiwiSaver and PIE regimes are Government

initiatives, they are underpinned by legislation. Certain aspects

of the legislation, such as the required contribution rate, the

circumstances in which KiwiSaver benefits may be withdrawn

and the types of transactions that are taxed, may change

from time to time. This may impact on your membership of

FirstChoice KiwiSaver.

PIE status

The Manager has the power to switch your investment between

Investment Funds and decline contributions to the extent

necessary to preserve FirstChoice KiwiSaver’s status as a PIE.

The Manager also has the power to cancel Units or otherwise

adjust the balances in your Accounts to reflect the current or

future payment of tax on income allocated to you.

The Trustee may decline a person’s enrolment on whatever

basis, including to protect the overall PIE status of FirstChoice

KiwiSaver.

How do I cash in my investment?For information on accessing your investment (see What returns

will I get? on page 21).

Membership may cease

You will cease to be a member of FirstChoice KiwiSaver if the

balance of your Accounts reaches zero and the Manager gives

notice to you that your membership is terminated.

Transfer to another KiwiSaver scheme

You may at any time apply to the Trustee to have your

membership and the balance of your Accounts transferred to

another KiwiSaver scheme.

If that KiwiSaver scheme accepts you as a member, the Trustee

must transfer your membership and the entire balance in your

Accounts to that KiwiSaver scheme.

You may at any time be required to transfer to another KiwiSaver

scheme in the circumstances set out in the KiwiSaver Act

for example if FirstChoice KiwiSaver is wound up. In these

circumstances, you will be given an opportunity to choose

another KiwiSaver scheme. If you do not choose another

KiwiSaver scheme, you will be transferred to your employer’s

chosen KiwiSaver scheme (if any) or a default KiwiSaver

scheme.

There may be tax consequences of transferring to another

KiwiSaver scheme (see the Tax Summary under What returns will

I get? on page 21).

Transfer to another person

The balances in your Accounts cannot be assigned, charged or

passed to any other person, except if required by any Act (for

example under the Property (Relationships) Act 1976).

Who do I contact with enquiries about my investment?If you have any queries about FirstChoice KiwiSaver, please

write to:

Client Service Manager

ASB Group Investments Limited

33-45 Hurstmere Road


PO Box 35

Shortland Street

Auckland 1140

For general enquiries or to find out the value of your

investment in FirstChoice KiwiSaver, you can contact us on

0800 1ST CHOICE (0800 178 246) or email [email protected]

Is there anyone to whom I can complain if I have problems with the investment?Any complaints about your investment should be directed to the

Manager, by writing to:

ASB Group Investments Limited

33-45 Hurstmere Road


PO Box 35

Shortland Street

Auckland 1140

Phone 0800 1ST CHOICE (0800 178 246)


Complaints can also be directed to the Trustee at:

Public Trust

Level 10

141 Willis Street

Wellington 6011

Phone (09) 985 5300


Complaints about FirstChoice KiwiSaver may also be made to:

Financial Markets Authority

Level 8, Unisys House

56 The Terrace

PO Box 1179

Wellington 6140

Phone (04) 472 9830

Fax (04) 472 8076

27

The Manager has joined the Banking Ombudsman dispute

resolution scheme and the Trustee has joined the Insurance and

Savings Ombudsman dispute resolution scheme, both approved

dispute resolution schemes.

If your complaint is not able to be resolved with the Manager

or Trustee, you may contact the Banking Ombudsman or the

Insurance and Savings Ombudsman (respectively) at:

Banking Ombudsman

Level 11, BP House

20 Customhouse Quay

Freepost 218002

PO Box 10573, The Terrace

Wellington 6143

Phone 0800 805 950

Insurance and Savings Ombudsman

88-105 Customhouse Quay

PO Box 10-845, The Terrace

Wellington 6143

Phone 0800 888 202

What other information can I obtain about this investment?Prospectus and financial statements

Additional information about FirstChoice KiwiSaver is contained

in FirstChoice KiwiSaver’s registered prospectus and financial

statements.

A copy of the prospectus and financial statements can be

obtained, free of charge, by contacting:

• 0800 1ST CHOICE (0800 178 246)

or email [email protected]

• ASB Group Investments Limited, PO Box 35, Shortland

Street, Auckland 1140, New Zealand.

The following documents relating to FirstChoice KiwiSaver

are filed on the public register at the Ministry of Economic

Development and most are available for public inspection on the

Companies Office website www.business.govt.nz/companies

under “Search other registers”:

• the Prospectus;

• the financial statements;

• the Trust Deed;

• the Establishment Deeds;

• certain parts of each Admission Deed; and

• the material contracts detailed in section 9 of the Prospectus.

Annual information

Every year, you will be sent an annual statement of the balance

of your Accounts and sent a copy of FirstChoice KiwiSaver’s

annual report, including FirstChoice KiwiSaver’s summary

financial statements.

Other information available on request

A copy of the following documents can be obtained, free of

charge, by contacting us on 0800 1ST CHOICE (0800 178 246)

or email [email protected]:

• the Trust Deed (and amendments);

• the Establishment Deeds (and amendments);

• the Admission Deeds (and amendments);

• the most recent Investment Statement;

• the Responsible Investment Policy;

• the most recent annual information relating to FirstChoice

KiwiSaver; and

• an updated investment certificate (showing an estimate of

your benefit).

If you require any other information about FirstChoice KiwiSaver,

you should make an enquiry as explained under Who do I

contact with enquiries about my investment? on page 27.

KiwiSaver Scheme

28

Section Four Forms

Guide to completing forms 30

Calculate your Prescribed Investor Rate (PIR) 33

Forms

• Enrolment Form 35

• Additional Employer Form 37

• Direct Debit Form 39

Forms for applicants under 18 years of age

• Enrolment Form for applicants under 18 years of age 41

• Additional Employer Form 45

• Direct Debit Form 47

Index of main terms 49

29

Guide to completing formsTo join the FirstChoice KiwiSaver Scheme you must:

• be a New Zealand citizen or be entitled to permanent

residency in New Zealand; and

• be aged below the qualifying age for New Zealand

Superannuation (currently 65); and

• live or normally live in New Zealand, or satisfy the criteria for

State Services employees working outside New Zealand (see

page 16 of the Investment Statement).

There are four forms in this section – two types of Enrolment

Forms, an Additional Employer Form and a Direct Debit Form.

Complete the relevant Enrolment Form (and if applicable the

Additional Employer Form and Direct Debit Form) and send to

us at the address on the Enrolment Form. Information on what

happens once we have your Enrolment Form can be found on

page 14.

• The Enrolment Form

Every person who wishes to join FirstChoice KiwiSaver needs

to complete the Enrolment Form. We have included one form

for applicants who are 18 years of age or over and one form

that can be used to enrol a person under 18 years of age.

• The Additional Employer Form

Should be completed (in addition to the Enrolment Form) by

any person who has more than one employer.

• The Direct Debit Form

Should be completed by anyone who is self-employed or not

employed and wishes to make regular contributions. It can

also be completed by anyone who is employed and wishes to

make regular contributions in addition to contributions from

their salary or wages.

Enrolment Form The following information is a guide for you to refer to when

answering the questions in the Enrolment Form

Section 1 – Personal Details

Please complete your personal details (or the details of the

person under 18 you are completing this form for) so we

can identify you and send you communications about your

investment.

Section 2 – Tax Details

• IRD number - if you (or the person under 18 you are

completing the form for) do not have an IRD number, you can

obtain one by contacting Inland Revenue or downloading a

form from their website.

• Prescribed Investor Rate (PIR) – this rate determines the level

of tax we deduct from the income that your investment earns.

Refer to page 33 to work this out. If you do not complete this

section, we will automatically deduct tax at 28%.

Section 3 – Enrolment Details

You must tick one of the first two boxes.

• Tick the first box if you are not a member of any KiwiSaver

scheme.

• Tick the second box if you are an existing KiwiSaver member.

If this applies, you will need to transfer your balance from

your current KiwiSaver scheme to FirstChoice KiwiSaver if

you join FirstChoice KiwiSaver. You cannot be a member of

more than one KiwiSaver scheme at the same time.

If you want to transfer your balance from a registered

superannuation scheme to FirstChoice KiwiSaver, please tick the

third box. If this applies to you, we will contact you with further

details.

The Trustee of your registered superannuation scheme must

approve a transfer to FirstChoice KiwiSaver and in some

circumstances you may not be able to do this.

Section 4 – Investment Strategy

This section tells us what Investment Funds you would like us to

invest your contributions in. Refer to page 9 for help in selecting

your Investment Strategy. If you don’t complete this section, we

will invest your contributions into the Tracker Conservative Fund.

Section 5 – Contribution Details

If you are employed:

• Complete section 5A of the Enrolment Form to let us know

what level of contributions you want to make. Your choices are

2%*, 4% or 8%.

• If you do not complete this section, your contributions will

be set at 2%* - you can change this level by advising your

employer.

* The Government announced in the 2011 Budget that the minimum employee and default employee contribution rates will increase from 2% to 3% of gross salary or wages, with

effect from 1 April 2013.

• If you are earning less than $52,000 and are contributing 2%,

your contributions from your salary or wages over a year will

be less than $1,042.86. To receive the maximum member

tax credits, you will need to contribute at least $1,042.86 for

the period 1 July to 30 June and be an eligible member for

that period. You can make additional contributions direct to

FirstChoice KiwiSaver to meet the $1,042.86 threshold.

• If you wish to make a lump sum payment or regular

contributions in addition to the contributions deducted directly

from your salary, then you should also complete section 5B of

the Enrolment Form.

• If you have more than one employer, you will need to complete

the Additional Employer Form, so we can request the

appropriate contribution levels from each employer (these can

be different for each employer).

KiwiSaver Scheme

30

If you are self-employed or not employed:

• Please complete section 5B of the Enrolment Form to let us know

if you wish to make regular contributions or if you are making a

lump sum contribution. You can complete either, both or none

of these options as FirstChoice KiwiSaver has no minimum

contribution level. Note, if you wish to receive the maximum

member tax credit (if you are eligible for this) you will need to

contribute at least $1,042.86 per year.

• If you wish to make a lump sump contribution, please attach

a cheque made out to the FirstChoice KiwiSaver Scheme to

the Enrolment Form when you send it to us.

• If you wish to make a regular contribution, please complete

the Direct Debit Form on page 39 so we can authorise your

bank to set up the direct debit arrangements.

• If you are self-employed and pay yourself a salary or wages

as further explained on page 17, you may be treated as

an employee and employer for the purposes of KiwiSaver

contributions.

Section 6 – Employer Details

If you have more than one employer, please ask your employers for their IRD numbers. This ensures that we get the right contribution levels set up for each employer. If you do not supply your employers’ IRD numbers, your contribution level will be set at the default rate of 2%* for each of your employers. You will need to complete contribution details and an IRD number for each employer and list them on the Additional Employer Form. To ensure your contributions are deducted in a timely manner from your salary or wages, please also complete a KS2 form (available on request from your employer).

Section 7 – Internet Account Access

This service is offered so you can view your Accounts online. Please advise us of an identifier so we can identify you when you request your internet account password. Your identifier should be a word you will easily remember.

Section 8 – Identity Verification

Only complete the question in section 8 that is relevant to you.

If you are 18 or over and completing the Enrolment Form on page 35

• If you are an ASB customer, you only need to provide your ASB account number in section 8A.

• If you are not an ASB customer, your identification can be verified by your employer or adviser, by signing section 8B option 1 of the Enrolment Form, or alternatively you can provide us with identification in a form listed in section 8B option 2.

If you are completing the Enrolment Form on page 41 on behalf of an applicant who is under 18.

• If you are an ASB customer, you only need to provide your ASB account number in section 8A or 8B (whichever section is applicable) and a verified/certified copy of the applicant’s full birth certificate.

• If you are not an ASB customer, please provide us with

identification in a form listed in section 8A or 8B (whichever

section is applicable) and a verified/certified copy of the

applicant’s full birth certificate.

Your original identification can be copied or verified by an ASB

staff member or certified by a Justice of the Peace, Notary

Public, Deputy Registrar of a Court, Member of Parliament

or Solicitor.

Section 9 – Declaration and Authorisations

Please read the declarations and sign where indicated.

Evidence of guardianship

If you are completing an Enrolment Form on behalf of someone

under 18, you must provide evidence of guardianship.

Birth parents are legal guardians and therefore a copy of the

applicant’s birth certificate showing the names of the birth

parents is acceptable evidence of guardianship. If an applicant

has legal guardians who are not their birth parent(s), acceptable

forms of evidence of legal guardianship are:

• a guardianship order issued by a New Zealand court;

• an additional guardian, appointment form approved by a New

Zealand court; or

• a copy of the birth parent’s will appointing the person as a

testamentary guardian, together with a copy of the parent’s

death certificate.

Please note that if you are an applicant who is aged 16 or

17 who is married, or who has entered into a civil union, you

will not have legal guardians. Therefore, you should enrol by

completing the Enrolment Form on page 35 and supplying proof

of your marriage or civil union by attaching a certified copy of

your marriage certificate or copy of particulars of civil union.

Signing requirements for under 18s

If you are completing the Enrolment Form on behalf of someone

under 16, all legal guardians must complete their name(s) and

must sign in the first signature box.

If you are completing the Enrolment Form on behalf of someone

who is 16 or 17 years of age, at least one legal guardian must

complete their name(s) and sign in the first signature box. And

the applicant who is 16 or 17 years of age must also complete

their own name and sign in the second signature box.

If both legal guardians wish to be a signatory on a 16 or 17 year

old’s account, please ensure both legal guardians complete

their names and sign the first signature box, as well as the 16 or

17 year old completing the second box. Doing this means that

the Trustee and/or the Manager may accept instructions on the

minor’s account from either legal guardian.

* The Government has announced that the default contribution

rate will be 3% from 1 April 2013.

31

Privacy statement The personal information provided by you when you complete

the Enrolment Form will be held by the Trustee, Public Trust,

Level 10, 141 Willis Street, Wellington and/or the Manager of

FirstChoice KiwiSaver, ASB Group Investments Limited, 33-45

Hurstmere Road, FreePost Authority ASB, PO Box 35, Shortland

Street, Auckland 1140.

This information may be disclosed to, and held by:

• the manager of your nominated investments;

• the advisers of FirstChoice KiwiSaver;

• related companies of the Manager (whether incorporated or

constituted in New Zealand or elsewhere);

• your personal financial adviser (if relevant); and

• Inland Revenue.

This and any other personal information obtained will be used

for purposes relating to:

• the administration, marketing, operation and management of

FirstChoice KiwiSaver; and/or other products you may have

with the Manager or its related companies;

• the payment of withdrawals to you;

• statistical purposes;

• unless you request otherwise, keeping you informed about

other financial opportunities, products or services offered by

the Manager and its related companies (including via email);

and

• unless you request otherwise, customer surveys and research

carried out by research and direct marketing companies

employed by the Manager or its related companies.

You have rights of access to, and correction of, the personal

information you supply.

KiwiSaver Scheme

32

If you don’t know your Taxable Income*, you can contact the

Inland Revenue on 0800 227 774 for a summary of earnings or

talk to your accountant.

Your PIR will be used to calculate tax payable in respect

of your PIE investment with ASB Group Investments.

If you elect a PIR of 10.5%, 17.5% or 28% and this is the

correct rate for your personal circumstances then any tax

paid in respect of your PIE investment will be a final tax,

meaning that you will not need to file a tax return as a result

of receiving such income or need to pay any further taxes.

If you elect a PIR of 10.5% or 17.5%, you must provide us

with your IRD number. Otherwise, your PIR will be 28%.

For more information, please read the FirstChoice KiwiSaver

Scheme Investment Statement. For more information about

Portfolio Investment Entities (PIEs) and PIRs, contact us on

0800 1ST CHOICE (0800 178 246), email [email protected]

or visit www.firstchoiceinvestments.co.nz

Calculate your Prescribed Investor Rate (PIR)To be used by members, or people applying to be a member of a New Zealand registered KiwiSaver scheme or registered

superannuation scheme.

The information shown on pages 33 and 34 does not constitute specific tax advice to any person. ASB Group Investments recommends that investors seek independent advice. None of the Trustee, ASB Group Investments, its related companies, or their directors, board members, officers or employees accept any liability for any loss or damage of any kind arising out of the use of or reliance on the information provided in the above diagram, including without limitation, any loss of profit or other damage, direct or consequential.

YES YESYESNO

YES NO NO

NO

OR

START

Are you a NZ tax

resident?

Was your Taxable Income* in both

of the last twotax years to 31 March:

More than $48,000?

In either of the last two tax years to

31 March was your:

Taxable Income* $14,000 or less

AND

Taxable Income* plus PIE Income**

$48,000 or less?

In either of the last two tax years to

31 March was your:

Taxable Income* $48,000 or less

AND

Taxable Income* plus PIE Income**

$70,000 or less?

Was your Taxable Income* plus PIE Income** in both of the

last two tax years to 31 March:

More than $70,000?

Your PIR is 28% Your PIR is 10.5% Your PIR is 17.5%

* Refer to the next page for an explanation on Taxable Income.

** Refer to the next page for an explanation on PIE income.

33

*What is Taxable Income?

If you filed an income tax return for either of the last two years,

then use the taxable income figure shown in either return. If

your only income is from salary and wages then this will be your

taxable income. You can request a summary of earnings from

Inland Revenue to help you assess your taxable income. For

more information see www.ird.govt.nz/income-tax-individual/. Below is a list of income items that are included as taxable

income:

• A payment from an employer, including salary, wages,

bonuses, extra emolument, commission or other payment

for services, earnings related compensation, income tested

benefits, NZ Superannuation, student allowances, certain

pensions and superannuation, retiring allowances, parental

leave, tips and gratuities;

• Withholding payments, dividends, interest;

• Rent;

• Royalties;

• Sales of rights;

• Beneficiary income from an estate or trust;

• Income from foreign investments funds;

• Income from controlled foreign companies;

• Income from any business, trade or profession including

illegal activities;

• Income from a partnership; and

• Income from any undertaking or scheme entered into for the

purposes of making a profit.

The income is after allowable deductions and losses.

**What is “PIE Income”?

PIE Income from any PIE investments is any income from a

PIE investment allocated to you, less any loss allocated.

The information shown on pages 33 and 34 does not constitute specific tax advice to any person. ASB Group Investments recommends that investors seek independent advice. None of the Trustee, ASB Group Investments, its related companies, or their directors, board members, officers or employees accept any liability for any loss or damage of any kind arising out of the use of or reliance on the information provided in the above diagram, including without limitation, any loss of profit or other damage, direct or consequential.

KiwiSaver Scheme

34

ENROLMENTKIWISAVER SCHEME

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1. Personal Details Title (tick one) First Names Surname

Work Phone Home Phone Mobile

( ) ( ) ( )

Date of Birth Email Address Fax( )

Postal Address

Street Suburb

City Country Postcode

2. Tax Details (Refer to page 33 for a guide to selecting your PIR)

Your IRD Number Prescribed Investor Rate (PIR)

(refer to page 33):

10.5% 17.5% 28%

Please tick one

3. Enrolment Details

I wish to enrol in the FirstChoice KiwiSaver Scheme. I am not a member of another KiwiSaver scheme; OR.

I wish to transfer my benefit to the FirstChoice KiwiSaver Scheme from my current KiwiSaver scheme:

I wish to transfer my benefit to the FirstChoice KiwiSaver Scheme from another registered superannuation scheme, which is not a

KiwiSaver scheme (If you select this option we will contact you with further details).

4. Investment Strategy (You may invest in more than one Investment Fund, but the total must equal 100%)

Refer to page 9 for a guide to choosing your Investment Fund(s)

Investment Funds Percentage of Contributions Investment Funds Percentage of

ContributionsNZ Cash Fund Active Conservative Fund

Tracker Conservative Fund (Default) Active Balanced Fund

Tracker Moderate Fund Active Growth Fund

Tracker Balanced Fund Active High Growth Fund

Tracker Growth Fund Global Sustainability Fund

TOTAL 100 % If you do not select an Investment Strategy, your contributions will be invested in the Tracker Conservative Fund.

5. Contribution Details

Please complete section A if you are employed or section B if you are self-employed or not employed.

A. Contributions for those who are employed

I intend to contribute 2%* 4% 8% (tick one) of my gross salary or wages.

If you wish to make a lump sum contribution or regular additional contributions in addition to salary deductions, please also compete section B below. Otherwise, go straight to section 6.* The Government announced in the 2011 Budget that the minimum employee and compulsory employer contribution rates will increase from 2% to 3% of gross salary or wages, with effect from 1 April 2013.

B. Contributions for those who are self-employed or not employed (or for employees wishing to make additional contributions)

Please indicate the lump sum contribution amount you would like to make:

Lump sum contribution $ (please attach your cheque made out to the FirstChoice KiwiSaver Scheme to this Enrolment Form).

If you would like to make regular contributions, please complete the Direct Debit Form at the end of this Enrolment Form.

6. Employer Details (please complete this section if you are employed. Otherwise, go straight to section 7)

If you have more than one employer please complete the Additional Employer Form on page 37 and ensure your employer has your KS2 form.

7. Internet Account AccessYou will be able to view your FirstChoice KiwiSaver Scheme Accounts online. Further information will be made available upon acceptance of this enrolment request. In order for us to supply your Internet password, you will need to identify yourself by providing us with an “identifier”, e.g. mother’s maiden name. This should be no longer than 30 characters.

My “identifier” is

(for office use only)

F I R S T

Mr Mrs Miss DrMs

Name of other registered superannuation scheme:

Business Name

Street Suburb


Employer IRD number (optional unless you have more than one employer or wish to contribute 4% or 8%, in which case it is required.)

8 December 2011

35

AdviserStamp

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Signature Date

Day Month Year

Day Month Year

Please forward your Enrolment Form to FreePost Authority ASB, FirstChoice KiwiSaver Scheme, ASB Group Investments, PO Box 35, Shortland Street, Auckland 1140.

Adviser Name Adviser Code

To be completed by the adviser (if applicable)

Bank Branch Number Account Number Suffix

1 2 3

36

8. Identity Verification Please complete section A or B for identification purposes.

The original documents for section B can be copied and verified by an ASB staff member at any ASB branch. Alternatively, copies must be certified by a Justice of the Peace, Notary Public, Deputy Registrar or Registrar of a Court, Member of Parliament or Solicitor.

Section A. ASB customers (fill in your ASB Bank account number and go to section 9)

Section B. Non-ASB customers (please complete ONE option in section B and go to section 9)

OPTION 1: If you are an employee or this is an adviser assisted application, your employer or adviser can verify your identity. Ask your employer or adviser to fill in this section.

Employer/Adviser Name:

I/We acknowledge that I/we have verified the identification of the person named in section 1 and confirm the information given in sections 1, 5 and 6 is correct to the best of my/our knowledge. I/We confirm that I/we have sighted similar documentation in respect of the person named in section 1 as required below in Option 2.

Signature of authorised officer of employer/adviser Date

OPTION 2: Please provide two forms (verified/certified copy only) of the following identification (please tick):

Passport*

Driver’s licence

Birth certificate*

OR, ONE of the above plus any ONE of the following (please tick):

Community services card

Employee identity card

Student identity card

*If your passport is not a New Zealand Passport, please provide a copy of your New Zealand birth certificate or residency documents. If your birth certificate is not a New Zealand birth certificate, please provide a copy of your New Zealand passport or residency documents.

9. Declaration and Authorisations > I wish to enrol for membership of the FirstChoice KiwiSaver Scheme upon the terms of the Investment Statement for the FirstChoice KiwiSaver

Scheme dated 8 December 2011 and the Trust Deed governing the FirstChoice KiwiSaver Scheme, as amended from time to time. I understand that this request for enrolment, if accepted, will form the basis of my membership in the FirstChoice KiwiSaver Scheme.

> I confirm that I meet the eligibility criteria for joining the FirstChoice KiwiSaver Scheme (see page 16).

> I understand that the Units in the FirstChoice KiwiSaver Scheme are not bank deposits or other liabilities of ASB Bank Limited or its subsidiaries (“the Banking Group”). I understand that none of the Banking Group, the Crown, the Manager, the Trustee, Sovereign Services Limited, any company in the Commonwealth Bank of Australia Group or any other person guarantees any investment returns or repayment of my investment.

> I acknowledge that: (a) choosing an investment strategy is my responsibility, and that neither the Manager nor the Trustee is to be regarded as representing or implying that my investment strategy is appropriate for my personal circumstances; and (b) my choice of an investment strategy will be a binding direction from me to the Trustee.

> If I am a member of another KiwiSaver scheme and/or registered superannuation scheme and I have selected to transfer my benefit to the FirstChoice KiwiSaver Scheme in section 3 of this Enrolment Form, I authorise the manager or trustee of my current KiwiSaver scheme or registered superannuation scheme to provide the Trustee or Manager of the FirstChoice KiwiSaver Scheme with any of my personal information as necessary to complete the transfer.

> I grant express consent for the Manager to disclose my information to its related companies (whether incorporated or constituted in New Zealand or elsewhere).

> I have read the privacy information on page 32 of the Investment Statement. I consent to being emailed an internet URL for access to an electronic copy of the FirstChoice KiwiSaver Scheme annual report.

Optional - Please tick if applicable

Please do not send me information about other financial opportunities, products or services offered by the Manager or its related companies;

Please do not ask any research or direct marketing company employed by the Manager or its related companies to contact me for

the purpose of undertaking customer surveys and research.

Signature of applicant I confirm that I have read and accept the declarations and authorisations in this Enrolment Form and have received, read and understood the

FirstChoice KiwiSaver Scheme Investment Statement.

ADDITIONAL EMPLOYERKIWISAVER SCHEME

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Please complete this form if you have more than one employer. If you have multiple employers, we need you to advise us

of the IRD number for each employer.

Employer two

Business Name

Street Address

Suburb City

Country Postcode

Employer IRD number

I intend to contribute 2%* 4% 8% (tick one) of my gross salary or wages that I earn from this employer.

Employer three

Business Name

Street Address

Suburb City

Country Postcode

Employer IRD number

I intend to contribute 2%* 4% 8% (tick one) of my gross salary or wages that I earn from this employer.


If you have more than three employers, please call us on 0800 1ST CHOICE (0800 178 246).

37

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KiwiSaver Scheme

38

DIRECT DEBITKIWISAVER SCHEME

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Name of Account

Customer (Debtor) to complete Bank/Branch number and Account Number and Suffix of Account to be debited.

To: The Manager (Insert name of Bank and Branch)


(Hereinafter referred to as the Bank)

ASB Group 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 upon the conditions listed on this form.

Information to appear in my/our Bank Statement

Payer Particulars: Payer Code:

Payer Reference:

Your signature must appear here – Name of Account – Customer (Debtor) to complete

Authorised Signature(s) Authorised Signature(s)

Authority to Accept

Direct Debits

(Not to operate as an assignment or an agreement)

I/We authorise you until further notice in writing to debit my/our account with you all amounts which – Authorisation Code

1 2 0 0 4 1 3

Date

Address (PO Box): Town/City:

1. Personal and Contribution Details

2. Authority to Accept Direct Debits

First Names

Email Address

Daytime Telephone

(Please reconfirm for security purposes.)

Date of Birth

Title Other

Mr Mrs Miss Ms

FirstChoice KiwiSaver Scheme Member Number (if known)

Surname

What I’d like to do

IRD Number

(refer to the FirstChoice KiwiSaver Scheme Investment Statement or www.asb.co.nz/pir)

Prescribed Investor Rate (PIR)

10.5% 17.5% 28%

Tax Details

Payment Frequency

I wish to set up a regular contribution.

I wish to change the bank account my current regular contribution is coming from.

I wish to alter my existing regular contribution.

Start Date Frequency (please tick one)

weekly fortnightly

Contribution amount

$

( )

monthly

39

F I R S T

Conditions of Authority to Accept Direct Debits

1. The Initiator:1.1. Will provide notice either: 1.1.1. in writing; or 1.1.2. by electronic mail where the Customer has provided prior written consent to the Initiator.1.2. 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. 1.2.1. 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 Bank 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.1.3. Alternatively, the Initiator undertakes to give notice to the Acceptor of the commencement date, frequency and amount at least 10 calendar days

before the first Direct Debit is drawn (but no more than 2 calendar months). 1.3.1. Where the Direct Debit System is used for the collection of payments which are regular as to frequency, but variable as to amounts, the Initiator

undertakes to provide the Acceptor with a schedule detailing each payment amount and each payment date. 1.3.2. In the event of any subsequent change to the frequency or amount of the Direct Debits, the Initiator has agreed to give advance notice of at least

30 days before the changes comes into effect. This notice must be provided either: (a) in writing; or (b) by electronic mail where the Customer has provided prior written consent to the Initiator.1.4. May initiate a Direct Debit on my/our account when authorisation is received from me/us in accordance with the terms and conditions agreed

between me/us and the Initiator of each amount to be debited from my/our account. 1.4.1. Notice will be sent of the net amount of each Direct Debit and the due date of debiting after receiving authorisation from me/us under clause 1.4

but no later than the date the Direct Debit will be initiated. This notice must be provided either: (a) in writing; or (b) by any other means which provides a verifiable record of the initiated transaction and where the Customer has provided prior written consent

to the Initiator. 1.4.2. Where the notice is in writing it must include the following message: “The amount $....... was directly debited to your Bank account on (initiating date).” 1.4.3. Where the notice is provided by other means: (a) the Initiator should hold prior written consent of those means of providing notice; and (b) the notice should provide a verifiable record of the initiated transaction and include the amount and initiating date of that transaction.1.5. May, upon the relationship which gave rise to this Instruction being terminated, give notice to the Bank that no further Direct Debits are to be

initiated under the Instruction. Upon receipt of such notice the Bank may terminate this Instruction as to future payments by notice in writing to me/us.

1.6. May rely on this authority to debit a different bank account upon receipt of instructions from the customer via a bank to which their account has been transferred.

2. The Customer may: 2.1. At any time, terminate this Instruction as to future payments by giving written (or by the means previously agreed in writing) notice of termination

to the Bank and to the Initiator.2.2. Stop payment of any Direct Debit to be initiated under this Instruction by the Initiator by giving written notice to the Bank prior to the Direct Debit

being paid by the Bank. 2.3. Where no advance notice is provided under clause 1.4 a variation to the amount agreed between the Initiator and the Customer from time to time

to be Direct Debited had been made without notice being given in terms of clause 1.4 above, request the Bank to reverse or alter any such Direct Debit initiated by the Initiator by debiting the amount of the reversal or alteration of Direct Debit back to the Initiator through the Initiator’s Bank PROVIDED such request is made not more than 120 days from the date when the Direct Debit was debited to my/our account.

3. The Customer acknowledges that: 3.1. This Instruction will remain in full force and effect in respect of all Direct Debits passed to my/our account in good faith notwithstanding my/our

death, bankruptcy or other revocation of this Instruction until actual notice of such event is received by the Bank.3.2. In any event this Instruction is subject to any arrangement now or hereafter existing between me/us and the Bank in relation to my/our account. 3.3. 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 Instruction. Any other disputes lie between me/us and the Initiator. 3.4. Where the Bank has used reasonable care and skill in acting in accordance with this Instruction, the Bank accepts no responsibility or liability in

respect of: 3.4.1. the accuracy of information about Direct Debits on Bank statements; and 3.4.2. any variations between notices given by the Initiator and the amounts of Direct Debits.3.5. The Bank is not responsible for, or under any liability in respect of the Initiator’s failure to give notice in accordance with clauses 1.1 to 1.4, 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. 3.6. Where notice given by the Initiator in terms of clause 1.4 to the debtor responsible for the payment shall be effective. Any communication

necessary because the debtor responsible for payment is a person other than me/us is a matter between me/us and the debtor concerned.

4. The Bank may: 4.1. In its absolute discretion conclusively determine the order of priority of payment by it of any monies pursuant to this or any other Instruction,

cheque or draft properly signed by me/us and given to or drawn on the Bank. 4.2. At any time terminate this Instruction as to future payments by notice in writing to me/us. 4.3. Charge its current fees for this service in force from time to time.4.4. 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.

Note: Under no circumstances may these Terms & Conditions be altered in any way.

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F I R S T

Mr Miss

Name of other registered superannuation scheme:

Business Name

Street Suburb


Employer IRD Number (optional unless you have more than one employer or wish to contribute 4% or 8%, in which case it is required.)

8 December 2011

1. Personal Details Title (tick one) First Names Surname

Work Phone Home Phone Mobile

( ) ( ) ( )

Date of Birth Email Address Fax( )

Postal Address

Street Suburb


2. Tax Details (Refer to page 33 for a guide to selecting your PIR)

Your IRD Number Prescribed Investor Rate (PIR)

(refer to page 33):

10.5% 17.5% 28%

Please tick one

3. Enrolment Details

I wish to enrol in the FirstChoice KiwiSaver Scheme. I am not a member of another KiwiSaver scheme; OR

I wish to transfer my benefit to FirstChoice KiwiSaver Scheme from my current KiwiSaver scheme:

I wish to transfer my benefit to FirstChoice KiwiSaver Scheme from another registered superannuation scheme, which is not a

KiwiSaver scheme (If you select this option we will contact you with further details).

4. Investment Strategy (You may invest in more than one Investment Fund, but the total must equal 100%)

Refer to page 9 for a guide to choosing your Investment Fund(s)

Investment Funds Percentage of Contributions Investment Funds Percentage of

ContributionsNZ Cash Fund Active Conservative Fund

Tracker Conservative Fund (Default) Active Balanced Fund

Tracker Moderate Fund Active Growth Fund

Tracker Balanced Fund Active High Growth Fund

Tracker Growth Fund Global Sustainability Fund

TOTAL 100 % If you do not select an Investment Strategy, your contributions will be invested in the Tracker Conservative Fund.

5. Contribution Details

Please complete section A if you are employed or section B if you are not employed.

A. Contributions for those who are employed

I intend to contribute 2%* 4% 8% (tick one) of my gross salary or wages.

If you wish to make a lump sum contribution in addition to salary deductions, please compete section B below. Otherwise, go straight to section 6.* The Government announced in the 2011 Budget that the minimum employee and compulsory employer contribution rates will increase from 2% to 3% of gross salary or wages, with effect from 1 April 2013.

B. Contributions for those who are self employed or not employed (or for employees wishing to make additional contributions)

Please indicate the lump sum contribution amount you would like to make:

Lump sum contribution $ (Please attach your cheque made out to the FirstChoice KiwiSaver Scheme to this Enrolment Form.) If you would like to make regular contributions, please complete the Direct Debit Form at the end of this Enrolment Form.

6. Employer Details (please complete this section if you are employed. Otherwise, go straight to section 7.)

If you have more than one employer please complete the Additional Employer Form on page 45 and ensure your employer has your KS2 form.

7. Internet Account AccessYou will be able to view your FirstChoice KiwiSaver Scheme Accounts online. Further information will be made available upon acceptance of this enrolment request. In order for us to supply your Internet password, you will need to identify yourself by providing us with an “identifier”, e.g. mother’s maiden name. This should be no longer than 30 characters. My “identifier” is

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Day Month Year


1 2 3


1 2 3


1 2 3

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8. Identity Verification If you are enrolling an under 16 year old, please complete section A. If you are enrolling a 16 or 17 year old, please complete section B.

The original documents for section A and B can be copied and verified by an ASB staff member at any ASB branch. Alternatively, copies must be certified by a Justice of the Peace, Notary Public, Deputy Registrar or Registrar of a Court, Member of Parliament or Solicitor.

Section A. ALL legal guardians enrolling an under 16 year old (Fill in this section and go to section 9).

Please provide a verified/certified copy of the applicant’s full birth certificate and complete the relevant sections below. If the Trustee cannot clearly identify you as the legal guardian of the person named in section 1, you may be required to provide additional proof.

ASB customers

Please fill in the ASB account number for ALL legal guardian(s):

Non-ASB customers

OPTION 1:

If this is an adviser assisted application, your adviser can verify the identity of the legal guardian(s). Ask your adviser to fill in this section.

Adviser Name:

I/We acknowledge that I/we have verified the identification of the applicant’s legal guardian(s). I/We confirm that I/we have sighted similar documentation in respect of the applicant’s legal guardian(s) as required below in Option 2.


OPTION 2:

Please provide ONE form (verified/certified copy only) of the following identification for ALL legal guardians (please tick):

Passport*

Driver’s licence Birth Certificate*

Section B. One legal guardian enrolling a 16 or 17 year old (Fill in this section and go to section 9).

Please provide a verified/certified copy of the applicant’s full birth certificate and complete the relevant sections below. If the Trustee cannot clearly identify you as the legal guardian of the person named in section 1, you may be required to provide additional proof.

ASB customers

Please fill in the ASB account number

Non-ASB customers

OPTION 1:

If this is an adviser assisted application, your adviser can verify the identity of the legal guardian. Ask your adviser to fill in this section.

Adviser Name:

I/We acknowledge that I/we have verified the identification of the applicant’s legal guardian. I/We confirm that I/we have sighted similar documentation in respect of the applicant’s legal guardian as required below in Option 2


OPTION 2:

Please provide ONE form (verified/certified copy only) of the following identification for the legal guardian (please tick):

Passport*

Driver’s licence

Birth Certificate*

*If your passport is not a New Zealand Passport, please provide a copy of your New Zealand birth certificate or residency documents. If your birth certificate is not a New Zealand birth certificate, please provide a copy of your New Zealand passport or residency documents.

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Day Month Year

Signature of applicant aged 16 or 17:(If the applicant is aged 16 or 17 years they must also sign below as well as one legal guardian signing above)

I confirm that I have read and accept the above declarations and authorisations and have received, read and understood the FirstChoice KiwiSaver Scheme Investment Statement.

AdviserStamp

Please forward your Enrolment Form to FreePost Authority ASB, FirstChoice KiwiSaver Scheme, ASB Group Investments, PO Box 35, Shortland Street, Auckland 1140

Adviser Name Adviser CodeTo be completed by the adviser (if applicable)

Full Name

Your IRD NumberDate of Birth

Day Month Year

Date

Day Month Year

Signature Full Name

Your IRD NumberDate of Birth

Day Month Year

Date

Day Month Year

Signature1.

2.

9. Declaration and Authorisations

> I wish to enrol for membership of the FirstChoice KiwiSaver Scheme upon the terms of the Investment Statement for the FirstChoice KiwiSaver Scheme dated 8 December 2011 and the Trust Deed governing the FirstChoice KiwiSaver Scheme, as amended from time to time. I understand that this request for enrolment, if accepted, will form the basis of my membership in the FirstChoice KiwiSaver Scheme.

> I confirm that I meet the eligibility criteria for joining the FirstChoice KiwiSaver Scheme (see page 16).

> I understand that the Units in the FirstChoice KiwiSaver Scheme are not bank deposits or other liabilities of ASB Bank Limited or its subsidiaries (“the Banking Group”). I understand that none of the Banking Group, the Crown, the Manager, the Trustee, Sovereign Services Limited, any company in the Commonwealth Bank of Australia Group or any other person guarantees any investment returns or repayment of my investment.

> I acknowledge that: (a) choosing an investment strategy is my responsibility, and that neither the Manager nor the Trustee is to be regarded as representing or implying that my investment strategy is appropriate for my personal circumstances; and (b) my choice of an investment strategy will be a binding direction from me to the Trustee.

> If I am a member of another KiwiSaver scheme and/or registered superannuation scheme and I have selected to transfer my benefit to the FirstChoice KiwiSaver Scheme in section 3 of this Enrolment Form, I authorise the manager or trustee of my current KiwiSaver scheme or registered superannuation scheme to provide the Trustee or Manager of the FirstChoice KiwiSaver Scheme with any of my personal information as necessary to complete the transfer.

> I have attached evidence of guardianship (see page 31).

> I grant express consent for the Manager to disclose my information to its related companies (whether incorporated or constituted in New Zealand or elsewhere).

> I have read the privacy information on page 32 of the Investment Statement. I consent to being emailed an internet URL for access to an electronic copy of the FirstChoice KiwiSaver Scheme Annual Report.

Optional - Please tick if applicable

Please do not send me information about other financial opportunities, products or services offered by the Manager or its related companies;

Please do not ask any research or direct marketing companies employed by the Manager or its related companies to contact me, for the

purpose of undertaking customer surveys and research.

Signature and details of legal guardian(s) where applicant is aged less than 18:(If the applicant is under 16 years of age, please ensure ALL legal guardians sign below)

I/We confirm that I/we am/are the legal guardian(s) of the person named in section 1. I/We confirm that I/we have received, read and understood the FirstChoice KiwiSaver Scheme Investment Statement, and have read and accept the above declarations and authorisations, on behalf of the person named in section 1.

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KiwiSaver Scheme

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ADDITIONAL EMPLOYERKIWISAVER SCHEME

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Please complete this form if you have more than one employer. If you have multiple employers, we need you to advise us

of the IRD number for each employer.

Employer two

Business Name

Street Address

Suburb City

Country Postcode

Employer IRD number

I intend to contribute 2%* 4% 8% (tick one) from the gross salary or wages that I earn from this employer.

Employer three

Business Name

Street Address

Suburb City

Country Postcode

Employer IRD number

I intend to contribute 2%* 4% 8% (tick one) from the gross salary or wages that I earn from this employer.


If you have more than three employers, please call us on 0800 1ST CHOICE (0800 178 246).

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DIRECT DEBITKIWISAVER SCHEME

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Name of Account

Customer (Debtor) to complete Bank/Branch number and Account Number and Suffix of Account to be debited.

To: The Manager (Insert name of Bank and Branch)


(Hereinafter referred to as the Bank)

ASB Group 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 upon the conditions listed on this form.

Information to appear in my/our Bank Statement

Payer Particulars: Payer Code:

Payer Reference:

Your signature must appear here – Name of Account – Customer (Debtor) to complete

Authorised Signature(s) Authorised Signature(s)

Authority to Accept

Direct Debits

(Not to operate as an assignment or an agreement)

I/We authorise you until further notice in writing to debit my/our account with you all amounts which – Authorisation Code

1 2 0 0 4 1 3

Date

Address (PO Box): Town/City:

1. Personal and Contribution Details

2. Authority to Accept Direct Debits

First Names

Email Address

Daytime Telephone

(Please reconfirm for security purposes.)

Date of Birth

Title Other

Mr Mrs Miss Ms

FirstChoice KiwiSaver Scheme Member Number (if known)

Surname

What I’d like to do

IRD Number

(refer to the FirstChoice KiwiSaver Scheme Investment Statement or www.asb.co.nz/pir)

Prescribed Investor Rate (PIR)

10.5% 17.5% 28%

Tax Details

Payment Frequency

I wish to set up a regular contribution.

I wish to change the bank account my current regular contribution is coming from.

I wish to alter my existing regular contribution.

Start Date Frequency (please tick one)

fortnightly monthly

Contribution amount

$

( )

weekly

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F I R S T

Conditions of Authority to Accept Direct Debits

1. The Initiator:1.1. Will provide notice either: 1.1.1. in writing; or 1.1.2. by electronic mail where the Customer has provided prior written consent to the Initiator.1.2. 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. 1.2.1. 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 Bank 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.1.3. Alternatively, the Initiator undertakes to give notice to the Acceptor of the commencement date, frequency and amount at least 10 calendar

days before the first Direct Debit is drawn (but no more than 2 calendar months). 1.3.1. Where the Direct Debit System is used for the collection of payments which are regular as to frequency, but variable as to amounts, the Initiator

undertakes to provide the Acceptor with a schedule detailing each payment amount and each payment date. 1.3.2. In the event of any subsequent change to the frequency or amount of the Direct Debits, the Initiator has agreed to give advance notice of at

least 30 days before the changes comes into effect. This notice must be provided either: (a) in writing; or (b) by electronic mail where the Customer has provided prior written consent to the Initiator.1.4. May initiate a Direct Debit on my/our account when authorisation is received from me/us in accordance with the terms and conditions agreed

between me/us and the Initiator of each amount to be debited from my/our account. 1.4.1. Notice will be sent of the net amount of each Direct Debit and the due date of debiting after receiving authorisation from me/us under clause 1.4

but no later than the date the Direct Debit will be initiated. This notice must be provided either: (a) in writing; or (b) by any other means which provides a verifiable record of the initiated transaction and where the Customer has provided prior written consent

to the Initiator. 1.4.2. Where the notice is in writing it must include the following message: “The amount $....... was directly debited to your Bank account on (initiating date).” 1.4.3. Where the notice is provided by other means: (a) the Initiator should hold prior written consent of those means of providing notice; and (b) the notice should provide a verifiable record of the initiated transaction and include the amount and initiating date of that transaction.1.5. May, upon the relationship which gave rise to this Instruction being terminated, give notice to the Bank that no further Direct Debits are to be

initiated under the Instruction. Upon receipt of such notice the Bank may terminate this Instruction as to future payments by notice in writing to me/us.

1.6. May rely on this authority to debit a different bank account upon receipt of instructions from the customer via a bank to which their account has been transferred.

2. The Customer may: 2.1. At any time, terminate this Instruction as to future payments by giving written (or by the means previously agreed in writing) notice of termination

to the Bank and to the Initiator.2.2. Stop payment of any Direct Debit to be initiated under this Instruction by the Initiator by giving written notice to the Bank prior to the Direct

Debit being paid by the Bank. 2.3. Where no advance notice is provided under clause 1.4 a variation to the amount agreed between the Initiator and the Customer from time to

time to be Direct Debited had been made without notice being given in terms of clause 1.4 above, request the Bank to reverse or alter any such Direct Debit initiated by the Initiator by debiting the amount of the reversal or alteration of Direct Debit back to the Initiator through the Initiator’s Bank PROVIDED such request is made not more than 120 days from the date when the Direct Debit was debited to my/our account.

3. The Customer acknowledges that: 3.1. This Instruction will remain in full force and effect in respect of all Direct Debits passed to my/our account in good faith notwithstanding my/our

death, bankruptcy or other revocation of this Instruction until actual notice of such event is received by the Bank.3.2. In any event this Instruction is subject to any arrangement now or hereafter existing between me/us and the Bank in relation to my/our account. 3.3. 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 Instruction. Any other disputes lie between me/us and the Initiator. 3.4. Where the Bank has used reasonable care and skill in acting in accordance with this Instruction, the Bank accepts no responsibility or liability in

respect of: 3.4.1. the accuracy of information about Direct Debits on Bank statements; and 3.4.2. any variations between notices given by the Initiator and the amounts of Direct Debits.3.5. The Bank is not responsible for, or under any liability in respect of the Initiator’s failure to give notice in accordance with clauses 1.1 to 1.4, 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. 3.6. Where notice given by the Initiator in terms of clause 1.4 to the debtor responsible for the payment shall be effective. Any communication

necessary because the debtor responsible for payment is a person other than me/us is a matter between me/us and the debtor concerned.

4. The Bank may: 4.1. In its absolute discretion conclusively determine the order of priority of payment by it of any monies pursuant to this or any other Instruction,

cheque or draft properly signed by me/us and given to or drawn on the Bank. 4.2. At any time terminate this Instruction as to future payments by notice in writing to me/us. 4.3. Charge its current fees for this service in force from time to time.4.4. 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.

Note: Under no circumstances may these Terms & Conditions be altered in any way.

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Index of main terms Page

Account balance 19

Active management 7

Administration Fee 19, 20

Administration Manager 17

Admission Deed 16, 17

Annual information 28

ASB Group Investments 7, 17

Balanced Investor 11

Choosing a KiwiSaver provider 4

Choosing a KiwiSaver scheme 4

Compounding interest 3

Conservative Investor 10

Contact details 14

Contribution Tax (employers superannuation

contribution tax)

3, 18

Contributions 5, 17

Contributions holiday 3, 18

Crown contribution ($1,000 Government kick-start) 3, 18

Defensive Investor 10

Direct Debit Form 39, 47

Diversification 7

Dollar cost averaging 3

Employee contributions 5, 17

Employer contributions 3, 17

Employer’s Chosen Scheme Agreement 16

Enrolment Form 35

Enrolment Form (under 18) 41

Financial adviser 1

First home buyers 7

Global Sustainability Fund 12

Growth assets 7

Growth investor 12

Income assets 7

Income distributions 21

Index-tracking 7

Investment Funds 10, 21

Index of main terms Page

Investment management 7

Investment Management Fee 20

Investment return 7, 20, 21

Investment risk 7, 25

Investment time horizons 7

Investor profile 9

Joining FirstChoice KiwiSaver 14

KiwiSaver benefits 3

KiwiSaver eligibility 16

Legislation changes 25

Market indices 13

Member tax credit 3, 18, 30, 31

Moderate Investor 11

Mortgage Diversion 23

New employee 4

Opt in 4

Opt out 4

Permanent emigration 22

Portfolio Investment Entity (PIE) 23

Prescribed Investor Rate (PIR) 23, 33, 34

Promoter 17

Prospectus 28

Responsible Investment Policy 8, 17

Returns 20, 21

Salary or wages 17

Self-employed or not employed 4, 5, 18

Significant financial hardship 3, 22

Switching 26

Tax summary 23

Transfers 27

Trans-Tasman Portability 22

Trustee 17

Trustee Fee 20

Underlying investment manager 13

Units 16

Withdrawals 21

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