OnePath's Mortgages and Income Plus funds

We can confirm that we have been able to release a further portion of capital from the OnePath Mortgages and Income Plus funds during April 2013. Please refer to the ‘Return of capital’ tab for more information.

We can confirm that a further portion of capital from the OnePath Mortgages and Income Plus funds has been released during January and February 2013. Please refer to the ‘Return of capital’ tab for more information.

We can confirm that we will be able to release a further portion of capital from the OnePath Mortgages and Income Plus funds during January 2013. Please refer to the ‘Return of capital’ tab for more information.

We can confirm that we have been able to release a further significant portion of capital from the OnePath Mortgages and Income Plus funds during October 2012. Please refer to the ‘Return of capital’ tab for more information.

We have been able to release approximately 17% of your balance in the fund for the June 2012 quarter.

Further details on this release of capital payment and the mortgage portfolio performance, click on the updates below:

For Superannuation and Pension clients, click here for further details.

For Investment clients, click here for further details.

We can confirm that we have been able to release a further significant portion of capital from the OnePath Mortgages and Income Plus funds during July 2012. Please refer to the ‘Return of capital’ tab for more information.

For the month of April 2012 the retail mortgage trusts will not have sufficient income to make an income distribution to investors due to provisioning for expected or incurred loan losses. Please note this has not affected the payment of the quarterly return of capital processed in early April, nor will it impact the June quarter return of capital payment expected in July.

Click here for further information about the underlying portfolio and its impact on income distributions which are paid to Investment clients.

We can confirm that we have been able to release a further significant portion of capital from the OnePath Mortgages and Income Plus funds during April 2012. Please refer to the ‘Return of capital’ tab for more information.

We can confirm that we will be able to release a further significant portion of capital from the OnePath Mortgages and Income Plus funds during April 2012. Please refer to the ‘Return of capital’ tab for more information.

We can confirm that we have been able to release a further significant portion of capital from the OnePath Mortgages and Income Plus funds during January 2012. Please refer to the ‘Return of capital’ tab for more information.

September 2011 quarter payments are currently being processed. Please refer to ‘Return of capital’ tab for details on payout percentages for the funds.

June 2011 quarter payments have now been processed. Please refer to ‘Return of capital’ tab for details on payout percentages for the funds.

We have been able to pay a larger amount of capital for the June 2011 quarter because a significant number of loans have been repaid. This will be approximately 19% of your balance in the fund – refer to the ‘Return of capital’ tab for full details of the payment.

However, despite the large amount of loans being repaid at their maturity date we have had to write down the value of a small number of loans. The value of these loan losses represents approximately 3% of assets.

For Superannuation and Pension clients, click here for further details.

For Investment clients, click here for further details.

April 2011 payments have now been processed. Please refer to ‘Return of capital’ tab for details of payout percentages

We are pleased to advise that we are introducing a new, easier and more convenient approach to releasing available funds to investors.

Investors will no longer need to complete a withdrawal or switch request. Instead, we will be automatically returning any available liquidity to all investors on a pro rata basis each quarter.

We believe this approach is a more efficient way of releasing liquidity to investors than the previous withdrawal windows.

Please note, any withdrawal or switch requests we have received since the closure of the last window on 19 November 2010 can not be actioned. Please do not make any further requests to switch or withdraw as these can not be processed. If you are in a situation of financial hardship you may be eligible to apply on those grounds, please refer to the ‘hardship relief’ tab.

The first payment to be made under this new approach will be in April 2011. We anticipate this will be approximately 5-10% of your account balance in each of the Funds.

Please refer to the return of capital tab for further information on how payments will be received.

During April 2013, we released a portion of liquidity to investors in OnePath Mortgages and Income Plus funds.

Further details on payments for OneAnswer Investment Portfolio, Personal Super and Pension clients are outlined below:

OneAnswer Investment Portfolio and other retail trusts

All payments were processed in early April 2013. Please see below for the return of capital amounts:

Unit prices and subsequently account balances were reduced by the amount of the capital payment.

Quarterly Statements – OneAnswer Investment Portfolio

Return of Capital amounts paid during April 2013 will not appear in the March 2013 quarter statement as they were not processed during the March quarter. Instead the Return of Capital paid in April will appear in the June 2013 quarter statement under the ‘Distributions’ section.

OneAnswer Personal Super and Pension

For Personal Super and Pension clients, payments are processed as a switch into ANZ Cash Advantage* or to an alternative investment fund if they have nominated one. Clients are then free to switch the proceeds to an alternate fund(s) of their choice or withdraw (subject to preservation rules and exit fees if they are within an exit fee period).

Switch confirmations will be mailed to clients in the above funds from the end of April to late May 2013.

Further information

If there are any further updates, we will post the information on our website at www.onepath.com.au > Performance & updates > Fund suspensions.

If you have any queries or require further information, please:

• call Adviser Services on 1800 804 768, weekdays between 8.30am and 6.30pm (AEST)
• email us at adviser@onepath.com.au

During January and February 2013, we released a portion of liquidity to investors in OnePath Mortgages and Income Plus funds.

Further details on payments for OneAnswer Investment Portfolio, Personal Super and Pension clients are outlined below:

OneAnswer Investment Portfolio and other retail trusts

All payments were processed around 9 January 2013. Please see below for the return of capital amounts:

Unit prices and subsequently account balances were reduced by the amount of the capital payment.

Quarterly Statements – OneAnswer Investment Portfolio

Return of Capital amounts paid during January 2013 will not appear in the December 2012 quarter statement as they were not processed during the December quarter. Instead the Return of Capital paid in January will appear in the March 2013 quarter statement under the ‘Distributions’ section.

OneAnswer Personal Super and Pension

For Personal Super and Pension clients, payments are processed as a switch into ANZ Cash Advantage* or to an alternative investment fund if nominated. Clients are then free to switch the proceeds to an alternate fund(s) of their choice or withdraw (subject to preservation rules and exit fees if they are within an exit fee period).

Switch confirmations are expected to be mailed to clients in the above funds during February and March 2013.

We expect the amount to be approximately 4% of client balances for the December quarter.

Details of when payments will be processed are outlined below:

Investment Portfolio and other retail trusts

For the Investment clients we expect clients to receive these monies into their bank accounts (or a cheque) in early January 2013.

Personal Super and Pension

For the Super and Pension clients we expect to have processing completed in the second half of January 2013. These monies will be switched into one of the cash investment funds (unless an alternate fund has been nominated).

More information:

Our website will be updated in early January 2013 to confirm the exact amounts and processing times.

During October 2012, we released a portion of liquidity to investors in OnePath Mortgages and Income Plus funds.

Further details on payments for OneAnswer Investment Portfolio, Personal Super and Pension clients are outlined below:

OneAnswer Investment Portfolio and other retail trusts

All payments were processed around 12 October 2012. Please see below for the return of capital amounts:

Unit prices and subsequently account balances were reduced by the amount of the capital payment.

Quarterly Statements – OneAnswer Investment Portfolio

Return of Capital amounts paid during October will not appear in the September quarter statement as they were not processed during the September quarter. Instead the Return of Capital paid in October will appear in the December quarter statement under the ‘Distributions’ section.

OneAnswer Personal Super and Pension

For Personal Super and Pension clients, payments are processed as a switch into ANZ Cash Advantage* or to an alternative investment fund if they have nominated one. Clients are then free to switch the proceeds to an alternate fund(s) of their choice or withdraw (subject to preservation rules and exit fees if they are within an exit fee period).

Switch confirmations will be mailed to clients in the above funds from the end of October to late November 2012.

Further information

If there are any further updates, we will post the information on our website at www.onepath.com.au > Performance & updates > Fund suspensions.

If you have any queries or require further information, please:

• call Adviser Services on 1800 804 768, weekdays between 8.30am and 6.30pm (AEST)
• email us at adviser@onepath.com.au

We expect the amount to be approximately 20% of client balances.

Details of when payments will be processed are outlined below:

Investment Portfolio and other retail trusts

For the Investment clients we expect clients to receive these monies into their bank accounts (or a cheque) by 12 October 2012.

Personal Super and Pension

For the Super and Pension clients we expect to have processing completed the week commencing 15 October 2012. These monies will be switched into one of the cash investment funds (unless an alternate fund has been nominated).

More information:

Our website will be updated in mid-October 2012 to confirm the exact amounts and processing times.

During July 2012, we released a portion of liquidity to investors in OnePath Mortgages and Income Plus funds.

Further details on payments for OneAnswer Investment Portfolio, Personal Super and Pension clients are outlined below:

OneAnswer Investment Portfolio and other retail trusts

All payments were processed around 10 July 2012. Please see below for the return of capital amounts:

Unit prices and subsequently account balances were reduced by the amount of the capital payment.

Personal Super and Pension

For Personal Super and Pension clients, payments are processed as a switch into ANZ Cash Advantage* or to an alternative investment fund if they have nominated one. Clients are then free to switch the proceeds to an alternate fund(s) of their choice or withdraw (subject to preservation rules and exit fees if they are within an exit fee period).

Switch confirmations will be mailed to clients in the above funds from the end of July to late August 2012.

During April 2012, we released a portion of liquidity to investors in OnePath Mortgages and Income Plus funds.

Further details on payments for OneAnswer Investment Portfolio, Personal Super and Pension clients are outlined below:

OneAnswer Investment Portfolio and other retail trusts

All payments were processed around 17 April 2012.

Please see below for the return of capital amounts:

Unit prices and subsequently account balances were reduced by the amount of the capital payment.

Personal Super and Pension

For Personal Super and Pension clients, payments are processed as a switch into ANZ Cash Advantage* or to an alternative investment fund if they have nominated one. Clients are then free to switch the proceeds to an alternate fund(s) of their choice or withdraw (subject to preservation rules and exit fees if they are within an exit fee period).

Switch confirmations will be mailed to clients in the above funds from the end of April to late May 2012.

During January 2012, we released a portion of liquidity to investors in OnePath Mortgages and Income Plus funds.

Further details on payments for OneAnswer Investment Portfolio, Personal Super and Pension clients are outlined below:

OneAnswer Investment Portfolio and other retail trusts
All payments were processed around 10 January 2012 and payments should have been received by clients around 12 January. Please see below for the return of capital amounts:

Client quarterly transaction statements will reflect these payments and will be issued in late January.

Unit prices and subsequently account balances were reduced by the amount of the capital payment.

Personal Super and Pension
For Personal Super and Pension clients, payments were processed as a switch into ANZ Cash Advantage* or to an alternative investment fund if they have nominated one. Clients are then free to switch the proceeds to an alternate fund(s) of their choice or withdraw (subject to preservation rules and exit fees if they are within an exit fee period).

The switches were processed from 14 January. A switch confirmation will be mailed to clients shortly after.

During October 2011, we released a portion of liquidity to investors in OnePath Mortgages and Income Plus funds.

Further details on payments for OneAnswer Investment Portfolio, Personal Super and Pension clients are outlined below:

OneAnswer Investment Portfolio and other retail trusts

All payments were processed around 12 October 2011 and payments should have been received by clients around 14 October. Please see below for the return of capital amounts:

Clients' quarterly transaction statements will reflect these payments and will be issued in early November.

Unit prices and subsequently account balances were reduced by the amount of the capital payment.

Personal Super and Pension

For Personal Super and Pension clients, payments were processed as a switch into ANZ Cash Advantage* or to an alternative investment fund if they have nominated one. Clients are then free to switch the proceeds to an alternative fund(s) of their choice or withdraw (subject to preservation rules and exit fees if they are within an exit fee period).

The switches for Income Plus were processed on approximately 14 October. The switches for Mortgages are expected to be processed from 24 October. A switch confirmation will be mailed to clients shortly after.

You can check your account online by logging in to 'My OnePath' at onepath.com.au

Details of upcoming March 2012 quarterly payment 

We expect the amount to be approximately 14%-16% of client balances. Details of when payments will be processed are outlined below:

Investment Portfolio and other retail trusts

For the Investment clients we expect clients to receive these monies into their bank accounts (or a cheque) by Tuesday 17 April 2012.

Personal Super and Pension

For the Super and Pension clients we expect to have processing completed by Monday 30 April 2012. These monies will be switched into one of the cash investment funds (unless an alternate fund has been nominated).

More information:

Our website will be updated in late April to confirm the exact amounts and processing times.

During July 2011, we released a portion of liquidity to investors in OnePath Mortgages and Income Plus funds.

Further details on payments for OneAnswer Investment Portfolio, Personal Super and Pension clients are outlined below:

OneAnswer Investment Portfolio and other retail trusts

All payments were processed around 20 July 2011 and payments should have been received by clients around 21 - 22 July. Please see below for the return of capital amounts:

Client quarterly transaction statements will reflect these payments and will be issued in early August.

Unit prices and subsequently account balances were reduced by the amount of the capital payment.

Personal Super and Pension

For Personal Super and Pension clients, payments were processed as a switch into the ANZ Flexible Term Deposit Plus fund^* or to an alternative investment fund if they have nominated one. Clients are then free to switch the proceeds to an alternate fund(s) of their choice or withdraw (subject to preservation rules and exit fees if they are within an exit fee period).

The switches were processed in the last week of July. A switch confirmation will be mailed to clients shortly after.

During April 2011, we released a portion of liquidity to investors in OnePath Mortgages and Income Plus funds.

We communicated via a letter to all investors in the fund in the last week of March to inform them of the upcoming payment. Further details on payments for OneAnswer Investment Portfolio, Personal Super and Pension clients are outlined below:

OneAnswer Investment Portfolio and other retail trusts

The return of capital for Investment Portfolio clients was processed effective 31 March. For the Income Plus funds the capital payment was bundled with the March income payment. For the Mortgage Trusts these payments were processed separately to the March income payment.

All payments were processed around 8 April 2011 and payments should have been received by clients around 11-13 April. Please see below for the return of capital amounts:

Client quarterly transaction statements reflected these payments and were issued in the first week of May.

Unit prices and subsequently account balances decreased by the amount of the capital payment immediately after 31 March 2011.

Personal Super and Pension

For Personal Super and Pension clients, payments were processed as a switch into the ANZ Flexible Term Deposit Plus fund^* or to an alternative investment fund if they have nominated one. Clients are then free to switch the proceeds to an alternate fund(s) of their choice or withdraw (subject to preservation rules and exit fees if they are within an exit fee period).

The switches were processed in the last two weeks of April. A switch confirmation was mailed to clients shortly after. Unit balances in the OnePath Mortgages and Income plus funds reduced after the switch processing. Unit prices are not affected.

The first payment to be made under this new approach will be in April 2011. We anticipate this will be approximately 5-10% of Fund assets. Thereafter, we expect to make payments on a quarterly basis, after the end of June, September, December and March each year.

This will be paid with clients’ March period income distribution and therefore will be deposited into bank accounts or paid by cheque if no account details have been provided.  Quarterly transaction statements reflecting the payment will be issued in late April or early May.

How does a return of capital work?

A return of capital is not income that would be assessable for tax purposes. A return of capital reduces the cost base of the units. The unit price of the Fund will fall by exactly the value of the capital payment. The number of units you hold in the Fund will not change. For Funds which have a $1.00 unit price, for example OnePath Mortgage Trust No.2, the unit price will fall below $1.00 over time as capital is paid out.

An example of a capital payment is outlined below:

• Mr Smith has 20,000 units in OnePath Mortgage Trust No.2 and the unit price is $1.00. His account balance is $20,000.
• The Fund returns capital to investors of 8 cents per unit (i.e. $0.08 per unit).
• Mr Smith is paid $1,600 ($0.08 x 20,000).
• The new unit price of the OnePath Mortgage Trust No.2 is $0.92.
• After the capital payment, Mr Smith still has 20,000 units however the value of his units has reduced by the amount of the capital return. Therefore his account balance is $18,400 (20,000 x $0.92).

Over time, the unit price will fall. It is important to note that this is in line with capital returned and does not reflect the performance of the underlying assets.

How will the return of capital affect future income payments?

The performance return from the Funds, in percentage terms, will not be affected by the return of capital. However the value of your investment will reduce over time (in dollar terms) as capital is returned to you. Therefore, the dollar value of future income distributions will reduce accordingly. It is important to note that other factors can influence income distributions as well as the value of your capital holding.

The above is true to a lesser extent for the OnePath Income Plus fund which invests in Australian shares and property as well as mortgages and therefore has the potential for capital growth from those investments.

Below is an example of how a return of capital will impact on income distributions for a $1.00 priced fund:

• Mr Smith (as described above) is invested in the OnePath Mortgage Trust No.2 which has a $1.00 unit price. The Fund has been paying distributions of approximately 3.30% p.a.
• Mr Smith has 20,000 units and therefore has been receiving approximately $55 per month (3.30% x $20,000 divided by 12).
• After a return of capital of 8 cents per unit Mr Smith has $18,400.
• Mr Smith can expect to receive approximately $50.60 each month after the first return of capital (3.30% x $18,400 divided by 12), assuming the underlying investments continue to provide the same level of income.

Mr Smith will need to speak to his adviser about investing his capital elsewhere to ensure his total income needs continue to be met.

Can you invest the capital proceeds into another investment fund?

Yes, there are a range of investment funds offered through OneAnswer Investment Portfolio which offer regular income and/or capital growth. We suggest you speak to your financial adviser about an appropriate investment. Should you wish to invest in another fund within OneAnswer Investment Portfolio, you will need to read the current Product Disclosure Statement (PDS) prior to making any investment decision. The PDS is available from onepath.com.au > Forms & brochures.

Personal Super and Pension payments will be processed as a switch into ANZ Cash Advantage^*.

Clients are free to switch the proceeds to an alternative fund(s) of their choice or withdraw (subject to preservation rules and exit fees if you are within an exit fee period). There are no entry fees or transaction costs applicable to ANZ Cash Advantage.

You will be mailed a switch confirmation once the payment has been made. Going forward, you are able to view each quarterly payment online by logging in to 'My OnePath' at onepath.com.au.

Personal Super and Pension members have three options for receiving quarterly returns of capital for OnePath Mortgages and Income Plus funds:

1. Complete the Return of capital standing instruction form

OneAnswer Personal Super and Pension members can complete the Return of capital standing instruction form available on this web page. The form allows members to nominate one fund for 100% of their distribution to be switched into going forward. Future capital returns will then be switched directly from OnePath Mortgages and Income Plus funds into this nominated fund. Members are able to change their standing instructions at any time.

2. Complete the standard Switch Request Form

Members can complete the standard Switch Request Form which is available from Forms & brochures to switch their capital return from ANZ Flexible Term Deposit Plus fund or OnePath Cash into their nominated fund(s). Please note this is not a standing instruction and members will need to complete another Switch Request Form for future special distributions if they wish for units to be switched into an alternate fund(s). With this option members can choose to switch their capital return into multiple investment funds.

3. Take no action

Members can take no action and we will continue to switch their capital return from OnePath Mortgages and Income Plus funds into ANZ Flexible Term Deposit Plus fund or OnePath Cash as applicable.

Please speak to your financial adviser for further information. Alternatively you can call Customer Services on 133 665, weekdays between 8.30am and 6.30pm (Sydney time).

The Return of capital standing instruction form allows members in OneAnswer Super and Pension to nominate one fund for 100% of their capital payment to be switched into.

If a member completes this form after the capital has been paid, we will switch their investment from ANZ Cash Advantage or OnePath Cash into their nominated fund, and future capital returns will be switched directly from OnePath Mortgages and Income Plus funds into this nominated fund. Members are able to change their standing instructions at any time.

Click on the relevant form below:

• OneAnswer Personal Super - Return of capital standing instruction form
• OneAnswer Pension - Return of capital standing instruction form