OnePath's Mortgages and Income Plus Funds

Updates

Latest updates for OnePath's Mortgages and Income Plus Funds

September 2015 - OnePath’s Mortgages and Income Plus funds – notice of termination

Termination of OnePath’s Mortgages and Income Plus funds commenced on 11 September 2015. We are pleased to inform that all remaining mortgages have been repaid and we have now terminated the Mortgages and Income Plus funds. As a result of the termination all remaining available capital has been returned to investors. We are keeping clients’ accounts open so that we can pass on any capital and/or income that becomes available during the termination process.

For Investment Portfolio and legacy trust investors, capital was returned via a deposit into the investor’s nominated bank account or by cheque. A withdrawal confirmation was sent to investors. There is a possibility that capital will become available from the provisions held against the Mortgage Pool cash reserves and/or through the favourable resolution of the court actions that we are continuing to pursue which will may result in future payments.

For Superannuation and Pension members, capital proceeds were switched into a Trustee-determined replacement fund unless members had previously provided alternative instructions. The underlying manager is currently pursuing ongoing court actions relating to past mortgages. This may result in future payments, in which case those payments will be made to the ANZ Cash Advantage* investment option in your current OneAnswer account (or to your nominated alternative investment option within your OneAnswer account). If you no longer hold a OneAnswer account at the time any future payment becomes due, such payment will be made to the provider of your new superannuation account that we currently have on record  or to your bank account if you meet a condition of release.

We will post any future developments on the termination process when they become available.

* For clients invested in OneAnswer Term Allocated Pension or other superannuation products where ANZ Cash Advantage is not available, payments will be processed as a switch into OnePath Cash.

April 2015 - update on March 2015 quarterly payments

We are pleased to advise that we are able to release a significant amount of capital to investors (of approximately 30-34%) for the March quarter as a result of a number of loans being repaid at, or before, maturity together with ongoing property sales and recovery action by OnePath in relation to impaired loans.

For further information, please refer to the ‘Return of capital’ tab.

April 2015 – OnePath Income Plus unit price update

On 23 April 2015 there was a large increase of approximately 172% in the unit price for the suspended OneAnswer Personal Super - OnePath Income Plus fund (‘the Fund’). Members invested in the Fund will see the value of their investment in the Fund increase as a result.

For more information download the OnePath Income Plus unit price update.

Previous updates for OnePath Mortgages and Income Plus Funds

January 2015 - update on December 2014 quarterly payments

We are pleased to advise that we are able to release a significant amount of capital to investors (of approximately 51-53%) for the December quarter as a result of a number of loans being repaid at, or before, maturity together with ongoing property sales and recovery action by OnePath in relation to impaired loans.

For further information, please refer to the ‘Return of capital’ tab.

October 2014 - update on September 2014 quarterly payments

We are pleased to advise that we are able to release a significant amount of capital to investors (of approximately 35-40%) for the September quarter as a result of a number of loans being repaid at, or before, maturity together with ongoing property sales and recovery action by OnePath in relation to impaired loans.

For further information, please refer to the ‘Return of capital’ tab.

September 2014 - update on OnePath Mortgages and Income Plus Funds

An update for investors invested in the OnePath Mortgages and/or OnePath Income Plus funds to explain what we are doing to prudently manage these funds. Download the Funds update for further information.

September 2014 - update on September 2014 quarterly payments

We are pleased to advise that we are able to release a significant amount of capital to investors (of approximately 35-40%) for the September quarter as a result of a number of loans being repaid at, or before, maturity together with ongoing property sales and recovery action by OnePath in relation to impaired loans.

July 2014 - update on June 2014 quarterly payments

We are pleased to advise that we are able to release a significant amount of capital to investors (of approximately 12.5%) for the June quarter as a result of a number of loans being repaid at, or before, maturity together with ongoing property sales and recovery action by OnePath in relation to impaired loans.

Please note there will be a larger than normal income distribution due to some loan write backs.

April 2014 - update on March 2014 quarterly payments

There will not be a quarterly return of capital payment following the end of the March 2014 quarter. This is due to the fact that no large loans were repaid during this quarter.
It is unlikely there will be a return of capital following the end of the June 2014 quarter given expected loan maturities, however, we will confirm this during July 2014.

For further information, please refer to the ‘Return of capital’ tab.

January 2014 - update on December 2013 quarterly payments

There will not be a quarterly return of capital payment following the end of the December 2013 quarter. This is due to the fact that no large loans were repaid during this quarter. We will provide a further update during the March 2014 quarter as to the likelihood of a March 2014 quarter payment.

December 2013 - December quarter capital return unlikely

There is unlikely to be a quarterly return of capital from the OnePath Mortgages and Income Plus Funds following the end of the December 2013 quarter. This is due to the fact that we do not expect any large loans to be repaid during this quarter. The number of loans remaining in the portfolio as at 2 September 2013 was eight. We will provide a further update during the March 2014 quarter as to the likelihood of a payment following the March 2014 quarter.

Please refer to the ‘Archive’ tab for details on payments for the September 2013 quarter.

October 2013 - update on September 2013 quarterly payments

We are pleased to advise that we were able to release a significant amount of capital to investors (of approximately 20%) for the September quarter as a result of a number of loans being repaid at, or before, maturity together with ongoing property sales and recovery action by OnePath in relation to impaired loans. Please refer to the ‘Archive tab for more information.

Details of upcoming September 2013 quarterly payment

During October 2013 we expect to return a portion of capital invested in the OnePath Mortgages and Income Plus funds. The expected return of capital is approximately 20%.
Further details will be available in the next update.

July 2013 - update on June 2013 quarterly payments

We are pleased to advise that we were able to release a significant amount of capital for the June quarter as a result of a number of loans being repaid at, or before, maturity together with ongoing property sales and recovery action by OnePath in relation to impaired loans. Please refer to the ‘Archive’ tab for more information.

April 2013 - update on March 2013 quarterly payments

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 ‘Archive’ tab for more information.

January 2013 - update on December 2012 quarterly payments

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 ‘Archive’ tab for more information.

December 2012 - update on December 2012 quarterly payments

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 ‘Archive’ tab for more information.

October 2012 - update on September 2012 quarterly payments

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 ‘Archive’ tab for more information.

July 2012 - Mortgage portfolio performance update

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.

July 2012 - update on June 2012 quarterly payments

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 ‘Archive’ tab for more information.

Update May 2012 – OnePath Mortgage and Income Plus funds

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.

April 2012 - update on March 2012 quarterly payments

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 ‘Archive’ tab for more information.

March - update on March 2012 quarterly payments

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 ‘Archive’ tab for more information.

January - Update on December 2011 quarterly payments

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 ‘Archive’ tab for more information.

October 2011 - Update on September 2011 quarterly payment

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

July 2011 - Update on June 2011 quarterly payment

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

July 2011 - Mortgage portfolio performance update

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 ‘Archive’ 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 - Update on March 2011 quarterly payment

April 2011 payments have now been processed. Please refer to ‘Archive’ tab for details of payout percentage.

March 2011 - A new, easier approach to releasing available capital

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 Archive tab for further information on how payments will be received.

CIO investor update

OnePath's Chief Investment Officer, Stewart Brentnall, revisits why mortgages funds have been suspended and what we are doing to return capital to investors. Stewart's Investor update, provided below, aims to assist you to understand the background and what steps OnePath is taking to protect investors. Click here to view the CIO's investor update.

Return of capital

Details of March 2015 quarterly payments

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 mid-April 2015. Please see below for the return of capital amounts.

Investment Fund Return of capital - cents per unit Pro rata payment (approx.)

OnePath Mortgage Trust No.2

0.50

30%

OnePath Income Plus and OnePath Original Income Plus Trust

0.43206

32%

OnePath AJ Mortgage Fund

0.50

30%

OnePath Monthly Income Trust

0.50

30%

Unit price/ Account balance impact

The above payments are a return of unit holders’ capital. Immediately after the payments are made, the unit price of each fund falls by the value of the cents per unit paid out to investors. The clients’ account balance also falls by a corresponding amount.

Quarterly Statements – OneAnswer Investment Portfolio

Return of Capital amounts paid during April 2015 will not appear in the March 2015 quarter statement as they were not processed during the March quarter. Instead the Return of Capital paid in April will appear in the June 2015 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).

OneAnswer Personal Super, Integra Super, Corporate Super Expected pro rata payment Approximate date of processing†

OnePath Income Plus

32%

27 April 2015

OnePath Mortgages

34%  

14 April 2015

OneAnswer Pension and Term Allocated Pension Expected pro rata payment Approximate date of processing

OnePath Income Plus

32%         

27 April 2015

OnePath Mortgages

30%

14 April 2015

Switch confirmations will be mailed to clients in the above funds during May 2015.

*For Term Allocated Pension and Employer Super clients, the payments will be made to the OnePath Cash Fund.

†Employer Super switches will be completed during May 2015.

This information has been produced by OnePath Custodians Pty Limited (ABN 12 008 508 496, AFSL 238346, RSE L0000673) and OnePath Funds Management Limited (ABN 21 003 002 800, AFSL 238342) (together the ‘issuers’).  The issuers are wholly owned subsidiaries of Australia and New Zealand Banking Group Limited
(ABN 11 005 357 522) (ANZ), but they are not Banks. This information is current at April 2015 but is subject to change.  Updated information will be available free of charge by calling Customer Services on 133 665.  The information is of a general nature and does not take into account your personal needs, financial circumstances or objectives.  Before acting on this information, you should consider whether it is appropriate for you having regard to your personal needs, financial circumstances and objectives.  You should read the Fund’s most current Product Disclosure Statement and any product and other updates which are available from your financial adviser, at onepath.com.au or by calling Customer Services on 133 665 before making an investment decision.

How do the quarterly pro rata payments work?

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.

OneAnswer Investment Portfolio and other retail trusts

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 products

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.

* For clients invested in OneAnswer Term Allocated Pension and other super products where ANZ Cash Advantage is not available, payments will be processed as a switch into ING Cash.

Personal Super and Pension: options for receiving return of capital

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).

Hardship relief

Hardship relief for suspended funds

On 31 October 2008, the Australian Securities and Investments Commission (ASIC) announced measures to facilitate early withdrawals for investors from suspended mortgage funds in cases of financial hardship. Generally, hardship withdrawals will only be permitted in certain circumstances such as permanent incapacity, on compassionate grounds (e.g. medical costs for serious illness, funeral expenses) or if the investor is unable to meet reasonable and immediate family living expenses. Superannuation members will still need to satisfy any applicable conditions of release under superannuation laws to be able to withdraw from a superannuation fund.

Hardship relief for OnePath's Mortgages and Income Plus funds

ASIC has granted us an exemption from the laws which govern mortgage funds to allow early withdrawals to be made from the suspended funds on hardship grounds. This means that we are able to allow people who are suffering financial hardship to withdraw an amount from their investment account if they meet the grounds specified by ASIC, that is permanent incapacity, certain specified compassionate grounds or severe financial hardship.

Click here (68kb PDF) for further information as to what constitutes permanent incapacity, compassionate grounds and severe financial hardship.

To apply for a withdrawal on the basis of hardship relief please speak with your financial adviser or call Customer Services on 133 665, weekdays between 8.30am and 6.30pm.

Background information

Background information on the suspension of OnePath's mortgages and Income Plus Funds

On 24 October 2008, withdrawals from, and applications to, the OnePath Mortgage Pool were suspended. OnePath's Mortgages and Income Plus funds invest in mortgages via the OnePath Mortgage Pool and therefore withdrawals from and applications to these funds cannot currently be processed.

What funds are impacted?

The following funds are impacted by the suspension:

  • OnePath Mortgages - available via OneAnswer, OnePath's Deferred Annuity, OnePath's Allocated Annuity, ANZ Super Advantage, Corporate Super and Integra Super
  • OnePath Mortgage Trust No.2 - available via OneAnswer Investment Portfolio
  • OnePath Income Plus Funds - available via OneAnswer
  • OnePath AJ Mortgage Fund
  • OnePath Monthly Income Trust.

Archive

Details of December 2014 quarterly payments

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 mid January 2014. Please see below for the return of capital amounts.

Investment Fund Return of capital - cents per unit Pro rata payment (approx.)

OnePath Mortgage Trust No.2

1.85

53%

OnePath Income Plus and OnePath Original Income Plus Trust

1.48227

53%

OnePath AJ Mortgage Fund

1.85

53%

OnePath Monthly Income Trust

1.85

53%

Unit price/ Account balance impact

The above payments are a return of unit holders’ capital. Immediately after the payments are made, the unit price of each fund falls by the value of the cents per unit paid out to investors. The clients’ account balance also falls by a corresponding amount.

Quarterly Statements – OneAnswer Investment Portfolio

Return of Capital amounts paid during January 2015 will not appear in the December 2014 quarter statement as they were not processed during the December quarter. Instead the Return of Capital paid in January will appear in the March 2015 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).

OneAnswer Personal Super, Integra Super, Corporate Super Expected pro rata payment Approximate date of processing†

OnePath Income Plus

52%

21 January 2015

OnePath Mortgages

53%  

14 January 2015

OneAnswer Pension and Term Allocated Pension Expected pro rata payment Approximate date of processing

OnePath Income Plus

51%         

21 January 2015

OnePath Mortgages

53%

14 January 2015

Switch confirmations will be mailed to clients in the above funds during February 2015.

*For Term Allocated Pension and Employer Super clients, the payments will be made to the OnePath Cash Fund.

†Employer Super switches will be completed during February 2015.

This information has been produced by OnePath Custodians Pty Limited (ABN 12 008 508 496, AFSL 238346, RSE L0000673) and OnePath Funds Management Limited (ABN 21 003 002 800, AFSL 238342) (together the ‘issuers’).  The issuers are wholly owned subsidiaries of Australia and New Zealand Banking Group Limited
(ABN 11 005 357 522) (ANZ), but they are not Banks. This information is current at January 2015 but is subject to change.  Updated information will be available free of charge by calling Customer Services on 133 665.  The information is of a general nature and does not take into account your personal needs, financial circumstances or objectives.  Before acting on this information, you should consider whether it is appropriate for you having regard to your personal needs, financial circumstances and objectives.  You should read the Fund’s most current Product Disclosure Statement and any product and other updates which are available from your financial adviser, at onepath.com.au or by calling Customer Services on 133 665.

Details of September 2014 quarterly payments

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 mid October 2014. Please see below for the return of capital amounts.

Investment Fund Return of capital - cents per unit Pro rata payment (approx.)

OnePath Mortgage Trust No.2

2.25

40%

OnePath Income Plus and OnePath Original Income Plus Trust

2.25298

45%

OnePath AJ Mortgage Fund

2.25

40%

OnePath Monthly Income Trust

2.25

40%

Unit price/ Account balance impact

The above payments are a return of unit holders’ capital. Immediately after the payments are made, the unit price of each fund falls by the value of the cents per unit paid out to investors. The clients’ account balance also falls by a corresponding amount.

Quarterly Statements – OneAnswer Investment Portfolio

Return of Capital amounts paid during October 2014 will not appear in the September 2014 quarter statement as they were not processed during the September quarter. Instead the Return of Capital paid in October will appear in the December 2014 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).

OneAnswer Personal Super, Integra Super, Corporate Super Expected pro rata payment Approximate date of processing†

OnePath Income Plus

41%

21October 2014

OnePath Mortgages

40%  

14October 2014

OneAnswer Pension and Term Allocated Pension Expected pro rata payment Approximate date of processing

OnePath Income Plus

41%         

21October 2014

OnePath Mortgages

40%

14October 2014

Switch confirmations will be mailed to clients in the above funds during November 2014.

*For Term Allocated Pension and Employer Super clients, the payments will be made to the OnePath Cash Fund.

†Employer Super switches will be completed during November 2014.

Details of June 2014 quarterly payments

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 mid July 2014. Please see below for the return of capital amounts.

Investment Fund Return of capital - cents per unit Pro rata payment (approx.)

OnePath Mortgage Trust No.2

1

13%

OnePath Income Plus and OnePath Original Income Plus Trust

1.04213

16%

OnePath AJ Mortgage Fund

1

13%

OnePath Monthly Income Trust

1

13%

Unit price/ Account balance impact

The above payments are a return of unit holders’ capital. Immediately after the payments are made, the unit price of each fund falls by the value of the cents per unit paid out to investors. The clients’ account balance also falls by a corresponding amount.

Quarterly Statements – OneAnswer Investment Portfolio

Return of Capital amounts paid during July 2014 will not appear in the June 2014 quarter statement as they were not processed during the June quarter. Instead the Return of Capital paid in July will appear in the September 2014 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).

OneAnswer Personal Super, Integra Super, Corporate Super Expected pro rata payment Approximate date of processing†

OnePath Income Plus

19%

22 July 2014

OnePath Mortgages

19%  

17 July 2014

OneAnswer Pension and Term Allocated Pension Expected pro rata payment Approximate date of processing

OnePath Income Plus

16%         

22 July 2014

OnePath Mortgages

15%

17 July 2014

Switch confirmations will be mailed to clients in the above funds during August 2014.

*For Term Allocated Pension and Employer Super clients, the payments will be made to the OnePath Cash Fund.

†Employer Super switches will be completed during August 2014.

Details of March 2014 quarterly payments

Please be advised that there will be no return of capital from the OnePath Mortgages and Income Plus Funds (the “Funds”) during April 2014, as no large loans were repaid during the March 2014 quarter.

Will there be a monthly income distribution for March 2014?

Yes, monthly income distributions are continuing as normal and are not impacted by the return of capital payments. Income is generated from interest paid by borrowers and interest earned on cash holdings.

How many loans are left in the Funds and when will they be repaid?

There are eight loans left in the Mortgage Portfolio.  Repayment of the majority of these loans is likely to occur during the second half of 2014. The last loan is due to mature in February 2015.

Will there be return of capital payments during the second half of 2014?

During 2014, we expect the level of capital repayments to be less consistent than previous years as the number of loans remaining in the Mortgage Portfolio is small.
It is unlikely there will be a return of capital following the end of the June 2014 quarter as no significant loan repayments are due, however we will confirm this during July 2014.
We will continue to return capital on a quarterly basis if and when capital becomes available from loan repayments.

When will investors have the remainder of their investment returned to them?

While we anticipate the remainder of the loans will be repaid by early to mid-2015, at this stage we are not able to confirm when the final assets of the Funds will be distributed to investors.

What level of income are investors likely to receive in 2014?

The loans remaining in the Funds are all performing well (i.e. interest repayments are being made), all valuations are up to date and where impairments have occurred these have been adequately provisioned. We therefore expect income levels to continue at or around the level returned during 2013, although this is subject to interest rate movements which affect the variable rate loans held in the Mortgage Portfolio. 

When will further information be provided about future capital repayments?

We will provide a further update on our websites during July 2014 as to the likelihood of a June 2014 quarterly capital payment.

How much capital has been returned to date?

Investors have had the majority of their capital returned to them over the past three years. For example the unit price of the OnePath Mortgage Trust No.2 is now $0.08 and has reduced (due largely to capital returns) from $1.00. A small part of the price reduction is due to capital losses incurred on impaired loans during July 2011 and July 2012 (this represents approximately 5 cents) however the bulk of the unit price reduction has been due to capital being returned to investors.

Any questions?

If you have any questions or require further information, please:
• speak with your financial adviser
• call Customer Services on 133 665, weekdays between 8.30am and 6.30pm (AEST)
• email customer@onepath.com.au

The information in this Product Update is current at April 2014 but may be subject to change. This Product Update is issued by OnePath Custodians Pty Limited (ABN 12 008 508 496, AFSL 238346) and OnePath Funds Management Limited (ABN 21 003 002 800, AFSL 238342). The information is of a general nature and does not take into account an investor's personal needs, financial circumstances or objectives. Before making a decision about the product/s, investors should consider the relevant PDS, this Product Update and any other current OneAnswer Product Updates which are available at onepath.com.au or by calling Customer Services on
133 665.

Details of December 2013 quarterly payments

There will not be a quarterly return of capital payment following the end of the December 2013 quarter. This is due to the fact that no large loans were repaid during this quarter. We will provide a further update during the March 2014 quarter as to the likelihood of a March 2014 quarter payment.

Details of September 2013 quarterly payments

We are pleased to advise that we were able to release a significant amount of capital to investors (of approximately 20%) for the September quarter as a result of a number of loans being repaid at, or, before maturity together with ongoing property sales and recovery action by OnePath in relation to impaired loans. 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 mid October 2013. Please see below for the return of capital amounts.

Investment Fund Return of capital - cents per unit Pro rata payment (approx.)

OnePath Mortgage Trust No.2

2

20%

OnePath Income Plus and OnePath Original Income Plus Trust

1.7251

21%

OnePath AJ Mortgage Fund

2

20%

OnePath Monthly Income Trust

2

20%

Unit price/ Account balance impact

The above payments are a return of unit holders’ capital. Immediately after the payments are made, the unit price of each fund falls by the value of the cents per unit paid out to investors. The clients’ account balance also falls by a corresponding amount.

Quarterly Statements – OneAnswer Investment Portfolio

Return of Capital amounts paid during October 2013 will not appear in the September 2013 quarter statement as they were not processed during the September quarter. Instead the Return of Capital paid in October will appear in the December 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).

OneAnswer Personal Super, Integra Super, Corporate Super Expected pro rata payment Approximate date of processing†

OnePath Income Plus

22%

23 October 2013

OnePath Mortgages

21%  

18 October 2013

OneAnswer Pension and Term Allocated Pension Expected pro rata payment Approximate date of processing

OnePath Income Plus

22%         

23 October 2013

OnePath Mortgages

21%

18 October 2013

Switch confirmations will be mailed to clients in the above funds during November 2013..

*For Term Allocated Pension and Employer Super clients, the payments will be made to the OnePath Cash Fund.

†Employer Super switches will be completed during November 2013.

Details of upcoming June 2013 quarterly payment

We are pleased to advise that we were able to release a significant amount of capital for the June quarter as a result of a number of loans being repaid at, or, before maturity together with ongoing property sales and recovery action by OnePath in relation to impaired loans. 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 mid July 2013. Please see below for the return of capital amounts.

Investment Fund Return of capital - cents per unit Pro rata payment (approx.)

OnePath Mortgage Trust No.2

12

54%

OnePath Income Plus and OnePath Original Income Plus Trust

9.67188

54%

OnePath AJ Mortgage Fund

12

54%

OnePath Monthly Income Trust

12

54%

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 July 2013 will not appear in the June 2013 quarter statement as they were not processed during the June quarter. Instead the Return of Capital paid in July will appear in the September 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).

OneAnswer Personal Super, Integra Super, Corporate Super Expected pro rata payment Approximate date of processing†

OnePath Income Plus

54%

24 July 2013

OnePath Mortgages

54%  

19 July 2013

OneAnswer Pension and Term Allocated Pension Expected pro rata payment Approximate date of processing

OnePath Income Plus

54%         

24 July 2013

OnePath Mortgages

54%

19 July 2013

Switch confirmations will be mailed to clients in the above funds during August 2013.

*For Term Allocated Pension and Employer Super clients, the payments will be made to the OnePath Cash Fund.

†Employer Super switches will be completed during August 2013.

Details of March 2013 quarterly payments

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:

Investment Fund Return of capital - cents per unit Pro rata payment %

OnePath Mortgage Trust No.2

1.00

4.3%

OnePath Income Plus and OnePath Original Income Plus Trust

1.3111

6.85%

OnePath AJ Mortgage Fund

1.00

4.3%

OnePath Monthly Income Trust

1.00

4.3%

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).

OneAnswer Personal Super, Integra Super, Corporate Super Pro rata payment % Date of processing†

OnePath Income Plus

7.72%

Late April 2013

OnePath Mortgages

5.66%    

Late April 2013

OneAnswer Pension and Term Allocated Pension Pro rata payment % Date of processing

OnePath Income Plus

7.24%         

Late April 2013

OnePath Mortgages

5.73%

Late April 2013

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

*For Term Allocated Pension and employer super clients, the payments will be made to the OnePath Cash fund.

†Employer Super switches will be completed during 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

Details of December 2012 quarterly payments

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:

Investment Fund Return of capital - cents per unit Pro rata payment %

OnePath Mortgage Trust No.2

1.00

4

OnePath Income Plus and OnePath Original Income Plus Trust

2.96245

13.6

OnePath AJ Mortgage Fund

1.00

4

OnePath Monthly Income Trust

1.00

4

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).

OneAnswer Personal Super, Integra Super, Corporate Super Pro rata payment % Date of processing†

OnePath Income Plus

5.94%    

w/c 11 February 2013

OnePath Mortgages

4.90%      

w/c 11 February 2013

OneAnswer Pension and Term Allocated Pension Pro rata payment % Date of processing

OnePath Income Plus

5.9%          

w/c 11 February 2013

OnePath Mortgages

3.06%

w/c 11 February 2013

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

*For Term Allocated Pension and employer super clients, the payments will be made to the OnePath Cash fund.

†For Corporate Super and Integra Super processing will be completed during February and March 2013.


Details of upcoming December 2012 quarterly payment

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.

Details of September 2012 quarterly payments

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:

Investment Fund Return of capital - cents per unit Pro rata payment %

OnePath Mortgage Trust No.2

6

20

OnePath Income Plus and OnePath Original Income Plus Trust

4.87

18-20

OnePath AJ Mortgage Fund

6

20

OnePath Monthly Income Trust

6

20

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).

OneAnswer Personal Super, Integra Super, Corporate Super Pro rata payment % Date of processing†

OnePath Income Plus

Approx 20- 23%      

Approx 17-18 October 2012

OnePath Mortgages

Approx 20%          

Approx 16 October 2012

OneAnswer Pension and Term Allocated Pension Pro rata payment % Date of processing

OnePath Income Plus

Approx 20- 23%             

Approx 17-18 October 2012

OnePath Mortgages

Approx 20%

Approx 16 October 2012

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

*For Term Allocated Pension and employer super clients, the payments will be made to the OnePath Cash fund.

†Employer Super switches will be completed during 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

Details of upcoming September 2012 quarterly payment

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.

Details of June 2012 quarterly payments

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:

Investment Fund Return of capital - cents per unit Pro rata payment %

OnePath Mortgage Trust No.2

6.64

Approx 17% of balance

OnePath Monthly Income

6.64

Approx 17% of balance

OnePath AJ Mortgage

6.64

Approx 17% of balance

OnePath Income Plus and OnePath Original Income Plus Trust

5.39

Approx 17% of balance

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).

OneAnswer Personal Super, Integra Super, Corporate Super Pro rata payment % Date of processing†

OnePath Income Plus

Approx 17%      

Approx 16 July 2012

OnePath Mortgages

Approx 17%          

Approx 16 July 2012

     
OneAnswer Pension and Term Allocated Pension Pro rata payment % Date of processing

OnePath Income Plus

Approx 17%             

Approx 16 July 2012

OnePath Mortgages

Approx 17%             

Approx 16 July 2012

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

*For Term Allocated Pension and employer super clients, the payments will be made to the Onepath Cash fund.
†Employer Super switches will be completed during August 2012

 

Details of March 2012 quarterly payments

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:

Investment Fund Return of capital - cents per unit Pro rata payment %

OnePath Mortgage Trust No.2

7

Approx 15% of balance

OnePath Monthly Income

7

Approx 15% of balance

OnePath AJ Mortgage

7

Approx 15% of balance

OnePath Income Plus and OnePath Original Income Plus Trust

5.69

Approx 15% of balance

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).

OneAnswer Personal Super, Integra Super, Corporate Super Pro rata payment % Date of processing

OnePath Income Plus

14-16%

End of April 2012

OnePath Mortgages

14-16%

End of April 2012

     
OneAnswer Pension and Term Allocated Pension Pro rata payment % Date of processing

OnePath Income Plus

14-16%

End of April 2012

OnePath Mortgages

14-16%

End of April 2012

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

*For Term Allocated Pension and employer super clients, the payments will be made to the OnePath Cash fund.

 

Details of December 2011 quarterly payments

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:

Investment Fund Return of capital - cents per unit Pro rata payment %

OnePath Mortgage Trust No.2

10

Approx 18% of balance

OnePath Monthly Income

10

Approx 18% of balance

OnePath AJ Mortgage

10

Approx 18% of balance

OnePath Income Plus and OnePath Original Income Plus Trust  

8

Approx 18% of balance

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.

OneAnswer Personal Super, Integra Super, Corporate Super Pro rata payment %

OnePath Income Plus

19%

OnePath Mortgages

18%

OneAnswer Pension and Term Allocated Pension Pro rata payment %

OnePath Income Plus

19%

OnePath Mortgages

18%

Details of September 2011 quarter payments

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:

Investment Fund Return of capital - cents per unit Pro rata payment %

OnePath Mortgage Trust No.2

17.0 (unit price = $0.55)

Approx 23% of balance

OnePath Monthly Income

17.0 (unit price = $0.55)

Approx 23% of balance

OnePath AJ Mortgage

17.0 (unit price = $0.55)

Approx 23% of balance

OnePath Income Plus and OnePath Original Income Plus Trust  

13.8

Approx 23% of balance

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

OneAnswer Personal Super, Integra Super, Corporate Super Pro rata payment %

OnePath Income Plus

22.9%

OnePath Mortgages

23.9%

OneAnswer Pension and Term Allocated Pension Pro rata payment %

OnePath Income Plus

22.3%

OnePath Mortgages

23.9%

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.

*For Term Allocated Pension and employer super clients, the payments will be made to the ING Cash fund.

*For Term Allocated Pension and employer super clients, the payments will be made to the ING Cash fund.

Details of June 2011 quarterly payment

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:

Investment Fund Return of capital - cents per unit Pro rata payment %

OnePath Mortgage Trust No.2

17.5

Approx 19% of balance

OnePath Monthly Income

17.5

Approx 19% of balance

OnePath AJ Mortgage

17.5

Approx 19% of balance

OnePath Income Plus and OnePath Original Income Plus Trust  

14.0

Approx 18.6% of balance

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.

OneAnswer Personal Super, Integra Super, Corporate Super Pro rata payment %

OnePath Income Plus

21.36%

OnePath Mortgages

20.30%

OneAnswer Pension and Term Allocated Pension Pro rata payment %

OnePath Income Plus

19.09%

OnePath Mortgages

19.57%

*For Term Allocated Pension and employer super clients, the payments will be made to the ING Cash fund.

Details of March 2011 quarterly payment

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:

Investment Fund Return of capital - cents per unit Pro rata payment % Unit price after capital payment

OnePath Mortgage Trust No.2

8

Approx 8% of balance

$0.92

OnePath Monthly Income

8

Approx 8% of balance

$0.92

OnePath AJ Mortgage

8

Approx 8% of balance

$0.92

OnePath Income Plus and OnePath Original Income Plus Trust  

6

Approx 7.3% of balance

Varies daily

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.

OneAnswer Personal Super, Integra Super, Corporate Super Pro rata payment %

OnePath Income Plus

11.74%

OnePath Mortgages

8.42%

OneAnswer Pension and Term Allocated Pension Pro rata payment %

OnePath Income Plus

7.04%

OnePath Mortgages

7.65%

*For Term Allocated Pension and employer super clients, the payments will be made to the ING Cash fund.