Corporations Regulations 2001

SCHEDULE 10F - FORM AND CONTENT OF PRODUCT DISCLOSURE STATEMENT - SIMPLE SUB-FUND PRODUCTS  

(regulation 7.9.11ZE )

7   Contents of section 5 (How we invest your money)  

7(1)    
Section 5 of the Product Disclosure Statement for the simple sub-fund product must describe, in the form of a summary, the investment options offered by the CCIV.

7(2)    
Section 5 must state, in the form of a warning, that the person should consider:

(a)    the likely investment return; and

(b)    the risk; and

(c)    the person ' s investment time frame;

when choosing an option in which to invest.

New simple sub-fund product

7(3)    
If the simple sub-fund product has never previously been offered to investors, and the CCIV does not offer any investment option mentioned in subclauses (4) and (5) , section 5 must give the following information for the investment option for the CCIV that the corporate director reasonably believes has the least volatile underlying assets (whether or not section 5 gives that information for any other investment option):

(a)    the name of the option and a short description of it, including the type of investors for whom it is intended to be suitable;

(b)    a list of the asset classes in which the option invests, setting out the strategic asset allocation of the asset classes in the form of a range or otherwise;

(c)    a description of the investment return objective of the option;

(d)    the minimum suggested time frame for holding the investment;

(e)    a description, in the form of a summary, of the risk level of the option.

Balanced investment option

7(4)    
If the CCIV has a balanced investment option (within the meaning given by clause 101 of Schedule 10 ), section 5 must give the following information for the balanced investment option (whether or not section 5 gives that information for any other investment option):

(a)    the name of the option and a short description of it, including the type of investors for whom it is intended to be suitable;

(b)    a list of the asset classes in which the option invests, setting out the strategic asset allocation of the asset classes in the form of a range or otherwise;

(c)    a description of the investment return objective of the option;

(d)    the minimum suggested time frame for holding the investment;

(e)    a description, in the form of a summary, of the risk level of the option.

No balanced investment option

7(5)    
If the CCIV does not have a balanced investment option (within the meaning given by clause 101 of Schedule 10 ), section 5 must give the following information for the investment option under which the CCIV has the most funds invested (whether or not section 5 gives that information for any other investment option):

(a)    the name of the option and a short description of it, including the type of investors for whom it is intended to be suitable;

(b)    a list of the asset classes in which the option invests, setting out the strategic asset allocation of the asset classes in the form of a range or otherwise;

(c)    a description of the investment return objective of the option;

(d)    the minimum suggested time frame for holding the investment;

(e)    a description, in the form of a summary, of the risk level of the option.

Additional information

7(6)    
Section 5:

(a)    must make provision for each investment option that is not presented in section 5 in accordance with subclause (3) , (4) or (5) ; and

(b)    may make provision for the option by applying, adopting or incorporating a matter in a document that:

(i) includes the information mentioned in subclause (3) , (4) or (5) ; and

(ii) presents it in the way mentioned in the subclause.

7(7)    
The CCIV:

(a)    must provide information about how a member of the sub-fund of the CCIV may switch the member ' s investments; and

(b)    must provide information about:

(i) whether the CCIV ' s investment options may be changed; and

(ii) if so, how the options may be changed; and

(c)    must describe, in the form of a summary, the extent to which labour standards or environmental, social or ethical considerations are taken into account in the selection, retention or realisation of investments relating to the CCIV; and

(d)    may provide the information in paragraphs (a) to (c), and any additional information about investment options, by applying, adopting or incorporating a matter in writing.