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ING DIRECT Managed FundsSupplementary Product Disclosure Statement (SPDS)Date: 25 January 2005
This document supplements the ING DIRECT Managed Funds Product Disclosure Statement (PDS) dated 10 October 2003
and should be read together with that PDS.
The information in this SPDS relates to the following funds ("the Funds"):
■ ING Direct All Rounder - ARSN 096 290 729
■ ING Direct True Blue Aussie Share Fund - ARSN 099 991 723
This SPDS contains information about two changes to the Funds which will commence on 1 March 2005.
Closure of the Funds to new investmentsOn and from 1 March 2005, both of the Funds will be closed to new investments. This means that existing members will be
no longer able to acquire any additional units in the Funds. However, members will be able to continue to make withdrawals
from the Funds in the normal manner.
Automatic Investment Plans and Distribution Reinvestment Plans will be cancelled on and from 1 March 2005 but will continue
to operate as normal up until that date. If you do not currently have one of these Plans, on and from 1 March 2005 you will
not be able to set one up. This means that if you have an Automatic Investment Plan or Distribution Reinvestment in place, it
will continue to operate normally up until 1 March 2005, on and from that date the Plan will be cancelled and no additional
units in the Funds will be issued under those Plans. Distributions that would previously have been reinvested will instead be paid
into your nominated bank account.
Introduction of a "sell spread"On and from 1 March 2005, both the Funds will have a "sell spread". This means that if you make a withdrawal on or after
1 March 2005, the unit price which is used will be reduced by an amount which reflects a proportion of the transaction costs
for selling the assets of the Fund. These transaction costs are costs incurred when the assets of the Fund are sold to satisfy
withdrawal requests, they are not a fee paid to ING FM or ING DIRECT.
The sell spreads which will apply are:
ING DIRECT True Blue Aussie Share Fund - 0.13%
ING DIRECT All Rounder - 0.11%
However, these sell spreads will be subject to change.
The purpose of a "sell spread" is to ensure that the transaction costs involved in selling the assets of the Funds to meet
withdrawals are borne by the members at the time when they make a withdrawal. Otherwise, these transactions costs are
deducted from a Fund whenever assets are sold and are borne by all members of that Fund at that time.
This SPDS has been prepared by ING Funds Management Limited (ING FM) ABN 21 003 002 800, AFSL Number 238342 – the responsible entity of the Funds. ING FM, ING Bank (Australia) Limited (ING Bank) ABN 24 000 893 292, AFSL Number 229823 and other companies in the ING Group do not guarantee the return of capital or the performance of the Funds. An investment in the Funds does not represent adeposit with, or other liability of, ING Bank or any other member of the ING Group. Investment in the Funds is subject to investment riskincluding possible delays in repayment and loss of income and capital invested. This SPDS has been prepared without taking into account the investment objectives, financial situation and particular needs of any particular investor. Investors should consider the appropriateness of the information in this SPDS and the PDS in view of their objectives, financial situation and needs, and may want to seek further advice. You should consider the PDS before making any decision about whether to invest in the Funds.
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Straight forwardinvesting
Managed Investments
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This Information Brochure dated 16 May 2003 forms part of the Product Disclosure Statement (PDS).
Other documents that form part of the PDS are:■ Terms and Conditions■ Fund Performance
ING DIRECT Managed Funds Product Disclosure StatementImportant Information
The information in this pack is important and you should read it carefully before you complete the Application Form. This PDS
has been prepared by ING Funds Management Limited (ING FM) ABN 21 003 002 800 – the responsible entity of the Funds
offered for investment in this PDS (the Funds).
ING FM has appointed ING Bank (Australia) Limited (ING Bank) ABN 24 000 893 292, through its “ING DIRECT” business, to carry
out certain functions in relation to the Funds on its behalf. These functions predominantly include processing of applications,
account set up and ongoing account maintenance. ING FM retains ultimate responsibility to investors.
ING FM has also appointed ING Investment Management Limited (ING IM) ABN 23 003 731 959 as manager of the Funds to
assist ING FM in selecting, retaining and realising investments.
ING FM, ING Bank and other companies in the ING Group do not guarantee the return of capital or the performance of the
Funds. An investment in the Funds does not represent a deposit with, or other liability of, ING Bank or any other member of the
ING Group. Investment in the Funds is subject to investment risk including possible delays in repayment and loss of income and
capital invested. This PDS has been prepared without taking into account the investment objectives, financial situation and
particular needs of any particular investor. Investors should consider the appropriateness of the information in this PDS in view of
their objectives, financial situation and needs, and may want to seek further advice. You should consider the PDS before making
any decision about whether to invest in the Funds.
ING DIRECT All Rounder (All Rounder) – ARSN 096 290 729
ING DIRECT True Blue Aussie Share Fund (True Blue) – ARSN 099 991 723
Throughout this PDS:
“Funds” and “ING DIRECT Managed Funds” means both the All Rounder and True Blue Funds.
“We”, “our”, “us” means ING DIRECT.
“ING IM” means ING Investment Management Limited.
“Responsible Entity” or “RE” means ING Funds Management Limited (ING FM).
Please note that the offer made in this PDS is available only to persons receiving the PDS (electronically
or otherwise) in Australia. Applications will only be accepted with Australian mailing addresses.
Contact DetailsING DIRECT Managed Funds
Reply Paid 4307
Sydney NSW 2001
Phone: 133 464
Website: www.ingdirect.com.au
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About managed fundsWhat are managed funds?How do managed funds work?What are the features of managed funds?
Invest the straight forward wayWhy should you invest with ING DIRECT?
Fund overviewsAll RounderTrue Blue
How to chooseHow do you choose?Choosing an ING DIRECT Managed Fund
What fees do I pay?What is the Management Fee?What are the Funds’ expenses?
How the Funds are managedWho manages the Funds?Managing All RounderManaging True BlueUnit pricesTaxation
How it all worksGetting startedOnce your investment is open“Cooling off” periodIf you ever have a complaint
Your application checklist
Fund Performance
Terms and Conditions
Information in this PDS is subject to change from time to time and may be updated by us if it is not materially adverse to investors. Updated information can be obtained via our website at www.ingdirect.com.au or you can request a paper copy of any updatedinformation free of charge by calling one of our Direct Associates on 133 464.
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Aboutmanaged funds
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Initial investment required Managed funds generally allow you to invest with a minimum initial investment.This allows you to take advantage of the professionally managed pool of fundsthat are invested in a range of shares and other assets. The ING DIRECTManaged Funds require no minimum investment.
Regular investments By investing small amounts regularly you are able to average out the purchaseprice of your units, so you can be less concerned about trying to buy at the righttime. This is also a good way to help your investment grow.
Distributions The funds may distribute income and net capital gains to investors, which youcan choose to reinvest into the fund.
Fees Some funds charge an entry or exit fee that can significantly reduce yourinvestment. The ING DIRECT Managed Funds have no entry or exit fees makingit even cheaper to invest (refer to page 14 for further information of the fee structure).
Unit prices Managed funds are priced on a per unit basis. The number of units issued to you are reflective of the amount invested and the unit price at the time of investing. The unit price can fluctuate daily which will affect your investmentvalue.
Investing can be exhausting and sometimes expensive. Now you can invest in straight forward and competitive managed
funds that make your money work harder, with an ING DIRECT Managed Fund.
What are managed funds?Managed funds allow you to invest in a wide selection of professionally managed domestic and global assets – no matter
how much you have to invest. Your funds are pooled with the funds of other investors, which increases your total buying
power. This means you get the benefit of a large number of assets with one straight forward investment.
How do managed funds work?When you invest in a managed fund you are issued units. These units represent your beneficial share of the assets held by
the fund. Each fund holds a range of different investments and the price of your units will rise and fall depending on the
value of these investments.
What are the features of managed funds?
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No entry fee
No exit fee
No minimum investment
No minimum withdrawal
No minimum balance
Competitive Management Fee
Automatic Investment Plan
Invest thestraight forward
way
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Why should you invest with ING DIRECT?
Internationally respected, locally connected
An ING DIRECT Managed Fund can help you build wealth without the fuss. You can invest in a range of asset classes with
confidence in the management and global expertise of ING Group. ING DIRECT is part of ING Group, one of the world’s
largest financial institutions. Based in the Netherlands, ING Group is active in the fields of banking, insurance and
investment. It operates in 65 countries, employs over 100,000 staff, and had more than A$800 billion in investment assets
under management as at 31 December 2002.
This means you can directly benefit from ING Group’s global expertise and active presence in the world’s major financial
markets. It’s that straight forward.
Below is a summary table of some key information for ING DIRECT’s Managed Funds.
All Rounder True Blue See page
Entry Fee Nil Nil 14Exit Fee Nil Nil 14Switching Fee Nil Nil 14Withdrawal Fee Nil Nil 14Management Fee 1.75%p.a. 1.75%p.a. 14
Min. Investment No minimum No minimum 5Min. Withdrawal No minimum No minimum 5Automatic Invest. Plan Yes, no minimum Yes, no minimum 22
Internet Yes, 24 hrs/7 days Yes, 24 hrs/7 days SeeTelephone Access Yes, 24 hrs/7 days Yes, 24 hrs/7 days TermsMail Yes Yes andCustomer Info Centre NSW, Vic & Qld NSW, Vic & Qld Conditions
Australian Shares Yes YesInternational Shares Yes NoListed Property Trusts Yes No See FundAustralian Fixed Interest Yes No PerformanceInternational Fixed Interest Yes NoCash Yes Yes
Transaction Statement Quarterly QuarterlyDistribution Statement After 30 June & 31 Dec After 30 June & 31 Dec
each year, if applicable each year, if applicable SeeTaxation Statement After 30 June each year After 30 June each year TermsCapital Gains Tax After 30 June After 30 June andStatement each year, if applicable each year, if applicable ConditionsAnnual Report After 30 June each year After 30 June each year
Distribution Income After 30 June & 31 Dec After 30 June & 31 Deceach year, if applicable each year, if applicable 18, 23
Investment Horizon At least 3 years At least 5 years 8, 10
Telephone Yes, 24 hrs/7 days Yes, 24 hrs/7 days 24Mail Yes Yes 24
Features
Fees
Investing
Access
Investmenttypes
Statements andreports
Distributionfrequency
Risk profile
Customer enquiriesor concerns
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Fund overviewsAll RounderTrue Blue
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All Rounder
Fund name ING DIRECT All Rounder
Fund objective To provide capital growth over the medium to long term and some income.
Investment strategy The Fund invests in a range of asset classes, including shares and fixed interestassets from Australian and international markets, listed property trusts and cash.Investments will be varied within the broad asset ranges with the aim of havinghigh exposure to investment markets that are expected to perform well.
Investment risk Medium
Recommended investment horizon At least 3 years.
Fund name ING DIRECT True Blue Aussie Share Fund
Fund objective To provide capital growth over the medium to long term with some taxeffective income.
Investment strategy The Fund invests in growth oriented investments across a wide range of stocks listed or about to be listed on the Australian Stock Exchange. These investments may include shares, convertible securities and units in listed property trusts.
Investment risk High
Recommended investment horizon At least 5 years.
True Blue
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Choosing the right fund to meet your needs
doesn’t have to be complicated. It can come
down to a few straight forward questions.
How tochoose
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How do you choose?Before investing you should think about whether each Fund suits your personal needs, objectives and financial circumstances.
You should also determine your risk comfort level. When referring to risk we mean the state of you being open to
the chance of loss. That is, how comfortable you are with the possibility of your investment rising and falling over time.
All investments carry some risk – no matter how experienced the fund managers or rigorous their investment approach.
There are a number of things that can affect your investment, they include:
Investment horizon – This refers to how long you wish to invest for.
■ Short term is usually considered to be less than 12 months■ Medium term is generally 2-3 years■ The long term 5+ years
Generally if you invest in the short to medium term there is a greater chance of fluctuations in your investment returns.
However, if you invest for a longer period these fluctuations tend to be smoothed out. In this way risk generally reduces
the longer you hold your investment.
For example, if you had invested in Australian and international shares during the late 1980s, the value of your investment
would have declined when the sharemarket “crash” of 1987 occurred. If you had withdrawn from the market after this
event, you would have missed out on the strong returns that sharemarkets have delivered subsequently.
Market risk – This is the risk that broad factors will negatively affect the market as a whole. These factors may include the
economy, social or political events and the environment and they can vary from country to country in which the funds invest.
For example, war may affect markets and in turn affect your investment.
Company or securities risk – The risk that performance factors relating to a particular company or security
could deteriorate.
For example, if a company your fund invests in goes into liquidation, the performance of your fund may be affected.
Currency risk – Risk that fluctuations in the value of the Australian dollar against the currencies of other countries may
affect the value of international investments in Australian dollar terms.
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All investments carry some risk and you will usually find there is a trade-off between risk and return. Generally, higher returns
result from higher risk investments over the longer term.
The diagram below outlines the expected risk and return outcomes of the major asset classes over the medium to long term.
Cash – While cash is regarded as one of the safest asset classes, the returns can still fluctuate. Inflation, monetary policy
and interest rates can all affect cash returns.
Fixed interest – Australian and international fixed interest assets are primarily affected by interest rates, which are
affected by government monetary policy, the financial position of the issuer and inflation. International fixed interest assets
can also be affected by movements in currency when the assets are not hedged (i.e. protected against currency movements).
Listed Property Trusts – Listed Property Trusts are often regarded as a good defensive asset. The general level of
economic activity and the state of real estate and rental markets are drivers of the performance of Listed Property Trusts.
Shares – Whether they are Australian or international companies, share prices are generally reflective of a company’s
profit outlook. Changes in management, profit outlook, market sentiment and the level of a company’s debt can all affect
the valuation of a particular share. Shares in overseas assets are subject to movements in currency as well as any security
specific risks.
Shares and Listed Property Trusts
Fixed Interest
Cash
Ret
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Risk
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Low
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A typical All Rounder investor:
■ wants to spread their investment across most major assetclasses (e.g. shares, property, fixed interest and cash);
■ is planning to invest for at least 3 years;■ is looking for a mix of income and capital growth;■ is willing to take on a medium overall level of risk in the
short term.
A typical True Blue investor:
■ wants to invest in a wide selection of Australian shares;■ is planning to invest for at least 5 years;■ is looking for a mix of income and capital growth; ■ is willing to take a high level of risk in the short term.
Those who have a low risk comfort level and prefer an investment heavily weighted in cash may wish to consider opening
up an ING DIRECT Savings Maximiser. For more details please contact one of our Direct Associates on 133 464 or visit our
website at www.ingdirect.com.au
The statements above are intended as an aid to help you develop your thinking. They are not a recommendation
of any kind. They have been prepared without taking into account your personal investment needs, objectives, or
financial circumstances. Before making an investment decision, you should consider the appropriateness of these
statements with regard to those things, and you may want to seek further advice. You should consider the whole
PDS before making an investment decision.
There are ways you can help reduce risk. Some examples include:
Diversifying – Spreading your investment across a number of different shares or across broader asset classes.
Investing regularly – You don’t need a large amount to get your investment started. In fact, investing small amounts
regularly helps you average out the purchase price of your units, so you can be less concerned about trying to buy at the
right time.
Focusing on your investment horizon – The value of your investment is likely to rise and fall as investment
markets tend to follow cycles. It is important to remind yourself of your investment horizon when markets fall and not
to react without considering the potential implications. It is sometimes better to wait for markets to recover than to sell
when they are low.
Choosing an ING DIRECT Managed FundEach Fund has been designed to meet a certain investment profile. Here’s what a typical investor might look like:
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When you’re trying to build wealth the last thing
you need is fees eating away at your investment.
What feesdo I pay?
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There are currently no entry or exit fees, or Fund expenses charged on any of the ING DIRECT Managed Funds. The only fee
ING DIRECT has is a Management Fee. We do not intend to charge any other fees, however we will give you 30 days notice
if there is a change.
What is the Management Fee?Straight forward investing means the only fee you pay is the Management Fee. The Management Expense Ratio (MER)
shows the cost of investing in a Managed Fund. It includes the Management Fee as well as any Fund expenses. Because
ING DIRECT have decided to pay all Fund expenses until further notice, the MER for the ING DIRECT Managed Funds is only
1.75% p.a. of the value of Fund assets. This is calculated daily and paid monthly.
What are the Funds’ expenses?Each Fund has a Constitution that lists a wide range of expenses we are able to recover from the Fund. ING DIRECT has
decided to pay these amounts until further notice.
You will not see the MER on your Transaction Statements or Distribution Statements – it is accrued daily and therefore
included in the calculation of the unit price.
While each Fund’s Constitution (refer to Terms and Conditions for more information on the Constitution) allows
us to charge higher fees, we don’t intend to increase the fees. In the event these fees change, we will give you
30 days written notice.
* Fees quoted are net of Goods and Services Tax (GST) and Reduced Input Tax Credits (RITC’s), if any (refer to page 20 for more information).
Current*
Entry fee % of application amount Nil
Exit fee % of withdrawal amount Nil
‘User Pays’ fees Nil
Management Fee* % p.a.of the value of Fund assets
1.75
Fund Expenses payable by Investors
Nil
Management Expense Ratio*% p.a.
of the value of Fund assets
1.75+ =
InvestorHelper...
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When you’re building a house you hire a professional
builder because you know they have the right tools
and knowledge to get the job done. It’s the same
when you’re building wealth – using a professional
can make all the difference.
How the Fundsare managed
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Who manages the Funds?Whether it’s one or many asset classes you want to invest in, you need to know what you’re doing. ING DIRECT Managed
Funds are managed by ING Investment Management Limited (ING IM). Their investment approach is based on the belief that
investment markets are driven by trends in the economic cycle.
It’s this active approach to management that they believe will generate superior returns for investors in the medium to long
term. Each of the Funds is managed individually according to each Fund’s objectives.
Each Fund is efficiently managed by investing in the appropriate combination of existing funds (or pools) managed by ING IM,
consistent with that Fund’s investment strategy. ING IM maintains pools for most asset classes, for example, Australian shares,
international shares and Australian fixed interest assets. This means that when you invest, your first dollar is invested in a
diverse range of assets. Each of the ING DIRECT Managed Funds aims to outperform its relevant benchmark. A benchmark is
a standard used to measure the performance of an investment (such as an index).
The investment policy of each Fund does not take into account labour standards or environmental, social or ethical
considerations.
Here’s how each of the Funds are managed:
Managing All RounderING IM believes that active portfolio management may be used to generate superior returns for investors in diversified funds
over the long term. In-depth analysis of high level economic trends plays a major role in the investment process. It provides
the framework for stock selection within each of the asset classes. Basically, the aim of the process is to identify which
individual assets stand to benefit the most from the prevailing and expected economic environment. The application of this
approach involves:
Discipline – Clearly defined investment guidelines are adhered to at all times. These are designed to monitor the level of
risk attached to the portfolio.
Consistency – Value is added consistently by adjusting the exposure of the portfolio to various asset classes. The aim is to
take advantage of temporary differences in value between asset classes.
In-depth analysis – Comprehensive research and analysis, utilising both internal and external resources, forms the basis
of all investment decisions.
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The All Rounder is a diversified fund, so its benchmark is the weighted average of the returns from a number of different
indexes. The indexes used for the All Rounder are set out below.
Australian Shares S&P / ASX 300 Accumulation Index
International Shares MSCI All Countries World (Free) Index ex Australia in $A unhedged
Australian Fixed Interest UBS Warburg Composite Bond (all maturities) Index
International Fixed Interest Citigroup World Government Bond Index in $A hedged
Listed Property Trusts S&P / ASX 200 Property Trust Accumulation Index
Cash UBS Warburg Bank Bill Index
Managing True BlueING IM uses its distinctive Price for Growth™ investment process to select stocks listed or about to be listed on the Australian
Stock Exchange. They aim to invest in shares with good medium term profit growth forecasts that are attractively priced
relative to other shares on the market. Internal and external resources are used to evaluate shares across all industry sectors.
As well as the financial forecasts, ING IM also looks at a number of qualitative factors including the business strategy,
competitive advantage, quality of the management team and growth potential.
True Blue only invests in Australian shares so its performance benchmark is the S&P / ASX 300 Accumulation Index.
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Unit prices
How unit prices are calculatedThe unit price for each Fund is calculated by determining the net asset value of the Fund and dividing it by the number of
units on issue. Unit prices are normally calculated every business day but at least once a fortnight. The underlying assets of
each Fund are usually valued each day. The unit price is the same for applications and withdrawals.
The unit price you will receiveIf your initial deposit, additional deposits or withdrawal request is received in our Sydney office before 4pm Sydney time on a
business day, you will receive the unit price calculated for that day. If your request is received after 4pm Sydney time on a
business day, or on a non-business day, it will generally be processed using the price calculated for the following business day.
ING DIRECT Managed Funds use a forward pricing model. For example, if your request is received before 4pm Sydney time
on a Monday, you will receive a price that is calculated on Tuesday reflecting asset values for Monday (after international
markets have closed and all the Fund’s assets can be valued).
How your return is calculatedYour total return is made up of growth and distribution income.
■ Growth return – is the difference between the amount you paid for your units and the price your units are valued aton any given day, expressed as a percentage.
■ Distribution return – is the income you receive from the Funds. The Funds distribute available income (dividends,interest, capital gains, etc) to investors every six months, after the end of June and December. However, there is noguarantee that there will be any income from the Funds to distribute, as investment returns can be volatile.
The distribution you will receive is based on the number of units you hold in the Fund at the end of the distribution period
– regardless of how long you have been in the Fund. Consequently, if you withdraw your units before the end of the
distribution period you will not receive a payment in the next distribution. This is because the accumulated income and
growth will be included in the unit price when you withdraw.
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TaxationThe following information has been supplied to give you a brief indication of some of the tax issues for Australian resident
investors. While this information is based on the current tax legislation, we recommend you seek your own taxation advice
specific to your particular circumstances.
The Funds do not pay tax because the whole of their taxable income is distributed to investors annually.
Your entitlement to the taxable income (including net taxable realised gains) of the investment Fund you invest in will be
distributed to you at least annually.
Your distributions may include different components such as Australian income, foreign income, tax free amounts, tax
deferred amounts, net capital gains and discount capital gains, each of which has different tax implications for you. The
components of your distribution will be indicated on your end of financial year Taxation Statement.
You will be assessed on your distribution for the year of income in which you were presently entitled to it. This means that
even if you receive your June 2003 distribution in July 2003, you will still have to include this distribution in your 2002-2003
tax return. You are required to pay tax on your distribution, even if you re-invest it.
Australian incomeThis may include franked and unfranked dividends, interest, rental income and other profits of a revenue and capital nature
earned in Australia.
You may use any franking credits attached to your distributions to reduce the tax liability on your taxable income, subject to
the application of the 45 Day Holding Period Rule.
Foreign incomeThis may include income and gains from investments outside Australia. Australian residents are generally subject to tax in
Australia on all foreign income. Any foreign tax credit attached to the foreign income will also be distributed to investors.
You may use your share of the foreign tax credits to reduce your tax liability.
Tax free and tax deferred amountsTax free and tax deferred amounts are not included in assessable income. Generally, these amounts reduce the cost base of
your units and affect the capital gain or loss realised upon later disposal of your units.
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Capital gains
Capital gains tax is payable on the growth in the value of your assets when they are realised. Capital gains may be realised
at two levels.
■ At the Fund levelIf the Fund were to purchase assets (e.g. shares) at a particular price and then sell the same parcel of shares at a later date for a higher price, the Fund will realise a capital gain. The net capital gains realised by a Fund are generallydistributed to investors. If the Fund held the assets for 12 months or more before the disposal, the capital gain may be subject to a discount of 50%, for individual investors.
■ At the Individual levelIf you withdraw (or switch) all or part of your investment, it is treated as a disposal of units for tax purposes. Any gain or loss arising from the disposal will be disclosed on your end of year capital gains tax statement. If you held the units for 12 months or more before the disposal, you may be entitled to a 50% discount if an individual.
GST
The Funds are input taxed for GST purposes. This means that GST is not payable on the investments ING DIRECT receive
from you. The Funds, however, may be required to pay GST on other expenses. In some cases the Funds will be able to
claim a reduced input tax credit (RITC) of 75% of the GST paid on certain fees and expenses. This means that the effective
cost of the GST to the Funds is reduced by the amount of the RITC received.
Social security
Investments in the Funds may affect your current or future social security entitlements. We recommend you seek professional
advice tailored to your situation.
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Start building your wealth today.
How it allworks
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Getting startedComplete an Application Form
Investing with ING DIRECT couldn’t be more straight forward. Simply complete the Application Form supplied with this PDS
and send it to us with your payment instructions. Alternatively, you can apply online via our website www.ingdirect.com.au
Payment options
* We will accept personal cheques drawn on your existing bank account. Endorsed cheques will not be accepted for initial investments.♦ The name of the existing bank account you nominate must match the name that your investment will be held in.
We need to receive your completed Application Form and payment before issuing your units. If there are delays in receiving
your Application Form, your money will be banked into a non-interest bearing account until it is received. You will receive
your Welcome Pack shortly after your units have been issued.
Automatic Investment Plans
Automatic Investment Plans (AIP) are a great way to make regular additional investments without the fuss of having to make
a request for an additional investment each time. Simply complete the relevant details on the Application Form. It is a good
way to make your investment grow. You can request to have a set amount debited from your existing bank account on a
fortnightly or monthly basis and invested into the Fund of your choice, then we do the rest. And because there is no
minimum investment amount, you can add as little or as much as you like.
Once your investment is openAdditional investments
Once your investment has been opened, investing additional funds is easy.■ You can add funds via the Internet 24 hours a day, 7 days a week at www.ingdirect.com.au■ Simply complete an Application Form and send it to us with your payment instructions. You can have the latest PDS
(which includes an Application Form) sent to you by calling one of our Direct Associates on 133 464.■ You can set up an Automatic Investment Plan by going to our secure website, www.ingdirect.com.au or by calling
one of our Direct Associates on 133 464 to have the latest PDS sent to you. Simply complete the relevant details on the Application Form included.
■ Send us a cheque* payable to ING FM – ING DIRECT – [Your name/s eg. John and Jane Citizen]; or
■ Authorise us to draw funds direct from your existing bank account♦ or ING DIRECTSavings Maximiser by completing the Direct Debit Request on the Application Form.
You can choose from
the following payment
methods:
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SwitchingOnce you have made your initial investment you can switch from one Fund to the other whenever you choose – without
filling out another application form. You can switch between Funds over the phone or internet 24 hours a day, 7 days a week.
Go online – You can add to, switch and withdraw from your investment via our secure website whenever it suits you.
Simply log on to www.ingdirect.com.au and follow the easy steps – it’s that straight forward.
You should keep each PDS sent to you and any updating information for future reference when making
additional investments. Transaction Statements will be sent to you each quarter. You can get a copy of the latest
PDS and your Transaction Statements and any continuous disclosure notices lodged with ASIC free of charge by
calling one of our Direct Associates on 133 464 or by logging on to www.ingdirect.com.au
Withdrawing your moneyIt’s important to have access to your money when you need it. With ING DIRECT you can request a withdrawal 24 hours a
day, 7 days a week, via the internet, phone, fax or mail. The money will generally be in your existing bank account within
3 to 5 business days.
Remember, there is no minimum withdrawal amount and no minimum balance. So you’ll never need to sacrifice your
investment in the Funds just because you need to access some of your money.
When you request a withdrawal we use the “first in, first out” principle, meaning the oldest units are withdrawn first.
Receiving distributions from your investmentAfter the end of June and December each year, the Funds may distribute income and net capital gains to investors – this is
called a distribution. When you invest in an ING DIRECT Managed Fund, you can choose to have your distribution paid to
you in one of the following ways:
■ Reinvested into the Fund; or■ Paid into your existing bank account or Savings Maximiser.
Distributions will normally be paid within 14 days after the end of June and December – but must be paid within 3 months.
However, there is no guarantee that there will be any income from the Funds to distribute, as investment returns can be volatile.
If you choose to reinvest your distribution, your additional units will normally be issued with effect from the first day after
the end of the distribution period.
If you don’t tell us how you’d like to receive your distribution, we will automatically reinvest it into your ING DIRECT
Managed Fund.
InvestorHelper...
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Changing your detailsYou can change most of your investment details by:■ Calling a Direct Associate on 133 464, 24 hours a day, 7 days a week;■ Logging on to the website www.ingdirect.com.au and sending an email; or■ Writing to ING DIRECT, Reply Paid 4307, Sydney, NSW 2001.
For speed, please ensure you quote your Client Number.
Please call us on 133 464, or visit our website, www.ingdirect.com.au if you wish to change your existing bank account or any of the details of your existing bank account. We will tell you what information we need and the procedure to followwhen you contact us. Your new existing bank account or requested changes will not take effect until verified by us.
How to keep track of your investmentYou need to have up-to-date information about your investment. With an ING DIRECT Managed Fund you can check on your Fund balance at any time by visiting our secure website at www.ingdirect.com.au or by calling 133 464. Your Client Number and Access Code will allow you to use the interactive phone and website whenever it suits you.
ING DIRECT will also send you a number of reports throughout the year to help you keep track of your investment:■ Welcome Pack – When you first invest you will receive a Welcome Pack. This confirms your initial investment and
lets you know the unit price and the number of units you have bought.■ Transaction Statement – Each quarter you will be sent a Transaction Statement. This details your opening and
closing balance for the period, any additional and regular investments, as well as any withdrawals that you have made(with the relevant unit price information for each transaction).
■ Distribution Statement – Every six months a Distribution Statement will also be sent to let you know the amount of income you have been paid and how it was paid to you (if applicable).
■ Taxation Statement – At tax time (after 30 June each year), you will receive a Taxation Statement. This contains all the information that you (or your accountant) will need to include in your tax return.
■ Capital Gains Tax Statement – If you withdraw any of your units you’ll also be sent a Capital Gains Tax Statement to help you complete your tax return at the end of the financial year.
“Cooling off” periodWhen you invest in any managed fund you have a 14 day “cooling off” period which allows you to return your investment ifyou change your mind. This period begins from the time you receive your Welcome Pack or 5 days after your units have beenissued, which ever is earlier. The amount you get back will reflect the unit price calculated for the day we receive your request. It may be reduced by any distributions you receive during the “cooling off” period and may be subject to capital gains tax. See page 23 for details on how you can withdraw your investment. Please contact one of our Direct Associates on 133 464if you would like to return your investment.
If you ever have a complaintCall us on 133 464 or write to the Support Services Manager at Reply Paid 4307, Sydney, NSW 2001. We will acknowledge receiptof your complaint within 14 days. ING FM and ING DIRECT are members of the Financial Industry Complaints Service Limited (FICS)– an approved independent complaint handling body whose decisions are binding on both ING FM and ING DIRECT. If you are nothappy with the response, you can refer your complaint to FICS at the following address: Financial Industry Complaints Service,PO Box 579, Collins Street West, Melbourne, VIC 8007.
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Your application checklistBefore you get started, here are some points you should be aware of:
1. Who can invest?The ING DIRECT Managed Funds are available to all people who have received the PDS within Australia and are over theage of 18. You can hold your investment in single or joint names. Only one account per investor can be set up. Units willonly be issued once we receive the Application Form supplied with this PDS and your payment instructions.
We do not allow foreign individuals, companies, superannuation funds, trusts or partnerships to invest, and reserve theright to refuse any applications.
2. Joint accounts If you decide to open your investment in joint names, you should be aware that your investment will be treated as jointtenants. This means that each person holds an equal undivided share of the investment and in the event that one investordies, the holding automatically passes to the surviving investor.
3. You need to provide details of your existing bank accountAll investors need to provide details of an existing bank account to receive funds. We do not issue cheques and canonly pay withdrawals to an Australian existing bank account held in the same name as your investment. If you wouldlike to fund your initial investment from your existing bank account or would like to start an Automatic Investment Planyou also need to complete a Direct Debit Request (part of the Application Form). You can nominate the one accountfor both purposes.
You will need to send us a copy of your most recent existing bank account statement so we can verify your existing bankaccount details.
4. Your Tax File Number (TFN) You do not have to provide your TFN. However if you do not supply your TFN (or ABN) and you do not have an exemption, we will deduct tax at the highest marginal tax rate plus the Medicare Levy.
5. Who signs the Application Form?All investors listed in the Application Form need to sign before it can be accepted. Each joint investor will be able totransact on the investment. Only one account per investor can be set up.
6. Other things to note:■ Please use a black pen when completing the Application Form■ Print clearly and in BLOCK LETTERS■ Please make sure you complete all sections, including the Direct Debit Request■ Make your cheque* payable to: ING FM – ING DIRECT Funds (your name/s e.g. John & Jane Citizen)■ Send your completed Application Form and payment instructions to –
ING DIRECT Managed Funds, Reply Paid 4307, Sydney, NSW 2001.
* We will accept personal cheques drawn on your existing bank account. Endorsed cheques will not be accepted for initial investments.
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FundPerformance
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The Fund Performance brochure dated 10 October 2003 forms part of the Product
Disclosure Statement (PDS). Other documents that form part of the PDS are:
■ Information Brochure
■ Terms and Conditions
Fund Name: ING DIRECT All Rounder
Investment Ranges Investment type Investment Investmentand Benchmark*: benchmark % range %
Australian Shares 35 20-50
International Shares 25 15-35
Property Securities 10 6-14
Australian Fixed Interest 20 5-35
International Fixed Interest 5 0-10
Cash 5 0-30
Investment Mix^:
Australian Shares 44.3%
International Shares 30.2%
Property Securities 7.7%
Australian Fixed Interest11.4%
Cash 4.1%
International Fixed Interest 2.3%
* We anticipate that the maximum investment in shares and property securities will not exceed 85% of the total Fund. We aim to maintain the investments of each Fund within the minimum andmaximum ranges shown. However, there may be times when their investment mixes fall outsidethese parameters. These benchmarks and ranges may be altered.
^ Please note the investment mix changes daily within the investment ranges listed above.
as at 31 August 2003.
Fund overviewAll Rounder
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The figures below outline the actual performance of the All Rounder.
The latest performance information, investment ranges, benchmarks andmixes are available at our website www.ingdirect.com.au each month.
# The above performance figures are net of fees that are charged for the All Rounder. They assumeall income has been reinvested, but do not take into account tax that may be payable by investors.
◊ Past performance is not indicative of future performance and returns are not guaranteed. There isno guarantee that there will be any income from the All Rounder to distribute, as investment returnscan be volatile.
Net Returns# ◊ as at 31 August 2003
1 month 3 months 6 months 1 year 2 years
1.88% 4.61% 11.24% 2.61% -0.57% -0.78%
Since Inception(May 2001)
Gross Returns◊ as at 31 August 2003
1 month 3 months 6 months 1 year 2 years
2.02% 5.06% 12.20% 4.42% 2.38% 0.97%
Since Inception(May 2001)
Benchmark as at 31 August 2003
1 month 3 months 6 months 1 year 2 years
1.50% 3.84% 10.74% 5.28% 3.07% 0.89%
Since Inception(May 2001)
Fund Returns All Rounder
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ReviewFollowing an extended period of decline,
the global sharemarkets reached a low point
in mid March 2003. Since then, they have
rebounded strongly, as the swift victory to the
coalition forces in Iraq and increasing evidence
of a global economic rebound boosted
investment sentiment. In this environment,
the Fund’s overweight positions in the
Australian and international shares sectors
contributed significantly to performance.
The improvement in investment sentiment
has led to considerable funds flow away from
defensive investments and into those sectors
more leveraged to global economic activity.
Consequently, the property securities sector
has recently come under price pressure, having
previously outperformed during the period of
sharemarket weakness. Similarly, the fixed
interest markets experienced sustained price
pressure over recent months, as bond yields
have risen in line with the improving economic
outlook. As such, the Fund’s underweight
positions in the Australian and international
fixed interest sectors further contributed
to performance.
OutlookWith recent US economic data providing an
increasingly positive outlook, the prospects
for a sustained recovery in global economic
activity appear favourable. This, combined
with recent productivity gains, suggests that
the corporate earnings environment should
remain favourable over the coming period.
A strengthening global economy should
also benefit the Australian sharemarket,
as improving investor sentiment leads to
increased funds flow into shares. Accordingly,
we retain overweight positions in the Australian
and international shares sectors.
While the property securities sector continues to
offer an attractive yield relative to government
bonds, further evidence of economic
improvement is likely to prompt investors to
focus on investments offering greater leverage
to economic activity. This suggests that the
sector is likely to experience further price
pressure over the coming period. Accordingly,
we have moved from a neutral to an underweight
position in the property securities sector.
The release of further positive economic data
is likely to result in continued upward pressure
on bond yields, placing further pressure on
prices. As such, we retain underweight
positions in the Australian and international
fixed interest sectors.
Fund Commentary All Rounder
The above outlook represents the views of ING Investment Management. Actual market performance may not be in line with this outlook.
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Australian Shares 98.5%
Fund Name: ING DIRECT True Blue Aussie Share Fund
Investment Ranges Investment type Investment Investmentand Benchmark†: benchmark % range %
Australian Shares 100 95-100
Cash 0 0-5
Investment Mix:
† We aim to maintain the investments of each Fund within the minimum and maximum rangesshown. However, there may be times when their investment mixes fall outside these parameters.These benchmarks and ranges may be altered.
as at 31 August 2003. Cash 1.5%
Fund overviewTrue Blue
The latest performance information, investment ranges, benchmarks and mixes are
available at our website www.ingdirect.com.au each month.
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Since Inception(May 2002)
Since Inception(May 2002)
Since Inception(May 2002)
The figures below outline the actual performance of the True Blue.
▲ The above performance figures are net of fees and have been adjusted to illustrate the management feethat will be charged for True Blue. They assume all income has been reinvested, but do not take intoaccount tax that may be payable by investors.
■ Past performance is not indicative of future performance and returns are not guaranteed. There is noguarantee that there will be any income from the True Blue to distribute, as investment returns can be volatile.
The latest performance information, investment ranges, benchmarks andmixes are available at our website www.ingdirect.com.au each month.
Net Returns▲■ as at 31 August 2003
1 month 3 months 6 months 1 year
3.51% 8.32% 16.26% 4.94% -0.61%
Fund Returns True Blue
Gross Returns ■ as at 31 August 2003
1 month 3 months 6 months 1 year
3.65% 8.78% 17.25% 6.78% 1.15%
Benchmark as at 31 August 2003
1 month 3 months 6 months 1 year
2.99% 7.67% 17.15% 7.29% 0.83%
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ReviewThe unexpectedly swift victory to the coalition
forces in Iraq provided the platform for a strong
rise in the Australian sharemarket. Over the
six-month period to 31 August 2003, the
S&P/ASX 300 Accumulation Index rose by
17.15%. The extent of this rise was clearly
reflective of the improvement in investment
sentiment that followed the conclusion of the
formal military campaign. Prior to the conflict,
investors were concerned that it may result
in a major disruption to global oil supplies.
This would have placed significant upward
price pressure on a commodity that is a key
input to industrial activity. This would have
had a particularly detrimental impact on
the rate of productive output. However, when
this scenario did not eventuate, investors were
greatly heartened, increasingly turning their
attention to gathering evidence of a rebound
in global economic activity. In addition to the
improved economic environment, domestic
investors were further heartened by the
results from the latest Australian company
profit-reporting season, which, on average,
exceeded expectations.
Outlook
The current theme dominating the Australian
sharemarket is funds flow away from
defensive investments into stocks more
leveraged to the global economic recovery.
In particular, resource stocks have benefited
from a recent strengthening in commodity
prices and continued strong demand from
China’s manufacturing sector.
Share valuations remain broadly attractive.
In particular, the Australian sharemarket
should remain supported by the prospect
of continued strength in earnings growth
and a dividend yield that compares favourably
with the Cash Rate.
Fund Commentary True Blue
The above outlook represents the views of ING Investment Management. Actual market performance maynot be in line with this outlook.
Terms andConditions
Next
The Terms and Conditions dated 10 October 2003
form part of the Product Disclosure Statement (PDS).
Other documents that form part of the PDS are:
■ Information Brochure
■ Fund Performance
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GENERAL CONDITIONS OF INVESTINGWITH ING DIRECT
INTERACTIVE SERVICES – TELEPHONE AND WEBSITE
KEEPING YOUR DETAILS CONFIDENTIAL
UNAUTHORISED TRANSACTIONS AND YOUR LIABILITY
YOUR PRIVACY
THE CONSTITUTION
CONSENTS
REPORTING
CODE OF BANKING PRACTICE
AUTOMATIC INVESTMENT PLAN AND ADDITIONAL INVESTMENTS
MEETING WITHDRAWAL REQUESTS
FUND LIQUIDITY
DIRECT DEBIT SERVICE AGREEMENT
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GENERAL CONDITIONS OF INVESTING WITH ING DIRECT• All transaction requests received either through an
Interactive Service (telephone and internet) or in writingto us will be performed on the basis of the Fund’s currentPDS and Constitution (refer to page 4 for more informationon the Constitution).
• Any action or request given to us cannot be altered orcountermanded.
• For security purposes, withdrawals will only be paidto an existing bank account. You can only change yourexisting bank account by calling one of our DirectAssociates on 133 464.
• You may need to complete and sign authorities beforeyou can start using your existing bank account, soplease provide at least 3 business days written noticewhen changing your existing bank account details.
• Your existing bank account must be an account inAustralia, subject to the Financial Transaction Reports Act.
• To open an ING DIRECT Managed Fund, your initialinvestment must be a cheque payable to “ING FM –ING DIRECT [your name/s e.g. John & Jane Citizen]” drawnon your nominated existing bank account for the amountof your initial investment or a Direct Debit Request. If we are provided with a Direct Debit Request, youauthorise us to debit your existing bank account for theamount of your investment requests in accordance withthat Direct Debit Request.
• We may change any of the conditions listed in the PDS. If we do, we will notify you in writing 30 daysprior to implementation.
• You must tell us as soon as there is a change to yourname or address. If you change your address and don’ttell us, we can still give notice to you by writing to theaddress last recorded with us. Only Australian addresseswill be accepted.
• We will notify all investors of any updating material toensure you are informed of the most current informationwhen you choose to transact on your investment.
• We warrant that we comply with the Electronic FundsTransfer Code of Conduct.
• You agree to use the Interactive Services to obtainconfirmation of your transaction(s) on your ManagedFund (additional investment, switch or withdrawal).Details of your transaction(s) will also be provided onyour next transaction statement.
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INTERACTIVE SERVICES – TELEPHONE AND WEBSITE• You must have a Client Number and Access Code to access
your investment using one of our Interactive Services.• If you are an existing ING DIRECT customer you can use
your existing Client Number and Access Code.• If you complete a paper application we will supply you
with a Client Number and a Temporary Access Code.• If you apply online you will be issued with your Client
Number and asked to select your own Access Code.• If you have a joint investment, each investor will be
given a separate Client Number and Temporary AccessCode. Each joint investor may individually use anInteractive Service using his or her own Client Numberand personal Access Code.
• The first time you use an Interactive Service you will beasked to choose your own personal Access Code to usefor that particular service. The Interactive Service willprovide instructions to help you select your personalAccess Code. You may only access your Fund informationfor the first time using an Interactive Service by providingyour Client Number and Temporary Access Code.
• You can initiate transactions on all your ING DIRECTproducts with your Client Number and Access Codeusing an Interactive Service.
• If you should have been aware that an InteractiveService is unavailable for use or malfunctioning, ourliability may be limited to the correction of any errors inthe Fund, and the refund of any charges or feesimposed on you as a result.
If you experience any problems with an Interactive Serviceplease call one of our Direct Associates on 133 464 to reportit 24 hours a day, 7 days a week.
KEEPING YOUR DETAILS CONFIDENTIALWhen using Interactive Services, you must ensure you:• Keep your Client Number and your Access Code
confidential;• Tell us as soon as you realise that another person knows
your Access Code. You can tell us by calling one of ourDirect Associates on 133 464, 24 hours a day, 7 days a week. We will then:
– issue you with a receipt (or other reference details)acknowledging the receipt of your notification, and
– ask you to select a new Access Code using theInteractive Telephone Service. If you do not select anew Access Code when we ask you to, we will place a stop on your account.
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UNAUTHORISED TRANSACTIONS AND YOUR LIABILITY• You are not liable for losses resulting from unauthorised
transactions carried out through an Interactive Servicewhere it is clear that you have not contributed to thoselosses.
• You also have no liability for losses caused by:
– unauthorised transactions carried out through anInteractive Service which occur after you have givenus notice that you realise or suspect that anotherperson knows your Access Code or you suspect anyunauthorised use of it;
– unauthorised transactions before you receive yourClient Number and Access Code;
– the same transaction being incorrectly debited orcredited more than once to your investment;
– losses caused by fraudulent or negligent conduct ofour employees or agents; or
– the failure of our systems to complete a transactionaccepted by our Interactive Services in accordancewith your instructions.
• Your liability for unauthorised transactions carried outusing an Interactive Service is determined in accordancewith the Electronic Funds Transfer Code of Conduct.A summary of your liability is set out below.
Your liability for unauthorised transactions carried outusing an Interactive Service will normally be limited to:
– $150; or
– the balance of the investment (and any other ING DIRECT accounts or Funds that were accessedwithout authorisation using your Client Number andAccess Code); or
– the actual loss incurred, whichever is the smallestamount.
However, if you:
– fail to ensure the confidentiality of your ClientNumber and Access Code; or
– unreasonably delay telling us that you realise orsuspect that another person knows your AccessCode or you suspect any unauthorised use of it,
your liability for unauthorised transactions may exceedthese amounts and may extend to the full amount ofany loss which results.
More information about your liability for unauthorisedtransactions is available on request by calling one of ourDirect Associates on 133 464 or visit our website,www.ingdirect.com.au
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YOUR PRIVACYAt ING DIRECT we recognise that privacy and security ofpersonal information is important to our customers. We respectthe confidentiality and security of your personal information andwe are committed to protecting it at all times. For details onprivacy, please refer to our website at www.ingdirect.com.auor contact a Direct Associate on 133 464.
THE CONSTITUTIONThe ING DIRECT Managed Funds are managed investmentschemes, each governed by a Constitution. Together withthe Corporations Act, the Constitution sets out the conditionsunder which the relevant Fund operates and the rights,responsibilities and duties of the Responsible Entity.A Constitution may be amended by ING FM if it reasonablyconsiders that the change will not adversely affect the rightsof investors. Otherwise investors’ approval must be obtainedby special resolution at a meeting convened for that purpose.
Each Constitution sets out the rights of investors – these areimportant. We have listed the broad topics each Constitutioncovers here for your reference. If you would like a copy of aparticular Constitution please call us on 133 464 and wewill send one to you free of charge.• ING FM’s ability to borrow and raise money.• The nature of the units – identical rights are attached to
all units.• How application and redemption unit prices are calculated,
including ING FM’s ability to charge a buy/sell spread.• The times when access to investors’ funds may be delayed.• Investors’ rights to share any Fund income and how it
is calculated.• ING FM’s (the Responsible Entity’s) powers and how and
when those powers can be exercised.• The maximum fees that ING FM is entitled to charge –
these are application fee 5%, management fee 3% andexit fee 3%.
• ING FM’s ability to refuse transfers and applications.• Convening, attending and voting at any investor meeting.• ING FM’s ability to appoint agents and delegates, such
as a Custodian.• What ING FM can rely on without being liable.• When ING FM can terminate the Fund and what happens
in those circumstances.• Situations where ING FM may retire as Responsible
Entity or be required to retire.
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• For True Blue only: ING FM’s ability to cause theredemption of any or all of an investor’s units. ING FMwill only do so when it believes it is in the best interestsof investors as a whole.
Subject to the Corporations Act, the Responsible Entity isentitled to be indemnified from the assets of the Fund forany liability incurred by it in the performance of its duties.This indemnity also covers any liability incurred as a result ofany act or omission of any agent appointed by ING FM.ING FM and ING DIRECT are not liable to investors for anyloss suffered in any way relating to the Funds except to theextent that the Corporations Act imposes such liability.
The Constitutions are designed to limit investors’ liability toany amount that remains unpaid in relation to their units –but the courts have not yet determined whether investors haveany ultimate liability if the Fund is unable to meet its debts.
The Constitution, to the exclusion of other laws (except thoselaws that ING FM cannot exclude), governs the obligations ofING FM as the Responsible Entity.
To obtain a copy of the Constitution please call one of ourDirect Associates on 133 464 or go to our website atwww.ingdirect.com.au
CONSENTSING FM has appointed JPMorgan Chase Bank (ABN 43 074112 011) as the Custodian of the Fund. JPMorgan ChaseBank is one of the world’s largest custodians with more thanUS$6 trillion in assets held in custody. JPMorgan Chase Bankhas given and not withdrawn its consent to be named in thisPDS and to the inclusion of this information. As theCustodian of the funds, JPMorgan Chase Bank holds theassets of the Fund. Under the contract between ING FM andthe Custodian, the Custodian must deal with the assets inaccordance with ING FM’s directions.
REPORTINGAs disclosing entities under the Corporations Act, the Funds aresubject to regular reporting and disclosure obligations. Copies ofdocuments we lodge with ASIC to fulfil these obligations may beobtained from, or inspected at, an ASIC office. You also have aright to request a copy of certain documents from us when theybecome available and we must send a copy (free of charge)within 5 business days. Your request will be fulfilled in the wayyou choose – by email, fax or post. These documents are:
– the annual financial report for each Fund mostrecently lodged with ASIC; and
– any half-year financial report lodged with ASIC andany continuous disclosure notice given for each Fundafter the lodgement of the annual financial report forthat Fund and before the date of this PDS.
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CODE OF BANKING PRACTICEWe have adopted the Code of Banking Practice. Eachrelevant provision of the Code of Banking Practice willapply to this agreement. We can provide you with a copy of the Code of Banking Practice if you ask us for it. You canalso go to the website and download a copy of the Code(www.bankers.asn.au).
Under the Code, information on fees and charges will bemade available to you, if you ask for them.
AUTOMATIC INVESTMENT PLAN AND ADDITIONAL INVESTMENTS• ING DIRECT will notify all investors of any updating
materials as they are issued, to ensure you have themost current information when your funds areinvested. Each investment will be issued on the basisof the current PDS and Constitution.
• If you invest in more than one Fund, only one AutomaticInvestment Plan is required to be set up, across all Funds.
• You should keep the PDS and any updating materialwe notify you of for future reference.
• Details of your Automatic Investment Plan (includingthe unit price and the number of units you have beenissued) will appear on your Transaction Statements andcan be accessed via the Interactive Services.
• Additional investments via cheque need to be madepayable to “ING FM – ING DIRECT (your name/s eg John & Jane Citizen)” drawn on an Australian financialinstitution. Please note that we only accept endorsedcheques if the cheque was originally made payable toyou using the same name as the name of your accountwith us.
• If a payment is not received because of insufficientfunds in your existing bank account, we reserve theright to cancel your Automatic Investment Plan afterthree consecutive periods. Your bank may charge youa fee for the dishonored transaction.
• ING DIRECT reserves the right to cancel the AutomaticInvestment Plan at any time or discontinue processingfuture investments from some or all investors for anyreason. You will be notified if this occurs.
• If you wish to cancel your Automatic Investment Planyou will need to notify us at least 3 business days priorto the day the funds are normally transferred from yourexisting bank account.
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MEETING WITHDRAWAL REQUESTSWhile a Fund is liquid, we must pay withdrawals fromthat Fund within 30 days. We may extend this period ifwe have taken all reasonable steps to realise assets inorder to satisfy a withdrawal request, and are unable todo so due to circumstances outside of our control.
FUND LIQUIDITYWhile a Fund is classified as not liquid under theCorporations Act (that is, where less than 80% of theFund’s assets can reasonably be expected to be realised fortheir market value within the period allowed under theConstitution for satisfying withdrawal requests), investorsmay only withdraw from the Fund while a withdrawaloffer is open. Given the nature of the Funds’ underlyinginvestments, we do not expect that to occur. We are notobliged to make a withdrawal offer, and any requestsmade under such an offer may only be processed by us in accordance with the Corporations Act.
DIRECT DEBIT SERVICE AGREEMENTIf you complete the Direct Debit Request (DDR) Form, thefollowing conditions also apply to you.
Our commitment to you• The details of your drawing arrangements are shown
in the DDR in the Application Form. ING DIRECT willarrange for monies to be debited according to this request.
• You will be given 14 days written notice if there areto be any changes to your Direct Debit (drawing)arrangements.
• If a drawing date falls on a day which is not a businessday, your account will be debited on the next business day.
• We reserve the right to cancel your drawingarrangements if three or more drawings are returnedunpaid by the financial institution with which yourexisting bank account is held and to arrange analternative payment method.
• Your direct debit records and account details will bekept confidential, except where the disclosure of certaininformation to your financial institution is necessary toenable us to act in accordance with your drawingarrangements.
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Your rights• You can cancel, alter or suspend your drawing
arrangements at any time by phoning us at least 3business days before you would like the cancellation,alteration or suspension to take effect.
• You can stop or defer an individual drawing by callingus at least 3 business days before the date on whichthe drawing is to be made.
• If you consider that a drawing has been initiatedincorrectly, you should call one of our Direct Associateson 133 464 for immediate attention.
Your responsibilitiesIt is your responsibility to:• Provide necessary documentation as required to
validate your external account details;• Ensure that your existing bank account can accept direct
debits and that all account holders on the existing bankaccount agree to the debiting arrangements. Directdebiting may not be available on all accounts.Please check with your financial institution;
• Ensure there are sufficient clear funds in your existingbank account by the due date to enable drawings tobe made in accordance with your drawingarrangements. If there are insufficient funds in yourexisting bank account the transaction will not occur.With ING DIRECT there are no fees to pay apart fromthe usual government charges;
• Ensure that the authority given to us to draw on yourexisting bank account is consistent with the accountauthority or signing instructions held by your financialinstitution for that account;
• Advise us if your existing bank account is transferred,closed or any other account details change; and
• Arrange a suitable payment method if your drawingarrangements are cancelled.
If you have any queries concerning the Direct Debit ServiceAgreement, or any drawings made under it, please contacta Direct Associate on 133 464.
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ING Funds Management Limited, ABN 21 003 002 800. ING DIRECT™ is a trade mark of the ING Group of companies.
MI00022/ING207 05/03
Call 133 464 24 hours a day, 7 days a week
Mail us (no stamp required) at: ING DIRECT Reply Paid 4307 Sydney NSW 2001
Log on to our website at: www.ingdirect.com.au
Visit us at our Customer Information Centres:Sydney – 347 Kent StreetMelbourne – 140 Queen StreetBrisbane – 100 Edward Street
