Changes to the way you can invest your account balance and future transactions
So, what are the changes to the way in which I can invest my money?
If you are a member of either the Accumulation or Executive Scheme you were only able to invest your account balance and future contributions into only one investment strategy at a time. Under the new arrangements, you can now elect to invest your account balance and/or future contributions (including roll-ins, Superannuation Guarantee contributions and personal contributions) in a combination of one or more of the five investment strategies provided by the Scheme. You also have the flexibility to invest your future transactions in a different combination of investment strategies than you use to invest your current account.
The five investment strategies available are High Growth, Diversified, Balanced, Capital Guarded and Cash.
For example you may wish to use a different combination of investment strategies for your current balance than the investment strategies that you use for future transactions as follows:
Example 1
Your account balance |
Your future transactions |
||
High Growth |
50% |
Balanced |
20% |
Balanced |
30% |
Cash |
80% |
Cash |
20% |
|
|
TOTAL |
100% |
TOTAL |
100% |
Alternatively, you may wish to have your future transactions invested in the same strategies and percentages as your account balance:
Example 2
Your account balance |
Your future transactions |
||
High Growth |
50% |
High Growth |
50% |
Balanced |
30% |
Balanced |
30% |
Capital Guarded |
10% |
Capital Guarded |
10% |
Cash |
10% |
Cash |
10% |
TOTAL |
100% |
TOTAL |
100% |
Note that the examples above are just illustrations of how your superannuation can be invested and you may choose your own investment strategies and the percentage of your current account or future contributions that are to be allocated to each individual strategy.
Viewing account balances on the website
If you elect to split your account balance and future transactions into different investment strategies (see example 1 above) you will not be able to access the member login area. Where you elect to invest your account balance and future contributions in the same strategies and by the same percentage (see example 2 above), you will be able to view your account balance (but not your unit entitlement) on the website.
Where do I get information about the investment strategies?
The Accumulation Product Disclosure Statement (PDS) and Executive PDS contain detailed information on each of the investment strategies including their asset allocation ranges, objectives and risks.
How do I make an election to invest my account balance and future transactions?
You will need to complete a form for your election to take effect.
Do I have to make an investment election?
No. If you do not make an investment election and your account balance is above $1,000 then your account balance and future transactions will be invested in a default strategy relevant to your age as set out in the Accumulation PDS and Executive PDS. If your account balance is below $1,000 it will be classed as a protected account and invested in Cash.
What happens if I make an election and I am in an age based default strategy?
Once you elect to make an investment switch your investment will no longer be subject to the Scheme’s age based defaults.
If I make an election is there a cost?
Members are entitled to one free switch per financial year. Subsequent switches made in that financial year incur a $20 fee for Accumulation Scheme members and a $30 fee for Executive Scheme members. See the Accumulation PDS and Executive PDS for more details.
Where do I find out about the risks of investing?
Please see the relevant PDS available from our website which provides information on the risks that investors should be aware of before making any investment decisions.
Will my account balance be rebalanced?
Where your account balance and future contributions are invested in the same strategies and at the same percentages (see example 2 above) your total account will be automatically rebalanced each quarter. The trustee will monitor the actual proportions invested in your chosen strategies, as these proportions may vary with performance trends over time. The trustee will automatically make any necessary transfers between the underlying investments to ensure your account does not move out of line with your chosen strategy. Rebalancing is not undertaken if you invest your future transactions in a different mix and strategy than your account balance (see example 1).
Rebalancing will normally be done on a quarterly basis and is scheduled to be done at the end of February, May, August and November, however the rebalancing can be done at any stage during the quarter.
If you do not want this automatic rebalancing to occur then you need to contact Member Services.
Enquiries
Who do I contact for enquiries, help and advice?
If you have any issues regarding the information contained in this communication, then please contact:
Member Services
Ground Floor
28 Margaret Street
Sydney
Phone: 1300 369 901
Fax: (02) 9279 4131
Telephone enquiries and personal interviews (by appointment only) can be made between 8.30am and 5.00pm on any business day.
Written enquiries should be sent to:
PO Box N835
Grosvenor Place NSW 1220