Asgard Employee Super Account€¦ · If you let us know by 6 November 2016 that you don’t want...
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Asgard Employee Super Account Significant Event Notice 3 August 2016 Summary of the change An information pack titled ‘Changes to your super are coming’ was sent to Asgard Employee Super Account members with an Accrued Default Amount. This pack explained the impending transfer of their super to the Asgard MySuper Lifestage Investment (MySuper) for their decade of birth. They were advised that this would occur in November 2016 unless they contacted us to tell us not to move their super to MySuper. Impact of the change Members with an Accrued Default Amount were provided with a Transition Notice containing information about the transfer to MySuper as follows: – the member’s Accrued Default Amount – an overview of the Asgard MySuper Lifestage Investment in the Asgard Employee Super Account. – changes to investments, investment strategy, fees and where applicable, insurance – one-off costs associated with moving their super; and – the methods by which the member can opt out of the transfer to MySuper. The Transition Notice also informed members that Asgard would consolidate members’ dual accounts as part of the transfer process. Members with insurance in Asgard Personal Protection Package (APPP) who move to MySuper will have their insurance cover replaced with Asgard Group Insurance – Comprehensive Cover. Attachments Members who had no change to their existing insurance cover received the Moving to MySuper booklet 1. Members with insurance in APPP received the Moving to MySuper booklet 2, which contained a summary table of the changes to insurance terms and conditions.
Transcript of Asgard Employee Super Account€¦ · If you let us know by 6 November 2016 that you don’t want...
Asgard Employee Super Account Significant Event Notice
3 August 2016
Summary of the change
An information pack titled ‘Changes to your super are coming’ was sent to Asgard Employee Super Account
members with an Accrued Default Amount. This pack explained the impending transfer of their super to the
Asgard MySuper Lifestage Investment (MySuper) for their decade of birth. They were advised that this
would occur in November 2016 unless they contacted us to tell us not to move their super to MySuper.
Impact of the change
Members with an Accrued Default Amount were provided with a Transition Notice containing
information about the transfer to MySuper as follows:
– the member’s Accrued Default Amount
– an overview of the Asgard MySuper Lifestage Investment in the Asgard Employee Super
Account.
– changes to investments, investment strategy, fees and where applicable, insurance
– one-off costs associated with moving their super; and
– the methods by which the member can opt out of the transfer to MySuper.
The Transition Notice also informed members that Asgard would consolidate members’ dual
accounts as part of the transfer process.
Members with insurance in Asgard Personal Protection Package (APPP) who move to MySuper
will have their insurance cover replaced with Asgard Group Insurance – Comprehensive Cover.
Attachments
Members who had no change to their existing insurance cover received the Moving to MySuper booklet 1.
Members with insurance in APPP received the Moving to MySuper booklet 2, which contained a summary
table of the changes to insurance terms and conditions.
Moving to MySuper
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1 2015 BT Australian Financial Health Index Report
Saving for retirement is an important part of your financial wellbeing. And the better you feel your financial situation to be, research has found, the better your physical and mental wellbeing1.
It makes sense. The fewer worries you have about your financial future, the better you feel emotionally, the more soundly you sleep and the fewer strains you experience in your personal relationships.
At Asgard, we embrace this idea, and aim to make you feel better about your financial future by helping you prepare for your best financial future.
So, when the government introduced its MySuper initiative, we chose our Lifestage investment options as our MySuper option for members who haven’t chosen how they’d like their super invested. These options provide a well-diversified investment portfolio – designed and managed according to your age.
In November, members who haven’t chosen how to invest their super in Asgard Employee
Super Account will have their super moved to an Asgard Lifestage Investment.
Your super is part of this move, though you have a choice.
You can let us know that you’d like your super to stay invested as it is, or you can leave it to us and it will automatically move to MySuper.
No matter which option you choose, you can rest assured that your super is being professionally managed. Our reputation is built on our expertise in superannuation, investment, insurance and advice and nearly 50 years of experience.
With us, you can prepare for your best financial future – and feel good about it now.
Melinda Howes General Manager, Superannuation
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What’s in this booklet?
This booklet is designed to help you understand the planned changes to your super. We’ll show you where this money is now and tell you about Asgard’s MySuper Lifestage Investments (MySuper).
We’ll explain why we must move your super under the government’s MySuper initiative. And we’ll look more closely at what happens after the move, the MySuper investment strategy, fees and other things to consider.
Whether your super stays in your current investment option(s) or moves to MySuper, it’s up to you.
Read on to find out how the move will affect your super to help you decide on the best option for you.
Things to considerWhen comparing your choices, it’s important to think about:
• your investment strategy• fees and costs• investment performance• your own risk profile• your financial goals. Speak to your financial adviser (refer to your latest Investor Report for contact details) or call us if you need help.
What’s this?Investment strategy: the way investments are managed and what they’re designed to achieve.
Investment performance: the earnings or returns on an investment. Note: past performance
is not a reliable indicator of future performance.
Risk: the possibility of not achieving your investment objectives or of experiencing negative returns in a given period of time.
Your risk profile takes into account how much risk you’re comfortable with, as well as how much financial risk you can afford to take and how much risk you would need to take to try to reach your goals.
A guide to 'What's this?'We know super can be confusing, and some of the language used isn't what you hear every day. So, we've defined some words to help you as you read through this booklet. When you see a word or phrase highlighted in red, then you'll find a definition nearby in a 'What's this?' box.
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What part of your super is affected?
When your Asgard Employee Super Account was opened, your super was invested in a preselected investment option(s) because you didn’t make an investment choice. This is the part of your super that the government requires us to move to MySuper.
For the details of how your super is currently invested, visit Investor Online at investoronline.info.
You’ll find details of the investment strategy for your option(s), and more information on fees at asgard.com.au/mysupermember. There’s also general information on how your current investment option(s) is performing, or refer to your latest Investor Report for actual performance.
What’s this?Investment option: within a super account there is a menu of investment options where your super can be invested. These
investment options can allow you to invest your super in shares, property, fixed income and cash, for instance.
Preselected investment option: where an investment option is chosen by your employer or us for members who don’t select their own.
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Why are we planning to move your super to MySuper?
The government introduced the MySuper initiative to provide a simple, low cost option for members who don’t make an investment choice. Super funds like ours now offer MySuper as the preselected option for these members.
With the introduction of MySuper, we added a second account (MySuper account) to your original account in Asgard Employee Super Account. Any contributions and rollovers since 1 January 2014, when MySuper came into effect, have been invested in your MySuper account in an Asgard MySuper Lifestage Investment. Your super balance before that date remains in your original account.
It’s now time to bring your super together. Under the requirements, we must move your super from your current investment option to a MySuper product. We have chosen Asgard MySuper Lifestage Investment and this move is planned for November 2016.
If you let us know by 6 November 2016 that you don’t want this to happen, your balance will not be moved to MySuper and we will consolidate your accounts by moving your super in your MySuper account to your original account. Refer to the section ‘What if you don’t want your balance to move to MySuper?’ for more details.
Visit asgard.com.au/mysupermember from 10 October 2016 to find out the specific date of the move.
Note: the estimated amount to be moved to MySuper is calculated at a specific date. Refer to your letter for the amount and the date we made the estimation. The amount may change by the date of the move because of investment performance, fees, taxes and any withdrawals. Some cash investment options are not required to be moved to MySuper. However, because we’re consolidating your accounts, we’ll also move any super you have in these options to MySuper. Refer to the section ‘Are there other impacts of the move to MySuper?’ of this booklet for details.
What happens with the move to MySuper?
What changes?• Moving to MySuper brings changes
to your investment strategy and fees, and in some cases, your insurance fees. Your letter outlines the specific changes under ‘Your super details’.
• If you decide that MySuper is right for you, we’ll move the super in your current investment option(s) and consolidate it in your MySuper account.
• We will bring your super together into one account, and close the other.
There’s more information under the ‘What you need to know?’ and ‘What’s the MySuper investment strategy?’ sections of this booklet and in the Asgard Employee Super Account Product Disclosure Statement and Additional Information Booklets. You can also find other useful information at asgard.com.au/mysupermember.
What stays the same?• Your insurance coverage will stay
the same. • Details like your contact details and
nominated beneficiaries (if you have them) will remain unchanged.
• Your contributions will continue to be paid into MySuper.
What’s this?Investment choice: choosing from the investment option menu in your Asgard Employee Super Account
and then letting us know how you’d like your money invested.
Contributions: includes money you or your employer pays into your super account.
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What do you need to know?
Your letter shows the comparison between an estimate of your fees on your original account and fees that will apply if your super moves to MySuper, as well as one-off costs associated with the move. If there’s a change to your insurance fees, this is also included.
Below we explain the details of what’s in the ‘Your super details’ table in your letter and provide extra information.
Standard Risk Measure for investment optionsIn your letter, you’ll find a Standard Risk Measure for each investment option.
The Standard Risk Measure is based on an estimate of the number of negative annual returns that may be experienced over any 20 year period (shown in the table).
It is based on industry guidance that allows members to compare investment options. The Standard Risk Measure allows you to compare the level of risk of the investment options within Asgard Employee Super Account as well as other investment options available through other super funds.
When comparing the level of risk, it’s important to take into consideration the investment option’s investment objective, investment strategy and the strategic asset allocation.
The Standard Risk Measure is not a complete assessment of all forms of investment risk, for example, it does not take into account the
size of a negative return or the potential for a positive return to be less than the return you require to meet your investment objectives. It doesn’t take into account the impact of administration fees and tax on the likelihood of a negative return.
Make sure you’re comfortable with the risks and potential losses associated with the investment option(s) you choose to invest in.
Standard Risk Measure
Risk band
Risk label
Estimated number of negative annual returns over any 20 year period
1 Very low Less than 0.5
2 Low 0.5 to less than 1
3 Low to medium 1 to less than 2
4 Medium 2 to less than 3
5 Medium to high 3 to less than 4
6 High 4 to less than 6
7 Very high 6 or greater
What’s this?Strategic asset allocation: the decision to target specific proportions of different types of asset classes (such as property, cash and shares) in an investment option.
Your letter shows how your super in your original account is invested, and the particular Asgard MySuper Lifestage Investment that we plan to move your super to, which is based on your decade of birth. This section provides more detail on the information in your letter.
Fees and costsThe estimated fees and other costs in your letter includes the Administration fees, Trustee fees and Expense Recoveries (general and legislative), Cash balance fee, along with investment manager fees.
The fees and costs quoted include Goods and Services Tax (GST) and are net of any applicable Reduced Input Tax Credits (RITC).
The total dollar figure estimates for the fees and other costs are based on the amount (at a specific date stated in your letter) to be moved to MySuper. This allows you to compare the estimated fees payable on the current investment and MySuper.
By the time of the move:
• the actual amount to be moved may change due to investment performance, fees, taxes and any withdrawals, which may mean fees differ from the estimates provided
• the actual fees and costs you pay may differ due to changes in your circumstances (eg you cease employment with your employer, your insurance cover varies or you change your financial adviser)
• if you’re part of an employer plan, fees associated with your plan may change which then may affect the fees you pay
• the dollar-based Administration fee (and insurance fee, if applicable) may change each year at 1 July in line with the Consumer Price Index (CPI).
If you previously agreed to an adviser fee on your MySuper account, it will continue to apply to your entire balance after the move to MySuper. Otherwise, any adviser fees you currently pay on your original account will not continue if you move to MySuper.
One-off costs for the move to MySuperThe following costs are estimates that will only apply once on the amount moved to MySuper as shown in your letter:
1. Buy-sell spread – You may incur a transaction cost when we move your super from your current investment option(s) to MySuper, known as the ‘buy-sell spread’, which is calculated on the amount moved. This is a cost charged by the fund manager in relation to the sale and purchase of assets.
2. Additional Regulatory Change Expense Recovery – This is to recover some of the cost specifically associated with the legislative requirement to move your super to MySuper. The maximum amount of this cost will be $80. It is in addition to the current Regulatory Change Expense Recovery that already applies to all member accounts.
InsuranceIf you have insurance in your orginal account, your insurance cover and type of insurance won’t change and will also move if your super moves to MySuper. You can find details of your insurance cover in your latest Investor Report.
For some members, insurance fees will decrease. If this applies to you, it will be shown in your letter.
If you have existing insurance in your MySuper account this is not affected by the move.
Employer paid fees and/or insurance feesIf you have an arrangement where your employer pays some of your super fees and/or your insurance fees, you should take this into account when considering how the move to MySuper will affect you.
You should read all the information about fees and other costs, so you understand their impact on your investment. You can find further information including an explanation of the types of fees in the Asgard Employee Super Account Product Disclosure Statement, Additional Information Booklet Part 1 – General, and Additional Information Booklet Part 2 – Investment. These documents are available free of charge at asgard.com.au/mysupermember or by calling Customer Relations on 1800 998 185.
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If we move your super to an Asgard MySuper Lifestage Investment, your investment strategy will change.
Whatever your stage in life, whether you’ve just begun to save for retirement or you’ve already left the workforce, your Asgard MySuper Lifestage Investment can give you a well-diversified portfolio – designed and managed for your age.
There is a different Asgard MySuper Lifestage Investment for each decade designed to suit members born within that period, whose investment needs and approach to risk over time is typical of members around the same age.
The investment strategy for MySuper takes a ‘lifecycle’ approach that aims to achieve an appropriate level of risk and return for members in the relevant age group by automatically adjusting the mix of assets throughout their life.
For younger members (when you have more time to withstand ups and downs in your investment), the MySuper Lifestage investment option will
be more growth-oriented to target a higher return. Over time, it will gradually shift to a more conservative asset mix by reducing the allocation of growth assets, such as shares and property, and increasing the allocation of defensive assets, such as fixed interest and cash.
While MySuper is designed to suit most members in an age group, you should consider your own situation when choosing your investment options.
What’s the MySuper investment approach?The Asgard MySuper Lifestage Investment has an objective to provide an investment return above inflation. To determine these objectives we have used the CPI, which is a generally accepted measure of inflation. The specific investment return objective changes over time and so does the level of risk.
What’s the MySuper investment strategy?
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The investment strategy is the way investments are managed and what they are designed to achieve.
Level of risk/expected return
Your age
100 20 30 40 50 60
Growth assets
Defensive assets
70 80
2000s 1990s 1980s 1970s
1960s
1950s
1940s
Level of risk/expected return
Your age
100 20 30 40 50 60
Growth assets
Defensive assets
70 80
2000s 1990s 1980s 1970s
1960s
1950s
1940s
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The following table shows the investment return objective (after fees and taxes) and level of risk for each Asgard MySuper Lifestage Investment at 1 July 2016.
The investment return that you may experience over your lifetime will depend on when you join
the investment option and how long you remain invested. Refer to your Investor Report for your investment performance.
For details of actual investment performance for the Asgard MySuper Lifestage Investments, visit asgard.com.au/mysupermember.
What’s this?Well-diversified portfolio: a selection of investments that are spread across a range, including property, cash, shares and fixed income.
Approach to risk: how you or your adviser select your investments to align with your risk profile.
Risk and return: looking at the risk of not achieving an expected level of return when compared to the possible earnings from that investment over a given period of time.
Mix of assets: a collection of different types of investments.
Growth-oriented investments: investments that have a higher potential risk of financial loss, but are intended to achieve higher earnings over a given period of time.
Conservative asset mix: a collection of investments that are designed to protect what you already have invested, and that generally offer a lower return.
Allocation of growth assets: the proportion of your investments that are intended to achieve higher earnings while carrying higher risk.
Defensive assets: investments that are intended to protect what you already have invested that carry lower risk and are likely to achieve lower earnings over a given period of time.
Investment return: the earnings on an investment.
Inflation: is the general increase in the cost of goods and services over a period of time.
Asgard MySuper Lifestage Investment
Description
Investment objective (over a 10 year period)*
Standard Risk Measure
Minimum suggested investment timeframe
1940s
You are probably looking to retire. The focus is on maintaining the real value of your investment. If you were born before 1950 you’ll be invested in this Investment Option.
CPI + 1.0% pa 2. Low 4 years
1950sRetirement is approaching. The focus is on protecting the value of your investment while still seeking some growth.
CPI + 1.1% pa 3. Low to medium 4 years
1960sRetirement is getting closer. The focus is on achieving a balance between the potential for growth and the level of risk.
CPI + 2.0% pa 5. Medium to high 5 years
1970s Your savings are continuing. Growth remains the main focus. CPI + 3.1% pa 6. High 7 years
1980s
You’re saving and have many years until retirement to withstand rises and falls in the value of your investment. The focus is on maximising growth.
CPI + 3.1% pa 6. High 7 years
1990s You’re in the early stages of your working life. The focus is on maximising growth. CPI + 3.1% pa 6. High 7 years
2000s Your savings have just commenced. The focus is on maximising growth. CPI + 3.1% pa 6. High 7 years
*After fees and taxes
Transaction delay for MySuper Moving members’ balances to MySuper will mean a delay in processing financial transactions for anyone invested in the affected options. This is expected from around 11 to 21 November 2016.
During this period you can still make contributions, rollovers and request investment switches or withdrawals. The effective date of the transaction will be the day the money or request was received. However, you won’t see it reflected in your account until we’ve finished the move of all account balances to MySuper.
Any non-financial transactions, such as address changes, can continue as usual.
The exact date of the move to MySuper, and the start and end dates of the expected transaction delay will be made available from 10 October 2016 at asgard.com.au/mysupermember.
If you have an urgent or hardship claim during this period, please contact Customer Relations on 1800 998 185 between 8.30am and 7.00pm (Sydney time) Monday to Friday.
Are there other impacts of the move to MySuper?
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Transaction freeze on your original accountAs well as this delay in processing financial transactions in MySuper, after 7 November, you won’t be able to transact on your original account so we can prepare for the move to MySuper.
Consolidating your accounts Any contributions and rollovers since 1 January 2014, when MySuper came into effect, have been invested in your MySuper account. Your super balance before that date remains in your original account.
We’ll consolidate your two accounts by moving the super in your original account into your MySuper account. Once your super balances are consolidated, we’ll close your original account.
As part of the consolidation, the balance in your original account will be invested into the Asgard MySuper Lifestage Investment, if it exceeds the minimum cash balance requirement by $1,000. If the balance is less than that amount, then the money will be consolidated with the money in your MySuper cash account. For more information about how your cash account works and how your minimum cash requirement is determined refer to the Additional Information Booklet Part 1 – General.
You’ll receive a letter confirming the move to MySuper along with a Final Benefit Statement in December 2016.
Note: if your original account’s balance falls to zero prior to the move, then this account will be closed and where applicable your insurance will be transferred to your MySuper account.
Tax considerationsThe move to MySuper will have tax implications for your account. We recommend talking to a financial adviser about your personal circumstances.
Cash investmentsUnder MySuper regulations, amounts in some cash investment options do not need to move to MySuper. However because we’re consolidating your accounts, we will also move any super you have in these options to MySuper. Refer to Investor Online at investoronline.info to see if you hold any of these investment options:
• BT Wholesale Enhanced Cash Fund• Acadian Defensive Income Fund (Class A)• Macquarie Life Master Cash Fund/Macquarie
Master Cash Fund• UBS Cash Fund• Money Market Investment AccountIf you want to keep these investments, you need to tell us by 6 November 2016 not to move your super to MySuper.
Suspended investments There are some investment options in Asgard Employee Super Account that have been suspended by the investment managers. In preparing for the move to MySuper, we’ll be working closely with the managers of these investment options. It is possible some investment options may be suspended at the time of the move to MySuper, which means super invested in those options can’t be accessed and won’t be part of the move. We will contact you if you are affected.
If after reviewing all the information, you’ve decided that MySuper isn’t for you, you need to let us know by 6 November 2016. You can do this by completing the enclosed form and returning it in the reply paid envelope provided, or you can call our Customer Relations team on 1800 998 185.
We’ll consolidate your accounts by moving your super in your MySuper account to your original account. Then, we’ll invest your super in the investment options listed on your Investment Direction form included in this pack and close your MySuper account.
If you have insurance in your MySuper account, your insurance cover, type of insurance and fees won’t change and will also move if your MySuper balance moves to your original account. If you have existing insurance in your original account this is not affected by the move.
Note: your total cash balance in your original account after your super has been consolidated needs to exceed the minimum cash balance requirement by $1,000 before it is invested in any investment option. For more information about how your cash account works and how your minimum cash requirement is determined refer to the Additional Information Booklet Part 1 – General.
You’ll receive a letter confirming the move of your super from your MySuper account, along with a Final Benefit Statement once your accounts are consolidated.
One-off cost for consolidating your accounts You may incur a transaction cost to move your super from your MySuper account to your original account. This is known as the ‘buy-sell spread’ and is calculated on the amount moved. This cost is charged by the fund manager in relation to the sale and purchase of assets.
Note: if you tell us not to move your super to MySuper, then the Additional Regulatory Change Expense Recovery cost mentioned in your letter will not apply to you.
Tax considerations The move of your super will have tax implications for your account. We recommend talking with a financial adviser about your personal circumstances.
What if you don’t want your balance to move to MySuper?
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If you have questions about any information in this pack and how it relates to you, speak to your financial adviser or call our Customer Relations team.
We can help you in many ways. No matter how simple or complicated the question, we can offer the assistance you need. We can even help you find a financial adviser if you don’t have one.
• Call Customer Relations on 1800 998 185 between 8.30am and 7.00pm (Sydney time) Monday to Friday.
• Email us at [email protected]• Visit our website asgard.com.au/mysupermember
Where can you get help?
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Glossary
Allocation of growth assets – the proportion of your investments that are intended to achieve higher earnings while carrying higher risk.
Approach to risk – how you or your adviser select your investments to align with your risk profile.
Conservative asset mix – a collection of investments that are designed to protect what you already have invested, and that generally offer a lower return.
Contributions – includes money you or your employer pays into your super account.
Defensive assets – investments that are intended to protect what you already have invested that carry lower risk and are likely to achieve lower earnings over a given period of time.
Growth-oriented investments – investments that have a higher potential risk of financial loss, but are intended to achieve higher earnings over a given period of time.
Inflation – is the general increase in the cost of goods and services over a period of time.
Investment choice – choosing from the investment option menu in your Asgard Employee Super Account and then letting us know how you’d like your money invested.
Investment option – within a super account there is a menu of options where your super can be invested. These investment options can allow you to invest your super in shares, property, fixed interest and cash, for instance.
Investment performance – the earnings or returns on an investment. Note: past performance is not a reliable indicator of future performance.
Investment return – the earnings on an investment.
Investment strategy – the way investments are managed and what they’re designed to achieve.
Mix of assets – a collection of different types of investments.
Preselected investment option – where an investment option is chosen by your employer or us for members who don’t select their own.
Risk – the possibility of not achieving your investment objectives or of experiencing negative returns in a given period of time.
Risk and return – looking at the risk of not achieving an expected level of return when compared to the possible earnings from that investment over a given period of time.
Risk profile – takes into account how much risk you’re comfortable with, as well as how much financial risk you can afford to take and how much risk you would need to take to try to reach your goals.
Strategic asset allocation – the decision to target specific proportions of different types of asset classes (such as property, cash and shares) in an investment option.
Well-diversified portfolio – a selection of investments that are spread across a range, including property, cash, shares and fixed income.
DisclaimerThis information is issued by BT Funds Management Limited ABN 63 002 916 458, AFSL 233724 (BTFM). BTFM is the trustee of, and the issuer of interests in Asgard Employee Super Account (AESA). AESA is part of the superannuation fund known as the Asgard Independence Plan Division Two, ABN 90 194 410 365, RSE R1055580. Asgard Capital Management Limited ABN 92 009 279 592, AFSL 240695 (ACML) is the administrator and custodian of AESA. This information is factual only and does not constitute financial product advice. It has been prepared without taking account of your personal objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to those matters. You may wish to consult a financial adviser to obtain financial advice or taxation advice tailored to your personal circumstances. Before making any decision to acquire, continue to hold or dispose of interests in AESA, you should read the Product Disclosure Statement (PDS) for AESA. The PDS, and Additional Information Booklets that form part of the PDS, can be obtained by visiting asgard.com.au or by calling us on 1800 998 185. BTFM and ACML are members of the Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 (Westpac) group of companies. An investment in AESA is not an investment in, deposit with or any other liability of, Westpac or any other company within the Westpac Group. It is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. Neither Westpac, nor any other company in the Westpac Group in any way stands behind or guarantees the capital value and/or the performance of AESA. © BT Funds Management Limited ABN 63 002 916 458. Information current as at July 2016.
AS16775D-0616rrBooklet 1
FOR MORE INFORMATION asgard.com.au 1800 998 185 [email protected]
Moving to MySuper
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1 2015 BT Australian Financial Health Index Report
Saving for retirement is an important part of your financial wellbeing. And the better you feel your financial situation to be, research has found, the better your physical and mental wellbeing1.
It makes sense. The fewer worries you have about your financial future, the better you feel emotionally, the more soundly you sleep and the fewer strains you experience in your personal relationships.
At Asgard, we embrace this idea, and aim to make you feel better about your financial future by helping you prepare for your best financial future.
So, when the government introduced its MySuper initiative, we chose our Lifestage investment options as our MySuper option for members who haven’t chosen how they’d like their super invested. These options provide a well-diversified investment portfolio – designed and managed according to your age.
In November, members who haven’t chosen how to invest their super in Asgard Employee Super Account will have their
super moved to an Asgard Lifestage Investment.
Your super is part of this move, though you have a choice.
You can let us know that you’d like your super to stay invested as it is, or you can leave it to us and it will automatically move to MySuper.
No matter which option you choose, you can rest assured that your super is being professionally managed. Our reputation is built on our expertise in superannuation, investment, insurance and advice and nearly 50 years of experience.
With us, you can prepare for your best financial future – and feel good about it now.
Melinda Howes General Manager, Superannuation
1
What’s in this booklet?
This booklet is designed to help you understand the planned changes to your super. We’ll show you where this money is now and tell you about Asgard’s MySuper Lifestage Investments (MySuper).
We’ll explain why we must move your super under the government’s MySuper initiative. And we’ll look more closely at what happens after the move, the MySuper investment strategy, fees and other things to consider. The changes to your insurance terms and conditions are also summarised.
Whether your super stays in your current investment option(s) or moves to MySuper, it’s up to you.
Read on to find out how the move will affect your super to help you decide on the best option for you.
Things to considerWhen comparing your choices, it’s important to think about:
• changes to your insurance terms and conditions
• your investment strategy• fees and costs• investment performance• your own risk profile• your financial goals. Speak to your financial adviser (refer to your latest Investor Report for contact details) or call us if you need help.
What’s this?Investment strategy: the way investments are managed and what they’re designed to achieve.
Investment performance: the earnings or returns on an investment. Note: past performance
is not a reliable indicator of future performance.
Risk: the possibility of not achieving your investment objectives or of experiencing negative returns in a given period of time.
Your risk profile takes into account how much risk you’re comfortable with, as well as how much financial risk you can afford to take and how much risk you would need to take to try to reach your goals.
A guide to 'What's this?'We know super can be confusing, and some of the language used isn't what you hear every day. So, we've defined some words to help you as you read through this booklet. When you see a word or phrase highlighted in red, then you'll find a definition nearby in a 'What's this?' box.
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What part of your super is affected?
When your Asgard Employee Super Account was opened, your super was invested in a preselected investment option(s) because you didn’t make an investment choice. This is the part of your super that the government requires us to move to MySuper.
For the details of how your super is currently invested, visit Investor Online at investoronline.info.
You’ll find details of the investment strategy for your option(s), and more information on fees at asgard.com.au/mysupermember. There’s also general information on how your current investment option(s) is performing, or refer to your latest Investor Report for actual performance.
What’s this?Investment option: within a super account there is a menu of investment options where your super can be invested. These
investment options can allow you to invest your super in shares, property, fixed income and cash, for instance.
Preselected investment option: where an investment option is chosen by your employer or us for members who don’t select their own.
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Why are we planning to move your super to MySuper?
The government introduced the MySuper initiative to provide a simple, low cost option for members who don’t make an investment choice. Super funds like ours now offer MySuper as the preselected option for these members.
With the introduction of MySuper, we added a second account (MySuper account) to your original account in Asgard Employee Super Account. Any contributions and rollovers since 1 January 2014, when MySuper came into effect, have been invested in your MySuper account in an Asgard MySuper Lifestage Investment. Your super balance before that date remains in your original account.
It’s now time to bring your super together. Under the requirements, we must move your super from your current investment option to a MySuper product. We have chosen Asgard MySuper Lifestage Investment and this move is planned for November 2016.
If you let us know by 6 November 2016 that you don’t want this to happen, your balance will not be moved to MySuper and we will consolidate your accounts by moving your super in your MySuper account to your original account. Refer to the section ‘What if you don’t want your balance to move to MySuper?’ for more details.
Visit asgard.com.au/mysupermember from 10 October 2016 to find out the specific date of the move.
Note: the estimated amount to be moved to MySuper is calculated at a specific date. Refer to your letter for the amount and the date we made the estimation. The amount may change by the date of the move because of investment performance, fees, taxes and any withdrawals. Some cash investment options are not required to be moved to MySuper. However, because we’re consolidating your accounts, we’ll also move any super you have in these options to MySuper. Refer to the section ‘Are there other impacts of the move to MySuper?’ of this booklet for details.
What happens with the move to MySuper?What changes?• Moving to MySuper brings changes to your
investment strategy, insurance and fees. Your letter outlines the specific changes under ‘Your super details’.
• If you move to MySuper, your Asgard Personal Protection Package (APPP) insurance will be replaced with Asgard Group Insurance – Comprehensive Cover within your Asgard Employee Super Account. Refer to the section ‘How will insurance change if you move to MySuper?’
• If you decide that MySuper is right for you, we’ll move the super in your current investment option(s) and consolidate it in your MySuper account.
• We will bring your super together into one account, and close the other.
There’s more information under the ‘What you need to know?’ and ‘What’s the MySuper investment strategy?’ sections of this booklet and in the Asgard Employee Super Account Product Disclosure Statement and Additional Information Booklets.
You can also find other useful information at asgard.com.au/mysupermember.
What stays the same?• Details like your contact details and
nominated beneficiaries (if you have them) will remain unchanged.
• Your contributions will continue to be paid into MySuper.
What’s this?Investment choice: choosing from the investment option menu in your Asgard Employee Super Account
and then letting us know how you’d like your money invested.
Contributions: includes money you or your employer pays into your super account.
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What do you need to know?
Your letter shows the comparison between an estimate of your fees on your original account and fees that will apply if your super moves to MySuper, as well as one-off costs associated with the move. If there’s a change to your insurance fees, this is also included.
Below we explain the details of what’s in the ‘Your super details’ table in your letter and provide extra information.
Standard Risk Measure for investment optionsIn your letter, you’ll find a Standard Risk Measure for each investment option.
The Standard Risk Measure is based on an estimate of the number of negative annual returns that may be experienced over any 20 year period (shown in the table).
It is based on industry guidance that allows members to compare investment options. The Standard Risk Measure allows you to compare the level of risk of the investment options within Asgard Employee Super Account as well as other investment options available through other super funds.
When comparing the level of risk, it’s important to take into consideration the investment option’s investment objective, investment strategy and the strategic asset allocation.
The Standard Risk Measure is not a complete assessment of all forms of investment risk, for example, it does not take into account the
size of a negative return or the potential for a positive return to be less than the return you require to meet your investment objectives. It doesn’t take into account the impact of administration fees and tax on the likelihood of a negative return.
Make sure you’re comfortable with the risks and potential losses associated with the investment option(s) you choose to invest in.
Standard Risk Measure
Risk band
Risk label
Estimated number of negative annual returns over any 20 year period
1 Very low Less than 0.5
2 Low 0.5 to less than 1
3 Low to medium 1 to less than 2
4 Medium 2 to less than 3
5 Medium to high 3 to less than 4
6 High 4 to less than 6
7 Very high 6 or greater
What’s this?Strategic asset allocation: the decision to target specific proportions of different types of asset classes (such as property, cash and shares) in an investment option.
Your letter shows how your super in your original account is invested, and the particular Asgard MySuper Lifestage Investment that we plan to move your super to, which is based on your decade of birth. This section provides more detail on the information in your letter.
Fees and costsThe estimated fees and other costs in your letter includes the Administration fees, Trustee fees and Expense Recoveries (general and legislative), Cash balance fee, along with investment manager fees.
The fees and costs quoted include Goods and Services Tax (GST) and are net of any applicable Reduced Input Tax Credits (RITC).
The total dollar figure estimates for the fees and other costs are based on the amount (at a specific date stated in your letter) to be moved to MySuper. This allows you to compare the estimated fees payable on the current investment and MySuper.
By the time of the move:
• the actual amount to be moved may change due to investment performance, fees, taxes and any withdrawals, which may mean fees differ from the estimates provided
• the actual fees and costs you pay may differ due to changes in your circumstances (eg you cease employment with your employer, your insurance cover varies or you change your financial adviser)
• if you’re part of an employer plan, fees associated with your plan may change which then may affect the fees you pay
• the dollar-based Administration fee (and insurance fee, if applicable) may change each year at 1 July in line with the Consumer Price Index (CPI).
If you previously agreed to an adviser fee on your MySuper account, it will continue to apply to your entire balance after the move to MySuper. Otherwise, any adviser fees you currently pay on your original account will not continue if you move to MySuper.
One-off costs for the move to MySuperThe following costs are estimates that will only apply once on the amount moved to MySuper as shown in your letter:
1. Buy-sell spread – You may incur a transaction cost when we move your super from your current investment option(s) to MySuper, known as the ‘buy-sell spread’, which is calculated on the amount moved. This is a cost charged by the fund manager in relation to the sale and purchase of assets.
2. Additional Regulatory Change Expense Recovery – This is to recover some of the cost specifically associated with the legislative requirement to move your super to MySuper. The maximum amount of this cost will be $80. It is in addition to the current Regulatory Change Expense Recovery that already applies to all member accounts.
Employer paid fees and/or insurance feesIf you have an arrangement where your employer pays some of your super fees and/or your insurance fees, you should take this into account when considering how the move to MySuper will affect you.
You should read all the information about fees and other costs, so you understand their impact on your investment. You can find further information including an explanation of the types of fees in the Asgard Employee Super Account Product Disclosure Statement, Additional Information Booklet Part 1 – General, and Additional Information Booklet Part 2 – Investment. These documents are available free of charge at asgard.com.au/mysupermember or by calling Customer Relations on 1800 998 185.
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How will insurance change if you move to MySuper?
You currently have Asgard Personal Protection Package (APPP) in your original account, but this cover cannot be maintained if you move to MySuper.
If you move to MySuper, your insurance will be replaced with Asgard Group Insurance – Comprehensive Cover in Asgard Employee Super Account where you’ll transfer over with the same type of insurance cover and generally the same amount, but different terms and conditions will apply. Your letter shows your estimated insurance fees for your current APPP insurance and those estimated for Comprehensive Cover.
The following table gives a brief summary of the changes to insurance terms and conditions between APPP insurance and Comprehensive Cover you will have within Asgard Employee Super Account, if you move to MySuper as part of the transfer in November. Please refer to the Asgard Employee Super Account Product Disclosure Statement and the Additional Information Booklet Part 3 – Insurance for full details of the new insurance arrangements. These are available from asgard.com.au/mysupermember.
It’s important for you to read and understand the changes in the insurance terms and conditions that will result from the move to MySuper. If you have any questions about your insurance cover, you should seek advice from your financial adviser.
If you want to retain your APPP insurance, then you need to tell us by 6 November 2016 not to move your super to MySuper. If you do that but then you choose to move to MySuper and to Comprehensive Cover at another time, the insurance terms that will apply to you may be different than what is set out in this booklet.
Please refer to Asgard Employee Super Account Product Disclosure Statement and the Additional Information Booklet Part 3 – Insurance for full details of the new insurance arrangements, including insurance definitions and a glossary of terms.
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Asgard Personal Protection Package (APPP)
Comprehensive Cover Key changes if you move to MySuper
Benefits available (for all cover types)
• Life Protection only • Life & Total and Permanent
Disablement (TPD) Protection (the amount of TPD Protection can exceed the amount of Life Protection held)
• TPD Protection only• Salary Continuance
Insurance (SCI)
• Life Protection only• Life & TPD Protection (the amount
of TPD Protection cannot exceed the amount of Life Protection held)
• Salary Continuance Insurance (SCI)
Although TPD Protection only cover is not generally available under Comprehensive Cover, a special arrangement will apply so that you will still get to maintain your TPD Protection only cover for the same amount if you move to Comprehensive Cover. You will be charged a premium loading for your TPD Protection only cover. Further, if you have Life & TPD Protection cover and the amount of TPD Protection exceeds the amount of Life Protection held, you will still get to maintain the same Life & TPD Protection cover amounts (however, you will be charged a premium loading to maintain this) if you move to Comprehensive Cover.
Cost of insurance cover (for all cover types)
Your insurance fees depend on the rates under the APPP policy and the applicable rates depend on a number of factors including: • amount and type of cover • member’s age next birthday • gender • whether the member
smokes, and • occupation category.Adviser remuneration may be included in your premium.
Your insurance fees depend on the rates under the Asgard Employee Super Account Comprehensive policy and the applicable rates depend on a number of factors including: • amount and type of cover • member’s age next birthday • gender, and • occupation category.Adviser remuneration cannot be paid from MySuper.
There will be changes in the cost of insurance under Comprehensive Cover. Details of your current insurance fees and what would be payable under Comprehensive Cover are included in your letter.
Insurance administration fee (for all cover types)
An insurance administration fee of $4.10 is charged monthly.
No insurance administration fee is currently charged, but we may in future charge up to $2.56 monthly.
No insurance administration fee is currently payable for Comprehensive Cover.
Expiry Age – Life Protection
Life Protection stops on the policy anniversary date prior to your 100th birthday.
Life Protection stops on your 75th birthday.
If you move to Comprehensive Cover, your Life Protection will stop at a younger age.
Expiry Age – TPD Protection
TPD Protection stops on the policy anniversary date prior to your 100th birthday.
TPD Protection stops on your 70th birthday.
If you move to Comprehensive Cover, your TPD Protection will stop at a younger age.
Expiry Age – SCI cover
SCI cover stops on the policy anniversary date prior to your 65th birthday.
SCI cover stops on your 65th birthday. Your cover may have a longer benefit period under Comprehensive Cover.
Applications to increase amount of Life Protection
You can apply for an increase in Life Protection provided your age is between 10 and 74.
You can apply for an increase in Life Protection provided your age is between 15 and 74.
With Comprehensive Cover, you will be unable to apply for Life Protection increases if you are between 10 and 15.
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Asgard Personal Protection Package (APPP)
Comprehensive Cover Key changes if you move to MySuper
Applications to increase amount of TPD Protection
You can apply for an increase in TPD Protection provided your age is between 15 and 63.
You can apply for an increase in TPD Protection provided your age is between 15 and 69.
You will have an additional 6 years after age 63 to apply to increase your existing TPD Protection under Comprehensive Cover.
Indexation of Life & TPD Protection
Your Life Protection only and Life & TPD Protection is automatically indexed so to increase your cover on each policy anniversary date. Your cover increases by the higher of the increase in the Consumer Price Index (CPI) and 5% per annum.Note: you can opt-out of indexation at any time and apply for automatic indexation to be reinstated at a later date.
If you are aged less than 60, your Life Protection only and Life & TPD Protection is automatically indexed so to increase your cover on the anniversary date of when your cover commenced. The automatic increases stop on your 60th birthday. Your cover increases by the higher of the CPI and 3% per annum. Note: you can opt-out of indexation at any time, however once you opt-out, you cannot apply for automatic indexation to be reinstated at a later date.
Indexation of Comprehensive Cover ceases at an earlier age, and the annual cover indexation percentage may be lower. As a result, the potential increases in cover in the long-term could be lower under Comprehensive Cover.Note: once you opt-out of indexation in Comprehensive Cover, you cannot apply for automatic indexation to be reinstated at a later date, whereas it is possible to apply for this to be reinstated under the APPP.
Life Protection tapering
No tapering applies.
If you have a fixed Life Protection cover amount, your Life Protection cover will be reduced on the anniversary date of when your cover commenced by 15% per annum from age 70 to age 74.
If you move to Comprehensive Cover and you have a fixed Life Protection cover amount, your cover will be reduced from your 70th birthday. This will result in a reduced Life Protection benefit under Comprehensive Cover.If you are 70 or above at the time that you move to MySuper, special arrangements apply for the tapering of your cover, please contact us if you would like more information.
TPD Protection tapering
No tapering applies. If you have a fixed TPD Protection cover amount, your TPD Protection cover will be reduced on the anniversary date of when your cover commenced by 20% per annum from age 60 to age 63, and will be fixed thereafter from age 64 to age 69.
If you move to Comprehensive Cover and you have a fixed TPD Protection cover amount, your cover will be reduced from your 60th birthday. This will result in a reduced TPD Protection benefit under Comprehensive Cover. If you are 60 or above at the time that you move to MySuper, special arrangements apply for the tapering of your cover. Please contact us if you would like more information.
Maximum amount insured for Life Protection
There is no limit on the maximum amount insured for Life Protection.
The maximum amount insured for Life Protection is limited to $5 million.
A maximum limit will be applied to your Life Protection if you move to Comprehensive Cover.
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Asgard Personal Protection Package (APPP)
Comprehensive Cover Key changes if you move to MySuper
TPD Protection and the loss of the ‘Own Occupation’ TPD definition
If the ‘Own Occupation’ TPD definition applies to your TPD Protection which commenced prior to 1 July 2014, you will be assessed under this definition in the event of a TPD claim.
The ‘Own Occupation’ TPD definition is not available under Comprehensive Cover. Instead you will be subject to the Comprehensive Cover TPD definition in accordance with the Comprehensive Cover insurance policy in the event of a TPD claim. Please refer to Asgard Employee Super Account Additional Information Booklet Part 3 – Insurance for the full TPD definition.
In the event of a TPD claim, under Comprehensive Cover, you will be assessed under a different TPD definition. Depending on your situation this may be a stricter TPD definition. Please refer to Asgard Employee Super Account Additional Information Booklet Part 3 – Insurance for the full TPD definition.
TPD Protection & Home Duties definition
If the ‘Home Duties’ TPD definition applies to your TPD Protection, you will be assessed under this definition in the event of a TPD claim.
The ‘Home Duties’ TPD definition is not available under Comprehensive Cover. Instead you will be subject to the Comprehensive Cover TPD definition in accordance with the Comprehensive Cover insurance policy in the event of a TPD claim. Please refer to Asgard Employee Super Account Additional Information Booklet Part 3 – Insurance for the full TPD definition.
In the event of a TPD claim, under Comprehensive Cover, you will be assessed under a different TPD definition. Depending on your situation this may be a stricter TPD definition. Please refer to Asgard Employee Super Account Additional Information Booklet Part 3 – Insurance for the full TPD definition.
TPD Protection maximum benefit limit
The maximum amount insured for TPD Protection is based on the TPD definition that applies to you. That is, if the 'Standard Occupation' or 'Own Occupation' TPD definition applies to you, the maximum amount insured is $5 million, while if the 'Home Duties' TPD definition applies to you, the maximum amount insured is $1.5 million.
Under Comprehensive Cover, the maximum amount insured applicable to TPD Protection depends on if you are spouse to an insured member of Asgard Employee Super Account, or you are renewing any cover or applying for an increase in cover.If you are a non-working spouse to an insured member of Asgard Employee Super Account, the maximum amount insured for renewing any TPD Protection, or applying for increases in TPD Protection, is $1.5 million.If you are not a non-working spouse to an insured member of Asgard Employee Super Account, the maximum amount insured for renewing any existing TPD Protection is $5 million. However, if you are applying for an increase in existing TPD cover and you are:• aged less than 60, the maximum
amount insured is $5 million;• 60 to 64, the maximum
amount insured is $3 million; or• 65 or over, the maximum amount
insured is $1.5 million.
The maximum limits on the amount insured for TPD Protection differs under Comprehensive Cover.
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Asgard Personal Protection Package (APPP)
Comprehensive Cover Key changes if you move to MySuper
SCI cover loss of ‘Agreed Value’ monthly benefit definition
If the ‘Agreed Value’ monthly benefit definition applies to your SCI cover, your monthly benefit will be calculated based on this definition in the event of an SCI claim.
The ‘Agreed Value’ monthly benefit definition is not available under Comprehensive Cover. Instead your monthly benefit will be typically based on a value up to 75% of your pre-disability income (ie indemnity-based) in the event of an SCI claim.
Your monthly benefit may be lower in the event of an SCI claim under Comprehensive Cover.
SCI maximum monthly benefit amount
The SCI maximum monthly benefit (indemnity-based) is $60,000 per month.
The SCI maximum monthly benefit (indemnity-based) is $30,000 per month.
The SCI maximum monthly benefit (indemnity-based) is lower if you move to Comprehensive Cover.
Active Service exclusion (for all cover types)
No Active Service exclusion applies.
There is an additional exclusion on all cover types for claims arising from Active Service.
If your claim is as a result of Active Service, a benefit will not be payable under Comprehensive Cover.
Partial Disability under SCI cover
You have to be totally disabled for at least 14 consecutive days during the waiting period prior to making a Partial Disability claim.
You have to be totally disabled for at least 7 out of 12 consecutive days during the waiting period prior to making a Partial Disability claim.
You have to be totally disabled for a shorter period during the waiting period prior to making a Partial Disability claim under Comprehensive Cover.
Special Risk Occupations in the event of a TPD or SCI claim
No restrictions apply to special risk occupations.
If you work in a special risk occupation immediately prior to your disability, your disablement may be assessed under a different TPD or total disability (for SCI cover) definition.
You may be subject to a different TPD or total disability (for SCI cover) definition in the event of a claim if you’re working in a special risk occupation immediately prior to your disablement.
SCI claims indexation rate
In the event of a successful SCI claim, your benefit amount after 12 months of receiving benefits will be indexed annually at the lesser of the CPI increase and 10% per annum.
In the event of a successful SCI claim, your benefit amount after 12 months of receiving benefits will be indexed annually at the lesser of the CPI increase and 5% per annum.
In the event of a successful SCI claim, your benefit amount after 12 months of receiving benefits may be indexed at a lower amount if you move to Comprehensive Cover.
Mortgage Acceptance Cover for Life Protection and TPD Protection
Available if you have Life Protection and TPD Protection.
Not available. Under Comprehensive Cover, Mortgage Acceptance Cover will not be available.
Pre-Disability Income (PDI) definition for SCI cover
PDI definition is the higher of: • the highest average of
your monthly income in any 12-month consecutive period in the 3 years prior to disability; and
• the average of your monthly income in the 12 months prior to your application of cover.
PDI definition is the average gross monthly income in the 12 months immediately prior to disability.
The definition of PDI will be different if you move to Comprehensive Cover, which may affect the monthly benefit amount paid in the event of an SCI claim.
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Asgard Personal Protection Package (APPP)
Comprehensive Cover Key changes if you move to MySuper
Number of days before your cover lapses due to non-payment of premiums (for all cover types)
You have a period of 30 days before your cover lapses if you do not pay your premiums on the premium due date.
You have a period of 60 days before your cover lapses if you do not pay your premiums on the premium due date.
If you move to Comprehensive Cover and you do not pay your premiums on the due date, you have a longer period to pay the outstanding premium amount before your cover lapses.
SCI cover and sick leave as a benefit offset
Sick leave will not be considered an SCI benefit offset if you have: • less than 60 days of
accrued sick leave; or • 60 or more days of accrued
sick leave but you have not taken the accrued sick leave during the Benefit Period.
All sick leave will be considered an SCI benefit offset.
If you move to Comprehensive Cover, your SCI benefit will be offset by all sick leave entitlements which may impact on the monthly benefit amount paid in the event of a successful SCI claim.
TPD Protection and SCI cover (if you are on leave from your employer)
TPD Protection and SCI cover continues on the same terms if you are on leave from your employer without pay for up to 12 months. After 12 months, the TPD and/or total disability definition (for SCI cover) changes.
TPD Protection and SCI cover continues on the same terms if you are on approved leave for up to 24 months. After 24 months, the TPD and/or total disability (for SCI cover) definition changes.
If you move to Comprehensive Cover, you are able to hold the same TPD or total disability (for SCI cover) definition for a further 12 months while you are on approved leave from your employer without pay.
If we move your super to an Asgard MySuper Lifestage Investment, your investment strategy will change.
Whatever your stage in life, whether you’ve just begun to save for retirement or you’ve already left the workforce, your Asgard MySuper Lifestage Investment can give you a well-diversified portfolio – designed and managed for your age.
There is a different Asgard MySuper Lifestage Investment for each decade designed to suit members born within that period, whose investment needs and approach to risk over time is typical of members around the same age.
The investment strategy for MySuper takes a ‘lifecycle’ approach that aims to achieve an appropriate level of risk and return for members in the relevant age group by automatically adjusting the mix of assets throughout their life.
For younger members (when you have more time to withstand ups and downs in your investment), the MySuper Lifestage investment option will
be more growth-oriented to target a higher return. Over time, it will gradually shift to a more conservative asset mix by reducing the allocation of growth assets, such as shares and property, and increasing the allocation of defensive assets, such as fixed interest and cash.
While MySuper is designed to suit most members in an age group, you should consider your own situation when choosing your investment options.
What’s the MySuper investment approach?The Asgard MySuper Lifestage Investment has an objective to provide an investment return above inflation. To determine these objectives we have used the CPI, which is a generally accepted measure of inflation. The specific investment return objective changes over time and so does the level of risk.
What’s the MySuper investment strategy?
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The investment strategy is the way investments are managed and what they are designed to achieve.
Level of risk/expected return
Your age
100 20 30 40 50 60
Growth assets
Defensive assets
70 80
2000s 1990s 1980s 1970s
1960s
1950s
1940s
Level of risk/expected return
Your age
100 20 30 40 50 60
Growth assets
Defensive assets
70 80
2000s 1990s 1980s 1970s
1960s
1950s
1940s
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The following table shows the investment return objective (after fees and taxes) and level of risk for each Asgard MySuper Lifestage Investment at 1 July 2016.
The investment return that you may experience over your lifetime will depend on when you join
the investment option and how long you remain invested. Refer to your Investor Report for your investment performance.
For details of actual investment performance for the Asgard MySuper Lifestage Investments, visit asgard.com.au/mysupermember.
What’s this?Well-diversified portfolio: a selection of investments that are spread across a range, including property, cash, shares and fixed income.
Approach to risk: how you or your adviser select your investments to align with your risk profile.
Risk and return: looking at the risk of not achieving an expected level of return when compared to the possible earnings from that investment over a given period of time.
Mix of assets: a collection of different types of investments.
Growth-oriented investments: investments that have a higher potential risk of financial loss, but are intended to achieve higher earnings over a given period of time.
Conservative asset mix: a collection of investments that are designed to protect what you already have invested, and that generally offer a lower return.
Allocation of growth assets: the proportion of your investments that are intended to achieve higher earnings while carrying higher risk.
Defensive assets: investments that are intended to protect what you already have invested that carry lower risk and are likely to achieve lower earnings over a given period of time.
Investment return: the earnings on an investment.
Inflation: is the general increase in the cost of goods and services over a period of time.
Asgard MySuper Lifestage Investment
Description
Investment objective (over a 10 year period)*
Standard Risk Measure
Minimum suggested investment timeframe
1940s
You are probably looking to retire. The focus is on maintaining the real value of your investment. If you were born before 1950 you’ll be invested in this Investment Option.
CPI + 1.0% pa 2. Low 4 years
1950sRetirement is approaching. The focus is on protecting the value of your investment while still seeking some growth.
CPI + 1.1% pa 3. Low to medium 4 years
1960sRetirement is getting closer. The focus is on achieving a balance between the potential for growth and the level of risk.
CPI + 2.0% pa 5. Medium to high 5 years
1970s Your savings are continuing. Growth remains the main focus. CPI + 3.1% pa 6. High 7 years
1980s
You’re saving and have many years until retirement to withstand rises and falls in the value of your investment. The focus is on maximising growth.
CPI + 3.1% pa 6. High 7 years
1990s You’re in the early stages of your working life. The focus is on maximising growth. CPI + 3.1% pa 6. High 7 years
2000s Your savings have just commenced. The focus is on maximising growth. CPI + 3.1% pa 6. High 7 years
*After fees and taxes
Transaction delay for MySuper Moving members’ balances to MySuper will mean a delay in processing financial transactions for anyone invested in the affected options. This is expected from around 11 to 21 November 2016.
During this period you can still make contributions, rollovers and request investment switches or withdrawals. The effective date of the transaction will be the day the money or request was received. However, you won’t see it reflected in your account until we’ve finished the move of all account balances to MySuper.
Any non-financial transactions, such as address changes, can continue as usual.
The exact date of the move to MySuper, and the start and end dates of the expected transaction delay will be made available from 10 October 2016 at asgard.com.au/mysupermember.
If you have an urgent or hardship claim during this period, please contact Customer Relations on 1800 998 185 between 8.30am and 7.00pm (Sydney time) Monday to Friday.
Are there other impacts of the move to MySuper?
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Transaction freeze on your original accountAs well as this delay in processing financial transactions in MySuper, after 7 November, you won’t be able to transact on your original account so we can prepare for the move to MySuper.
Consolidating your accounts Any contributions and rollovers since 1 January 2014, when MySuper came into effect, have been invested in your MySuper account. Your super balance before that date remains in your original account.
We’ll consolidate your two accounts by moving the super in your original account into your MySuper account. Once your super balances are consolidated, we’ll close your original account.
As part of the consolidation, the balance in your original account will be invested into the Asgard MySuper Lifestage Investment, if it exceeds the minimum cash balance requirement by $1,000. If the balance is less than that amount, then the money will be consolidated with the money in your MySuper cash account. For more information about how your cash account works and how your minimum cash requirement is determined refer to the Additional Information Booklet Part 1 – General.
You’ll receive a letter confirming the move to MySuper along with a Final Benefit Statement in December 2016.
Note: if your original account’s balance falls to zero prior to the move, then this account will be closed and where applicable your insurance will be transferred to your MySuper account.
Tax considerationsThe move to MySuper will have tax implications for your account. We recommend talking to a financial adviser about your personal circumstances.
Cash investmentsUnder MySuper regulations, amounts in some cash investment options do not need to move to MySuper. However because we’re consolidating your accounts, we will also move any super you have in these options to MySuper. Refer to Investor Online at investoronline.info to see if you hold any of these investment options:
• BT Wholesale Enhanced Cash Fund• Acadian Defensive Income Fund (Class A)• Macquarie Life Master Cash Fund/Macquarie
Master Cash Fund• UBS Cash Fund• Money Market Investment AccountIf you want to keep these investments, you need to tell us by 6 November 2016 not to move your super to MySuper.
Suspended investments There are some investment options in Asgard Employee Super Account that have been suspended by the investment managers. In preparing for the move to MySuper, we’ll be working closely with the managers of these investment options. It is possible some investment options may be suspended at the time of the move to MySuper, which means super invested in those options can’t be accessed and won’t be part of the move. We will contact you if you are affected.
If after reviewing all the information, you’ve decided that MySuper isn’t for you, you need to let us know by 6 November 2016. You can do this by completing the enclosed form and returning it in the reply paid envelope provided, or you can call our Customer Relations team on 1800 998 185.
We’ll consolidate your accounts by moving your super in your MySuper account to your original account. Then, we’ll invest your super in the investment options listed on your Investment Direction form included in this pack and close your MySuper account.
If you have insurance in your MySuper account, your insurance cover, type of insurance and fees won't change and will also move if your MySuper balance moves to your original account. If you have existing insurance in your original account this is not affected by the move.
Note: your total cash balance in your original account after your super has been consolidated needs to exceed the minimum cash balance requirement by $1,000 before it is invested in any investment option. For more information about how your cash account works and how your minimum cash requirement is determined refer to the Additional Information Booklet Part 1 – General.
You’ll receive a letter confirming the move of your super from your MySuper account, along with a Final Benefit Statement once your accounts are consolidated.
One-off cost for consolidating your accounts You may incur a transaction cost to move your super from your MySuper account to your original account. This is known as the ‘buy-sell spread’ and is calculated on the amount moved. This cost is charged by the fund manager in relation to the sale and purchase of assets.
Note: if you tell us not to move your super to MySuper, then the Additional Regulatory Change Expense Recovery cost mentioned in your letter will not apply to you.
Tax considerations The move of your super will have tax implications for your account. We recommend talking with a financial adviser about your personal circumstances.
What if you don’t want your balance to move to MySuper?
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If you have questions about any information in this pack and how it relates to you, speak to your financial adviser or call our Customer Relations team.
We can help you in many ways. No matter how simple or complicated the question, we can offer the assistance you need. We can even help you find a financial adviser if you don’t have one.
• Call Customer Relations on 1800 998 185 between 8.30am and 7.00pm (Sydney time) Monday to Friday.
• Email us at [email protected]• Visit our website asgard.com.au/mysupermember
Where can you get help?
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Glossary
Allocation of growth assets – the proportion of your investments that are intended to achieve higher earnings while carrying higher risk.
Approach to risk – how you or your adviser select your investments to align with your risk profile.
Conservative asset mix – a collection of investments that are designed to protect what you already have invested, and that generally offer a lower return.
Contributions – includes money you or your employer pays into your super account.
Defensive assets – investments that are intended to protect what you already have invested that carry lower risk and are likely to achieve lower earnings over a given period of time.
Growth-oriented investments – investments that have a higher potential risk of financial loss, but are intended to achieve higher earnings over a given period of time.
Inflation – is the general increase in the cost of goods and services over a period of time.
Investment choice – choosing from the investment option menu in your Asgard Employee Super Account and then letting us know how you’d like your money invested.
Investment option – within a super account there is a menu of options where your super can be invested. These investment options can allow you to invest your super in shares, property, fixed interest and cash, for instance.
Investment performance – the earnings or returns on an investment. Note: past performance is not a reliable indicator of future performance.
Investment return – the earnings on an investment.
Investment strategy – the way investments are managed and what they’re designed to achieve.
Mix of assets – a collection of different types of investments.
Preselected investment option – where an investment option is chosen by your employer or us for members who don’t select their own.
Risk – the possibility of not achieving your investment objectives or of experiencing negative returns in a given period of time.
Risk and return – looking at the risk of not achieving an expected level of return when compared to the possible earnings from that investment over a given period of time.
Risk profile – takes into account how much risk you’re comfortable with, as well as how much financial risk you can afford to take and how much risk you would need to take to try to reach your goals.
Strategic asset allocation – the decision to target specific proportions of different types of asset classes (such as property, cash and shares) in an investment option.
Well-diversified portfolio – a selection of investments that are spread across a range, including property, cash, shares and fixed income.
DisclaimerThis information is issued by BT Funds Management Limited ABN 63 002 916 458, AFSL 233724 (BTFM). BTFM is the trustee of, and the issuer of interests in Asgard Employee Super Account (AESA). AESA is part of the superannuation fund known as the Asgard Independence Plan Division Two, ABN 90 194 410 365, RSE R1055580. Asgard Capital Management Limited ABN 92 009 279 592, AFSL 240695 (ACML) is the administrator and custodian of AESA. This information is factual only and does not constitute financial product advice. It has been prepared without taking account of your personal objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to those matters. You may wish to consult a financial adviser to obtain financial advice or taxation advice tailored to your personal circumstances. Before making any decision to acquire, continue to hold or dispose of interests in AESA, you should read the Product Disclosure Statement (PDS) for AESA. The PDS, and Additional Information Booklets that form part of the PDS, can be obtained by visiting asgard.com.au or by calling us on 1800 998 185. BTFM and ACML are members of the Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 (Westpac) group of companies. An investment in AESA is not an investment in, deposit with or any other liability of, Westpac or any other company within the Westpac Group. It is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. Neither Westpac, nor any other company in the Westpac Group in any way stands behind or guarantees the capital value and/or the performance of AESA. © BT Funds Management Limited ABN 63 002 916 458. Information current as at July 2016.
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FOR MORE INFORMATION asgard.com.au 1800 998 185 [email protected]
