aon pds_per_a

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aon pds_per_a

  1. 1. AOn MASTER TRuST PERSOnAl SuPER Member Guide Trust Aon Master Trust Product Disclosure Statement ABN 68 964 712 340 RSE R1000566 phone 1300 880 588 fax 1800 010 435 Please read this document before making a decision to invest. email contactcentre@aon.com.au web aonmastertrust.com.au Trustee and Issuer Aon Superannuation Pty Limited ABN 83 057 982 822 AFSL 237465 RSE L0000437 date issued 1 July 2008 TODAY. TOMORROW. READY.
  2. 2. ThE AOn MASTER TRuST SuPERAnnuATiOn iS A lOnG-TERM invESTMEnT. Aon Master Trust Personal Super is for individual and self-employed members, spouses and organisations with ThE AOn MASTER TRuST OffERS YOu invESTMEnT less than five employees. The Aon Master Trust also offers AnD inSuRAncE OPTiOnS TO SuiT YOuR nEEDS. Corporate Super (for organisations with five employees or more), a pension option for those interested in purchasing The Aon Master Trust is a registered superannuation fund an income stream and a non-commutable pension for those which invests for the benefit of members. transitioning to retirement. Contact us for more information. At 1 July 2008, the Trust had over $1.6 billion in assets, over To become a member, read this PDS then mail us your 60,000 members, and over 600 participating employers. completed Personal Super: Member application form and initial deposit or rollover instructions – see forms at the The Aon Master Trust is managed by Aon Superannuation back of this PDS. We recommend you consult a licensed Pty Limited, an approved trustee regulated by the adviser if required. Your membership will begin on the date Australian Prudential Regulation Authority (APRA). Aon the trustee sends you notification that your application has Superannuation Pty Limited (‘the trustee’) is a wholly been accepted. owned subsidiary of Aon Consulting Pty Limited, part of the Aon group of companies. To protect consumers, a cooling-off period applies to investments in this product. We also have a formal complaints Financial planning services are not offered by Aon resolution procedure should you have a complaint about this Superannuation Pty Limited. product. Refer to page 45 for more information. AIG Life is the insurer of your death, total and permanent disablement (TPD) and income protection benefits. product ratings AIG Life has agreed to this Product Disclosure Statement Aon Master Trust Personal Super has been awarded a five (PDS) containing information about AIG Life in the star rating for 2008 by The Heron Partnership (for more ‘Insurance’ section on pages 21 to 33 and has not information on the ratings system used and to view withdrawn its consent. AIG Life has not issued this PDS and the Heron Financial Services Guide for Superannuation has not approved any statements in this PDS that do not Ratings see heronpartners.com.au). References to The refer to AIG Life. Heron Partnership in this PDS have been authorised by the trademark holder. about this Product Disclosure Statement The analysis and information upon which ratings are based is considered accurate at the time a particular product This PDS describes the main features of Aon Master Trust is rated. However, ratings agencies give no guarantee or Personal Super. It will help you compare the Aon Master warranty and make no representation as to the product or Trust with other superannuation funds. accuracy of the third party information provided to them. Additional information is available if required – see Other Ratings are produced without taking into account any important information on page 43. individual’s financial needs, circumstances and objectives – any person should assess the appropriateness of the If a person needs more information about a financial advice in regard to their own financial situation and consult services licensee, they will need to contact the financial a licensed adviser. services licensee. TODAY. TOMORROW. READY. 2
  3. 3. cOnTEnTS summary of features ................................. 4 your contributions .................................... 6 the nuts and bolts of investing .................. 8 investment options summary ...................10 investment options pre-mixed ................. 11 investment options sector ........................ 13 information on SRI option ........................ 19 insurance options .................................... 21 insurance costs ........................................28 tax and super...........................................34 fees and other costs .................................36 accessing your super benefits................... 41 other important information ....................43 what to do next .......................................46 forms .......................................................47 note Fees and conditions in this PDS apply to members who join Aon Master Trust Personal Super on or after 1 July 2008. Fees and conditions will change over time and we will notify you of material changes. Existing members’ fees and conditions are as notified. The trustee reserves the right to correct any omissions in this PDS. If there is a discrepancy between this PDS and the trust deed, the trust deed will be the final authority. Member forms are also available on our website aonmastertrust.com.au. The information in this document is general in nature. Your personal objectives, needs or financial situation were not taken into account when preparing this information. You should consider the appropriateness of any general advice before acting on it, having regard to your own objectives, financial situation and needs. If the information relates to a financial product, you should obtain and consider the relevant Product Disclosure Statement before making any decision to purchase that financial product. This document has been prepared by Aon Consulting Pty Limited (ABN 48 002 288 646, AFSL 236667) a related body corporate of the trustee of the Aon Master Trust (ABN 68 964 712 340, RSE R1000566), Aon Superannuation Pty Limited (ABN 83 057 982 822, AFSL 237465, RSE L0000437). This is a relationship that might reasonably be expected to be capable of influencing Aon Consulting Pty Limited when the company provides financial product advice to clients in respect of the Aon Master Trust. 3
  4. 4. SuMMARY Of fEATuRES insurance options AOn MASTER TRuST PERSOnAl SuPER iS fOR inDiviDuAlS, ThE SElf-EMPlOYED AnD ORGAniSATiOnS WiTh lESS ThAn fivE EMPlOYEES. You can choose the type and level of insurance that suits you. There is no default level of insurance. contributions options to suit you The minimum balance required to open a Personal Super You can choose from three types of insurance cover and can account is $1,500 per member. combine cover (see pages 21 to 33): The Aon Master Trust can accept the following contributions death  on your behalf: total and permanent disablement  employer contributions, including Superannuation  income protection.  Guarantee (SG) contributions Provision of all insurance cover is subject to acceptance personal contributions  of cover by the insurer, AIG Life. super benefits rolled over from other funds  In the event of your death or total and permanent government co-contributions  disablement, the benefit payable is your account balance, spouse contribution splits and payments made under  plus your insurance benefit (if any) less taxes and fees family law arrangements (if any), subject to approval by the trustee/insurer. eligible overseas pension transfers  spouse contributions.  my ebenefits super benefits A one-stop shop designed to save you time and money offering quality financial and lifestyle products and Benefits may be payable to you in a range of circumstances: services including: retirement  free tax and legal advice  total and permanent disablement  insurance – including car, health, home and contents  total and partial disability  lending – from over 40 different providers  death.  options for great leisure activities, gift ideas,  entertainment and travel. In addition you can choose to transfer your benefits within the Aon Master Trust or roll over your benefits in fees summary some circumstances. compare our value with other super funds investment options establishment fee none. You can choose an investment option or mix of options that suits you. If you do not make a choice contribution fee the current default Personal Super investment is the up to 5% pa as negotiated between you and your adviser. Pre-mixed Balanced – Index option. transfer fee There are over 30 options to choose from, arranged in two up to 5% pa as negotiated between you and your adviser. categories – see pages 10 to 18. investment switching fee  pre-mixed options none.  sector options. TODAY. TOMORROW. READY. 4
  5. 5. choose the right insurance cover member fee $63 pa indexed. You can customise insurance cover and premiums according to your needs and the insurance calculator on our website asset administration fee aonmastertrust.com.au may help you make a choice. You up to 1.3% pa as negotiated between you and your adviser. can also transfer existing insurance cover (from a retail policy portfolio rebate or super fund) to Aon Master Trust. See pages 21 to 33 for more information on insurance options and forms that you for high account balances. need to complete. management fee between 0.43% and 1.32% pa depending on investment nominate your beneficiaries options chosen (default option fee is 0.46% pa), plus any performance fees which may be earned. To choose a binding nomination, complete and send us the Binding death benefit nomination form at the back of this withdrawal fee PDS. To make a non-binding nomination, complete the $80 per payment. relevant section in the Personal Super: Member application form at the back of this PDS. The Trust makes anti-detriment adviser service fee payments to eligible dependants. For additional information up to 2% pa or up to $10,000 pa, as negotiated between on death benefit nominations see pages 27 and 44 and the you and your adviser, where applicable. factsheet Binding death benefit nomination on our website. See Fees and other costs on pages 36 to 40. plan ahead for retirement make the most of your The Aon Master Trust offers you the option to purchase a pension and a transition to retirement pension – see membership page 41. You can download a Pension PDS from our website or call us on 1300 880 588 to have a copy mailed to you. get your super together financial planning services Rolling your super into one account may save you fees. Send us a completed Request to transfer whole balance of For details of a qualified adviser near you, call us on superannuation benefits between funds form at the back of 1300 880 588. this PDS. See page 7 for more information. boost your balance website and online services To make personal contributions to your super, send us a completed Personal Super: Super contributions form, or for regular contributions complete a Personal Super: Direct debit Forms for change of details, voluntary contributions, request and agreement form. Both forms are at the back of direct debits, spouse membership and super transfers this PDS. are available on our website aonmastertrust.com.au. your spouse can join too Once you become a member of the Aon Master Trust you will receive secure online access to view your Your spouse can join the Aon Master Trust (see page 46). account, including personal details, transaction history, They should obtain a separate copy of this PDS and beneficiary information and investments. You will also be complete the Personal Super: Member application form. able to switch investments, change your personal details including your non-binding beneficiary nomination and plan your investment strategy obtain benefit quotations online with complete security. You can switch your current and/or future investments at no Call 1300 880 588. Our contact centre is open cost. You can do it online once you receive your user name Monday to Friday, 7am to 7pm Eastern Standard Time and password or you can send us a completed Switching (excluding NSW public holidays). investment options – current members form or a Change member details and options form. 5
  6. 6. YOuR cOnTRibuTiOnS concessional contributions ThE AOn MASTER TRuST cAn AccEPT cOnTRibuTiOnS fROM YOu, YOuR EMPlOYER (OR employer contributions YOuR cOMPAnY if YOu ARE SElf-EMPlOYED) AnD Under Superannuation Guarantee (SG) laws, employers must YOuR SPOuSE, AS WEll AS TRAnSfERS fROM OThER make super contributions based on a percentage of salary SuPERAnnuATiOn funDS. or wages for most employees aged 18 to 70 who earn $450 or more (before tax) in a calendar month. This percentage is currently 9%. These contributions will count towards a making your super grow member’s concessional contribution cap. Under choice of fund legislation, you can choose which You can keep your benefits in super as long as you like and super fund your employer pays these contributions into. earnings will be taxed at concessional tax rates. You can This is called your ‘chosen fund’. also contribute to super until you turn 75 as long as you are gainfully employed on at least a part-time basis (you must salary sacrifice contributions work for at least 40 hours in 30 consecutive days in the financial year in which you contribute) after you reach age 65. It is possible to arrange personal (before-tax) contributions to your super (by way of ‘salary sacrifice’) Making your own super contributions is optional but even if your employer agrees to making these contributions. small contributions may make a big difference to your You can also choose to have your bonus or pay rise paid benefits over time. into your super fund before tax is deducted, subject to employer approval. These contributions can be regular or contribution < 65 years 65 but 70 but 75 years one-off and may allow you to pay less income tax than type < 70 years < 75 years or more if you made the same amount of personal (after-tax) contributions. Contact us or ask your employer for more employer SG no restriction no restriction no restriction no restriction details. Contribution caps apply – see next page. voluntary no restriction must be must be cannot be self-employed contributions employer gainfully gainfully accepted employed employed If you are self-employed or substantially self-employed, you on at least a on at least a are able to claim a full deduction for personal contributions part-time basis part-time basis you make to super until age 75. Contribution caps apply member no restriction must be must be cannot be – see next page. gainfully gainfully accepted employed employed on at least a on at least a part-time basis part-time basis non-concessional contributions eligible spouse no restriction must be cannot be cannot be personal contributions gainfully accepted accepted employed You may make personal (after-tax) contributions if you on at least a part-time basis are aged under 65. You may also make personal (after- tax) contributions between 65 and 75, as long as you are Regulation 7.04(6) of the SIS Regulations allows a regulated superannuation gainfully employed on at least a part-time basis (you must fund to accept a contribution in respect of a member if the trustee is reasonably work for at least 40 hours in 30 consecutive days in the satisfied that the contribution is in respect of a period during which the fund could have accepted the contribution, notwithstanding that the contribution is financial year in which you contribute). Contribution caps made after that period. apply – see next page. Concessional and non-concessional caps apply to contributions. See next page for more information. Personal (after-tax) contributions can be made regularly by direct debit from your bank account using a Personal Super: Direct debit request and agreement form at the back of this PDS. One-off contributions can be made at any time using a Personal Super: Super contributions form at the back of this PDS. These forms are also available from our website or by contacting us. TODAY. TOMORROW. READY. 6
  7. 7. uK pension transfers eligible spouse contributions You can contribute to the Aon Master Trust on behalf The Aon Master Trust is a qualifying recognised overseas of your spouse if your spouse is aged under 65. A spouse pension scheme (QROPS) for UK pension transfers. UK between 65 and 70 must be gainfully employed at least pension benefits under the UK lifetime allowance receive on a part-time basis to be eligible for spouse contributions. concessional UK tax treatment when transferred to the This could mean that as a couple you will pay less lump sum Aon Master Trust. tax. Your spouse must already be a member of, or must This contribution will be fully preserved until a condition join, the Aon Master Trust – see page 46. of release is met. The overseas fund must transfer the Your spouse may also contribute to the Aon Master Trust benefit in your name directly to the Aon Master Trust and for you subject to the conditions outlined above. See Tax all foreign exchange clearance charges will be deducted rebates for spouse contributions on page 34 or contact us for from the value of the benefit. further details. These benefits are held in a QROPS Personal Super account and quarantined from other monies. See the Transferring government co-contribution your UK pension benefits to the Aon Master Trust guide on our The Government may pay a superannuation website for more information. co-contribution of up to $1,500 for you. The maximum co-contribution amount is $1.50 for every $1.00 you add contribution caps to your super as a personal (after-tax) contribution, as long Tax concessions will be available only up to the concessional as your income is below the minimum threshold for that and non-concessional contribution caps, unless you qualify financial year. Self-employed members may also qualify for under transitional rules. the co-contribution. You can make up to $150,000 per year in non-concessional For more information, including the current thresholds, refer contributions or up to $450,000 averaged over three years to the Government co-contributions factsheet on our website aonmastertrust.com.au, contact the Australian Taxation by bringing forward future annual limits (if you are under age 65 in the financial year). Office on 13 10 20 or visit ato.gov.au/super. Concessional contributions to superannuation will be rolling over money from other funds limited to $50,000 per person per year. If you have had different jobs, you may have money in a These caps are indexed in line with movements in Average number of different super funds. Moving or rolling over Weekly Ordinary Time Earnings (AWOTE). For more these balances into one account may reduce fees and information refer to the factsheet Tax on super on our paperwork and will make it easier to keep track of your website, contact the Australian Taxation Office on 13 10 20 super. To roll over balances from other funds to the Aon or visit ato.gov.au/super. Master Trust, complete the Request to transfer whole balance of superannuation benefits between funds form at the back of To help with retirement planning, a transitional period this PDS. will apply to members who are 50 or above and for those members turning 50 before 1 July 2012. During the If you wish to transfer your super from more than one fund, transitional period, the cap on concessional contributions to the Aon Master Trust, you can download additional copies will be $100,000 from the financial year the member turns of the form from our website aonmastertrust.com.au. You 50 until 30 June 2012. will need to provide a certified copy of a photo ID with each request. See Completing proof of identity on page 2 of the form for more information. 7
  8. 8. ThE nuTS AnD bOlTS Of invESTinG bEfORE lOOKinG AT YOuR invESTMEnT OPTiOnS,  fixed interest investments are typically a loan between a hERE ARE SOME KEY invESTMEnT PRinciPlES. borrower and a lender. The borrower (eg a government, bank or company) promises to pay the lender specific ‘fixed’ interest payments over the term of the investment and return the initial investment at the end of the loan. key principles Although prices for fixed interest assets vary and may occasionally be negative, they typically offer lower risk and return than property or shares. risk, return and asset classes  cash is typically defined as short-term securities with a A basic rule of investing is that the bigger the investment maturity date of less than one year. Cash investments risk, the bigger the potential return over the long term. offer a low level of risk, but are likely to provide the Investors typically structure investments across five asset lowest return of all asset classes over the long term. classes. Each asset class has a different level of risk/return as See the factsheet Introduction to asset classes on our website outlined below: aonmastertrust.com.au for more information.  shares represent part ownership of a company. Typically, all investments in this asset class are ‘listed’ diversification shares – ie traded on stock exchanges. Owning shares can provide both capital growth and a proportion of Diversification means spreading investments across different profits, called dividends. Share prices change frequently asset classes, managers’ products and/or investment and share investments typically offer a high level of risk strategies. The aim is to reduce the overall portfolio risk and return. while enhancing investment returns. A well-diversified  property trusts and managed property funds invest portfolio facilitates smoothing of the fluctuations in returns of particular asset classes. in commercial, retail, industrial, hotel and residential real estate. Property investments offer returns based on A diversified investment portfolio typically falls into one of property valuations and a rental income stream. Property three categories: trusts can either be listed (ie a security tradeable on a stock exchange) or unlisted. Property returns are cyclical  growth – invests mainly in assets aiming to provide a and typically have a higher risk/return profile than fixed higher return but with higher risk. Typical asset classes interest and cash. include shares, property and alternative assets.  alternative assets typically include hedge funds,  balanced – invests in a mix of all major asset classes private equity and infrastructure. Hedge funds use aiming to deliver a moderate return with a moderate specialist investment strategies to trade shares and fixed risk level. interest assets. Private equity investments are made in  defensive – invests mainly in assets aiming to provide companies not listed on a stock exchange. Infrastructure a moderate return with lower risk. Typical asset classes investments include utilities and other physical assets. include fixed interest and cash. Defensive investments These funds aim to achieve positive returns in both may also include some growth assets. rising and falling markets and are typically included in diversified portfolios to reduce exposure to risk over longer time frames. TODAY. TOMORROW. READY. 8
  9. 9. index and active investments application of unit prices Major considerations when investing include how a fund Unit prices are derived and applied in an equitable manner manager can add value to exceed an underlying market that values members’ benefits and distributes investment index or benchmark, the risk undertaken by the manager, earnings and losses equally. The trustee applies a forward and the management fees. pricing mechanism to process transactions to/from the Trust. This means that all transactions are processed using Index fund managers seek to track the performance of a a unit price calculated after the Trust has received the stock index. For example, the Australian Shares – Index transaction request. The practical implications for members option is designed to closely match the performance of the are as follows: S&P/ASX 200 Accumulation Index for Australian shares.  contributions – we process contributions within time Index managers typically charge less than active managers. limits that conform to standards maintained by the Active fund managers aim to outperform their benchmark trustee, using the price applicable on the date of by using research, active portfolio management and trading processing. This is normally within five working days of strategies. There is a risk, especially over short time horizons, receipt of a contribution and appropriate paperwork. that an active manager may underperform the relevant  benefit payments – we use the unit price on the day market index. Active fund managers typically charge more benefit payments are processed. Benefits are normally for taking this approach, but believe potential improved processed within three to five business days after all investment performance will justify the cost. required information is received.  investment switches – we process investment switches unit pricing policy and procedures no earlier than the third business day after receipt of the completed request and normally within five The trustee has adopted a formal unit pricing policy for the working days. You will receive the unit price applicable Trust. The trustee can change this unit pricing policy and any to the date the switch is processed. underlying procedures at any time. The calculation of the unit price for each investment option is: Unit prices fluctuate from day to day but in extraordinary market conditions the price variations can be significant. Net asset value* (of the relevant investment option) Unit price = The variations can also be significant in options which own The number of units on issue for members relatively small levels of assets compared to cash flows in and for that investment option. out. The trustee does not accept liability for any losses that * The net asset value is equal to the gross asset value (ie market value of the a member may perceive that he or she has suffered except underlying investments and cash at bank for that investment option) as at the where it is established that the published unit pricing policy close of business on a given day, plus accrued income minus indirect expense recoveries minus investment income tax provisions. has not been applied. The trustee reserves the right to suspend unit pricing activities at its discretion in exceptional circumstances. This includes the right to suspend unit prices (and therefore processing contributions to/from the Trust) in extreme market conditions. The unit pricing policy conforms to standards issued by government regulators and relevant industry bodies. 9
  10. 10. invESTMEnT OPTiOnS SuMMARY AOn MASTER TRuST MEMbERS MAY chOOSE OnE OPTiOn OR A Mix Of OPTiOnS fROM ThE liST bElOW (MiniMuM 5% PER chOSEn OPTiOn). YOu cAn MAKE DiffEREnT chOicES fOR YOuR cuRREnT SuPER bAlAncE AnD YOuR fuTuRE cOnTRibuTiOnS. Log in to your account online once you receive your user name and password or send us a completed Change member details and options or Switch investment options – current members form available from our website. If you do not choose an investment option when you complete your Personal Super: Member application form, your superannuation will be invested in the default option – currently Pre-mixed Balanced – Index (see next page). For the latest investment returns, visit our website aonmastertrust.com.au or call us on 1300 880 588. PRE-MixED SEcTOR  High Growth – Index Australian Shares – Index   High Growth – Active Australian Shares – Diversified  Australian Shares – Core*   Growth – Index Australian Shares – Socially Responsible*   Growth – Active Australian Shares – Opportunities*   Balanced – Index International Shares – Index   Balanced – Active International Shares – Index ($A hedged)  International Shares – Diversified   Capital Stable – Index International Shares – Core*   Capital Stable – Active International Shares – Core ($A hedged)*  International Shares – Emerging Markets*   Secure – Index International Shares – Opportunities*   Secure – Active Property – Australian Index  Property – Diversified  Property – Direct  Property – Global Listed ($A hedged)*   Alternative – Diversified Fixed Interest – Australian Index  Fixed Interest – International Index ($A hedged)  Fixed Interest – Diversified  Fixed Interest – Australian*  Fixed Interest – International ($A hedged)*   Cash  Diversified – Maple-Brown Abbott * Option available from October 2008. Depending on the timing and size of initial cashflows, the investment performance of a new option may vary from the underlying product. The trustee reserves the right to close or terminate the options (either to refuse to accept new money or enforce reduction of assets) or change underlying products at any time. The trustee will inform you as soon as possible if this affects your nominated choice. TODAY. TOMORROW. READY. 10
  11. 11. invESTMEnT OPTiOnS PRE-MixED high Growth high Growth Growth Growth balanced – index – Active – index – Active – index objective To provide a return To provide a return To provide a return To provide a return To provide a return at least 5% above at least 5.5% above at least 4.5% above at least 5% above at least 4% above CPI over rolling CPI over rolling CPI over rolling CPI over rolling CPI over rolling five-year periods. five-year periods. five-year periods. five-year periods. five-year periods. investment strategy Invests 100% of Invests 100% of Invests 85% of the Invests 85% of the Invests 70% of the the portfolio in the portfolio in portfolio in growth portfolio in growth portfolio in growth growth assets. growth assets. assets and 15% in assets and 15% in assets and 30% in defensive assets. defensive assets. defensive assets. risk/return profile Returns can be very Share market Returns are Returns are There is likely to volatile over the investments can generally less generally less be volatility in short to medium be very volatile volatile than the volatile than the returns in the short term. Historically, over the short to High Growth High Growth term but they tend shares have medium term but, portfolio but can portfolio but can to stabilise over offered the highest historically, these still be very volatile still be very volatile longer periods. long-term returns. investments have over the short to over the short to offered the highest medium term. medium term. long-term returns. strategic asset allocation1 32% 37.5% 46% 44% 39% Australian shares 32% 37.5% 46% 44% 39% International shares 6% 6% 8% 7% 7% Property 4% 5% 0% 0% 0% Alternative – growth 5% 0% 0% 0% 0% Alternative – defensive 0% 0% 7.5% 12.5% 5% Aust. fixed interest 12.5% 0% 0% 7.5% 5% Int’l fixed interest 0% 5% 0% 0% 0% Cash management fee2 0.46% pa. 0.90% pa. 0.46% pa. 0.85% pa. 0.46% pa. performance fee3 Nil. 0% to 0.20% pa. Nil. 0% to 0.20% pa. Nil. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 37 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. 11
  12. 12. balanced capital Stable capital Stable Secure Secure – Active – index – Active – index – Active objective To provide a return To provide a return To provide a return To provide a return To provide a at least 4.5% above at least 3% above at least 3.5% above at least 2% above return at least CPI over rolling CPI over rolling CPI over rolling CPI over rolling 2.25% above five-year periods. three-year periods. three-year periods. two-year periods. CPI over rolling two-year periods. investment strategy Invests 70% of the Invests 30% of the Invests 30% of the Invests 100% of Invests 100% of portfolio in growth portfolio in growth portfolio in growth the portfolio in the portfolio in assets and 30% in assets and 70% in assets and 70% in defensive assets. defensive assets. defensive assets. defensive assets. defensive assets. risk/return profile There is likely to Relatively low but Relatively low but The most stable The most stable be volatility in stable returns. stable returns. returns. Generally returns. Generally returns in the short There may be some There may be some lower returns than lower returns than term but they tend short-term volatility. short-term volatility. the other options. the other options. to stabilise over longer periods. strategic asset allocation1 30% 12% 12% 0% 0% Australian shares 30% 12% 12% 0% 0% International shares Property 6% 6% 6% 0% 0% 0% 4% 0% 0% 0% Alternative – growth 5% 10% 5% 0% Alternative – defensive 0% 30% 30% 25% Aust. fixed interest 27.5% 10% 25% 10% Int’l fixed interest 30% 30% 27.5% Cash 5% 10% 10% 40% 40% management fee 0.80% pa. 0.46% pa. 0.70% pa. 0.46% pa. 0.55% pa. 2 performance fee3 0% to 0.15% pa. Nil. 0% to 0.10% pa. Nil. 0% to 0.05% pa. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 37 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. TODAY. TOMORROW. READY. 12
  13. 13. invESTMEnT OPTiOnS SEcTOR Australian Shares Australian Shares Australian Shares Australian Shares – index – Diversified – core* – Socially Responsible* objective To provide a return that To provide a return that To provide a return that To provide a return that closely matches the exceeds the benchmark exceeds the benchmark exceeds the benchmark benchmark return before index (before fees and index (before fees and index (before fees fees and tax. tax) by 2% pa over tax) by 1.5% pa over and tax) over rolling rolling five-year periods. rolling five-year periods. five-year periods. benchmark index S&P/ASX 200 S&P/ASX 300 S&P/ASX 300 S&P/ASX 300 Accumulation Index. Accumulation Index. Accumulation Index. Accumulation Index. investment strategy Fully replicates the Invests in shares listed Invests in shares listed Predominantly exposed benchmark holdings in on the Australian Stock on the Australian Stock to shares or unit trusts order to closely match Exchange and unlisted Exchange and unlisted listed or about to be the benchmark risk and shares that will be shares that will be listed on the Australian return characteristics. listed within six months listed within six months Stock Exchange. In or related securities. or related securities. selecting shares or unit trusts, consideration is given to one or more socially responsible standards (eg social, ethical or environmental standards). risk/return profile Returns can be very Returns can be very Returns can be very Returns can be very volatile over the short volatile over the short volatile over the short to volatile over the short to to medium term. to medium term. medium term. medium term. Historically, shares have Historically, shares have offered the highest offered the highest long-term returns. long-term returns. benchmark asset 100% Australian shares. 100% Australian shares. 100% Australian shares. 100% Australian shares. allocation1 management fee2 0.45% pa. 0.90% pa. 0.80% pa. 1.32% pa. performance fee3 Nil. 0% to 0.35 % pa. 0% to 0.20 % pa. Nil. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 37 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. * Option available from October 2008 – see summary on page 10. 13
  14. 14. Australian Shares international Shares international Shares international Shares – Opportunities* – index – index ($A hedged) – Diversified objective To provide a return that To provide a return that To provide a return that To provide a return that exceeds the benchmark closely matches the closely matches the exceeds the benchmark index (before fees and benchmark return before benchmark return before index (before fees and tax) by 2.5% pa over fees and tax. fees and tax. tax) by 1.5% pa over rolling five-year periods. rolling five-year periods. benchmark index S&P/ASX 300 MSCI World ex Australia MSCI World ex Australia MSCI World ex Australia Accumulation Index. Index (unhedged AUD, Index (hedged AUD, net Index (unhedged AUD, net dividend reinvested). dividend reinvested). net dividend reinvested). investment strategy Invests in shares listed Fully replicates the Fully replicates the Invests in shares listed on the Australian Stock benchmark holdings in benchmark holdings in on stockmarkets around Exchange and unlisted order to closely match order to closely match the world with partial $A shares that will be the benchmark risk and the benchmark risk and hedging (generally less listed within six months return characteristics. return characteristics. than 50%). or related securities. risk/return profile Returns can be very Returns can be very Returns can be very Returns can be very volatile over the short to volatile over the short volatile over the short volatile over the short medium term. to medium term. to medium term. to medium term. Historically, shares have Historically, shares have Historically, shares have offered the highest offered the highest offered the highest long-term returns. long-term returns. long-term returns. benchmark asset 100% Australian shares 100% international 100% international 100% international including unlisted shares shares. shares. shares, including allocation1 that will be listed within emerging markets. six months or related securities. management fee2 1.05% pa. 0.47% pa. 0.47% pa. 0.90% pa. performance fee3 0% to 0.70% pa.** Nil. Nil. 0% to 0.20% pa. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 37 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. * Option available from October 2008 – see summary on page 10. ** Three of the six managers in the fund, managing 35% of the fund, are subject to performance fees. On average, this could result in an increase in fees of approximately 0.14%. TODAY. TOMORROW. READY. 14
  15. 15. international Shares international Shares international Shares international Shares – core* – core ($A hedged)* – Emerging Markets* – Opportunities* objective To provide a return that To provide a return that To provide a return that To provide a return that exceeds the benchmark exceeds the benchmark exceeds the benchmark exceeds the benchmark index (before fees and index (before fees and index (before fees and index (before fees and tax) by 1.5% pa over tax) by 1.5% pa over tax) by 2% pa over tax) by 2% pa over rolling five-year periods. rolling five-year periods. rolling five-year periods. rolling five-year periods. benchmark index MSCI World ex Australia MSCI World ex Australia MSCI Emerging MSCI World ex Australia Index (unhedged AUD, Index (hedged AUD, net Markets Index. Index (unhedged AUD, net dividend reinvested). dividend reinvested). net dividend reinvested). investment strategy Invests in shares listed on Invests in shares listed on Invests in shares listed Invests in shares listed stockmarkets around the stockmarkets around the on stockmarkets in on stockmarkets world. No $A hedging. world. Full $A hedging. emerging markets. No in developed and $A hedging. emerging markets. No $A hedging. risk/return profile Returns can be very Returns can be very Returns can be very Returns can be very volatile over the short volatile over the short volatile over the short volatile over the short to medium term. to medium term. to medium term. to medium term. Historically, shares have Historically, shares have Historically, shares have Historically, shares have offered the highest offered the highest offered the highest offered the highest long-term returns. long-term returns. long-term returns. long-term returns. benchmark asset 100% international shares 100% international 100% emerging markets. 100% international including emerging shares, including shares, including allocation1 markets. emerging markets. emerging markets. management fee2 0.80% pa. 0.80% pa. 1.15% pa. 1.05% pa. performance fee3 0% to 0.35% pa. 0% to 0.35% pa. Nil. Nil. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 37 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. * Option available from October 2008 – see summary on page 10. 15
  16. 16. Property – Property Property Property Australian index – Diversified – Direct – Global listed ($A hedged)* objective To provide a return that To provide a return that To provide a return that To provide a return that closely matches the exceeds the benchmark exceeds the benchmark exceeds the benchmark benchmark return before index (before fees index (before fees index (before fees and fees and tax. and tax) over rolling and tax) over rolling tax) by 1.75% pa over five-year periods. three-year periods. rolling five-year periods. benchmark index S&P/ASX 200 – Listed Combination of 10-year bond yield + 3%. FTSE EPRA/NAREIT Global Property Accumulation Australian listed, direct Real Estate Net Index Index. and global listed indices. – $A Hedged. investment strategy Fully replicates the Invests in property Invests in high quality Invests in property benchmark holdings in securities listed, or Australian property. trusts and property order to closely match due to be listed, on related securities the benchmark return the Australian Stock listed on developed and risk characteristics. Exchange and developed international markets. international markets exchanges, and direct property holdings. risk/return profile Returns can be Returns can be Returns can be Returns can be volatile over the short volatile over the short volatile over the short volatile over the short to medium term. to medium term. to medium term. to medium term. Historically, property has Historically, property has Historically, property has Historically, property has produced higher returns produced higher returns produced higher returns produced higher returns than fixed interest and than fixed interest and than fixed interest and than fixed interest and cash investments. cash investments. cash investments. cash investments. benchmark asset 100% Australian property 50% Australian property 90–100% direct property. 100% global listed securities. securities. property. allocation1 0–10% cash. 25% direct property. 25% global listed. management fee 0.44% pa. 0.73% pa. 1.07% pa. 1.00% pa. 2 performance fee3 Nil. Nil. Nil. Nil. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 37 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. * Option available from October 2008 – see summary on page 10. TODAY. TOMORROW. READY. 16
  17. 17. Alternative fixed interest fixed interest fixed interest – Diversified – Australian index – international index – Diversified ($A hedged) objective To provide a return that To provide a return that To provide a return that To provide a return that exceeds the benchmark closely matches the closely matches the exceeds the benchmark index (before fees and benchmark return before benchmark return before index (before fees and tax) by 2.5% over rolling fees and tax. fees and tax. tax) by 0.6% pa over five-year periods. rolling three-year periods. benchmark index UBS Warburg Australian UBS Australian Composite Citigroup WGBI ex Aust, 50% UBS Australian Bank Bill Index. Bond Index. 100% hedged to AUD. Composite Bond Index 0+Yr. 50% Lehmann Brothers Global Aggregate Index ($A – Hedged). investment strategy Invests in Uses index sampling Uses index sampling Invests in fixed interest non-traditional assets techniques to techniques to assets across the credit such as infrastructure, approximate the approximate the spectrum both in Australia commodities, hedge benchmark in a range of benchmark in a range and internationally. funds with some cash key risk areas. of key risk areas. Foreign for liquidity. exchange contracts are used to hedge current exposures to Australian dollars. risk/return profile Returns are consistent in Relatively low but Relatively low but Relatively low but the medium term and stable returns with stable returns with stable returns with typically uncorrelated with some volatility. some volatility. some volatility. traditional asset classes. benchmark asset 40% multi-strategy. 100% Australian 100% international 50% Australian fixed fixed interest. fixed interest. interest. allocation1 25% infrastructure. 50% international fixed 25% commodities. interest. 10% cash-enhanced. management fee2 1.10% pa. 0.45% pa. 0.47% pa. 0.60% pa. performance fee3 0% to 0.40% pa. Nil. Nil. Nil. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 37 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. 17
  18. 18. fixed interest fixed interest cash Diversified – Australian* – international – Maple-brown Abbott ($A hedged)* objective To provide a return that To provide a return that To provide a return that To provide a return that exceeds the benchmark exceeds the benchmark matches or exceeds the exceeds the average of index (before fees and index (before fees and benchmark index (before other similar balanced tax) by 0.5% pa over tax) by 0.75% pa over fees and tax) over any funds (as measured by rolling three-year periods. rolling three-year periods. 12-month period. the benchmark index and before fees and tax) over rolling three-year periods. benchmark index UBS Australian Lehman Bros Global UBS Warburg Australia S&P Multi-sector 80 Composition Bond Index. Aggregate – $A Hedged. Bank Bill Index. Wholesale Index. investment strategy Invests predominantly Invests in fixed interest Invests in Invests in various asset in Australian fixed assets across the credit short-term securities. classes and applies an interest assets with the spectrum internationally. active value-based style scope to invest across to select securities within the credit spectrum each class. Tactical asset both domestically allocation changes are and internationally. implemented using a value-based style. risk/return profile Relatively low but Relatively low but Low but stable returns May outperform/ stable returns with stable returns with with minimal volatility. underperform in the some volatility. some volatility. short term but volatility is relatively low over the long term. benchmark asset 100% Australian 100% international 100% cash and 45% Australian shares. Fixed Interest. Fixed Interest. short-term fixed allocation1 15% international shares. interest securities. 10% property. 20% fixed interest. 10% cash. management fee 0.60% pa. 0.60% pa. 0.43% pa. 1.10% pa. 2 performance fee3 Nil. Nil. Nil. Nil. Asset allocations shown are strategic benchmarks. Actual allocations may vary. 1 See Management fee in the table on page 37 for details. 2 Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark. 3 The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid. * Option available from October 2008 – see summary on page 10. TODAY. TOMORROW. READY. 18

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