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aon corp_a_emp

  1. 1. AOn MASTER TRuST cORPORATE SuPER Employer 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 product ratings SuPERAnnuATiOn iS A lOnG-TERM invESTMEnT. ThE AOn MASTER TRuST OffERS YOu invESTMEnT AnD inSuRAncE OPTiOnS TO SuiT YOuR nEEDS. Aon Master Trust Corporate Super has been awarded a five star rating for 2008/2009 by The Heron Partnership (for more information on the ratings system used and to view The Aon Master Trust is a registered superannuation fund the Heron Financial Services Guide for superannuation fund which invests for the benefit of members. ratings services see heronpartners.com.au) and a Platinum At 1 July 2008, the Trust has over $1.6 billion in assets, over rating for 2008 by SuperRatings (for more information on 60,000 members, and over 600 participating employers. the rating system used, see superratings.com.au). References to The Heron Partnership and SuperRatings in this PDS have The Aon Master Trust is managed by Aon Superannuation been authorised by the trademark holders. Pty Limited, an approved trustee regulated by the Australian Prudential Regulation Authority (APRA). Aon Superannuation The analysis and information upon which ratings are based is Pty Limited (‘the trustee’) is a wholly owned subsidiary of Aon considered accurate at the time a particular product is rated. Consulting Pty Limited part of the Aon group of companies. However, ratings agencies give no guarantee or warranty and make no representation as to the product or accuracy of the Financial planning services are not provided by Aon third party information provided to them. Ratings are produced Superannuation Pty Limited. without taking into account any individual’s financial needs, circumstances and objectives – any person should assess the AIG Life is the insurer of certain benefits of most, but not appropriateness of the advice in regard to their own financial all members. situation and consult a licensed financial adviser. AIG Life has agreed to this Product Disclosure Statement (PDS) containing information about AIG Life in Insurance options on cooling off period pages 26 to 41 and has not withdrawn its consent. AIG Life has not issued this PDS and has not approved any statements in this PDS that do not refer to AIG Life. Employers may have cooling-off rights in respect of an application to participate in the Aon Master Trust. The right must be exercised by notifying the trustee about this PDS within 14 days from the date of confirmation of the transaction or 19 days from the date of issue. This right This PDS describes the main features of the Aon Master Trust does not apply in the case of a ‘successor fund’ transfer. for Corporate Super employers. It will help you compare the Aon Master Trust with other corporate superannuation funds. Additional information is available if required – see Other important information on page 51. If a person needs more information about a financial services licensee, they will need to contact the financial services licensee. The Aon Master Trust also offers Personal Super for individual and self-employed members, spouses, or organisations with less than five employees, a Pension for those interested in purchasing a retirement income stream and a non- commutable pension for those transitioning to retirement. Contact us for more information. If you (the employer) are not a financial services licensee or an authorised representative of a financial services licensee, you must not give financial product advice about the Trust or recommend a superannuation product. Our formal complaints resolution procedure is described on page 53. TODAY. TOMORROW. READY. 2
  3. 3. cOnTEnTS summary of features ................................. 4 services for employers ............................... 7 employer contributions made easy ........... 8 benefits for your employees ...................... 9 my ebenefits program .............................10 member contributions ............................. 11 the nuts and bolts of investing ................. 13 investment options summary ................... 15 investment options pre-mixed ................. 16 investment options sector ........................ 18 information on SRI option ........................24 insurance options ....................................26 insurance costs ........................................36 tax and super...........................................42 fees and other costs .................................44 accessing super benefits...........................48 other important information .................... 51 what to do next .......................................54 forms .......................................................55 note Fees and conditions in this PDS apply to employers who join Aon Master Trust Corporate 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 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 investment options AOn MASTER TRuST cORPORATE SuPER iS fOR cOMPAniES AnD ORGAniSATiOnS WiTh fivE EMPlOYEES OR MORE ThAT SElEcT ThE AOn MASTER You can nominate a default investment option. Your TRuST fOR ThEiR EMPlOYEES’ SuPER AnD/OR employees can choose investment options that suit them. inSuRAncE ARRAnGEMEnT. There are over 30 options to choose from, arranged in two categories – see pages 15 to 23. The standard Corporate Super options shown in this document can be customised at cost for large employers or pre-mixed options º those requiring defined benefit solutions – see page 47 or sector options. º call us for more information. insurance options contributions You can nominate a default level of insurance. Your employees can choose the type and level of insurance that The Aon Master Trust can accept the following contributions suits them. There is a minimum level of death and total and on behalf of members: permanent disablement cover of $210,000* (indexed) on employer contributions, including Superannuation º joining the fund. Guarantee (SG) contributions personal contributions º options to suit your employees super benefits rolled over from other funds º You can choose from three types of insurance cover and can government co-contributions º combine cover (see pages 26 to 41): spouse contribution splits and payments made under º death º family law arrangements death and total and permanent disablement º spouse contributions. º income protection. º Members’ spouses can also join Aon Master Trust Personal Super. Provision of all insurance cover is subject to acceptance of cover by the insurer, AIG Life. super benefits * Minimum cover reduces from $210,000 at age 42 to nil at age 65 – see graph on page 26. Super benefits may be payable to members in a range of circumstances: my ebenefits retirement º total and permanent disablement º Your employees get the benefit of an online one-stop shop designed to save them time and money. my ebenefits offers total and partial disability º quality financial and lifestyle products and services including: death. º free tax and legal advice º In addition members can choose to transfer their benefits insurance – including car, health, home and contents º within the Aon Master Trust or roll over their benefits in some circumstances. lending – from over 40 different providers º options for great leisure activities, gift ideas, º entertainment and travel. See page 10 for more information. TODAY. TOMORROW. READY. 4
  5. 5. fees summary boost their balance Members can make personal contributions to their super, by completing and sending us a Lump sum contribution form compare our value with other super funds available on our website. If you, as the employer, allow for establishment fee it, members can salary sacrifice or make personal (after-tax) contributions by payroll deductions. none. contribution fee For insurance-only plans, members can still elect to make personal contributions or have employer SG contributions none. (under choice of fund) paid into their account. transfer fee For more information see the factsheet Salary sacrifice on none. our website. investment switching fee none. spouses can join too member fee Member spouses can join the Aon Master Trust (see page $63 pa indexed. 53). They should obtain a copy of the Aon Master Trust Personal Super PDS and complete the Personal Super: Member asset administration fee application form. up to 1.1% pa as negotiated with you or your adviser, if applicable. plan their investment strategy management fee Members can switch their current and/or future investments between 0.43% and 1.32% pa depending on investment at no cost. They can do it online once they receive their options chosen (default option fee is 0.46% pa), plus any user name and password or they can send us a completed performance fees which may be earned. Switching investment options – current members form or a withdrawal fee Change member details and options form. $80 per payment. choose the insurance cover that adviser service fee suits them up to 2% pa or up to $10,000 pa, as negotiated between members and their advisers, where applicable. Members can customise insurance cover and premiums according to their needs and the insurance calculator on our See Fees and other costs on pages 44 to 47. website aonmastertrust.com.au may help them make a choice. They can also transfer existing insurance cover (from a retail policy or super fund) to Aon Master Trust. See pages your employees get more 26 to 41 for more information on insurance options and from their membership forms that members need to complete. nominate their beneficiaries get their super together To choose a binding death benefit nomination, members Members can roll their super into one account and it can complete and send us the Binding death benefit may save them fees. They can send us a completed nomination form. To make a non-binding nomination, Request to transfer whole balance of superannuation benefits members must complete the relevant section in the Change between funds form. Copies are available on our website member details and options form. Both forms are available on aonmastertrust.com.au. our website aonmastertrust.com.au. The Trust makes anti- detriment payments to eligible dependants of members. For more information see the factsheet Rollover options on For additional information on death benefit nominations our website. see pages 34 and 52 and the factsheet Binding death benefit nomination on our website. 5
  6. 6. plan ahead for retirement website and online services The Aon Master Trust offers a pension and a transition to retirement pension – see page 45. Members can download Forms for change of details, voluntary contributions, a Pension PDS from our website or call us on 1300 880 588 spouse membership, investments switches and to have a copy mailed to them. super transfers are available on our website aonmastertrust.com.au. financial planning services Employers can log onto their account details once For details of a qualified adviser, call us on 1300 880 588. access to Aon’s online services has been established (see page 8). Once your employees become members of the Aon Master Trust they will receive secure online access to view their account, including personal details, transaction history, beneficiary information and investments. They will also be able to switch investments, change their personal details including their non-binding beneficiary nomination and obtain benefit quotations online with complete security. Employers and members can call 1300 880 588. Our contact centre is open Monday to Friday, 7am to 7pm Eastern Standard Time (excluding NSW public holidays). TODAY. TOMORROW. READY. 6
  7. 7. SERvicES fOR EMPlOYERS administration services financial planning services When you join the Aon Master Trust as a participating If your employees require individual financial advice, we can employer, your super services consultant and, if required, a arrange a consultation with a licensed planner. If a financial specialist transition team can coordinate the transfer of data plan is required, our licensed planners* can develop a plan from a previous super plan. If you have any questions about at a cost negotiated with the member, reflecting the level of the Aon Master Trust or superannuation in general, contact advice required. your super services consultant for assistance. * Financial planning services are not provided by Aon Superannuation Pty Limited. Superannuation statements, newsletters, annual reports and online services access information (see pages 6 and 10) will annual member information be delivered to each member’s home address on your behalf sessions – just provide us with contact details and we’ll do the rest. Aon Consulting can arrange information sessions to explain consulting services superannuation, investment performance and other relevant information for members. Please contact us for more information. Your super services consultant can provide the following services at no cost: Annual information sessions can include financial planning information for members. These sessions typically run for assist in up to two policy committee meetings per year º around an hour. If you want to offer your employees more where requested, present the investment options º detailed financial education or advice (eg seminars covering and structure of your plan to members at your tax and social security, or pre-retirement counselling) we can workplace through introductory and ongoing annual also provide services at a negotiated cost. information sessions answer technical questions on the Aon Master Trust or º on super in general. Consultants are also available to complete any assignments agreed with the employer on a time-cost basis. policy committees If you have more than 49 employees in the Aon Master Trust, the Trustee is required to set up a policy committee for your employees. If you have fewer than 50 members, a policy committee is only required at the request of at least five members. Aon Consulting will keep in regular contact with your policy committee, or you if a policy committee is not established. Your super services consultant can attend meetings of the policy committee to discuss the following agenda items: investment update º administration update º developments in superannuation º developments within the Aon Master Trust º other issues affecting the employers, the policy º committee and members. 7
  8. 8. EMPlOYER cOnTRibuTiOnS MADE EASY AOn’S OnlinE SERvicES PROviDE A SEcuRE SuPER SOluTiOn fOR EMPlOYERS TO TAkE ThE hASSlE OuT Of SuPERAnnuATiOn ADMiniSTRATiOn AnD fREE uP TiME fOR YOuR PAYROll STAff. OncE OnlinE SERvicE AccESS hAS bEEn SET uP, MAkinG PAYMEnTS, ADDinG nEW EMPlOYEES AnD MODifYinG MEMbER DETAilS cAn All bE DOnE OnlinE. Aon’s online services include a ‘clearing house’ that allows employers to pay all their superannuation contributions by direct debit to the Aon Master Trust or any other eligible super fund that your employees nominate. To access Aon’s secure online service, new employers should complete and return a registration form. When your account is established, we will send your nominated employees user names and passwords which can be used to complete a Westpac PayDeduct authority form. Once you are registered, you can start making contributions, as summarised in the diagram at right. Your payroll staff can enter your employees’ choices and other contribution data through a series of menu-driven screens. They can select from a list of complying super funds to ensure your employees’ choices are valid. The contribution file is then loaded onto Aon’s administration platform and reviewed online. Once you approve the summary report, the contributions are processed. Contributions are managed through our streamlined ‘straight-through processing’ system. In conjunction with daily unit pricing, this means that contributions are allocated and records are updated as soon as possible on receipt via the banking system. Aon’s secure online services give employers online access to: electronic funds transfer º choice of fund services simplified payments via authorised direct debit º new member additions and member record º Under our standard service terms, employers are responsible modifications, taking the hassle out of administration for processing any completed Choice of fund forms. This real-time validation, ensuring only valid data is º includes checking the eligibility of chosen funds, resolving transferred any errors or problems, updating fund choices, and maintaining compliance records. integration of information with our super administration º system to avoid double-handling straight-through processing of contributions from payroll º to employees’ super accounts superannuation fund compliance status checking º encrypted data protection to ensure confidentiality. º TODAY. TOMORROW. READY. 8
  9. 9. bEnEfiTS fOR YOuR EMPlOYEES competitive fees and insurance benefits on leaving premiums When an employee leaves your company, they have the option to keep their super benefit in the Aon Master Trust. The benefit The Aon Master Trust has a competitive fee structure. will be transferred to Aon Master Trust Personal Super, where Employers can negotiate employees’ fees and options – see the employee can continue their insurance and investment Fees and other costs on page 44. options, subject to some changes in fees. See Leaving an employer on page 49 for more information. Every three years, we review the competitiveness of premium rates and terms and conditions offered by the group insurance policy taken out by the trustee. Employers with five or more in summary employees gain the advantages of group insurance premiums with automatic acceptance levels for members joining the Trust when first eligible. See pages 36 to 41 for indicative The Aon Master Trust can offer your employees: premium rate options, subject to loading depending on the member investment choice with over 30 options to º characteristics of your employees and workplace. choose from a range of insurance options with competitive º investment and insurance premium rates choice and flexibility my ebenefits access by phone, email or on the web º (see page 10) personal service for employers from our super services º With over 30 investment options to choose from, your consultants and for members from our contact employees can invest according to their needs – see pages centre staff 15 to 23. security – all assets are held by an independent custodian º The Aon Master Trust offers insurance options to cover most clear, flexible and competitive administration fees º employee needs – see pages 26 to 41. public offer status – members can move from employer- º Concessional and non-concessional contributions can sponsored plans to personal plans. be made regularly from your employees’ salary. One-off We aim to give you the most appropriate level of service at contributions (eg a bonus payment) can be accepted as well. the right price. We accept spouse contributions and rollovers from other complying funds. my ebenefits Aon’s flexible my ebenefits program offers your employees online, phone and email support for financial, health and lifestyle service providers at no additional cost. For more information, see page 10. 9
  10. 10. MY EbEnEfiTS PROGRAM ThE AOn MASTER TRuST cAn GivE YOuR EMPlOYEES my ebenefits can offer your employees benefits including: MORE ThAn juST OnlinE AccESS TO ThEiR free telephone and email-based tax and legal advice º SuPERAnnuATiOn infORMATiOn. private health insurance º online shopping with thousands of well-known products º Aon’s my ebenefits program offers online, phone and at wholesale prices email support for the other things in life, including health full travel service º and wealth services, legal and tax advice, shopping and entertainment discounts and resources including online flowers, adventure and leisure º calculators, tip sheets and other tools. entertainment links º access to financial planning º my ebenefits is a flexible employee benefits program designed to help satisfy the work-life balance and benefit life insurance, critical illness and income protection º needs of your workforce. The program can help employees home, contents, car, travel and boat insurance º finance a home purchase, buy a big-screen plasma TV, send home, investment and commercial loans. º flowers or arrange the perfect holiday quickly and easily. my ebenefits referrals are free to participating Aon Master Trust employers and their employees who are members of the Trust. Designed to assist employers to be the destination of choice for key talent, the program is adaptable for individual company requirements, including integrating company- specific benefits or packaged programs. For more information on my ebenefits, contact your super services consultant. my ebenefits case studies shopping for a better deal An Aon Master Trust member was looking to buy a new flat-screen television from a well-known dealer but wasn’t happy with the price. He called the my ebenefits buying service and they helped him source a better deal. saving money on a home loan The my ebenefits home page offers password-protected access to super, health, Another member was saving to go overseas and shopping, wealth and entertainment options and more and can be customised to wanted to convert his mortgage to interest only. He meet employers’ needs. visited the my ebenefits site and found information on a loan product that could reduce repayments by $100 a month. TODAY. TOMORROW. READY. 10
  11. 11. MEMbER cOnTRibuTiOnS concessional contributions ThE AOn MASTER TRuST cAn AccEPT cOnTRibuTiOnS fROM EMPlOYERS, SElf-EMPlOYED MEMbERS, MEMbERS AnD ThEiR SPOuSES, AS WEll AS employer contributions TRAnSfERS fROM OThER SuPERAnnuATiOn funDS. Under Superannuation Guarantee (SG) laws, employers must make super contributions based on a percentage of salary or wages for most employees aged 18 to 70 who earn $450 making their super grow or more (before tax) in a calendar month. This percentage is currently 9%. These contributions will count towards a member’s concessional contribution cap. Members can keep their benefits in super as long as they like and earnings will be taxed at concessional tax rates. Under choice of fund legislation, employers choose They can also contribute to super until they turn 75 as long a ‘default fund’ but members can choose which super fund as they are gainfully employed on at least a part-time basis employers pay these contributions into. This is called their (members must work for at least 40 hours in 30 consecutive ‘chosen fund’. days in the financial year in which they contribute) after they If an employer nominates the Aon Master Trust as the default reach age 65. fund, but at a later stage a member’s chosen fund is not Making personal super contributions is optional but even the Aon Master Trust, any existing account balance may be small contributions may make a big difference to members’ transferred to the Trust’s ‘retained’ category. In this category benefits over time. fees may change, and the member may lose any insurance cover. Contact us for more information. contribution < 65 years 65 but 70 but 75 years type < 70 years < 75 years or more Members can elect to have employer SG payments made to their insurance-only plan under choice of fund legislation. employer SG no restriction no restriction no restriction no restriction salary sacrifice contributions It is possible for members to arrange personal (before-tax) voluntary no restriction must be must be cannot be contributions to their super (by way of ‘salary sacrifice’) if employer gainfully gainfully accepted employed employed you, as the employer, agree to this method of contributing. on at least a on at least a Members can also choose to have their bonus or pay rise part-time basis part-time basis paid into their super fund before tax is deducted, subject to member no restriction must be must be cannot be employer approval. These contributions can be regular or gainfully gainfully accepted employed employed one-off and may allow for members to pay less income tax on at least a on at least a than if they made the same amount of personal (after-tax) part-time basis part-time basis contributions. Contact us for more details. Contribution caps eligible spouse no restriction must be cannot be cannot be apply – see next page. gainfully accepted accepted employed on at least a self-employed contributions part-time basis Members who are self-employed or substantially self- employed are able to claim a full deduction for personal Regulation 7.04(6) of the SIS Regulations allows a regulated superannuation fund to accept a contribution in respect of a member if the trustee is reasonably contributions they make to super until age 75. Contribution satisfied that the contribution is in respect of a period during which the fund caps apply – see next page. could have accepted the contribution, notwithstanding that the contribution is made after that period. Concessional and non-concessional caps apply to contributions. See next page for more information. 11
  12. 12. non-concessional contributions rolling over money from other funds If members have had different jobs, they may have money personal contributions in a number of different super funds. Moving or rolling Members can make personal (after-tax) contributions if they over these balances into one account may reduce fees and are aged under 65. They can also make personal (after-tax) paperwork and will make it easier to keep track of their contributions between age 65 and 75, as long as they are super. To roll over balances from other funds to the Aon gainfully employed on at least a part-time basis (members must Master Trust, members must complete the Request to transfer work for at least 40 hours in 30 consecutive days in the financial whole balance of superannuation benefits between funds form year in which they contribute). Contribution caps apply. available on our website aonmastertrust.com.au. One-off contributions can be made at any time using a Members will need to provide a certified copy of a photo ID Lump sum contribution form available from our website or by with each request. See Completing proof of identity on page 2 contacting us. If you, as the employer, allow for it, members of the form for more information. can make personal (after-tax) payments by payroll deductions. contribution caps Members can contribute to an insurance-only plan as well. Tax concessions will be available only up to the concessional eligible spouse contributions and non-concessional contribution caps, unless members Members can contribute to the Aon Master Trust on behalf qualify under transitional rules. of their spouse if their spouse is aged under 65. A spouse between 65 and 70 must be gainfully employed on at least Members can make up to $150,000 per year in a part-time basis to be eligible for spouse contributions. This non-concessional contributions or up to $450,000 averaged could mean that as a couple they may pay less lump sum over three years by bringing forward future annual limits tax. The spouse must already be a member of, or must join, (if they are under age 65 in the financial year). the Aon Master Trust – see page 53. Concessional contributions to superannuation will be limited Spouses may also contribute to the Aon Master Trust on the to $50,000 per person per year. member’s behalf subject to the conditions outlined above. These caps are indexed in line with movements in Average See Tax rebates for spouse contributions on page 42 or contact Weekly Ordinary Time Earnings (AWOTE). For more us for further details. information refer to the factsheet Tax on super on our website, contact the Australian Taxation Office on 13 10 20 government co-contribution or visit ato.gov.au/super. The Government may pay a superannuation co-contribution To help with retirement planning, a transitional period of up to $1,500 on a member’s behalf. The maximum will apply to members who are 50 or above and for those co-contribution amount is $1.50 for every $1.00 a member members turning 50 before 1 July 2012. During the adds to their super as a personal (after-tax) contribution, as transitional period, the cap on concessional contributions will long as their income is below the minimum threshold for be $100,000 from the financial year the member turns 50 that financial year. Self-employed members may also qualify until 30 June 2012. for the co-contribution. For more information, including the current thresholds, refer to the Government co-contributions factsheet on our website aonmastertrust.com.au, contact the Australian Taxation Office on 13 10 20 or visit ato.gov.au/super. TODAY. TOMORROW. READY. 12
  13. 13. ThE nuTS AnD bOlTS Of invESTinG bEfORE lOOkinG AT invESTMEnT OPTiOnS, hERE fixed interest investments are typically a loan between a º 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 º 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. º 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 º 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 º 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, º balanced – invests in a mix of all major asset classes º 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 º 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. note If you do not select a default investment option for your employees, the standard Corporate Super default investment option is Pre-mixed Balanced – Index. 13
  14. 14. 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. º 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 º 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 º 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. note 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 Investment returns are not guaranteed and can standards issued by government regulators and relevant fluctuate over time. Past earnings are not an industry bodies. indication of future earning rates. TODAY. TOMORROW. READY. 14
  15. 15. 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). MEMbERS cAn MAkE A DiffEREnT chOicE fOR ThEiR cuRREnT SuPER bAlAncE AnD fOR ThEiR fuTuRE cOnTRibuTiOnS. Members can log into their account online once they receive their 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. For the latest investment returns, members can visit our website aonmastertrust.com.au or call us on 1300 880 588. PRE-MixED SEcTOR º High Growth – Index Australian Shares – Index º º High Growth – Active Australian Shares – Diversified º Australian Shares – Core* º º Growth – Index Australian Shares – Socially Responsible* º º Growth – Active Australian Shares – Opportunities* º º Balanced – Index International Shares – Index º º Balanced – Active International Shares – Index ($A hedged) º International Shares – Diversified º º Capital Stable – Index International Shares – Core* º º Capital Stable – Active International Shares – Core ($A hedged)* º International Shares – Emerging Markets* º º Secure – Index International Shares – Opportunities* º º Secure – Active Property – Australian Index º Property – Diversified º Property – Direct º Property – Global Listed ($A hedged)* º º Alternative – Diversified Fixed Interest – Australian Index º Fixed Interest – International Index ($A hedged) º Fixed Interest – Diversified º Fixed Interest – Australian* º Fixed Interest – International ($A hedged)* º º Cash º 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. 15
  16. 16. 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 45 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. 16
  17. 17. 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 45 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. 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 45 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 15. TODAY. TOMORROW. READY. 18
  19. 19. 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 45 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 15. ** 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%. 19

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