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AustralianSuper Aviation Industry Division
Citation preview
April 2010
Transition Update
Aviation Industry Division
Peter Treseder – National Education Manager
General Warning
This material is of a general nature and does not take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, consider your financial requirements and read our Product Disclosure Statement, available at www.australiansuper.com or by calling 1300 300 273.
Investment returns are not guaranteed as all investments carry some risk. Past performance gives no indication of future returns.
In calculating historical returns for AustralianSuper, where only one of the merging funds (ARF or STA) previously offered an equivalent to an option in the new product suite, the returns for that option, have been used. Where both funds offered the equivalent option, the returns have been asset weighted across both options on a monthly basis, where possible.
AustralianSuper Pty Ltd ABN 94 006 457 987 AFSL 233788Trustee of AustralianSuper ABN 65 714 394 898
AustralianSuper
AustralianSuper is one of Australia’s largest industry funds:– $37 billion in funds under management as at 31/12/10
– More than 1.5 million Australians are members
– Over 130,000 employers
The Fund has the economies of scale to:– keep costs low
– explore new innovative investment opportunities
– deliver new products and services
Track record of top quartile investment performance
Highest possible ratings from major rating agencies
AustralianSuper divisions
Corporate Industry Personal Pension
AustralianSuper
$2.04 billion
34,665 members
56 employer sub-plans
$30.80 billion
1.462 million members
30,000 employers
$2.67 billion
44,335 members
$1.54 billion
5,851 members
$37.05 billion
1.546 million members
Fund data current as at 31 December 2010
Commenced 1/1/08
• There will be no changes to your accrued entitlements
and current employer contributions.
• The money in your existing super account will be
credited to your AustralianSuper account via a
Successor Fund Transfer.
• Your investments will remain fully invested at all times
• Your default level of Death and Total & Permanent
Disablement will be matched or increased
Aviation Industry Division
• From approximately one week before 1 July, there will
be a period of time when certain queries, transactions
and access to your account online will be unavailable
• This transition period will last until the final membership
data has been provided and reconciled by
AustralianSuper and loaded to your new account in the
Aviation Industry Division
• The transition is expected to take up to four months
Aviation Industry Division
Transition timetable
May/June :• Transfer guide and significant event notice sent to members
• Transition education material on the AustralianSuper website
July to Nov : • Assets transferred and contributions commence
• Welcome letter & PDS (Product Disclosure Statement) issued
• Final audit and reconciliation of TAIST
• Final crediting rate set and exit statement issued by TAIST
• Transfer of final data to AustralianSuper and allocation of
member entitlements
• Confirmation letter from AustralianSuper detailing transfer
value, followed by PIN for online access
Transition timetable
• This timetable depends on each step being completed in
the agreed timeframe
• Members could expect that the call centre will have limited
information until we receive the final data transfer
• No benefits paid or transferred to other funds until the end
of transition (urgent requests will be considered on a case by case basis)
• No online access during transition
• Investment choice applies to both future contributions and
existing account balances (by completing an investment switch form)
Investments
Investment risk is the chance that the
value of your investment will fall
Options can include combinations of different investments
CashPropertyShares Infrastructure Fixed interest
Return And Risk
It’s important to understand the risks of investing
Assets with higher potential returns carry a higher risk
• shares
• property
• private equity/alternative investments
Asset with lower potential returns carry lower risk
• fixed interest, bonds
• cash
• From 1 July 2011 your account will be invested in the
AustralianSuper Balanced option
• You have the flexibility to:
– choose your own investment options
– switch weekly as your needs change
– apply to switch online
Default investment option
Strategic asset allocation at 30/6/10
Range 0 50
Australian Shares 20–45%
International Shares 10–40%
Direct Property 0–30%
Private Equity 0–10%
Infrastructure 0–30%
Hedge Funds/Absolute ReturnStrategies 0–10%
Global Fixed Interest 0–25%
Cash 0–15%
Balanced Option
Target of approximately 75% of option invested in growth assets
85% of members are invested
in the Balanced Option
Medium to High Risk: Returns can fluctuate
from year to year – either moderately or considerably.
Since this option was offered in 1985, its annual
investment returns have been within the range shown.
Expected frequency of negative annual return:
Approximately 4 to 5 years in every 20
Investment performance to 31 March 2011
6.87%
1.54%
3.28%
6.64%
5.37%
1.26%
2.52%
5.44%
0%
2%
4%
6%
8%
1 year % 3 year % pa. 5 year % pa. 10 year % pa.
AustralianSuper: Calculated historical returns
Benchmark: SuperRatings SR50 Balanced (60-76) Index
Balanced investment option
People have individual needs and goals – so you have a choice
DIY Mix
• Australian Shares
• International Shares
• Australian Sustainable Shares
• International Sustainable Shares
• Property
• Australian Fixed Interest
• International Fixed Interest
• Diversified Fixed Interest
• Cash
• ASX 200 Shares Investment Option
Investment Choice
PreMixed
• High Growth
• Balanced (default option)
• Sustainable Balanced
• Conservative Balanced
• Stable
• Capital Guaranteed
Friday Sunday Monday Wednesday
Close of businessCut-off time for paper based instructions
MidnightCut-off time for
on-line instructions *
Instructions processed
after close of business
Transaction details appear
on your account
Timing of investment switches
Existing balance
* On-line switching not available until transition has been completed
Things to remember
• Keep a long-term perspective
• Your approach will depend on your personal situation and objectives
Insurance
Affordable insurance24 hours a day,
7 days a week …
Protecting membersand their families
Insurance cover
• AustralianSuper has a unit based insurance scale dependant on a members’ age
• Members will receive a minimum of three units of Death and TPD cover
• If your current cover is higher than the three units, your cover will remain unchanged
• You can also apply for income protection
• Insurance costs are deducted from your superannuation account
Nomination of Beneficiaries
• Who can you nominate to receive your benefit in the event
of your death:
– spouse (legal or de facto),
– child (includes adopted or step-children of any age),
– financial dependant,
– Interdependant
– Legal personal representative
• Binding Nominations
– A $10pa fee applies.
• Keep yourself informed by
– reading information bulletins
• Review your current super arrangements
– Contribution and investment strategies
– Consolidate old or “lost” super accounts
– Update beneficiaries
Action points
Transition to AustralianSuper
What do you need to do?
As the transfer to AustralianSuper is a successor fund transfer
you do not have to complete any forms
However, if you want to:
– Select your own investment strategy with AustralianSuper: – Complete an AustralianSuper ‘Investment Choice’ form
– Transfer any other superannuation accounts: – Complete an AustralianSuper ‘Transfer your Super’ form (one for
each account you wish to transfer) and attach certified ID
Communications
• Member
– Account statements : 30 June and 31 December
– Member bulletin “Your Super” (March & September)
• Online
– Account value
– Calculators
– Investment performance and switching
• For members who provide an email address
– Monthly investment bulletin
– Quarterly Member Investment Update
• General information - 1300 300 273
• Limited financial advice: Financial Education & Advice Team* – 1300 300 273
• Putting extra savings into super
• your investment options
• transition to retirement and the AustralianSuper Pension
• Insurance cover
• Full financial plan:Industry Fund Financial Planning - 1300 138 848
* Financial Education and Advice Team services are provided to AustralianSuper members by Superpartners Pty Ltd ABN 57 078 907 883 AFSL 238761
Getting help – What do you need?
Transition Update
Aviation Industry Division
Peter Treseder – National Education Manager