HUB24 Super Supplementary Product Disclosure Statement

Transcription

1 HUB24 Super Supplementary Product Disclosure Statement 25 January 2013 HUB24 Super equity trading enhancement This document is a supplementary product disclosure statement (SPDS) of the Product Disclosure Statement for HUB24 Super dated 4 June 2012 (PDS), and the previous Supplementary Product Disclosure Statement dated 25 September It supplements and must be read in conjunction with the PDS and previous SPDS (if applicable). HUB24 Super is offered from the HUB24 Super Fund, ABN (the Fund).

2 About this Supplementary Product Disclosure Statement HUB24 Super Supplementary Product Disclosure Statement This SPDS is issued by The Trust Company (Superannuation) Limited (ABN , AFSL ) (Trustee). It provides updated information about trading in securities via the Fund, as well as changes to unclaimed money rules applicable to superannuation funds. HUB24 Super offers accumulation, account-based pension and transition to retirement pension accounts. The Fund provides investment choice, flexibility and transparency in building your super savings and drawing a pension in retirement. In particular, the Fund provides investors with access to a wide range of investment options including listed securities such as Australian shares and exchanged traded funds (ETFs). Through your adviser you can engage in direct trading of Australian shares and ETFs on the Australian Securities Exchange. Currently, the HUB24 trading platform aggregates any buy and sell orders for listed securities for members and places the net trades on the market once a day at a weighted average price. This is referred to as Aggregated Trading. New technology has been developed to allow advisers to place, cancel and amend direct to market orders for a HUB24 Super account. This is referred to as Direct Market Trading enhancement. Members (through their advisers) will have the option to invest in listed securities on an Aggregated Trading basis or using the HUB24 Super Direct Market Trading enhancement. The Direct Market Trading enhancement will become available to any new members joining the Fund on or after 1 March 2013 who wish to invest in listed securities. Any trading in securities (whether Aggregated Trading or via Direct Market Trading enhancement) on the Australian Securities Exchange is subject to the rules and regulations of the exchange and the Australian Securities and Investments Commission (ASIC). Current brokerage fees (of 0.11% of the trade value) will apply in both cases, however trades in listed securities using the Direct Market Trading enhancement will be subject to a new minimum of $22 per trade. * * * This SPDS contains terms and conditions applicable to the HUB24 Super Direct Market Trading enhancement. This SPDS replaces or adds to information in the HUB24 Super PDS dated 4 June In particular: some information in this SPDS about available securities (specifically, Australian direct shares and ETFs) and how they may be traded replaces information about available securities shown in section 5 of the PDS. some information in this SPDS about fees and costs (specifically, brokerage for securities depending on the trading process used) replaces information about brokerage shown in the Service fees table in the Additional explanation of fees and costs appearing in section 9 of the PDS. In addition, this SPDS replaces and adds information to Booklet B: Investment Guide (which forms part of the PDS) as follows: the information in this SPDS about trading in securities replaces information under the heading Netting of trades shown in The building blocks of your investment strategy section of the Investment Guide. 2 HUB24 Super_Supplementary PDS_Jan2013_v1

3 Information in the PDS may change from time to time. The Trustee may update information, which is not materially adverse to you, without advising you. Updated information can be obtained from You may request a paper copy of any updated information from HUB24 at any time, free of charge by calling us on , or from your adviser. If a change occurs which is materially adverse to you the Trustee will reissue the PDS or issue a supplementary PDS and notify you of the change, as required by law. Your adviser will also provide you with a Statement of Advice and other disclosure documents relevant to your investment options. These disclosure documents are also available from or by calling The information contained in this SPDS is general information only and does not take into account your individual objectives, financial situation, needs or circumstances. The suitability of the Fund to your needs, and the suitability of a particular investment option within the Fund, depends on your individual circumstances and objectives. You should discuss these in detail with your adviser before investing in the Fund. The Trustee will only accept investors to the Fund through a financial adviser (adviser). HUB24 is not authorised to provide personal financial advice. You must consult an adviser before investing through the Fund. The Fund is only available to Australian tax residents who receive this PDS, whether in paper or electronic form, in Australia (unless otherwise approved by the Trustee and HUB24). Investors who receive this document in electronic form are entitled to obtain a paper copy free of charge by contacting us. The distribution of the PDS in jurisdictions outside Australia may be restricted by law and persons who obtain the PDS and related documents should inform themselves about, and observe any such restrictions. Failure to comply with those restrictions may violate those laws. The Trust Deed is a document that sets out the governing rules of the Fund. A copy of this document is available upon request by writing to HUB24 at the address below. The Trust Company (Superannuation) Limited and HUB24 Custodial Services Ltd (and each of their subsidiaries) do not guarantee the performance of the Fund. Investments in the Fund are subject to investment risk, including loss of income and capital invested. Neither The Trust Company Limited (the Trustee s parent company) nor any of its related entities guarantee or have any liability in connection with the performance by the Trustee of its obligations under the PDS. How to contact us HUB24 Super Phone: [email protected] Post: HUB24 Super, GPO Box 529 Sydney NSW 2001 HUB24 Super Supplementary Product Disclosure Statement HUB24 Super_Supplementary PDS_Jan2013_v1 3

4 Section 5 Investment options Page 13: Table of investment options Replace the existing text in the row headed Exchange traded funds (ETFs) with the following: Category Exchange traded funds (ETFs) Description Exchange Traded Funds (ETFs) are investment funds, traded on an exchange, that invest in a basket of securities or other assets and that generally seek to track the performance of a specified index or benchmark (such as the S&P/ASX 200 Index). They are typically registered managed investment schemes and investors hold units in a unit trust rather than shares in a company that operates the investment fund. Each ETF security (or unit) represents an interest in a portfolio of securities, currencies or commodities. The Fund provides a broad selection of ETFs. In consultation with your adviser you can invest in a selection of ETFs. Your orders to buy and sell will be placed, through your adviser, either on an Aggregated Trading basis or an individual basis using the Direct Market Trading enhancement. Aggregated Trading involves netting of trades at a Fund level (using weighted average prices), while the Direct Market Trading enhancement enables you to undertake trading via your adviser at an individual (member account) level including by specifying the price at which orders are placed and other parameters for your order. Further information about direct trading in ETFs, including the differences between available trading approaches, is shown in the Investment Guide and on the workbench. You (through your adviser) can choose which trading approach to take. HUB24 Super Supplementary Product Disclosure Statement Replace the existing text in the row headed Australian shares with the following: Category Australian shares Description In consultation with your adviser, you can invest in a selection of direct share securities. The Fund provides a broad selection of direct share securities predominantly from the S&P/ASX All Ordinaries Index. Your orders to buy and sell will be placed, through your adviser either on an Aggregated Trading basis or an individual basis using the Direct Market Trading enhancement. Aggregated Trading involves the netting of trades at a Fund level (using weighted average prices), while the Direct Market Trading enhancement enables you to undertake trading via your adviser at an individual (member account) level including by specifying the price at which orders are placed and other parameters for your order. Further information about direct trading in shares, including the differences between available trading approaches, is shown in the Investment Guide and on the workbench. You (through your adviser) can choose which trading approach to take. Section 9 Fees and other costs Page 29: Table of service fees Replace the existing text in the row headed Brokerage for securities with the following: Type Amount How and when paid Brokerage for securities Approximately 0.11% of the value of each transaction, subject to a minimum of $22 per trade in relation to trades in securities (including ETFs) via the Direct Market Trading facility. This fee is paid in addition to the cost of the trade for securities within the non-unitised portfolio and portfolio blends sleeves. For direct trading in securities under the Direct Market Trading enhancement, this fee is subject to a minimum of $22 per trade. Refer to the Investment Guide for more information about the Direct Market Trading enhancement. This fee is deducted at the time of the transaction. 4 HUB24 Super_Supplementary PDS_Jan2013_v1

5 HUB24 Super Investment Guide Page 10: Replace the section titled Netting of trades with the following: Trading in Securities In consultation with your adviser you can invest in a selection of ETFs and Australian direct shares. Trading in securities can occur in one of two ways, as determined by you and your adviser. You have the option to undertake trades in securities using either the following approaches: Aggregated Trading Direct Market Trading Aggregated Trading involves netting of trades, at a Fund level, with a weighted average price applicable to relevant members. The netting of trades is described in further detail below. The Direct Market Trading enhancement involves individualised trades, with the ability (through your adviser) to place, cancel and amend market orders and specify a price at which the orders are placed or other parameters for your order. The orders are placed directly to market (subject to usual market rules). This process may result in higher transaction costs for you. See below for an explanation of key differences between the trading options available to you. With the Direct Market Trading enhancement, your adviser will implement your instructions relating to buying or selling of Australian shares or ETFs, including: The individual Australian share or ETF that is being bought or sold Whether the order is a to buy or sell that share or ETF. Your instructions might also include the following pricing or order parameters, otherwise your adviser may determine these parameters: Whether the order is a Limit Order or Market to Limit Order. A Limit Order is an instruction to buy or sell a security at a specified price or better. A Market to Limit Order is an instruction to buy or sell at the current market price. After the first portion of the order is completed the remainder of the order is immediately converted to a limit order at that executed price Whether any incomplete part of the order should be cancelled at the end of the day or remain in the market until a cancellation instruction is given. Further information about the characteristics of the Direct Market Trading enhancement can be found on the workbench. Netting of Trades (excluding trades via the Direct Market Trading enhancement) HUB24 calculates the trades required due to non-unitised portfolio and portfolio blend switching, rebalances, new investments or withdrawals, except for trades conducted using the Direct Market Trading enhancement. We then internally match or net off any buy and sell trades where possible, reducing the number of buy and sell orders that need to be placed in the market. All trades are settled at the settlement price of the applicable trade. This netting process may result in lower transaction costs for you. HUB24 Super Supplementary Product Disclosure Statement HUB24 Super_Supplementary PDS_Jan2013_v1 5

6 Where possible, netting of transactions occurs within your account (internal netting) where relevant, as these transactions do not incur brokerage. Externally-netted trades incur brokerage along with market trades. The trade price is used for all transactions, but if the netting is exact, meaning no market trades are placed, then we use the end-of-day price. Differences between Aggregated Trading and the Direct Market Trading enhancement For trading in securities using the Direct Market Trading enhancement, a minimum brokerage of $22 per trade applies. Other key differences include that the Direct Market Trading enhancement provides the ability to specify order parameters including price and duration of an order. For further information about the differences contact your adviser. HUB24 Super Supplementary Product Disclosure Statement 6 HUB24 Super_Supplementary PDS_Jan2013_v1

7 HUB24 Super Member Guide Section 6 Transfers Page 18: Replace the section titled To the Australian Taxation Office with the following: From 31 December 2012, we will be required to pay your account balance to the ATO as unclaimed money where: we have lost contact with you and your account balance is less than $2,000, or your account balance has been inactive for 12 months and, with the information reasonably available to us, we re satisfied that we will never be able to pay your account balance to you. These circumstances in which account balances must be transferred to the ATO may change in the future, and we will be required to comply with them if they do. Any future changes may be made available on our website at You can also find more information about unclaimed money at HUB24 Super Supplementary Product Disclosure Statement dy HUB24 Super_Supplementary PDS_Jan2013_v1 7

8 4 June 2012 HUB24 Super offers accumulation, account-based pension and transition to retirement pension accounts. HUB24 Super provides investment choice, flexibility and transparency in building your super savings and drawing a pension in retirement.

9 4 June 2012 Super how does it work? This guide gives you an understanding of how super works for you. 4 June 2012 This guide outlines some of the basic principles of investing and the investment options in HUB24 Super. 4 June 2012 This guide gives you an understanding of how the insurance cover available through HUB24 Super works for you. Non-Unitised Portfolio Disclosure Document for Investors dated 4 June The Portfolio Manager is Bennelong Funds Management Ltd. Issued by The Trust Company (Superannuation) Limited ABN AFSL No About this Product Disclosure Statement This Product Disclosure Statement (PDS) is a summary of significant information about HUB24 Super (the Fund) and contains a number of references to important information in other booklets (all of which form part of this PDS). You should consider that information before making a decision about the Fund. The PDS for the Fund, dated 4 June 2012, is issued by The Trust Company (Superannuation) Limited (ABN , AFSL ) (Trustee). To satisfy capital requirements under superannuation legislation, the Trustee has the benefit of an approved guarantee of $5 million from a financial institution (in respect of the due performance of its duties). A copy of the approved guarantee is available for perusal at the Trustee s offices. The fund is promoted by HUB24 Custodial Services Ltd (ABN , AFSL ) (HUB24). You should read this PDS carefully as it outlines the features, costs, benefits and risks of investing in the Fund. This document may also help you compare this product with others. It is important that you read the entire PDS, including the terms and conditions, so you can understand how the Fund works. A reference to the PDS includes a reference to the following booklets which contain more detailed information on topics in the PDS. You should also read each of these booklets carefully where they are relevant to your investment in the Fund. Booklet A: Member Guide Super how does it work? this guide gives you an understanding of how super works for you. Booklet B: Investment Guide this guide outlines some of the basic principles of investing and the investment options in the Fund. Booklet C: Insurance Guide this guide gives you an understanding of how the insurance cover available through the Fund works for you. Booklets D: Non-Unitised Portfolio/Portfolio Blend Disclosure Document this document outlines the investment strategy, philosophy and objective of the manager of the relevant non-unitised portfolio or portfolio blend a disclosure document for each non-unitised portfolio and each portfolio blend is available on and is uniquely identified with the letter D and a subsequent number. HUB24 Super Member Guide Booklet A Member Guide Super how does it work? HUB24 Super Investment Guide Booklet B Investment Guide HUB24 Super Insurance Guide Booklet C Insurance Guide Bennelong Ex-20 Australian Equities Portfolio Booklets D Non-Unitised Portfolio/ Portfolio Blend Disclosure Document These booklets may change from time to time and are available free of charge on our website at or you can request a paper copy by calling us on ii

10 Your adviser will also provide you with a Statement of Advice and other disclosure documents relevant to your investment options. This could include: Non-Unitised Portfolio/Portfolio Blend Disclosure Document product disclosure statements for each managed fund you invest in fact sheet for ETFs general information on the direct share securities information guide on the term deposits. All these documents are available on the HUB24 Super section of our website and the workbench (see page 3 for more information about the workbench). The information contained in this PDS is general information only and does not take into account your individual objectives, financial situation, needs or circumstances. The suitability of the Fund to your needs, and the suitability of a particular investment within the Fund, depends on your individual circumstances and objectives. You should discuss these in detail with your adviser before investing in the Fund. The Trustee will only accept investors to the Fund through a financial adviser (adviser). HUB24 is not authorised to provide personal financial advice. You must consult an adviser before investing through the Fund. Information in the PDS may change from time to time. The Trustee may update information, which is not materially adverse to you, without advising you. Updated information can be obtained on our website at You may request a paper copy of any updated information from HUB24 at any time, free of charge by calling us on , or from your adviser. If a change occurs which is materially adverse to you the Trustee will reissue the PDS or issue a supplementary PDS and notify you of the change, as required by law. The Fund is only available to Australian tax residents who receive this PDS, whether in paper or electronic form, in Australia (unless otherwise approved by the Trustee and HUB24). Investors who receive this PDS in electronic form are entitled to obtain a paper copy of this PDS (and the Application Form) free of charge by contacting us. The distribution of the PDS in jurisdictions outside Australia may be restricted by law and persons who obtain this PDS should inform themselves about, and observe any such restrictions. Failure to comply with those restrictions may violate those laws. The Trust Deed is a document that sets out the governing rules of the Fund. A copy of this document is available upon request by writing to HUB24 at the address below. The Trust Company (Superannuation) Limited and HUB24 Custodial Services Ltd (and each of their subsidiaries) do not guarantee the performance of the Fund. Investments in the Fund are subject to investment risk, including loss of income and capital invested. Neither The Trust Company Limited (the Trustee s parent company) nor any of its related entities guarantee or have any liability in connection with the performance by the Trustee of its obligations under this PDS. About HUB24 Custodial Services Ltd HUB24 Custodial Services Ltd (HUB24) is the Promoter of the Fund and has been appointed by the Trustee to provide various services in relation to HUB24, including investment administration, investment management and custody services. The Trustee pays HUB24 for providing these services and these costs are paid out of the fees paid by members (directly or indirectly), as set out in this PDS. iii

11 HUB24 may sub-contract the performance of some or all of its functions to other professional service providers, at no additional cost to you. Other service providers of the Fund include: Sub-custodians As at the date of this PDS, HUB24 has appointed the following sub-custodians in relation to the Fund: HSBC Bank Australia Limited (HSBC) (ABN , AFSL ) Australian Market Automated Quotation (AUSMAQ) System Limited (ABN , AFSL ). The sub-custodians hold physical title to the assets held within the Fund in custody on behalf of the Trustee. Insurer TAL Life Limited (TAL) (ABN , AFSL ) (formerly TOWER Australia Limited) Auditor of the Fund UHY Haines Norton Chartered Accountants Member administrator DIY Admin Pty Ltd About the Fund The HUB24 Super Fund (ABN ) (the Fund, HUB24 Super) is a public offer superannuation fund which provides accumulation, account-based pension and transition to retirement pension accounts. The Fund was established under a trust deed dated 11 May The Trust Company (Superannuation) Limited (ABN , AFSL ) is the Trustee of the Fund. HUB24 Custodial Services Ltd (ABN , AFSL ) (HUB24) is the Fund s Promoter and has been appointed by the Trustee to provide other services to the Fund. How to contact us Phone: HUB24 Administration Assistance: Fax: (02) [email protected] Post: HUB24 Custodial Services Ltd, GPO Box 529 Sydney NSW 2001 iv

12 Contents 1 Features at a glance 1 2 Benefits of HUB24 Super 3 HUB24 workbench 3 How the Fund works 4 3 How super works 5 Contributing to super 5 Withdrawing your super 6 4 Risks of super 8 Managing risks 8 Risks associated with the Fund 9 Risks associated with investments 10 5 Investment options 11 Discussing your options with your adviser 12 Changing your choices 12 Diversifying your investments 12 Table of investment options 12 Diversification investment limits 14 Default investment choice the cash account 14 Interest and fee accruals 14 Labour standards and environmental, social and ethical considerations 15 Trustee s selection process for the investment options 15 Illiquid investments 15 Changes to the investment options 15 6 Insurance in your super 16 Applying for insurance 16 When cover starts 16 When cover ends 17 Benefit exclusions and restrictions 18 Pre-existing conditions 18 Interim Accident Cover 19 Cost of cover 19 Transferring cover 20 Important information 20 7 How to open an account 21 How to contribute to your account 21 How your contributions are treated 22 Transferring other super money to the Fund 22 v

13 8 The role of your adviser 23 Important information 23 9 Fees and other costs 25 Did you know? 25 To find out more 25 Example of annual fees and costs for a balanced investment option 27 Super 27 Pension 27 Additional explanation of fees and costs 28 Account-keeping fee 28 Administration fee 28 Investment costs 28 Performance fees 28 Service fees 29 Buy/sell spread 29 Expense recovery fee 30 Insurance costs 30 Adviser remuneration and fees 30 Tax 31 Increases or alterations to fees and charges How super is taxed 33 Providing your Tax File Number 33 Tax and your account balance Transacting in HUB24 Super 34 Your instructions 34 Trade notifications 34 In specie transfers 35 Important notes for in specie transfers 35 Trade restrictions 35 Income 36 Transacting in managed funds How we communicate with each other Other information 38 Consents 38 Privacy policy 38 Anti-money laundering/counter-terrorism financing 38 Complaints 39 Cooling-off period 39 UK pension transfer 39 About the relationship 40 Investing in the Fund vs direct investments 40 vi

14 1 Features at a glance Account types The Fund offers three account types for whatever life stage you re at: Superannuation Pensions: Transition to retirement Account-based Minimum initial deposit $20,000. A minimum administration fee applies if your account balance is below $50,000 Minimum cash balance 1.25% of your account balance Additional contributions (super only) $100 minimum (inclusive of personal and Superannuation Guarantee contributions) Regular savings and payment plan $100 minimum Methods of contribution Cheque, direct debit, Bpay, electronic funds transfer, approved in specie transfers Methods of withdrawal Electronic funds transfer In specie transfers Approved investment options may be transferred into the Fund Interest rate on cash in your account Competitive interest rate calculated daily and paid monthly on the entire cash balance of your account Investment options managed funds including: multi-sector conservative, moderately conservative, balanced, growth, high growth single-sector cash, fixed interest, property and infrastructure, Australian equities, international equities, alternatives. non-unitised portfolios actively and passively (index) managed portfolio blends an asset allocation approach which spreads your investment over various asset classes and investment options to provide for your investment strategy and determined tolerance to risk exchange traded funds (ETFs) Australian direct interest rate securities Australian direct shares term deposits Insurance options Death, Total and Permanent Disablement (TPD) and Income Protection 1

15 Death benefit nominations Binding death benefit nominations and reversionary pension options Access to your account You have access to your account through your HUB24 workbench at and, if you have an iphone, the HUB24 iphone application Fees Refer to Section 9 Fees and other costs 2

16 2 Benefits of HUB24 Super The Fund is a great way for you to build your superannuation (super) savings and draw a pension in retirement. You can choose from a large range of investment options, including: managed funds including: multi-sector conservative, moderately conservative, balanced, growth, high growth single-sector cash, fixed interest, property and infrastructure, Australian equity, international equity and alternatives. non-unitised portfolios actively and passively (index) managed portfolio blends an asset allocation approach which spreads your investment over various asset classes and investment options to provide for your investment strategy and determined tolerance to risk exchange traded funds (ETFs) Australian direct interest rate securities Australian direct shares term deposits. The Fund also offers: the option to withdraw your benefit as a lump sum, or as an account-based or transition to retirement pension, when you become eligible a very competitive group insurance arrangement with Death, Total and Permanent Disablement (TPD) and Income Protection options. For more information on the insurance arrangements available, including eligibility conditions, refer to the Insurance Guide. comprehensive investment reporting, with online and iphone access a competitive and transparent fee structure the flexibility to split contributions with your spouse binding death benefit nominations for greater estate planning certainty a simple account-based approach, in which all transactions flow through to your cash account, making it easier to manage and monitor your account. HUB24 workbench The HUB24 workbench is the online access to your account information and reporting. To make it easy for you to view all your investments, HUB24 has divided them into what we call sleeves. A sleeve is conceptually like a filing cabinet the sleeve puts your investments into different categories so you can conveniently view each sub-category of your investments. For example, the Securities Portfolio Sleeve includes securities and exchange traded funds. 3

17 How the Fund works This diagram summarises how the Fund manages and invests your super contributions. Member Pension payments Super contributions (e.g. member, employer or spouse) Transactions Purchases/ sales Investments Cash holding* * Fees, charges and taxes are deducted from the cash holding Investment Income Insurance cost Managed funds Nonunitised portfolios Portfolio blends Insurance Listed securities inc. ETFs Term deposits 24 hour access via web or iphone Reporting (consolidated investment and member reporting) This is a conceptual, simplified diagram on how the Fund works. 4

18 3 How super works Super is a long-term investment and a tax-effective way of saving for your retirement. There are restrictions on contributions to, and withdrawals from, super. There s also a variety of government incentives and tax savings to encourage you to save using super. You and your adviser can consider all these options and implement an investment strategy that will help you achieve your goals in retirement. Your super account balance is made up of the deposits to your account (including contributions and rollovers) less any fees, taxes and insurance costs paid from your account. Your account balance may not reflect all outstanding income, fees and taxes (including the tax impact of realised gains or losses). You can request a quote periodically on your withdrawal benefit, which is the amount that would be available if you request a full withdrawal. Contributing to super Superannuation Guarantee (SG) contributions Most Australian employers are required by law to contribute 9% (increasing gradually to 12% by 1 July 2019) of an employee s ordinary-time earnings to a super fund each employee nominates. These contributions are known as Superannuation Guarantee (SG) contributions. Extra contributions You may also be able to make extra contributions to your super through: additional employer contributions such as salary sacrifice contributions, which are paid from your pre-tax salary voluntary member contributions you pay from your after-tax salary. Government contributions Depending on your annual income and the type of contributions you make to your account, you may also be eligible to receive a Government co-contribution. If you are eligible, the Federal Government can contribute up to $1.00 for every dollar you contribute (subject to a maximum amount). In addition, from 1 July 2012, the Government will contribute up to $500 to low-income earners for whom eligible contributions are received during a financial year (otherwise known as a low income superannuation contribution). For more information on Government contributions, refer to the Member Guide. Transfers You can also choose to transfer your super from another fund into your account. This is often called consolidating your super, as many people have small amounts of super in multiple accounts. Consolidating can be a good way to centralise your super investments and reduce fees. What we do with your contributions Your contributions are held in the cash holding in your super account until you or your adviser tells HUB24 how you want us to invest them (see page 11 of this PDS for more information about the investment options). 5

19 Contribution limits There are eligibility rules for super contributions and extra tax applies to contributions that exceed the contribution limits set by the Government. Your adviser can explain if and how these might apply to you. For more information on contribution rules and limits, refer to the Member Guide. Withdrawing your super Super is intended to fund your retirement, so there are restrictions on withdrawing your super money before you retire. You can generally only withdraw your super once you reach age 65, or if you retire on or after the day you reach your preservation age as shown in the following table: If you were born: Your preservation age is: Before 1 July July June July June July June July June July 1964 or after 60 You may be able to withdraw some or all of your super in other limited circumstances where you meet a condition of release. These include: if you die or become permanently incapacitated if you experience severe financial hardship if you leave your employer after turning 60. For more information on conditions of release, refer to the Member Guide. Preservation rules Depending on factors such as how long you ve been contributing to super and the types of contributions you ve made, your super benefit can consist of three different categories: preserved money that must stay in super until you meet a condition of release (e.g. retirement) restricted non-preserved money you can choose to withdraw when you leave your employer unrestricted non-preserved money you can withdraw at any time. For most people, it s likely that most or all of their super will be in the preserved category. 6

20 Starting a pension A pension is an income stream that makes regular income payments. The Fund offers two types of pensions, depending on your eligibility: Transition to retirement pension a pension that can be purchased with super money once you ve reached your preservation age (see table on page 6). A transition to retirement pension allows you to receive a regular income while you re still working, but is subject to maximum withdrawal limits until you meet certain conditions. Account-based pension a pension that can be purchased with super money once you retire on or after your preservation age (see table on page 6), or meet another condition of release. You can choose the amount of pension you receive each year subject to a minimum set by law. These pension payments are tax-free for most people aged 60 and above. To start an account-based or transition to retirement pension account with the Fund, you can transfer into your pension account, your account balances from your: account in the Fund other super funds, or a combination of these. You ll first have to complete and sign a Pension Application Form and a Tax File Number (TFN) Declaration. These forms are available in the Application Forms Booklet available from your adviser or If you intend to start your pension with money from different sources, it will commence after the final amount is received. If the Fund has not received all expected amounts within 30 days of having received the first amount, your pension will start with the amounts received up to that point. Once your pension starts, you can t add any more money to it. So it s worth considering consolidating all available amounts into a single super account before starting your pension. If you intend to claim a tax deduction for personal contributions made to your super account, you need to tell HUB24 before using these amounts to commence a pension. For more information about how super works, refer to the Member Guide. 7

21 4 Risks of super Before you consider investing in the Fund, it is important you understand the risks that can affect your investment. This section provides a summary of the significant risks of investing in the Fund. You should also consider the specific risks of the investments you choose. For more information about these risks, refer to the relevant product disclosure statement or disclosure document for each investment. Your adviser can give you advice to help you manage these risks and ensure that your investment in the Fund meets your individual needs and objectives. Managing risks Here are some ways you can help to manage risks: Ask your adviser to help you formulate an investment strategy that best suits your individual needs and objectives, and select your investment options. It s extremely important you discuss your specific risks with your adviser and read the information about risk in the product disclosure statements or other disclosure documents (as applicable) for the products or investment options available through the Fund. Read all the information in this PDS, including the Investment Guide and Non-Unitised Portfolio/ Portfolio Blend Disclosure Document, for any non-unitised portfolio or portfolio blend you may be considering. Also read the product disclosure statements or other disclosure documents applicable to the products or investment options available through the Fund. Review your investment strategy at least once a year, and whenever your circumstances change (e.g. if you change jobs, buy a house or have a child). Diversify your investment strategy. Diversification is the concept of spreading your investments over a number of asset classes. The more you diversify, the less impact any one particular asset class can have on your overall investment strategy. To help manage investment risk, the Trustee has certain diversification limits in place in relation to your account. For more information about the diversification limits applicable to your account, see the Investment Guide. Consider the risks set out in the table below. This is a high-level summary of some of the general risks involved in using the Fund. Please note that you can t expect to eliminate investment risks altogether; you can only minimise them. 8

22 Risks associated with the Fund The following summary is a guide only and is not an exhaustive list of all the risks of investing in the Fund. Legal and regulatory risk There is a risk that changes to the super, taxation or other laws, regulations or rules may adversely affect your investment. Counterparty risk This is the risk that a party to a transaction fails to meet its obligations. This could include the risk that service providers appointed for the Fund may default on their obligations, which could potentially result in losses to the value of your investment. To mitigate this risk, HUB24 and the Trustee will seek counterparties and service providers that have a low risk of defaulting, and will regularly monitor the performance of those service providers. Systemic and information risk HUB24 depends on information, operations and systems which may be outside the Trustee s control. There is the risk that HUB24 may receive incorrect information or be unable to verify the accuracy of any information relied upon (e.g. product price feeds). The operations and systems used by HUB24 or the Trustee service providers may become inaccessible or malfunction, which may affect the proper and timely functioning of the Fund. Where possible, HUB24 has backup systems in place to ensure the business can resume as soon as possible, but delays may still be experienced. Advice risk Your adviser may not identify correctly your circumstances, needs and objectives and may recommend an investment strategy that is not appropriate for you. Your adviser, who must be authorised to instruct HUB24 on your behalf, may not communicate your instructions accurately to us or may not communicate them in a timely fashion. This could result in incorrect or slow investment decisions. Investment option risk The investment options you select may change or may cease to be offered in the Fund, which may affect the composition of investments in your account and your investment strategy. Investment management risk Timing risk Concentration risk The portfolio managers are responsible for designing the non-unitised portfolios/portfolio blends, and their success will depend upon their ability to successfully meet their investment objectives. They may not be successful in meeting their investment objectives. There is also the risk of the loss of key staff, which could ultimately impact the value of your investments and/or returns generated by your investment. The same risk applies in relation to the managed fund operator for any managed funds chosen. Timing risk is the risk that you invest at an unfavourable point in the investment cycle. This might mean that, at the date of your investment, your options are invested at higher market prices than those available soon after. Alternatively, it might also mean that your options are redeemed at lower prices than those that were recently available or that would have been available soon after. HUB24 has been appointed by the Trustee to perform numerous functions with respect to the Fund including administration, brokerage, custody and investment management. The Fund relies on HUB24 properly performing these functions. A failure by HUB24 to do so could result in detriment to the Fund and its members including delays, costs to replace HUB24 and increased ongoing costs if replacement service providers have to be appointed. 9

23 Risks associated with investments This summary is a guide only and is not an exhaustive list of all the possible risks of investing. Diversification risk Lack of diversification across asset classes over your entire portfolio of investments may cause your portfolio s return to fluctuate more than expected. For example, if you invest entirely in shares rather than spreading your super across the other assets classes (such as property, cash and fixed interest), share market movements could significantly affect your investment. Market risk Movements in a market sector due to, for example, interest rate movements, or economic factors that may have a negative impact on your investment and/or on the returns your investment generates. Market values can change rapidly and it s possible to lose some or all of your initial investment. Foreign exchange risk If parts of your investment are priced in a foreign currency, international factors such as exchange rate fluctuations and movements in international stock markets may affect the value of your investment. These investments may also not be hedged (protected) effectively, or at all, against exchange rate fluctuations. Sector risk There are risks associated with a particular industry s specific products or services due to, for example, changes in consumer demand or commodity prices. For instance, if one of your investment choices invests heavily in a sector such as energy, the value of your investment might change with the price of oil. Liquidity risk In difficult market conditions, some normally liquid assets may become illiquid. This could restrict the ability to sell them and to make withdrawal payments or process investment switches in a timely manner. For example, HUB24 might not be able to sell shares that are rarely traded on the Australian Securities Exchange, or that are restricted or suspended from trading. Another example might be a property trust where the underlying property (e.g. a shopping centre) takes a long time to sell. Term deposits are generally an illiquid investment as they may not be redeemable before their maturity date, as early redemption usually results in reduced returns or a penalty. If you re not sure whether the investment you choose may be affected by illiquidity, you may wish to speak to your adviser. Specific asset risk and sophisticated financial products Inflation risk Credit risk There are risks associated with specific assets, for example certain managed funds may use leverage (borrowing to invest), undertake short selling (selling shares they don t actually own) or invest in sophisticated financial products such as derivatives, futures, foreign exchange contracts and options. Use of these methods could cause large losses in proportion to the money invested in them. Before selecting these types of assets as part of your investment strategy, you must read the relevant product disclosure statement or disclosure document. Your investments may not keep pace with inflation so that, over time, your money has less purchasing power. Your capital and/or the interest earned on that capital may not be paid due to the default of the underlying bank or deposit-taking institution. 10

24 5 Investment options The Fund aims to provide members with access to a range of investment options. It s up to you to determine with your adviser an appropriate investment strategy that addresses your personal needs and long-term goals, and to implement that strategy by choosing your investments from the range of available investment options within the Fund. The investment options available through the Fund include: non-unitised portfolios exposure to Australian equities portfolios designed by investment managers portfolio blends an asset allocation approach which spreads your investment over various asset classes and investment options to provide for your investment strategy and determined tolerance to risk exchange traded funds (ETFs) Australian direct interest rate securities Australian direct shares approved securities in the S&P/ASX All Ordinaries Index managed funds (see the following table for examples). Type of managed fund Description Examples Multi-sector funds These managed funds use an asset allocation approach, spreading investment over various asset classes to provide for your investment objectives and your determined tolerance to risk. Conservative Moderately conservative Balanced Growth High growth Single-sector funds These managed funds invest in a particular asset class. This allows you to use these funds to build a portfolio to match your investment objectives and your tolerance to risk. Cash, fixed interest Property and infrastructure Australian equities International equities, alternatives The Fund offers a diverse choice of non-unitised portfolios/portfolio blends and fund managers. This PDS and Investment Guide set out some basic principles of investing. You should discuss these with your adviser. The Trustee may add or remove investment options from the investment menu from time to time. The Trustee makes these decisions based on recommendations from the asset consultant and HUB24. 11

25 Discussing your options with your adviser It s important for you to discuss your tolerance to risk and your investment objectives with your adviser, along with the timeframe you have to construct an investment strategy. Your adviser can then help you to build an investment strategy that suits your individual circumstances so you can achieve the right balance between risk and return, taking into account factors such as your investment goals, investment timeframe and how comfortable you are with volatility. Your adviser will help you make an informed decision, as each investment option carries a different level of risk. When choosing how to invest, you should consider the likely investment return and your investment timeframe. If you don t make an investment choice, any contributions you make will be held in the default investment option, which is the cash account. Changing your choices You can change your investment strategy or options at any time through your adviser. You must make sure that your cash account will have enough money in it (including the minimum balance of 1.25% of the account balance) to make the transaction possible. Your adviser bears full responsibility for placing your instructions on your behalf and ensuring your investment strategies are implemented. Instructions will be acted on and effected as soon as practicable, provided the instructions were received from you through your adviser. HUB24 will have no obligation to act in accordance with the instructions if HUB24 reasonably considers the instructions to be ambiguous, unclear or in conflict with any applicable law, regulations or local market practice, or not directed by you, in which case we will notify your adviser accordingly. Diversifying your investments The Trustee has set diversification limits on how much you can invest in some of the underlying investment options. When you and your adviser are setting your investment strategy, or your adviser sends through some instructions for your account, the system will tell you immediately if you re outside these limits. For information on the diversification limits applicable to your account, see the Investment Guide. Table of investment options The investment options available in the Fund fall into six categories as shown in following table. For more details about the investment choices available from time to time, refer to the Investment Guide and the relevant product disclosure statements or disclosure documents available on the HUB24 workbench and our website at 12

26 Non-unitised portfolios Portfolio blends A non-unitised portfolio is a pre-set investment portfolio that is designed by a professional investment manager to meet a certain investment objective using one asset class only Australian securities. The Fund offers a range of portfolio managers who have designed each non-unitised portfolio according to their particular investment styles and objectives. Each non-unitised portfolio has allocated specified weightings to securities and the managers are responsible for the non-unitised portfolio. As the value of the securities increases or decreases, the weightings change. The manager may also make changes to the securities weightings within the non-unitised portfolio from time to time. HUB24 implements these changes to the portfolio composition. If you invest in a non-unitised portfolio, your investments may require rebalancing from time to time to correspond with the securities weightings of the rebalanced non-unitised portfolio. If you d like to opt out of the non-unitised portfolio, you need to speak to your adviser. A disclosure document for each non-unitised portfolio is available on our website. The Non-Unitised Portfolio/ Portfolio Blend Disclosure Document outlines the investment strategy, philosophy and objective of the professional manager who is responsible for the composition of the non-unitised portfolio. A non-unitised portfolio can be actively-managed or indexed: Actively-managed you re buying into a portfolio management strategy where the manager makes specific investments with the goal of outperforming a benchmark. Indexed you re buying a portfolio of securities that closely tracks an index (cash holdings may also be required). HUB24 receives a quantitative data feed from Standard and Poor s for the various indices. HUB24 then screens out any securities with relatively low weights to minimise small, non-efficient trades. HUB24 may also include cash holdings to enable certain corporate actions (e.g. the exercise of rights entitlements), so the performance of a non-unitised portfolio may differ slightly from the actual index it tracks. A portfolio blend is a pre-set investment strategy based on how comfortable you are with investment risk. It can be made up of all asset classes and investment options from the approved list of investments of the Fund. The manager can use both strategic asset allocation and tactical asset allocation to achieve the investment objective for the blend. Portfolio blends are a way to access a multi-manager and asset class investment strategy. A portfolio blend can be composed by a dealer group or an individual adviser. The Fund enables your adviser to rebalance these portfolio blends easily through management tools on the workbench. The rebalance and reallocation of the portfolio blends may occur regularly and you may receive trade notifications from your adviser. Exchange traded funds (ETFs) Australian shares Term deposits Managed funds Exchange Traded Funds (ETFs) are investment funds, traded on an exchange, that invest in a basket of securities or other assets and that generally seek to track the performance of a specified index or benchmark (such as the S&P/ASX 200 Index). They are typically registered managed investment schemes and investors hold units in a unit trust rather than shares in a company that operates the investment fund. Each ETF security (or unit) represents an interest in a portfolio of securities, currencies or commodities. In consultation with your adviser, you can invest in a selection of direct share securities. The Fund provides a broad selection of direct share securities predominantly from the S&P/ASX All Ordinaries Index. The Fund offers you the opportunity to invest in term deposit accounts with a range of durations, typically three months, six months or one year. The Fund may offer other term deposits with differing durations and features as determined by the Trustee. To ensure your application is processed for the current terms offered, HUB24 must receive it by 10.00am on Fridays (i.e. a business day). The current terms offered are uploaded to the workbench and website each week (usually on a Monday). The Fund offers a large range of wholesale managed funds, enabling you to diversify across the asset classes in your investment strategy. Wholesale fund fees charged are generally lower than retail funds, and some managed funds pass rebates back to the Fund. HUB24 generally returns these rebates in full to existing members. 13

27 Diversification investment limits To help keep your investment strategy diversified, there are limits on how much you can invest in certain investment options. The Trustee may also impose limits on specific investments. The diversification limits do not apply to investments in a non-unitised portfolio and the portfolio blends, which are excluded from your portfolio for the purposes of determining whether your investments are within any applicable diversification limits. The investment limits may change from time to time; the current limits are detailed in the Investment Guide available at Default investment choice the cash account The cash account is used for all transactions and must hold a minimum balance of 1.25% of your entire investment. The Trustee can change this minimum cash balance requirement. You and your adviser are responsible for maintaining a minimum cash account. HUB24 keeps you and your adviser informed of your cash balance through the workbench. If your cash balance is low, you will see a red flag. If the balance of your cash account is below the minimum level, HUB24 reserves the right to sell securities at any time to restore the cash position to at least 1.25% of your account balance. HUB24 may do this without seeking prior instructions from you. Investment options will be sold in the order described below, or as instructed by your adviser, to the extent reasonably practicable. The order of any sell-down is proportional across: all securities within your account that are valued daily all managed funds within your account that are priced daily all managed funds within your account that are not priced daily. The cash account also acts as the default investment strategy. All contributions and rollovers will be invested in your cash account until investment instructions are received. Here are details of the cash account and management: Cash account strategy The cash account is invested in a number of deposits through one or more approved deposit-taking institutions. Interest and fee accruals Risk label Very low risk. The estimated likelihood of a negative annual return is less than 0.5 year in 20 years. Fees and interest payable on cash in your account are both calculated daily and accrued to the end of the month. Interest is calculated based on a formula that calculates the approximate weighted average interest rate of the various cash pools. Interest is calculated based on the settled cash balance in the account and includes cash held in non-unitised portfolios. The declared rate and method of calculating the return is shown on the HUB24 workbench. Neither investments nor the returns on any of your selected investments are guaranteed. 14

28 Labour standards and environmental, social and ethical considerations The Trustee does not take into account labour standards and environmental, social and ethical considerations when making the investments available. When making investment decisions, the professional managers of the underlying investment choices may take into account labour standards and environmental, social and ethical considerations. When selecting the professional managers, neither the Trustee nor HUB24 takes into consideration whether the professional managers have such a policy. The product disclosure statements or documents (as applicable) of the underlying investment options will outline the philosophy adopted by the investment manager. Trustee s selection process for the investment options The Trustee may add or remove investment options from the Investment Guide from time to time. The Trustee makes these decisions based on recommendations from the asset consultant and HUB24. Illiquid investments Under difficult market conditions, some normally liquid assets may become illiquid, restricting our ability to sell them and to make withdrawal payments or process investment switches without a significant delay. The Trustee and HUB24 will monitor and assess the liquidity of the investment options and take such action as may be required from time to time. These actions may include one or more of the following: reviewing procedures for processing transfer and withdrawal requests and/or investment choice switches closing further investment in illiquid assets on a temporary or permanent basis. Changes to the investment options Changes occur to the investment options from time to time. The table below outlines some issues that may occur and how the Trustee manages these issues: Closure to new monies/ and new investors Termination The Trustee may close an investment option to new monies. This means your money currently invested in this option remains unchanged. However, any subsequent investment that would have been directed to this investment option will go to your cash account until instructions are received from your adviser for a suitable alternative investment option. The Trustee, HUB24 and/or a manager may terminate an investment option to all new and existing members. This will require your investment to be sold down to cash. The proceeds of sale will remain in the cash account until investment instructions are received from your adviser. 15

29 6 Insurance in your super The Fund offers a range of insurance options that are designed to provide financial support if you die or become disabled. Insurance cover is provided by the Insurer under the insurance policies issued to the Trustee. Please note, the definition for most capitalised terms within this section can be found in the Insurance Guide. The types of insurance cover available to you as a member of this product are: Death cover provides a lump sum payment if you die or suffer Terminal Illness Total and Permanent Disablement (TPD) cover provides a lump sum payment if you become Totally and Permanently Disabled Income Protection (IP) cover provides regular monthly payments if you become Partially Disabled or Totally Disabled. How much cover? Type of cover Standard Cover Tailored Cover Death (including Terminal Illness) Up to a maximum of $250,000* Unlimited (Terminal Illness: $2.5 million) Total and Permanent Disablement (TPD)** Up to a maximum of $250,000* Up to a maximum of $3 million Income Protection (IP) Not available Up to a maximum of $25,000 per month * The actual level of cover available depends on your age. Refer to the Insurance Guide for more details. ** TPD cover is only available in combination with Death cover. Standard Cover offers Death and TPD cover at competitive group rates without the need to be underwritten (cover is granted subject to the satisfactory completion of the assessment questions in the Simplified Application Form and acceptance by the Insurer). For Standard Cover, you must apply within 60 days of joining the Fund. If you want higher levels of cover and/or Income Protection, you can apply for Tailored Cover (this will require you to provide evidence of your health or medical conditions). If you take Tailored Cover, you may be able to increase your insurance cover by up to 25% as your life circumstances change. There are conditions attached to this option, so refer to the Insurance Guide for further details. Applying for insurance For information about the insurance cover available in the Fund, including how to apply, eligibility, how much you can apply for, the cost, what it will and won t cover, and other terms and conditions, refer to the Insurance Guide. When cover starts Your insurance cover starts on the date the Insurer accepts you for insurance cover and you ll be informed what this date is. 16

30 When cover ends Your insurance cover under the Policy ends on the earliest of: the date the Policy is terminated the date you cease to be a member of the Fund the expiry of the period of the employer-approved overseas employment, unless otherwise agreed by the Insurer the most recent 30 June prior to the date you attain age 70 in the case of Death and Terminal Illness cover, and the most recent 30 June prior to the date you attain age 65 in the case of TPD or IP cover the date the Trustee accepts your advice in writing that your cover is to cease one month after the month during which your account balance has insufficient funds to meet the required insurance cost upon your death the date you commence military service (other than in the Australian Armed Forces Reserve if they are not on active duty outside Australia) for IP cover: the expiry of employer-approved unpaid leave (and you have not returned to work) for Death cover and TPD cover: the date the Insurer pays the total insured benefit under the Policy. If your insurance cover has previously lapsed, your lapsed cover can be reinstated if the Insurer agrees in writing. Any reinstated cover will be subject to any terms, conditions or restrictions set out in the Insurer s written acceptance. While you may have insurance cover until a cessation event occurs, it is important to remember that the payment of any benefit is subject to the terms and conditions of the Policy. In some circumstances, such as retirement from the workforce, you may not be able to satisfy the conditions for payment of a benefit. For this reason it is important you review your insurance cover regularly to ensure it is appropriate to your individual circumstances. Insurance transfers You may apply to transfer the amount of other insurance cover from another superannuation fund or that is with another insurer (non-hub24 insurance) into HUB24 Super using the Insurance Transfer Form attached to the Insurance Guide. The Insurer will assess your application and any cover offered may be provided subject to: a. the same or equivalent insurance loadings, restrictions, exclusions and limitations that applied under the previous insurance policy for your other insurance, as agreed by the Insurer b. the terms and conditions set by the Insurer for your cover transferred to HUB24 Super (refer to the Insurance Transfer Form attached to this Guide), and c. any other relevant conditions as outlined in the table in the Insurance Guide. 17

31 Benefit exclusions and restrictions Payment of any insured benefit is subject to the exclusions set out below and other relevant terms and conditions of the Policy. An insurance benefit is not payable where the direct or indirect cause of the claim is: war or acts of war, whether declared or not service in the armed forces of any national or international organisation including active service and training exercises within national or international armed reserve units any exclusion the Insurer may apply as a condition of the acceptance of cover for Death cover, suicide within the first 13 months after the commencement of cover for TPD and IP cover, intentional self-inflicted act or injury for IP cover, uncomplicated pregnancy or childbirth. The Insurer may impose additional conditions, exclusions or restrictions as a condition of the acceptance of cover. Any insured benefits received from the Insurer can only be paid by the Trustee from the Fund if permitted under both superannuation legislation and the Fund Trust Deed. Insurance benefits for your Death only or Death and TPD cover will be paid in addition to the balance of your Fund account. Where the Insurer reduces or limits cover or declines a claim for insured benefits, the Trustee may limit your insurance benefits. Pre-existing conditions Under the Standard Cover option, in addition to the general exclusions, Death and TPD benefits will not be payable for any claim which is directly or indirectly related to a Pre-existing Condition that existed at any time in the five years prior to, or at the time, insurance cover starts or restarts within the Fund under the Policy. However, you will be covered for claims arising from an illness which first became apparent, or an injury which occurred, on or after the date that cover commenced or recommenced under the Policy. 18

32 Interim Accident Cover If you have applied for insurance under the Tailored Cover option you may be entitled to Interim Accident Cover for the type and the amount 1 of the benefit you have applied for at the time of your application. Interim Accident cover does not apply in relation to cover transferred under individual transfer terms. If eligible, Interim Accident Cover commences from the date your fully completed Insurance Application and Personal Health Statement are received by the Insurer. Interim Accident Cover is not payable if: for Death and TPD cover, TPD can reasonably be attributed to a Pre-existing Condition for IP cover, Total Disability or Partial Disability can reasonably be attributed to a Pre-existing Condition any of the exclusions and limitations set out above apply, or you failed to comply with your disclosure obligations when applying for cover. Interim Accident Cover will cease on the earliest of: 90 days have passed from the date the Insurer receives your fully completed personal statement the date the Insurer accepts or declines your application the date of your written acceptance of the Insurer s conditional offer for your cover the date you withdraw your application the termination of all cover(s) under the Policy the date the Insurer notifies you in writing that your Interim Accident Cover has ceased the date you cease to be an Eligible Person, or for an application to increase existing cover, the date you cease to be an Eligible Person (where applicable). 1 Interim Accident Cover is capped as follows: For Death and TPD cover, the amount of benefit under the Interim Accident Cover is the lesser of: the amount applied for, and $750,000 less any existing cover under the Policy. For IP cover, the amount of benefit under the Interim Accident Cover is the lesser of: the amount of cover you applied for (converted to a monthly amount) less any IP benefit that you are otherwise entitled to under the Policy, and $15,000 per month (including any super contributions benefit). Cost of cover How much do I pay? The amount you pay to maintain insurance cover is called the cost of insurance. This is affected by product choices and a range of individual factors about you. Your insurance costs include the following: Your insurance premiums, including stamp duty (if applicable) payable to the Insurer, and Service fees relating to insurance payable to HUB24 as follows (including 10% GST) an insurance establishment fee of $66 ($60 + GST) payable at the time insurance cover commences (including cover under individual transfer terms) or when your application to change your cover is approved by the Insurer, e.g. when you seek to increase your IP cover after a salary increase; and an ongoing insurance administration fee representing 24.75% (22.5% + GST) of your monthly insurance cost. 19

33 Your adviser may elect to charge you brokerage of up to 22% (20% + GST) of your monthly insurance costs. Refer to Section 9, Fees and other costs Additional explanation of fees and costs, Service fees section, on page 29 of this document, for an explanation of applicable fees. For examples of how to calculate your cost of insurance, please refer to the Insurance Guide. Transferring cover You may be able to transfer your existing insurance cover ownership to the Trustee of the Fund. Any such transfer will be subject to Trustee approval and will incur fees as follows (in addition to the premiums payable under your existing insurance policy): an initial insurance establishment fee of $66 (including GST) payable at the time of policy ownership transfer; and an annual administration fee of 5.5% (including GST) of premiums payable under your existing insurance policy. The description of insurance contained within this document and the Insurance Guide does not apply to the transferred cover mentioned above. Relevant terms and conditions will be in accordance with the policy that is transferred to the Trustee. Important information This section of the PDS is not intended to include full details of the terms and conditions of the Policy. Please refer to the Insurance Guide for more details. All capitalised terms are defined in the Insurance Glossary in the Insurance Guide. Insurance cover is available through an agreement (Policy) between the Trustee and the Insurer as a provider of insurance. You must have an existing super account to acquire and maintain insurance cover, with the Trustee as the policy owner. The Insurer must assess your application for insurance and if you re accepted for cover, this will be issued by the Insurer under insurance policies owned by the Trustee. Before applying for insurance cover within the Fund you should carefully read the Insurance Guide which sets out: important information about the insured benefits provided the terms and conditions of those benefits the exclusions and restrictions on the payment of those benefits. You should speak with your adviser to determine your insurance needs and whether the insurance cover offered within the Fund is suitable for your needs. You can find the Insurance Guide at 20

34 7 How to open an account To open your account you ll need to complete an Application Form and send it to HUB24. Once you ve deposited your funds into your account, you can tell your adviser to implement your investment strategy for you. You can arrange for a direct credit to HUB24 Custodial Services Ltd (the custodian). For details of how to contribute, please refer to your welcome letter for Bpay details, or contact HUB24 on If you wish to make an electronic funds transfer (EFT). For EFT transactions, ensure that the transaction reference consists of the same reference number provided to you for Bpay contributions. Keep a record of the transaction and contact us if you do not see the funds deposited within a few days. If the Trustee is not able to issue interest in the Fund for some reason (e.g. because you didn t provide your Tax File Number), your money will be held in a non-interest bearing separate trust account until: we can issue interest in the Fund we refund the money, or the money is otherwise dealt with in accordance with relevant legislative requirements. How to contribute to your account Once you ve opened your account you can make one-off and regular contributions. You can view your transactions online, and all contributions will be shown on your statements. Unless you advise otherwise, all contributions will be credited to your account as non-concessional or after-tax member voluntary contributions. There are restrictions that apply as to who can make contributions and how much can be paid. For more information on who can contribute, and the eligibility rules and limits that apply, see the Member Guide. If you re not sure whether you re eligible to contribute, or how much you can contribute, please ask your adviser. Payment Who When How Bpay from your savings account Personal, spouse One-off or regular Use the following details for Bpay transactions: Biller code: The Customer Reference Number will be provided to you with your welcome letter. In addition, the above Bpay biller code and your Customer Reference Number must be used for any future contributions made via Bpay. Spouse contributions If your spouse is intending to make Spouse Contributions on your behalf, they must understand the conditions for making Spouse Contributions. In addition: they must be an Australian resident taxpayer earning assessable income you cannot be an employee of your contributing spouse you must be an Australian resident and under 65 years of age, or you must be an Australian resident between 65 and 69 and employed on at least a part-time basis. 21

35 Payment Who When How Direct debit from your savings account Personal, spouse One-off or regular Complete a direct deposit request to transfer funds from your bank account. Electronic funds transfer (EFT) Employer One-off or regular If you want your employer to pay your SG contributions to the Fund, please ask your employer to contact HUB24 for our bank details, as we must receive any electronic transfers from an employer with a specific EFT transaction reference (indicating the account number and the type of contribution), so we can deposit the money to your account. Unidentified contributions cannot be applied to your account. Cheque Personal, employer, spouse One-off Forward a cheque made payable to HUB24 Custodial Services Ltd. Unidentified cheques (with no attached form or reference number) cannot be applied to your account. In specie (asset) transfers Personal One-off 1. Check with your adviser or contact HUB24 to check whether the assets can be transferred to your account. 2. Complete and return the in specie transfer Form. You can obtain this form from the Disclosure Documents section of or from the Forms section of the client workbench. Note: Consult your adviser about the likely impact of the transfer, including any Capital Gains Tax (CGT) liability, the effect on your contribution caps and the Fund s diversification limits. Acceptance of an in specie transfer is subject to the Trustee s approval. Registered to Bpay Pty Ltd ABN How your contributions are treated HUB24 pays all cash contributions into your cash account. If you have specified that your contributions are Personal concessional you should also tell us this in writing when you make the contribution. We ll send you a Tax Deduction Notice to complete after the end of each financial year. You use this to confirm the amount of your contributions that is tax-deductible. If we don t receive this notice back, we reclassify any personal concessional contributions as Personal non-concessional. You should regularly monitor your account to ensure that contributions have been correctly classified. In some cases we may not be able to reclassify them. If HUB24 can t process your contributions for some reason (e.g. due to insufficient information or some outstanding requirements), we ll contact you or your adviser. In the meantime we ll hold the money in a non-interest bearing trust for up to 30 days. After this we ll return the money to the source of the payment if we can, otherwise the money will be dealt with in accordance with relevant legislation. We don t pay any interest on money held in trust. If a contribution is dishonoured, we ll pass on the bank s dishonour fee to you. Please note that your financial institution may also charge you a dishonour fee. Transferring other super money to the Fund To transfer your super benefits from another fund to the Fund, you need to complete and send HUB24 a Rollover Form. We ll then arrange to have your super balance transferred to your account. You can find the Rollover Form in the Application Forms Booklet available from your adviser or our website at HUB24 will pay all transfers into your cash account before reinvesting them in line with adviser instructions. 22

36 8 The role of your adviser Your adviser is integral to the management of your account and investment strategy. Together with your adviser you can devise an investment strategy that suits your personal circumstances. As part of your Statement of Advice, your adviser will give you the following documents: Product Disclosure Statement (this document) Member Guide Insurance Guide Investment Guide HUB24 Financial Services Guide (FSG), and information relevant to your investment options: Non-Unitised Portfolio/Portfolio Blend Disclosure Document product disclosure statements for each managed fund you invest in fact sheet for ETFs general information on the direct share securities information guide on the term deposits. All these documents are available on the HUB24 Super section of our website and the workbench. Important information Investment instructions can only be submitted through your adviser. By signing the application form, you authorise your adviser to submit investment instructions to us on your behalf, and acknowledge that the Trustee will act on those instructions without consulting you, unless you have agreed with your adviser to use the trade notification feature. Providing instructions to HUB24 through your adviser By completing the Fund s Super Application Form or Pension Application Form, you authorise your adviser to have access to your account details and to transact on your account. This means the Trustee and its service providers can accept and act on such instructions given by your adviser without requiring your signature, additional proof, instructions or further confirmation from you. Providing instructions through your adviser The Trustee is entitled to rely on the instructions of your adviser as if they were your instructions, unless we have reason to believe that the person providing the instructions is not your adviser. HUB24 will continue to act upon any instructions from your adviser until we receive a written cancellation of the appointment. If you cancel the appointment of your adviser, then unless you appoint another adviser acceptable to us, we may request that you transfer your benefit to another complying super fund. If you fail 23

37 to comply with that request within 30 days from the date of that request, the Trustee may transfer you to the Fund s nominated Eligible Rollover Fund. You and your adviser: release, discharge, and indemnify the Trustee and all of the Trustee s successors and assigns from and against all losses, actions, liabilities, claims, demands, and proceedings arising from your appointment of an adviser, and all acts matters and things done or purported to be done by an adviser even if not actually authorised by you, and neither you nor any person claiming through you will have any claim or right against the Trustee or any of the Trustee s successors and assigns in relation to any act, matter, or thing done or purported to be done by your adviser or any person purporting to be your adviser, provided that the Trustee or its service providers have no reasonable reason to believe that the person purporting to be your adviser is not your adviser. Refer to the Application Form accompanying this PDS for further information about the terms and conditions applicable to your appointment of an adviser. 24

38 9 Fees and other costs Did you know? Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your Fund balance rather than 1% could reduce your final return by up to 20% over a 30-year period (e.g. from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You may be able to negotiate to pay lower contribution fees and management costs in some cases. Ask the Fund or your adviser. To find out more If you d like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) consumer website ( ) has a calculator to help you check out different options. This PDS shows fees and other costs that you may be charged. These fees and costs may be deducted from your account, from returns on your investment or from assets as a whole. Taxes are set out in the Member Guide and insurance costs are set out in the Insurance Guide. You should read all the information about fees and costs because it is important to understand their impact on your investment. Fees and costs for particular managed funds, ETFs and non-unitised portfolios/ portfolio blends are set out in the relevant product disclosure statement or disclosure documents. Type of fee or cost Amount How and when paid Fees when your money moves in or out of the Fund Establishment fee The fee to open your investment Contribution fee The fee on each amount contributed to your investment either by you or your employer Withdrawal fee The fee on each amount you take out of your investment Termination fee The fee to close your investment Nil Nil Nil Nil 25

39 Type of fee or cost Amount How and when paid Management costs Administration fee a & b (% of your Total Account Balance) First $250, % p.a. $250,001 $500, % p.a. $500,001 $1,000, % p.a. $1,000,001 $2,000, % p.a. More than $2,000, % p.a. with minimum $300 p.a. per account plus an account keeping fee of $110 p.a. per account. Paid to HUB24 and the Trustee. Deducted from your cash account monthly in arrears by the15th day after month end. Investment costs The fees and costs for managing your investment. The amount you pay for specific managed funds, non-unitised portfolios/portfolio blends or ETFs is shown in the relevant product disclosure statement or disclosure document, available on the adviser workbench, client workbench and at our website Service fees c Investment switching fee The fee for changing investments. Managed funds b Current estimated ranges are from 0.00% to 3.40% p.a. (excluding Investment Performance Fees) on your account balance ($0 $340 per $10,000) depending on the managed fund option chosen. Current estimated ranges of the Investment Performance Fee vary from 0.00% to 30.00% p.a. ($0 to $30 for every $10,000 invested) that earns 1% over benchmark) depending on the managed fund chosen. Non-unitised portfolios/portfolio blends Current estimated ranges are from % to 0.99% p.a. on your account balance ($8.25 $99.00 per $10,000) depending on the non-unitised portfolio option chosen. Current estimated ranges of the Investment Performance Fee vary from 0.00% to 16.50% p.a. ($0 to $16.50 for every $10,000 invested) that earns 1% over benchmark) depending on the non-unitised portfolio option chosen. ETFs Current estimated ranges vary from 0.09% 0.67% p.a. ($9 $67 per $10,000) depending on the ETF option chosen. Other investments Nil Nil Paid to the manager. Non-unitised portfolios and portfolio blend fees are deducted from your cash account monthly in arrears by the 15th after month end. Note: Fees in the managed funds and ETFs are embedded in the unit price. a The administration fee is negotiable depending on arrangements agreed between your adviser group and the trustee and promoter of the Fund. b The Trustee recognises that investing is often a family decision. You can nominate Immediate Family Member(s) with whom you can link your combined investments to gain a discount. The Trustee will give you a 10% discount on the administration fees incurred. The discount will apply from the time of submitting the application to link investments. The Trustee has the right to reject a request and may cancel the linking of investors at any time. c For more information about management and performance fees in relation to managed funds and non-unitised portfolios, please refer to the relevant product disclosure statements or documents provided by your adviser. d Other service fees may apply such as adviser service fees. See Section 9, Fees and other costs Additional explanation of fees and costs on page

40 Example of annual fees and costs for a balanced investment option* The tables below give examples of how the fees and costs in a balanced investment option* for this product can affect your super investment over a one-year period. You should use these tables to compare this product with other super products. The examples are provided for illustrative purposes only, are based upon the factors stated and should not be taken as an estimate or a guarantee. Super You should use this table to compare this product with other super products. Example the balanced investment option 1 Balance of $50,000 with total contributions of $5,000 during a year Contribution fees Nil For every $5,000 you put in, you will be charged $0. plus Management costs Investment costs: 0.95% equals Cost of fund Administration fee: 0.60% (subject to minimum of $300 p.a.) + $110 For every $50,000 you have in the fund you will be charged $475 investment costs each year plus $410 in administration fees. If you put in $5,000 during a year and your balance was $50,000, then for that year you will be charged a fee of $885* What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or adviser. * Additional fees may apply, refer to Section 9, Fees and other costs Additional explanation of fees and costs. 1 The balanced investment option chosen for this example is the BlackRock Wholesale Balanced fund (APIR Code PWA0822AU). The fees shown are based on the investment costs of the Blackrock Wholesale Balanced fund for the year ending 30 June 2011 and the fund s other fees and costs as disclosed in this PDS, and are subject to change from year to year. Pension You should use this table to compare this product with other super products. Example the balanced investment option 1 Balance of $50,000 Management costs Investment costs: 0.95% Administration fee: 0.60% (subject to minimum of $300 p.a.) + $110 For every $50,000 you have in the fund you will be charged $475 investment costs each year plus $410 in administration fees. equals Cost of fund If you put in $5,000 during a year and your balance was $50,000, then for that year you will be charged a fee of $885*. What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or adviser. * Additional fees may apply, refer to Section 9, Fees and other costs Additional explanation of fees and costs. 1 The balanced investment option chosen for this example is the BlackRock Wholesale Balanced fund (APIR Code PWA0822AU). The fees shown are based on the investment costs of the Blackrock Wholesale Balanced fund for the year ending 30 June 2011 and the fund s other fees and costs as disclosed in this PDS, and are subject to change from year to year. 27

41 Additional explanation of fees and costs Account-keeping fee The account-keeping fee covers the costs of managing your account and implementing your investment strategy. Administration fee The administration fee is based on your total account balance and calculated daily and paid monthly in arrears from your account. The administration fee includes an amount paid to HUB24 and an amount to the Trustee as remuneration for its services. In certain circumstances, trustee remuneration and reimbursement of expenses may be passed on to members in the form of an expense recovery (refer to Expense recovery fee on page 30). Investment costs Investment costs will apply when you choose to invest in a managed fund, exchange traded fund or through a non-unitised portfolio or portfolio blend. Investment costs are the fees and costs charged by the underlying investment manager. These costs do not apply to investments in the cash account, term deposits or in listed securities. Where you invest in a non-unitised portfolio or portfolio blend, an investment management fee may apply. This fee is payable in addition to any investment costs or transaction fees payable in respect of the underlying investments. The investment costs shown in the fees table on page 26 provide an estimated range of investment costs (from lowest to highest) of the current investment options available within the Fund, as well as an estimated range of performance-based fees which may be payable. Performance-based fees may apply when investment performance exceeds set benchmarks or other specified criteria in the underlying investment s disclosure document. Given the number of investment options available, and the fact that they change from time to time, the investment costs for each underlying investment are not included in this document. These details are available in the relevant disclosure document for each underlying investment option and can be obtained from your adviser. The investment costs may also change as determined by the managers. Performance fees Performance fees may be charged in relation to the selected managed funds and non-unitised portfolios forming part of your investment strategy, and will be paid to the relevant manager where certain performance targets are met. Refer to the relevant managed fund product disclosure statement or non unitised portfolio disclosure documents for more information about performance fees that may be payable. 28

42 Service fees Type Amount How and when paid Transaction fees for managed funds and term deposits $22.00 per managed fund (buy or sell transactions) This transaction fee is paid in addition to the trade cost. This fee is not applied if the transaction(s) occur as part of the automatic cash management facility or the automatic drawdown facility. Brokerage for securities Approximately 0.11% of the value of each transaction This fee is paid in addition to the cost of the trade for securities within the non-unitised portfolio, portfolio blends and securities sleeves. This fee is deducted at the time of the transaction. Term deposit break fee $55 This fee will be charged when a term deposit is broken before maturity on your instruction via the adviser. Additional fees or interest penalties may be charged by the underlying term deposit provider. In specie transfer fee for direct securities Up to $27.50 per security This is a transaction fee for transferring securities into or out of the Fund. It will be deducted at the time the security is transferred. In specie transfer fee for managed funds Up to $38.50 per managed fund This is a transaction fee for transferring managed funds into or out of the Fund. It will be deducted at the time the managed fund is transferred. Reconstruction fees $110 per hour Incurred only if a revision of CGT parcel history is required. Dishonour fee $55 For dishonoured payments. Insurance establishment fee $66 Paid to HUB24 when your insurance commences or when the Insurer approves an application to change your cover (e.g. when you ask to increase your IP cover after a salary increase), or when you transfer your existing insurance ownership to the Trustee. Insurance administration fee 24.75% of the insurance cost Paid to HUB24 as part of your monthly insurance payment. Transfer and approval of existing insurance policy 5.5% p.a. of premiums payable under the policy Paid to HUB24 when the insurance policy is approved and transferred and on the subsequent premium payment anniversaries. Adviser service fees See Adviser remuneration and fees on page 31. A proportion of the service fees above (other than adviser service fees) may be paid to HUB24. See HUB24 s Financial Services Guide for more information. Buy/sell spread Buy/sell spreads may apply to investments in managed funds which reflect the different price between buying and selling units disclosed by some investment managers. The buy/sell spreads for managed funds vary. This difference is a charge by the investment manager generally to cover transaction costs incurred in buying and selling units in the investment product, and is taken into account in the calculation of unit prices. Buy/sell spreads are an additional cost to the investor. You should refer to the relevant product disclosure statement for more information. 29

43 Expense recovery fee The Trustee is entitled to reimbursement for certain out-of-pocket expenses from the assets of the Fund. If incurred, these expenses may be deducted from time to time from your cash account. The Trustee is entitled to recover previously unrecovered expenses, as well as ongoing expenses, as they are incurred. The expenses that can be recovered include audit charges, bank charges, compliance costs, taxation advice costs, government taxes, duties and levies, and legal, postage, printing and stationery and other fees and costs incurred by or on behalf of the Trustee (including by service providers), in accordance with the Trust Deed. Insurance costs If you take out insurance with the Fund, the costs associated with the Policy will be deducted directly from your cash account on a monthly basis in arrears. The cost of your insurance cover will depend on: your age, gender, smoking status and occupational classification the type of cover and benefits that you have chosen for IP cover, the Benefit Period and Waiting Period applicable to you. Loadings (additional insurance costs) may apply to you depending on your personal circumstances. You will be advised of any loadings by the Insurer at the time of application. The cost of insurance may be adjusted for any changes to your cover during a financial year. To the extent that a member s insurance costs are tax deductible, the benefits of any tax deduction will be passed onto member accounts during the periodic calculation of member account taxation liabilities. For more information on the cost of insurance cover, see the Insurance Guide. Adviser remuneration and fees You may have to pay additional fees to an adviser. You may agree with your adviser to an adviser fee to be paid for financial planning services provided to you in relation to the Fund. This adviser fee may be: a one-off dollar amount, or a set percentage of your account balance, or a combination of both. You may also agree with your adviser to a contribution fee to be paid for advisory services provided to you in relation to the Fund. The contribution fee may be a set percentage of any initial and/or subsequent contributions. Your adviser can also charge brokerage of a set percentage of the value of any securities that are bought or sold or any insurance cost. The Statement of Advice from your adviser details any fees for their advisory service. 30

44 The fees that may be paid to your adviser are: Type Adviser fee For a $50,000 Total Account Balance with an adviser fee of 1.1%, this equates to $550 p.a. Description If you agree, your adviser may charge you an ongoing percentage fee on your total account balance of up to 2.2% or, alternatively, a fixed dollar amount. This fee is calculated daily on the total account balance and paid to your adviser from your cash account monthly in arrears. Contribution fee For a $5,000 contribution with a contribution fee of 0.55%, this equates to $27.50 based on that individual contribution. If you agree, your adviser may charge you an ongoing contribution fee or an initial contribution fee of up to 5.5% on an initial or subsequent investment. Adviser brokerage For a $500 trade with an adviser brokerage rate applied of 1.1%, this equates to brokerage of $5.50. Your adviser may elect to charge you brokerage of up to 2.2% of the value of any securities bought and sold. Brokerage can be charged by your adviser on the buying and selling of shares held within your securities portfolio. Fees are deducted from your cash account at the time of the transaction and remitted to your adviser at the end of the month. Insurance brokerage For a $150 insurance cost per month that includes an insurance brokerage rate of 10%, this equates to insurance brokerage payable to your adviser of $15 per month. Your adviser may elect to charge you brokerage of up to 20% of the cost of your insurance. Insurance brokerage is deducted as part of your insurance cost and remitted to the adviser at the end of the month. Tax All fees quoted in this PDS include GST and reflect the actual amounts charged to you. If eligible, the Trustee will claim the benefit of GST income tax credits on behalf of the Fund. HUB24 will collect all fees and pay service providers out of the fees that we collect. Where other government charges such as stamp duty apply, we will charge your account directly. Alternative forms of remuneration From time to time, HUB24 Custodial Services Ltd may receive direct or indirect benefits from providers of some of the financial products or other services that are available through the Fund. HUB24 may also be entitled to remuneration from financial institutions (including banks) that provide certain services to members in the Fund. You can ask for details of any alternative forms of remuneration that may be received by contacting HUB24 Custodial Services Ltd on Any alternative forms of remuneration are recorded in a register. The register outlines all alternative forms of remuneration received and is publicly available upon request. Cash account rebate HUB24 may receive a rebate of up to 0.7% p.a. on amounts invested in the cash account within the Fund from the Australian Authorised Deposit Taking Institution (ADI) with which those funds are invested. Any such rebate is paid at no additional cost to you. 31

45 Increases or alterations to fees and charges Under the Trust Deed, the Trustee has broad power to increase existing fees and charges or impose additional fees with the consent of HUB24. No maximum limits on fees are specified in the Trust Deed. If the Trustee decides to introduce any additional fees or increase existing fees and charges, we ll give you no less than 30 days advance written notice. Underlying investment fees or costs and transaction costs may also change. Information about any changes will be contained in the product disclosure statement or other disclosure document for an underlying investment available from time to time, and to the extent practicable, will also be notified by the Trustee where required by law. Estimated costs may change from year to year depending on the experience of the Fund and underlying investments. 32

46 10 How super is taxed Super can be a tax-effective way to grow your retirement savings, as generally any taxes applicable to super are at a concessional (lower) rate, as long as you ve advised us of your Tax File Number (TFN). For more information on tax, refer to the Member Guide which is available at or by calling us on Providing your Tax File Number Important: You must provide your TFN when you start your account. You re not required by law to do so, but if your TFN is not provided, your account cannot be opened. Under the Superannuation Industry (Supervision) Act 1993 (Cth), the Trustee is authorised to collect your TFN, which will only be used for lawful purposes. These purposes may change in the future as a result of legislative change. The Trustee may disclose your TFN to another superannuation provider, when your benefits are being transferred, unless you request in writing that your TFN not be disclosed to any other superannuation provider. It is not an offence not to quote your TFN. However giving your TFN to the Trustee will have the following advantages, which may not otherwise apply: the Trustee will be able to accept all types of contributions to your account the tax on contributions to your account will not increase other than the tax that may ordinarily apply, no additional tax will be deducted when you start drawing down your superannuation benefits; and it will make it much easier to trace different superannuation accounts in your name so that you receive all your superannuation benefits when you retire. Tax and your account balance Your account balance doesn t include the tax impact of any realised gains or losses that may arise if you request a full withdrawal of your account. You can request a quote periodically on your withdrawal benefit which is the amount that would be available if you request a full withdrawal. Your account balance and your withdrawal benefit are both disclosed in your annual statement. 33

47 11 Transacting in HUB24 Super Your instructions HUb24 will act on the instructions we receive from your adviser as soon as practicable. We have no obligation to act in accordance with the instructions to the extent that we reasonably consider them to be ambiguous, unclear, or in conflict with any applicable law, regulations or local market practice, or not directed by you, in which case we will notify your adviser. If there has been a change or event, which we have not yet informed you about, but which we believe may be important to you when making an investment, we may not be able to immediately comply with any investment instructions we receive from your adviser. If this happens we ll send your adviser the relevant information and will only execute the instructions when we believe your adviser has received all the necessary information. To maintain the minimum cash balance in your account, HUB24 can sell your assets without your instructions. If you use our rebalancing services, we may acquire or dispose of assets in your account from time to time, without your instructions. You also authorise HUB24 to implement managers decisions relating to corporate actions on your behalf without consultation for securities in a non-unitised portfolio or portfolio blend. In the case of securities held in the securities portfolio, or in the in specie sleeve, your adviser can instruct HUB24 in relation to the corporate action. You must direct your adviser to instruct us on the corporate action and we may be able to process the corporate action. In emergencies or situations where you can t contact your adviser and you need to provide investment instructions to us, you may give us written and signed instructions directly, as long as you ve received all the relevant disclosure documents for your selected investment option. These instructions can be faxed to us on the number specified in page iv, How to contact us. Trade notifications If your adviser is planning to perform a rebalance or reallocation on your account, your adviser may send you an notifying you of a set of pending investment instructions. This is called a trade notification. The specific details of the investment instructions will be set out on the workbench. You have the agreed timeframe (noted in your Statement of Advice) from the time and date of the trade notification to cancel these pending investment instructions. If you don t respond or take any action in relation to the pending investment instructions, your adviser will submit the investment instructions on or around 10.00am the next business day. If you can t contact your adviser to cancel the pending investment instructions, you can give HUB24 verbal and written instructions directly, as long as the verbal and written instructions are received by HUB24 within the agreed timeframe from the time and date of the trade notification. The rebalance and reallocation of portfolio blends may occur regularly and you may receive a trade notification from your adviser each time a rebalance or reallocation occurs. Note: You and your adviser may or may not use this trade notification feature, depending on your investment strategy. The trade notification feature has been developed to provide transparency and the right to veto any pending investment instructions within the agreed timeframe with your adviser. 34

48 You and your adviser can agree to the implementation of this feature. If you agree to use this feature your adviser will document in your Statement of Advice the agreed timeframe for you to act to cancel a pending instruction. In specie transfers An in specie transfer is when you transfer an existing investment option you own from another super fund into the Fund. These transfers can only take place if it is an approved investment option and listed in the Investment Guide. To enable us to do this HUB24 needs to receive: a completed in specie transfer form complete accurate details of the CGT parcel history of each security. Important notes for in specie transfers The Trustee will only accept an in specie transfer if the beneficial owner of the securities and the applicant details in the Application Form are in the same name. We must be able to check the beneficial ownership of the relevant security. Fees may apply per security transferred. Refer to Section 9 Fees and other costs. Where other government charges such as stamp duty apply, your account will be charged directly. The Trustee reserves the right to delay processing the in specie transfer if a corporate action is pending on the security. The Trustee reserves the right not to accept any securities into the Fund. Please ensure cost base information and the CGT parcel history of securities is accurate. If there are inaccuracies in the CGT parcel history provided, and HUB24 has to reconstruct parcel history manually for CGT purposes, we will charge fees on an hourly basis (refer to the table in Section 9, Fees and other costs Additional explanation of fees and costs, Service Fees on page 29). Trade restrictions HUB24 may not be able to fully implement buy and sell instructions received in relation to your account because: trade orders may not be able to be fully executed or may need to be executed in increments on the market (e.g. where full execution of the trade order would expect to move the market and accordingly, affect the share price of the relevant security) a trade order may be rejected if a security becomes suspended or placed in a trading halt the broker may require HUB24 to submit trade orders of a minimum size there is not enough money in your cash account. For example, a $2,000 buy instruction to a non-unitised portfolio with 20 securities and a minimum security weight of 1% can result in 20 buy trades, with the smallest trade being $20. HUB24 and/or the brokers reserve the right to restrict such small trades from proceeding to market. 35

49 Income HUB24 automatically pays income received from all other securities, held in your securities sleeve, into your cash account, unless you have requested a dividend reinvestment plan online. Please note that you may not have the current disclosure documents when your distributions are reinvested as additional holdings in the relevant security or securities. Current disclosure documents are available at the HUB24 website: and the workbench. Transacting in managed funds The unit price that you receive for managed investments is determined by the issuer of the managed investment (Product issuers). Investments are valued using the latest available unit price provided as the day-end End price data by the sub-custodian. The end prices are available on the adviser workbench. Product issuers have different rules relating to when applications and withdrawals will be accepted and processed. Details of these rules and turnaround times can be found in the product disclosure statements and other disclosure documents for each managed fund. Where transaction requests are placed online by your adviser before 3.00pm Eastern Standard Time (Sydney) on a business day, HUB24 will generally send instructions to the product issuer on the same day. Where transaction requests are placed after 3.00pm Eastern Standard Time, these will be sent the following business day. Redemptions of some managed funds may take up to three months or more depending on the investment. HUB24 and the Trustee are not liable for delays caused by third parties. 36

50 12 How we communicate with each other You must provide HUB24 all instructions about your account and investment options through your adviser. If you need help you should contact your adviser. You can monitor your account using HUB24 s workbench. The table below shows the types of communication we will provide to you or which you can access: Communication Welcome letter Purpose Confirms your account has been opened. Member statements Provide summaries of your transactions and investment details and will be available at annually. Notice of intent to claim a tax deduction Included with your annual statement. This shows personal contributions made to your super account during the financial year and sets out the information you need if you want to claim a tax deduction on your personal contributions. Annual report Provides an overview of changes that affect you and an abridged version of the financial reports for the Fund. The report will be available at Annual pension information We ll send you details of the minimum and maximum (if applicable) payment you may receive for the new financial year. We also include information to help you complete your Tax Return or that you may need to provide to Centrelink. Audited financial statements Provides a complete version of the financial reports for the Fund. Accessing information on your account You can view your account information including statements, portfolio reports and transaction confirmations on your client workbench. The value of your account is the sum of all the investments held in your account including your cash account. Your account balance doesn t include the tax impact of any realised gains or losses that may arise if you request a full withdrawal of your account. You can request a quote periodically on your withdrawal benefit which is the amount that would be available if you request a full withdrawal. Your account balance and your withdrawal benefit are both disclosed in your annual statement. 37

51 13 Other information Consents The third parties named have consented to being named in this PDS in the form and context in which their name is included and have not withdrawn their consent before the date of this PDS. Privacy policy In order to provide you with services and products, we will need to obtain personal information about you such as your name, address and telephone number. We may not be able to process your application if we do not obtain such personal information. We may collect, hold and use your personal information in order to assess your application, service your needs as an investor, provide facilities and services to you and for other purposes permitted under the Privacy Act 1988 (Cth). Tax and company law also require some of the information to be collected in connection with your application. Any personal information collected about you will be handled in accordance with our privacy policy. Your information may be disclosed to our related body corporates and their affiliates, delegates, agents and service providers on the basis that they deal with such information in accordance with our privacy policy. We may also need to disclose information about you to government entities and regulators as required by law. If you wish to examine your file or to get access to your personal information, please call us. If you have concerns about the accuracy of any personal information that we hold, you may request access to this information by writing to us. You may obtain a copy of the Trustee s privacy policy at Anti-money laundering/counter-terrorism financing In accordance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act), HUB24 has the right to collect and identify information and to verify documents. From time to time, we may require additional information from you to assist in this process. Pursuant to provisions within the AML/CTF Act, we also have the right not to provide financial services in certain circumstances. In complying with obligations in relation to the AML/CTF Act, there may be instances where transactions are delayed, blocked, frozen or refused where reasonable grounds are established that the transaction breaches Australian law or sanctions, or the law or sanctions of any other country. Where transactions are delayed, blocked, frozen or refused, we are not liable for any loss you may suffer (including consequential loss) as a result of compliance with the AML/CTF Act as it applies to the Fund. We have certain legal obligations to disclose information gathered to regulatory and/or law enforcement agencies, including to the Australian Transaction Reports and Analysis Centre (AUSTRAC). We have reporting obligations in relation to the AML/CTF regulatory regime and must report certain matters to AUSTRAC. These requirements may prevent us from informing you that any such reporting has taken place under a tipping-off prohibition. 38

52 Complaints The Trustee has a complaints handling process. If you have a complaint you should contact HUB24 (details are provided on the back cover of this PDS). Your complaint will be acknowledged and we aim to resolve most issues within five business days. For more complex issues the Trustee will keep you updated regularly as to the progress of your complaint. Please refer to the Complaints and Dispute Resolution Process on the Trustee s website for more information. If you do not get a satisfactory outcome, you can contact the Superannuation Complaints Tribunal (SCT). The Tribunal is an independent dispute resolution body. Contact details for the SCT are: Superannuation Complaints Tribunal Locked Bag 3060 Melbourne VIC [email protected] Website: Cooling-off period You have a 14-day cooling-off period to decide whether the Fund is right for you. The cooling-off period starts on the date you receive your welcome letter, or five working days after HUB24 opens your account, whichever happens first. The cooling-off period doesn t apply if you transact on your account within the 14th day period (e.g. you make a withdrawal). During the cooling-off period, you can cancel your account and withdraw or roll over any amount that isn t preserved. If you have any preserved or restricted non-preserved benefits in a super account or transition to retirement pension, it can only be transferred to another complying super fund. For transition to retirement pensions you can also transfer your benefits back into a super account. You will need to tell HUB24 where to transfer these super benefits. The amount returned to you or transferred to another fund may vary from the amount you invested because your account balance will be adjusted for any: increase or decrease in the value of your investment insurance costs pension payments made to you tax payable administration costs incurred in establishing or closing your account. You may wish to obtain financial advice before exercising your cooling-off right as it may have tax implications. To close your account under the cooling-off period, you will need to notify HUB24 in writing of your intention as well as your name and account number. We will send you confirmation once we have closed your account. UK pension transfer The Fund may be able to accept amounts from United Kingdom (UK) pension schemes. Qualifying Recognised Overseas Pension Scheme (QROPS) concessional tax arrangements apply. Members who transfer UK pension scheme balances overseas currently only receive concessional tax arrangements if they transfer the balance to a QROPS. 39

53 About the relationship The Trustee and HUB24 have entered into numerous agreements under which HUB24 is appointed to provide certain services to the Trustee including: Administration including investment administration Custody Investment management Broking Under the terms of the these agreements: HUB24 may be indemnified and have expenses reimbursed from the Fund where they have been properly incurred in its respective roles. HUB24 is paid fees as set out in Section 9. HUB24 has agreed to pay the Trustee an annual fee for acting as trustee of the Fund. Refer Section 9 for further details. Either party may terminate the agreement in certain situations such as by mutual agreement and where the other party becomes insolvent, can no longer perform the respective role or breaches the agreement and does not remedy the breach in the requisite time. Upon termination of the agreements, HUB24 may agree with the Trustee to retire as trustee of the Fund and for another entity to be appointed as trustee (which could include a third party trustee or HUB24 itself). Investing in the Fund vs direct investments Investing through the Fund isn t the same as investing directly. There are many benefits of investing through the Fund, such as: we can offer lower investment fees on managed funds where they are accessible at the wholesale rate you can benefit from the convenience of consolidated reporting of all your investments, and you can improve your tax position because superannuation is taxed at a concessional rate you should also be aware that we own the assets on your behalf. This means: we may sell investments on your behalf, such as when your account does not meet the minimum cash requirement you don t have the right to attend investor meetings or vote and we may do this on your behalf, and you can only participate in some corporate actions on Australian Direct Shares held in the securities sleeve you can t participate in corporate actions for Australian Direct Shares held within non-unitised portfolios, portfolio blends and managed funds as the investment manager is responsible for corporate action decisions. you don t have access to the 14 day cooling-off period available for managed investments purchased within the Fund all income distributions must initially paid into your cash account. You may be able to reinvest distributions back into the investment option that earned the income dy 40

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55 HUB24 Super Mailing address: GPO Box 529, Sydney NSW 2001 Level 45, Governor Phillip Tower 1 Farrer Place, Sydney NSW 2000 T F E [email protected]