Thursday, 5 July Name. Dear. RE: Significant event notice: LifeFocus Superannuation Fund

Transcription

1 Thursday, 5 July 2012 Name Dear RE: Significant event notice: LifeFocus Superannuation Fund CCSL Limited, the Trustee of the LifeFocus Superannuation Fund (the LifeFocus Fund) is writing to advise members that it is making the following further improvements to the LifeFocus Fund. Appointment of Asgard Capital Management Limited The most significant improvement is the appointment of Asgard Capital Management Limited (Asgard) as the LifeFocus Fund s new administrator and custodian. Asgard is part of the BT Financial Group the wealth management arm of the Westpac Group. This change comes at no increase of ongoing Fund fees and will provide you with the following immediate benefits as well as access to future service enhancements developed by Asgard. Additional investment options including ASX listed shares; Shorter turn-around times for common processing tasks including contributions, withdrawals and member reporting; A wider suite of online reports; Access for your financial adviser to immediately execute changes to your investment portfolio using the online AdviserNET portal. The transition to Asgard is scheduled to occur on September 3 rd More detailed information on the benefits and changes occurring are outlined in the following pages. Investor Online Asgard Investor Online allows you to view the details of your Super or Pension account online, 24 hours a day, seven days a week. This includes the ability to check your account balance and investment mix as well as performance and transaction reporting, in addition to a much wider suite of reports than has previously been available.

2 You will receive a welcome letter from Asgard that contains your new member number and a further letter will follow after September 3 rd 2012 with your personal log in details and PIN. Making changes to your LifeFocus account From September 3 rd 2012, your financial adviser will be able to immediately execute changes to your investment portfolio using the online AdviserNET portal. This facilitates making changes to your investment options at any time, quickly and easily, as your needs or investment markets change. With your financial adviser, you choose which managed investments, company shares or cash to buy and sell and your financial adviser can place your investment instructions immediately. It is an Asgard requirement that you have a financial adviser assigned to manage your account and any changes you wish to make to your LifeFocus account will need to be done online by your adviser. If you are one of the small number of clients who do not currently have a financial adviser, we will contact you separately to make appropriate arrangements. Change of Insurance Policy For members with insurance, the LifeFocus Fund Death, Total and Permanent Disablement (TPD) and Salary Continuance insurance policy will be changing from TAL Life Limited to AIA Australia Limited effective midnight 31 August As this will be a new insurance policy, depending on your current cover there may be some changes to your insurance cover. In summary the new insurance cover will: not cost more than the existing cover (guaranteed for at least the first twelve months); provide the opportunity to apply for higher death, TPD, terminal illness and salary continuance cover, although a reduced maximum benefit of $1.5million applies to the Home Duties definition of TPD; provide an option to continue cover after leaving the LifeFocus Fund; remove the time based restrictions for overseas cover; provide higher level of interim accident cover on death and TPD together with a potentially longer period of coverage up to 180 days; provide more favourable definitions of TPD with reduced waiting period; have a different definition of partial disability for salary continuance insurance; have a definition of income for salary continuance insurance with a more generous level of indexation; provide an additional waiting period option of 60 days for salary continuance insurance, but removes the option of a five year benefit period; have a lower interim accident benefit of a maximum of $10,000 per month; and Insurance will no longer be offered to pension members. Members who at the time of this notice have a 5 year benefit period for salary continuance insurance will be upgraded in the new policy to up to age 65 cover, without incurring an increase in premium for the first 12 months.

3 Members with corporate insurance cover will be converted to personal insurance cover at the time of transition. Full details of the new insurance cover will be available in the new PDS available from September 3 rd Change of Investments Effective from September 3 rd 2012 all members will be able to invest in listed shares mostly represented in the ASX300 index, through their super or pension LifeFocus Fund account. Leading up to the move to Asgard a small number of investments will be replaced with similar investments which can be administered by the Asgard administration platform. If you are invested in any of these current investments you will automatically be placed into their replacements prior to the transition. There is nothing you need to do. The table below shows which investments will be replaced. Current Investment (APIR code) BlackRock Wholesale Indexed Australian Listed Property (BGL0052AU) BlackRock Wholesale Indexed Australian Bond Fund (BGL0010AU) BlackRock Wholesale Indexed Australian Equity Fund (BGL0005AU) BlackRock Wholesale Indexed International Equity (BGL0104AU) Kapstream Absolute Return Income Fund Premier Class (HOW4003AU) CFS Premium Cash Fund (FSF0075AU) Replacement Investment (APIR code) BlackRock Index Australian Listed Property (BGL0108AU) BlackRock Index Australian Bond Fund (BGL0105AU) BlackRock Index Australian Equity Fund (BGL0034AU) BlackRock Index International Equity (BGL0106AU) Kapstream Absolute Return Income Fund Wholesale Class (HOW4003AU) UBS Cash Fund (SBC0811AU)

4 ** Change in Pension payment dates ** Starting in September 2012, the date on which pensions are paid from the LifeFocus Fund will change from the 15 th of each month to the 20 th of each month. Accordingly, the August 2012 pension payment will be made on August 15 th as usual and the September 2012 pension payment will be paid on September 20 th. All subsequent payments will be made on the 20th of each following month. If this 5 day delay in payment is going to cause any financial concern, please contact your adviser as soon as possible to arrange an additional withdrawal. Due to the change in payment date you may need to adjust the timing of any regular payments you have set up from your bank account that occur between the 15th and 20th of each month. If you receive a six-monthly pension this will be converted to a quarterly pension. You will receive confirmation of your new pension date from Asgard. Direct debit requests Any direct debit requests you currently have set up in the LifeFocus Fund will end at the time of the move to the Asgard administration platform. A direct debit request is an automatic contribution from your bank account into your superannuation fund account. If you would like to set up a new direct debit request with Asgard, speak to your Adviser to arrange for a new direct debit authority to be completed and lodged with Asgard. No longer offers TAPs or QROPS. The Fund will no longer offer Term Allocated Pensions (TAPs) or the Qualifying Recognised Overseas Pension Scheme (QROPS) or be registered for QROPS. Affected clients have already been contacted by their financial adviser to assist them in moving their accounts to alternative funds. Temporary delay in some requests To enable the move of the Fund to Asgard there will be a 3 week period in which the LifeFocus Fund will not process investment option switches or transfer/payment requests. Any investment switch or transfer/payment requests received by the LifeFocus Fund before August 10 th 2012 will be processed as normal. All investment switch and transfer/payment requests received between August 10 th 2012 and September 3 rd 2012 will not be processed until after September 3 rd If you have any need for additional cash in this time period, please contact your adviser as soon as possible to arrange.

5 Fee Structure These changes come at no increase of ongoing Fund fees when the LifeFocus Fund moves to Asgard, however the way fees are calculated will change slightly. Details of the changes will be available in the new PDS available from September 3 rd The temporary fee increase of $40 per month announced in April 2012 will cease on November 10 th Corporate Members For those members who are in the employer superannuation division, the Fund will no longer offer corporate membership. Existing corporate members will be transferred to the personal division effective September 3 rd Do you need more information? Should you require any more information please us at [email protected] or call Yours sincerely Vincent Parrott Executive Director CCSL Limited Trustee for the LifeFocus Superannuation Fund