Your guide to the Lifetime Superannuation Fund transfer February 2014
The terms our, we, us refer to IOOF Investment Management Limited as the Trustee of the Lifetime Superannuation Fund and the IOOF Portfolio Service Superannuation Fund.
Plan B Your guide to the Lifetime Superannuation Fund transfer Your guide to the Lifetime Superannuation Fund transfer At IOOF, we have been helping Australians secure their financial future since 1846. We began as a friendly society providing social security support to our members. Over the past 165 years, we have evolved into a leading fund manager and administrator while maintaining a strong community focus. Today we are: an Australian-owned company servicing over 600,000 clients an ASX 200 listed company trusted with over $124 billion in funds under management, administration, advice and supervision a strong supporter of the Australian community through our IOOF Foundation. Our reputation is built on the specialist knowledge and expertise of our people. We take a holistic approach in offering a full range of investment and superannuation services to suit the needs, goals and life stages of each of our investors. We believe that dealing with a financial services company shouldn t be hard work. It strives to make any interaction you have with it easy and straightforward. IOOF s goal is to deliver a range of products that are able to meet your needs both now and in the future. We have undertaken a comprehensive internal review and determined that it is in the best interests of our members to transfer them from the Lifetime Superannuation Fund into IOOF Pursuit Select (Pursuit), part of the IOOF Portfolio Service Superannuation Fund. Why are we transferring your account to Pursuit? As Trustee, IOOF Investment Management Limited (IIML), is confident that you will find the features and benefits of Pursuit are better, in many aspects, than those offered by the Lifetime Superannuation Fund. By transferring your account to Pursuit, IIML will be able to more efficiently administer your superannuation and deliver improved features to you. The Responsible Entity of the underlying funds in which the Lifetime Superannuation Fund invests (collectively underlying funds or investment options ), has decided to wind up these investment options effective 28 March 2014. As a result, we have sought the most suitable investment alternatives, either an equivalent or similar option that you will be invested into on transfer to Pursuit. Please refer to the section Investment options on page 3 for further information. New features and benefits As a member of Pursuit, you will now have access to a range of new features and benefits, including: A wider investment menu Pursuit offers: A comprehensive range of managed investments across all asset classes and styles including managed investments from leading fund managers, generally at wholesale prices. Access to the majority of listed investment in the S&P/ASX 300 Index plus other listed investments approved by the Trustee from time to time, as well as Term deposits. This wider investment menu gives you even greater ability to construct a portfolio that meets your investment goals. A more robust administration system the Pursuit administration system is a flexible system that offers additional product features, such as a wider investment menu, with greater capacity for future enhancement. How will the transfer occur? The transfer will be a successor fund transfer in accordance with the relevant regulatory requirements. This means that the Trustee is satisfied that member rights in respect of the benefits in Pursuit are at least equivalent to those currently offered in the Lifetime Superannuation Fund. The Trustee has also determined that the transfer will be in the best interests of members as a whole. Important dates The transfer is scheduled to take place on Friday 28 March 2014. Before, during and after the transfer, there are some measures we need to take to ensure it is as seamless as possible, including the temporary transaction suspension referred to on the following page. 1
Temporary transaction suspension All withdrawals, asset transactions and switch instructions will be temporarily suspended from Monday 17 March 2014 until the transfer has been completed, which we anticipate will be around 4 April 2014. Contributions received during this period will be processed to your new Pursuit account after the end of the temporary suspension period and invested according to your investment instructions. What communications will you receive as a result of the transfer? Exit statement on completion of the transfer, you will receive a Member Termination Statement from the Lifetime Superannuation payment for the period 1 July 2013 to 28 March 2014. It is important you keep the Member Termination Statement for your records as your Member Benefit Statement for the 2013/14 financial year will only reflect transactions for your new Pursuit account effective from Friday 28 March 2014. Statement of Membership you will receive on the establishment of your Pursuit account, your Statement of Membership confirming your new account, investment instructions and your IOOF Customer Reference Number (CRN) for any future Bpay contributions. What won t change after the transfer? There will be no change to: your binding death benefit nominations your non-binding death benefit nominations your reversionary pension nomination the amount of insurance cover you hold (excluding insurance cover held in retail policies) the adviser fee amount that you agreed with your adviser for their services. Whilst Pursuit gives your adviser the flexibility to charge a variety of different member advice fees please note that no changes to your current fee arrangements will be made unless agreed by you. What will change after the transfer? Death benefits Within your Lifetime Superannuation Fund account, if you have not made a death benefit nomination (binding or non-binding), the Trustee will decide which of your dependent(s) will receive the death benefit. Within Pursuit, if you do not make a nomination, the Trustee will pay the death benefit to your estate. Also within Pursuit, if you don t renew your binding nomination within the three year period and it expires, the nomination is treated as a non-binding nomination (until you submit a new binding nomination). New account details Once the transfer is complete, you will be issued with a new Pursuit account number via your Statement of Membership. Cheque details Contributions remitted by cheque should be made payable to IPS IOOF Pursuit [your full name or account number] and submitted with contribution instructions. Bpay details Within Pursuit you have the option to make contributions using Bpay. Bpay details including your CRN and biller codes will be provided to you in your Statement of Membership. Electronic funds transfer contributions (EFT) Please note that Pursuit does not offer an EFT contribution facility. As a result, you will need to switch to Bpay to make any electronic contributions in future. You will also need to provide your Bpay details to anyone who currently makes EFT contributions on your behalf (such as your employer). Registered to Bpay Ltd ABN 60 079 139 518. 2
Plan B Your guide to the Lifetime Superannuation Fund transfer Online access Within the Statement of Membership from Pursuit you will be given details on how to access your new online system Portfolio Online. Portfolio Online provides a range of transaction and performance details about your account including: Member summary view your insurance, superannuation and pension details (if applicable). Information/transaction history view all post-transfer transactions including deposits/ contributions, payments/withdrawals and investment earnings. Investment options Pursuit offers a broad range of investment options which have been chosen to meet the needs of members. The investment selection available to you in Pursuit is outlined in the investment menu, that is available at www.ioof.com.au/product_list/planb_pursuit. Upon transfer to Pursuit, you will be invested into an investment option that is considered either equivalent or similar to your investment in the Lifetime Superannuation Fund based upon risk and return profile and asset allocation. Electronic communications Through Portfolio Online you can choose to receive any or all of the following communications from the Trustee electronically: Your annual statement. Confirmation of transactions which are required by law to be confirmed. Notice of any change or event required by law to be given to members. All communications other than those points listed immediately above. 3
The following investment map outlines the existing investment options in the Lifetime Superannuation Fund and the equivalent or similar investment options in Pursuit which you will hold after the transfer. If your current investment options(s) are not shown below then those investments will be transferred accross to your new Pursuit account. Current investment Market 35 To generate consistent returns from a diversified portfolio with special focus on defensive or income assets. 3 years. To generate consistent returns from a diversified portfolio with a strong bias towards defensive or income assets. Cash: 42% Diversified Fixed Interest: 23% Australian Shares: 23% International Shares: 12% Low to medium Market 45 To generate consistent returns from a diversified portfolio with a slight bias towards defensive or income assets. 4 years. Suitable for investors seeking both income and capital growth through a well-diversified portfolio. Cash: 30% Diversified Fixed Interest: 25% Australian Shares: 28% International Shares: 17% Medium New investment IOOF MultiMix Conservative Trust To provide stable returns over the medium term by investing in a diversified portfolio of defensive assets with some growth asset exposure, and to achieve a total return after fees in excess of the Trust s benchmark over a rolling 3 year period. 3-5 years. Suitable for investors seeking with an investment horizon of 3 to 5 years, with a low to medium level of risk tolerance, who are seeking a diversified portfolio of predominantly income producing assets with some growth asset exposure. Cash and short term securities: 23% Diversified fixed interest: 42% Property: 10% Australian shares: 11% International shares: 9% Low to medium Profile 45 To generate consistent returns from a diversified portfolio with a slight bias towards defensive or income assets. 4 years. Suitable for investors seeking both income and capital growth through a well-diversified portfolio. Cash: 30% Diversified Fixed Interest: 25% Australian Shares: 28% International Shares: 17% Medium 4
Plan B Your guide to the Lifetime Superannuation Fund transfer Current investment Market 55 To generate long term capital growth accompanied by a reasonable level of income from a diversified portfolio with a slight bias towards growth assets. 4 years. with some income. Cash: 20% Diversified Fixed Interest: 25% Australian Shares: 35% International Shares: 20% Medium to high Market 65 To generate long term capital growth accompanied by a moderate level of income from a diversified portfolio with a moderate bias towards growth assets. 5 years. with a moderate level of income. Cash: 10% Diversified Fixed Interest: 25% Australian Shares: 40% International Shares: 25% Medium to high New investment Profile 55 To generate long-term capital growth accompanied by a reasonable level of income from a diversified portfolio with a slight bias towards income and growth assets. 4 years. Suitable for investors seeking long-term capital growth with some income. Cash: 20% Diversified Fixed Interest: 25% Australian Shares: 35% International Shares: 20% Medium to Profile 65 To generate long-term capital growth accompanied by a moderate level of income from a diversified portfolio with a moderate bias towards growth assets. 5 years. Suitable for investors seeking long-term capital growth with a moderate level of income. Cash: 10% Diversified Fixed Interest: 25% Australian Shares: 40% International Shares: 20% Medium to 5
Current investment Market 75 To generate long term capital growth accompanied by a moderate level of income from a diversified portfolio with a moderate bias towards growth assets. 5 years. with a moderate level of income. Cash: 10% Diversified Fixed Interest: 25% Australian Shares: 40% International Shares: 25% Market 85 To provide investors with good prospects for maximising capital growth over the long term with a low emphasis on the level of income from a diversified portfolio with a strong bias to growth asset classes such as Australian and international shares and property. 5 years. with low emphasis on the level of income. Cash: 1% Diversified Fixed Interest: 14% Australian Shares: 41% International Shares: 44% New investment Profile 75 To provide investors with good prospects for maximising capital growth over the long-term with little emphasis on the level of income from a diversified portfolio with a significant bias to growth asset classes such as Australian and international shares and property. 5 years. Suitable for investors seeking long-term capital growth with some income. Cash: 6% Diversified Fixed Interest: 19% Australian Shares: 42% International Shares: 33% Profile 85 To provide investors with good prospects for maximising capital growth over the long-term with a low emphasis on the level of income from a diversified portfolio with a strong bias to growth asset classes such as Australian and international shares and property. 5 years. Suitable for investors seeking long-term capital growth with low emphasis on the level of income. Cash: 1% Diversified Fixed Interest: 14% Australian Shares: 41% International Shares: 44% 6
Plan B Your guide to the Lifetime Superannuation Fund transfer Current investment Market 95 To provide investors with good prospects for maximising capital growth over the long term with no emphasis on the level of income from a diversified portfolio with a very strong bias to growth assets. with no emphasis on the level of income. Cash: 0.3% Diversified Fixed Interest: 4.7% Australian Shares: 40% International Shares: 55% Australian Value Shares To achieve long-term capital growth through access to higher expected returns and provide diversification benefits of investing in the Australian equities sub-asset class of value companies. with no emphasis on the level of income. Listed Australian Companies as defined by a high book value relative to market capitalisation. New investment Profile 95 To provide investors with good prospects for maximising capital growth over the long-term with no emphasis on the level of income, from a diversified portfolio with a very strong bias to growth assets. Suitable for investors seeking long-term capital growth with some income. Cash: 0.3% Diversified Fixed Interest: 4.7% Australian Shares: 40% International Shares: 55% DFA Dimensional Australian Value To provide long-term capital growth by gaining exposure to a diversified portfolio of value companies listed in Australia. Not available. Dimensional s assets under management stem almost entirely from institutional clients, including but not limited to corporate and public sector pension funds, endowments and foundations, and clients of registered financial advisors. Dimensional s financial advisor accreditation process enables advisors to gain an understanding of Dimensional s funds, and how best to incorporate them into their clients portfolios. Australian Shares: 100% 7
Current investment Emerging Markets To achieve long term capital growth and provide diversification benefits of investing in equities of selected emerging market countries. with no emphasis on the level of income. Listed securities of companies that provide exposure to selected emerging markets. Australian Listed Property To provide gross returns equivalent to that achieved by investing in a range of property securities. with no emphasis on the level of income. Property securities which form the S&P/ASX 200 Listed Property Accumulation Index. New investment DFA Dimensional Emerging Markets To provide long-term capital growth by gaining exposure to a diversified portfolio of value companies associated with approved emerging markets. No minimum. Dimensional s assets under management stem almost entirely from institutional clients, including but not limited to corporate and public sector pension funds, endowments and foundations, and clients of registered financial advisors. Dimensional s financial advisor accreditation process enables advisors to gain an understanding of Dimensional s funds, and how best to incorporate them into their clients portfolios. International Shares: 100% Vanguard Australian Property Securities Index Fund To track the return (income and capital appreciation) of the S&P/ASX 300 A-REIT Index before taking into account fund fees and expenses. 5 years. Suitable for long term investors (usually five years plus), investors seeking a tax-effective income stream, retirees or those nearing retirement, investors seeking longterm capital growth, self managed super funds, investors drawing down an allocated pension. Property securities which form the Australian real estate investments trusts (A_REITS) listed on the Australian Stock Exchange (ASX). 8
Plan B Your guide to the Lifetime Superannuation Fund transfer Current investment Australian Core Equities To achieve long term capital growth through structured exposure to listed Australian equities with no emphasis on the level of income. Listed shares of Australian companies International Core Equities To achieve long term capital growth through structured exposure to listed global equities. with no emphasis on the level of income. Listed shares of global companies New investment Profile Australian Shares To achieve long-term capital growth through structured exposure to listed Australian equities. Suitable for investors seeking long-term capital growth, some income with a higher tolerance for the risks associated with share market volatility. Listed shares of Australian companies Profile International Shares To achieve long-term capital growth through structured exposure to listed Australian equities. Suitable for investors seeking strong returns over the long-term and are prepared to accept a higher level of risk to achieve this. Listed shares of global companies 9
Current investment International Core Equities Hedged To achieve long term capital growth through structured exposure to listed global equities with reduced exposure to foreign currency risk. Suitable for investors seeking strong returns over the long-term and are prepared to accept a higher level of risk to achieve this. Listed shares of global companies hedged to the Australian dollar. Diversified Fixed Interest To provide a gross return similar to that achieved by investing in domestic and global money market and fixed income securities, generally with maturities of 5 years or less. with no emphasis on the level of income. -credit quality domestic and global fixed interest with a maturity of 5 years or less, 100% hedged to the Australian dollar. Low New investment Profile International Shares Hedged To achieve long term capital growth through structured exposure to listed global equities with reduced exposure to foreign currency risk. Suitable for investors seeking strong returns over the long-term and are prepared to accept a higher level of risk to achieve this. Listed shares of global companies. DFA Dimensional Five-Year Diversified Fixed Interest Within the risk constraints of investing in eligible short to medium term, high credit quality eligible instruments, the objective of the Trust is to maximize the total return (comprising income and capital appreciation) of a broadly diversified portfolio of domestic and global fixed interest and money market securities. Not available. Dimensional s assets under management stem almost entirely from institutional clients, including but not limited to corporate and public sector pension funds, endowments and foundations, and clients of registered financial advisors. Dimensional s financial advisor accreditation process enables advisors to gain an understanding of Dimensional s funds, and how best to incorporate them into their clients portfolios. Diversified fixed interest: 100% Low 10
Plan B Your guide to the Lifetime Superannuation Fund transfer Current investment Diversified Ethical Fund To provide long term growth through exposure to equities while supporting the goals embodied in the Australian Ethical Charter. 4 years. with some income. Cash: 13% Diversified Fixed Interest: 24% Australian Property Securities: 3% Australian Shares: 50% International Shares: 10% Cash Investment To provide a competitive income return from cash and short-dated interest bearing securities. Note that a minimum investment of $50,000 is required to be maintained in this strategy. No minimum. with some income. May include cash, bank bills, treasury notes and other bank investments. Very low New investment No equivalent investment monies to go to clients Cash Account IOOF Cash Management Trust (Class D) To provide investors with a stable investment and regular income by investing in a range of cash deposits and shortterm money market securities. The Trust aims to provide competitive returns for investors with a total investment return (before fees) that exceeds or is at least equal to the UBSA Bank Bill Index. No minimum. Suitable for investors seeking a low risk stable investment who require regular income over the short to medium-term and who require ready access to their funds. Cash and short term securities: 100% Low 11
Current investment Australian Large Equities : To provide gross returns equivalent to that achieved by investing in a range of Australian s listed companies. by gaining exposure to a diversified portfolio of large companies listed in Australia. Listed companies included in the S&P/ASX 100 Accumulation Index. Australian Small Equities : To achieve long-term capital growth through access to higher expected returns and provide diversification benefits of investing in the equities sub-asset class of Australian small companies. by gaining exposure to a diversified portfolio of small companies listed in Australia. Listed ordinary shares of small listed Australian companies measured by market capitalisation. New investment DFA Dimensional Australian Large Companies : To provide long-term capital growth by gaining exposure to a diversified portfolio of large companies listed in Australia. Not available. Dimensional s assets under management stem almost entirely from institutional clients, including but not limited to corporate and public sector pension funds, endowments and foundations, and clients of registered financial advisors. Dimensional s financial advisor accreditation process enables advisors to gain an understanding of Dimensional s funds, and how best to incorporate them into their clients portfolios. Australian shares: 100% DFA Dimensional Australian Small Companies : To provide long-term capital growth by gaining exposure to a diversified portfolio of small companies listed in Australia. Not available. Dimensional s assets under management stem almost entirely from institutional clients, including but not limited to corporate and public sector pension funds, endowments and foundations, and clients of registered financial advisors. Dimensional s financial advisor accreditation process enables advisors to gain an understanding of Dimensional s funds, and how best to incorporate them into their clients portfolios. Australian shares: 100% Very 12
Plan B Your guide to the Lifetime Superannuation Fund transfer Current investment Global Value Equities : To achieve long-term capital growth through access to higher expected returns and provide diversification benefits of investing in the equities sub-asset class of value companies in selected international markets. Suitable for investors seeking long-term capital growth by gaining exposure to a diversified portfolio of large value-companies associated with approved developed markets (excluding Australia). Listed shares of global companies as defined by a high book value relative to market capitalisation. Global Large Equities : To achieve long-term capital growth exposure to the largest stocks in the selected international markets.. Suitable for investors seeking long-term capital growth by gaining exposure to a diversified portfolio of large companies associated with approved developed markets (excluding Australia). Listed Australian Companies as defined by a high book value relative to market capitalisation. New investment DFA Dimensional Global Value : To provide long-term capital growth by gaining exposure to a diversified portfolio of large value companies associated with approved developed markets (excluding Australia). Not available. Dimensional s assets under management stem almost entirely from institutional clients, including but not limited to corporate and public sector pension funds, endowments and foundations, and clients of registered financial advisors. Dimensional s financial advisor accreditation process enables advisors to gain an understanding of Dimensional s funds, and how best to incorporate them into their clients portfolios. International shares: 100% DFA Dimensional Global Large : To provide long-term capital growth by gaining exposure to a diversified portfolio of large companies associated with approved developed markets (excluding Australia). Not available. Dimensional s assets under management stem almost entirely from institutional clients, including but not limited to corporate and public sector pension funds, endowments and foundations, and clients of registered financial advisors. Dimensional s financial advisor accreditation process enables advisors to gain an understanding of Dimensional s funds, and how best to incorporate them into their clients portfolios. International shares: 100% 13
Current investment Global Small Equities : To achieve long-term capital growth through access to higher expected returns and provide diversification benefits of investing in the equities sub-asset class of small companies in global developed markets. Suitable for investors seeking long-term capital growth by gaining exposure to a diversified portfolio of small companies associated with approved developed markets (excluding Australia). Listed shares of global small companies measured by market capitalisation. New investment DFA Dimensional Global Small : To achieve long-term capital growth through access to higher expected returns and provide diversification benefits of investing in the equities sub-asset class of small companies in global developed markets. Not available. Dimensional s assets under management stem almost entirely from institutional clients, including but not limited to corporate and public sector pension funds, endowments and foundations, and clients of registered financial advisors. Dimensional s financial advisor accreditation process enables advisors to gain an understanding of Dimensional s funds, and how best to incorporate them into their clients portfolios. International shares: 100% Very high Indirect Cost Ratios The table below shows you the ICR for your current investment option and the ICR for your new investment option. Current investment option ICR % pa New investment option ICR^ % pa Administration Fee % pa # Market 35 2.030 IOOF MultiMix Conservative Trust* 0.850 Up to 1.79 Market 45 2.040 Profile 45 0.790 Up to 1.79 Market 55 2.050 Profile 55 0.800 Up to 1.79 Market 65 2.060 Profile 65 0.810 Up to 1.79 Market 75 2.060 Profile 75 0.810 Up to 1.79 Market 85 2.080 Profile 85 0.830 Up to 1.79 Market 95 2.090 Profile 95 0.840 Up to 1.79 Australian Value Shares ## 2.120 DFA Dimensional Australian Value 0.335 Up to 1.79 Emerging Markets ## 2.450 DFA Dimensional Emerging Markets 0.701 Up to 1.79 Australian Listed Property 1.780 Vanguard Australian Property Securities Index Fund 0.240 Up to 1.79 Australian Core Equity 2.020 Profile Australian Shares 0.770 Up to 1.79 14
Plan B Your guide to the Lifetime Superannuation Fund transfer Current investment option ICR % pa New investment option ICR^ % pa Administration Fee % pa # International Core Equity 2.110 Profile International Shares 0.860 Up to 1.79 Diversified Fixed Interest ## 2.070 DFA Dimensional 5 year Diversified Fixed Interest 0.820 Up to 1.79 Diversified Ethical Fund 3.800 ** 0.000 Up to 1.79 Australian Large Equities ## 2.010 DFA Dimensional Australian Large Companies 0.225 Up to 1.79 Australian Small Equities ## 2.390 DFA Dimensional Australian Small Companies 0.600 Up to 1.79 Global Value Equities ## 2.270 DFA Dimensional Global Value 0.460 Up to 1.79 Global Large Equities ## 2.130 DFA Dimensional Global Large 0.350 Up to 1.79 Global Small Equities ## 2.410 DFA Dimensional Global Small 0.645 Up to 1.79 International Core Equities Hedged 2.130 Profile International Shares Hedged 0.890 Up to 1.79 Cash Investment 0.520 IOOF Cash Management Trust (Class D) 0.300 Up to 1.79 * Includes a performance based fee (ICR excluding performance fee is 0.73%) ^ It is a reasonable estimate only ** No equivalent investment option monies to go to client s Cash Account in Pursuit # Discounts have been applied, where necessary, to ensure that the fees you pay in Pursuit are equivalent, or near to equivalent to those payable by you in the Lifetime Superannuation Fund. Your discounted fee is shown in your Covering letter that accompanies this flyer. ## Please note there may be a buy spread applicable to a small percentage of this asset on transfer. Note: 1. The ICRs are reasonable estimates only. The ICRs are as at 31 December 2013 except for the IOOF MultiMix Conservative Trust and the IOOF Cash Management Trust (Class D) which are current as at 30 June 2013. 2. The ICRs for the funds you are invested in within the Lifetime Superannuation Fund include both the investment cost and the administration fee. Once the transfer is complete you will be able to switch to other investment options on the menu. Insurance premiums Your existing TAL Group Insurance in the Lifetime Superannuation Fund will continue when you move to Pursuit. You ll still be able to apply to increase or decrease your TAL Group Insurance at any time. Premiums will be deducted monthly in arrears. The first premium will be deducted as soon as practicable after the transfer is completed for the period to the end of March. Premiums will then continue to be deducted monthly in arrears. Fees Pursuit provides a market competitive fee structure. The way fees are paid in the Lifetime Superannuation Fund is different to the way fees are paid in Pursuit. Currently, in the Lifetime Superannuation Fund the administration fee and the investment management fee are combined and deducted from the unit price of the fund in which you are invested. This means that the unit price includes the administration fee and investment management fee. In Pursuit the administration fee is deducted separately from your Cash Account. As a result, you will notice all administration fees applicable to your account post transfer will be shown separately and transacted through your Cash Account. The change in the way the fees are calculated will impact members differently depending on which investment option you are invested in however, for some members this may result in a reduction in fees. For a small amount of clients there may be an increase in fees. 15
The following table provides details of the fees payable in the Lifetime Superannuation Fund and Pursuit. Type of Fee or Cost Amount Lifetime Superannuation Fund Pursuit Investment Fee Nil Nil Administration Fee Cash account 1.69% pa Sub-plan Fee $307.50 pa No sub-plan fee will apply if all members of the sub-plan have term allocated pensions. Up to 1.79% pa* Minimum Administration Fee is $5 per month ($60 pa). Calculated daily on your account balance. It is charged monthly in arrears and deducted from your Cash Account at the beginning of each month. Switching Fee Nil Nil Exit Fee $75 Nil Advice Fees Listed Security Administration Fee Implementation Fee Ongoing Service Fee No fee is charged unless you instruct us to do so. Not applicable A range of advice fees are available: Member Advice Fee Upfront Member Advice Fee Ongoing Member Advice Fee One-Off Member Advice Fee Insurance Member Advice Fee Licensee Member Advice Fee Transaction No fee is charged unless you instruct us to do so. $5 per month. Calculated daily. It is charged monthly in arrears and deducted at the beginning of each month. This fee is only applicable if you opt in to investing in listed investments. Indirect Cost Ration (ICR)** The ICR is estimated to be between 0.52% 3.80% pa of your account balance, depending on the investment option chosen. The ICR is estimated to be between 0.18% 2.74% pa of your account balance, depending on the investment option chosen. Other Fees Brokerage Not applicable $45.66 applies to each order to buy or sell a listed security. * You may receive a discounted administration fee on this amount. Where necessary, a discount has been applied, to ensure that the fees you pay in Pursuit are equivalent, or near to equivalent to those payable by you in the Lifetime Superannuation Fund. The details of the actual fee you will be pay are shown in the Covering letter that accompanies this flyer. ** Refer to the investment options table on page 14 for detail on the ICR applicable to your new investment option in Pursuit. 16
Plan B Your guide to the Lifetime Superannuation Fund transfer Buy/sell spreads For the majority of investments we will be able to manage costs so that you do not incur any buy/sell spreads. However, for some investments this will be unavoidable. The following table shows the funds that will incur a buy/sell spread. Lifetime Superannuation Fund Investment Pursuit Investment Sell spread % Buy spread % Diversified Ethical Cash Account 0.085 0.000 Market 35 IOOF MultiMix Conservative Trust 0.014 0.130 Australian Listed Property Vanguard Australian Property Securities Index Fund 0.099 0.150 Investments transferring to DFA options may incur a buy spread. Please see page 14 for further information. Fee examples The examples below show how fees compare depending on your investment option and allocation for Lifetime Superannuation Fund and Pursuit. Based on an account balance of $50,000 for a year: Market 65 for the Lifetime Superannuation Fund and Profile 65 for Pursuit. Lifetime Superannuation Fund (%pa) Pursuit Personal Superannuation (%pa) Lifetime Account Based Pension (%pa) Pursuit Allocated Pension (%pa) ICR balanced investment option Market 65 2.06 Profile 65 0.81 Market 65 2.06 Profile 65 0.81 PLUS Administration Fee 1.25 1.25 Cost of product on $50,000 investment* $1,030 $1,030 $1,030 $1,030 * Additional fees may apply 17
Adviser fees Currently within the Lifetime Superannuation Fund, your ongoing adviser fee is paid at the end of the month and is based on your account balance on the last day of the month. This will change in Pursuit where the ongoing adviser fee is accrued daily and paid at the beginning of each month in arrears. Your Cash Account Your Cash Account will continue to be used to process all cash transactions that occur within your account. Currently within Lifetime generally between one and five per cent of your account is held in the Cash Account. Your cash is held in a bank account with BankWest and interest is calculated daily and credited monthly. With the transfer, your Cash Account will change. The new cash minimum in Pursuit will be one per cent in Pursuit Superannuation and three per cent in Pursuit Allocated Pension. Your Cash Account will be invested in a combination of an operating bank account (for dayto-day transactions) and in the IOOF/Perennial Cash and Income Fund. Any portion of the Cash Account which exceeds the required balance of the operating account from time to time will be invested in the IOOF/Perennial Cash and Income Fund. Any interest generated from your Cash Account is calculated daily and paid monthly. Please note: You may nominate a higher percentage than the minimum to be maintained in your Cash Account. However you will no longer be able to specify a dollar amount to be maintained in addition to your Cash Account minimum. Keeping your cash topped up As with the Lifetime Superannuation Fund, when your cash balance is below the minimum requirement in Pursuit, assets will be sold to restore the balance to the minimum. See below for more details on how this will change after the transfer. How often your Cash Account balance is checked Lifetime Superannuation Fund Daily Pursuit Weekly When assets are sold When balance is below one per cent. When the balance is likely to fall below zero within the next seven days. Sell down strategy Assets are sold according to profile specified in your application form. You are able to select from three options: 1 Funds are redeemed from the investment option with the highest balance (default option) 2 Pecking order funds are redeemed according to your prioritised list 3 Pro-rata option funds are redeemed across all managed investments according to the proportion invested in each. Please note: The sell down strategy you have in place in the Lifetime Superannuation Fund will continue after the transfer. However, if you have no sell profile attached to your account then the investment option with the highest balance will become your default and will be sold first. 18
Plan B Your guide to the Lifetime Superannuation Fund transfer Minimum payment amounts There are differences in the minimum payment amount requirements. See below for more details. Product Lifetime Superannuation Fund Pursuit Minimum payment amounts Minimum one off redemption No minimum. The lesser of $2,000 or account balance. Pension payments Minimum amounts for investment options and switching instructions Additional contributions (one-off) (Personal Superannuation only) Regular contribution plan (Personal Superannuation only) Pension payments Subject to Government minimum. Frequency: monthly, quarterly, half yearly, annually. Date: On (or before) the 15th day of the month. Nil. No minimum. No minimum. Frequency: Monthly, quarterly, half yearly or yearly. Date: On (or after) the 15th day of the month. Pension payments Subject to Government minimum. Frequency: twice monthly, monthly, quarterly, half yearly, annually. Date: On the 28th day of the month, unless you select the twice-monthly option which is paid by the 14th and 28th day of each month. Managed investments $200 per managed investment. Term deposits $5,000 per term deposit. Direct Share Choice a minimum parcel of $2,000 is required per listed investment trade. $200 per contribution. $200 per frequency. Frequency: Monthly, quarterly or half yearly. Date: on (or nearest) the 28th day of the month. Pension payments Any pension payment will be processed as per normal in March 2014. However, the payment for April 2014 and onwards will be made by the 28th day of the month where a pension payment is due, unless you select the twice-monthly option in Pursuit which is paid by the 14th and 28th day of each month. Tax considerations There will be no Capital Gains Tax (CGT) incurred as a result of the transfer. The Fund will utilise asset and loss rollover relief such that any applicable capital gains and losses will be ignored, and any previously realised carry forward capital losses, will be carried across to Pursuit. No CGT will be crystalised in respect of the transfer. As part of the Responsible Entity s separate decision to rationalise the underlying pools of the Fund (held in the Lifetime Asset Management Program) the Fund is expecting capital gains and losses to be derived in the final distribution and wind up of those pools. This may result in a CGT impact for members. Pursuit calculates member capital gains and losses differently from your existing Lifetime Superannuation account. With Pursuit, capital losses are firstly applied against any capital gains made on direct investments held in your account. If you have excess capital losses these may be applied against other members capital gains and the cash benefit will be credited to your account. If your excess capital losses are not able to be used by other members of the Fund these can be carried forward in your account for use by the Fund in a future year. 19
No tax file number (TFN) contributions tax If you have not provided your TFN to the Trustee of the Lifetime Superannuation Fund you need to provide it to us before Monday 17 March 2014. Please note; if you do not confirm your TFN to us before the Monday 17 March 2014 we are unable to provide you with a No-TFN credit. You MUST submit, and we must acknowledge receipt of, the TFN notification. Otherwise the fund will lose the ability to claim the No-TFN credit and this can longer be passed on to your account. What is a TFN credit? You are not required to provide your TFN to your superfund. However, if you don t, then superfund will charge you an extra 31.5 per cent tax on every taxable contribution. Once you have provided your TFN (which can usually be provided within 4 years) you can claim back the 31.5 per cent tax as a TFN credit, provided you have not moved into another fund. Due to the transfer you can only provide your TFN up to the date of the transfer if you wish to claim back the TFN credit. It cannot be claimed after that date. Claiming a tax deduction for personal superannuation contributions If you have made personal contributions to your current product, and are eligible to claim a personal tax deduction for those contributions, you can submit a notice of intent to claim a tax deduction (notice) in respect of these contributions after your benefits have transferred to Pursuit. Alternatively, you can submit a notice prior to the transfer, but the notice must be received by Monday 17 March 2014. Notices are available from the forms section of www.planbonline.com. Manage your investment with Portfolio Online Portfolio Online is a valuable tool to help you and your adviser manage your investment with Pursuit. This secure, user friendly website gives you access to a range of current and historical transaction and performance details about your account, including: portfolio summary view the total value of your account account transactions view all your post transfer transactions including your contributions, withdrawals and income distributions account information view information about your other account features statements view current and post transfer annual statements online reports view your portfolio history, cash account statement, asset allocation and performance reports electronic communications view the Trsutee s communications to members which you elect to receive electronically listed investments if you have chosen to invest in various listed investments available under Direct Share Choice, you or your financial adviser if you have one, must submit orders to buy or sell listed investments and other instructions using Portfolio Online. You must maintain your Portfolio Online registration for as long as you hold any listed investments under the Direct Share Choice. How to register for Portfolio Online You can register for Portfolio Online once you have received your account number, which you will receive in your Statement of Membership once the transfer is complete. Simply apply online by clicking on the login button on the homepage of the IOOF website (www.ioof.com.au) and we will send you an email allowing you to create your own password. 20
Contact details Level 28 Central Park 152-158 St Georges Terrace Perth WA 6000 PO Box 7008, Cloisters Square Perth WA 6850 t 1300 362 082 08 9324 6000 f 08 9481 6148 e planb@planbonline.com www.planbonline.com The IOOF Pursuit Select Personal Superannuation for Plan B, the IOOF Pursuit Select Allocated Pension for Plan B and the IOOF Pursuit Select Term Allocated Pension are issued by IOOF Investment Management Limited ABN 53 006 695 021 AFS Licence No 230524 (IIML) as the Trustee of the IOOF Portfolio Service Superannuation Fund ABN 70 815 369 818. IIML is also the trustee of the Lifetime Superannuation Fund ABN 38 943 646 853. The information in this document is of a general nature and does not take into account the personal situation, needs or objectives of any particular member. You should consider the appropriateness of this information having regard to your personal circumstances. The information has been prepared in good faith, based on information believed to be accurate and reliable at the time of publication. A copy of the Product Disclosure Statement for each product is available at www.ioof.com.au/product_list/planb_pursuit or by calling 1300 362 082 PLA-8072 VIOOF6161