a helpful guide to your membership Issued 1 July 2014 GuildSuper Member Guide incorporating MySuper and MyMix solutions This booklet provides more details to help you understand and get the most from your GuildSuper membership. It includes information about: growing your account GuildSuper s investment options GuildSuper s insurance options the other benefi ts and services you ll receive. For a complete overview of GuildSuper, please read this booklet along with the GuildSuper Product Disclosure Statement which is available from guildsuper.com.au.
What s in this booklet? This booklet provides helpful information about topics that are important for GuildSuper members to consider. Along with the Product Disclosure Statement (PDS) it aims to provide you with the information you need to make informed decisions about your super savings. Inside this booklet The booklet you are reading now provides additional information about GuildSuper that may help you make decisions both before and after you join GuildSuper. a helpful guide to your membership Issued 1 July 2014 GuildSuper Member Guide incorporating MySuper and MyMix solutions This booklet provides more details to help you understand and get the most from your GuildSuper membership. It includes information about: Product Disclosure Statement guildsuper.com.au For example, it will help you decide: Whether GuildSuper s benefi ts make it the right fund for you If you would like to make extra contributions to your account How you choose to invest your account balance within GuildSuper, and How to take advantage of GuildSuper s insurance options. It also provides important information about other benefi ts and services available to you and how GuildSuper operates. If you don t already have a copy of the PDS you can request one from our Member Services team. Both of these documents are important. The following provides a snapshot of what s in each one: Inside the PDS It s important that you also look at the PDS because it contains important information about: How super works Benefi ts of investing in GuildSuper Risks of super your GuildSuper product disclosure statement Issued 1 July 2014 How GuildSuper will invest your money if you don t make your own choice What we charge (fees and costs) How super is taxed What insurance cover you receive automatically How to open a GuildSuper account Contents About GuildSuper 2 How super works 2 Benefits of investing with GuildSuper 3 Risks of super 3 How we invest your money 4 Fees and costs 5-6 How super is taxed 6 Insurance in your super 7-8 How to open an account 8 The information in this document is general information only and does not take into account your personal financial situation or needs. You may wish to consult a licensed financial adviser to obtain financial advice that is tailored to suit your personal circumstances. MySuper Authorisation No. 22599554834526. Guild Trustee Services Pty Limited ABN 84 068 826 728. AFS Licence No. 233815. RSE Licence No. L0000611. GuildSuper ABN 22 599 554 834. Fund Reg. No. R1000030. To obtain a copy of the PDS, visit guildsuper.com.au, or call our Member Services team on 1300 361 477. Under the law and the Fund s Trust Deed (the Trust Deed is the Fund s rulebook), the Trustee reserves the right to change GuildSuper s product specifi cations and terms. While very comprehensive, this booklet doesn t cover every situation that may arise. The Trust Deed and Rules, superannuation law and any life insurance policy taken out by the Trustee set out your rights and entitlements. The Trust Deed requires the Trustee to comply with superannuation law and any other relevant laws, and gives the Trustee the power to do anything necessary to comply with the law, including limiting or adjusting benefi ts. Trustee and Issuer: Guild Trustee Services Pty Limited. ABN 84 068 826 728. AFS Licence No. 233815. RSE Licence No. L0000611. GuildSuper ABN 22 599 554 834. Fund Reg. No. R1000030. GPO Box 1088, Melbourne VIC 3001 Telephone: 1300 361 477 GuildSuper forms part of the Guild Retirement Fund (the Fund) (SPIN GLD 0001AU). Guild Trustee Services holds a MySuper Authorisation (No. 22599554834526) and is a member of the Guild Group, which includes Guild Group Holdings Limited and all its subsidiaries (Guild Group). GuildSuper is currently a resident regulated superannuation fund within the meaning of the Superannuation Industry Supervision legislation (SIS) and is not subject to a direction under section 63 of SIS. As a member you can request to see GuildSuper s: Trust Deed and Rules Group Insurance Policy documents Financial Statements Latest Annual Report Risk Management Strategy, and Any other information you may reasonably need (and is publicly available) to make a decision in relation to GuildSuper. If you d like to see any of these documents please contact Member Services. In limited cases there may be a fee to cover the cost of providing photocopies of the documents (we ll let you know if a fee applies). The information in this document is general information only and doesn t take into account your personal fi nancial situation or needs. You may wish to consult a licensed fi nancial adviser to obtain fi nancial advice tailored to suit your personal circumstances. If you become a member, you will be able to obtain fi nancial advice as it relates to your GuildSuper account, at no extra charge. 2
Contents 1. Welcome 4 2. Growing your account 6 3. Some investment basics 9 4. Your GuildSuper investment options 12 5. Your insurance options 21 6. Additional explanation of fees and costs 40 7. Accessing your super 43 8. Keeping in touch with your super 46 9. Other important information 47 10. Simplifying super your jargon buster glossary 50 3
1. Welcome At GuildSuper, we re proud to be the specialist fund for the pharmacy and allied health industries. We have a long history of delivering quality super services to our members throughout Australia. Indeed, we make it our mission to help you get the most from your super, keeping things as simple as we can, and helping you achieve the best possible lifestyle once you retire. Why choose GuildSuper? Your super is your money. It s there to help replace your salary once you stop working so it s important that you make sure your super is working hard for you between now and when you retire. At GuildSuper, we re here to help you do just that. Invest according to your needs GuildSuper offers two solutions when it comes to your super investments the MySuper Lifecycle Investment Strategy, and the MyMix suite of investment options. Each one is specifi cally designed with the needs of our members in mind. So whether you take a keen interest in your super and want to make your own investment choices, or you prefer to leave the decision-making to someone with more experience and expertise, we ve got an option to suit you. You ll fi nd more information on page 12. Personalised rollover service Rolling your other super funds into your GuildSuper account will reduce the number of fees you pay. Your local Consultant makes this really easy, by personally taking you through the process and helping fi ll in any forms it s all part of the service. We re helping to make super simple One of the things that sets GuildSuper apart from other funds is the personal service you receive from our Superannuation Consultants. Your local Consultant can visit you at work, explain and assist with super paperwork, and answer your general super questions it s all part of the service. To make an appointment with a Consultant, visit guildsuper.com.au or call us on 1300 361 477. Great value insurance cover As a GuildSuper member, you ll automatically receive Death, Total and Permanent Disablement, and Income Protection insurance cover from a low $3 per week all without fi lling in a form! And, younger members with Death and Total and Permanent Disability insurance can also take advantage of our age-based insurance boost an automatic feature that increases their Default Cover at a stage when they re likely to need it most. Our buying power means that this cover is provided at rates you would fi nd hard to match elsewhere. Provided you meet the basic eligibility criteria, we can also transfer any similar insurance you currently have with another provider into GuildSuper without any medicals. No adviser commissions We don t pay any commissions to fi nancial advisers, which means more money for you when you need it most. Member education and advice Our member education program provides simple tips on how to boost your super. We can also help you with professional advice on getting the most out of your GuildSuper account remember it s at no extra charge. 4
Check your fund details 24/7 You can access your GuildSuper account balance and key account details online or via your mobile phone whenever and wherever you want. View your account online at guildsuper.com.au check your account balance and level of insurance, or update your details. Plus, our website is packed with easy-to-understand tips to help you get to know and boost your super, and improve your fi nancial situation in retirement. Handy contribution confirmations Keep your email and/or mobile details up-to-date so that each quarter we can let you know how much has been added to your account over the period. That way you can see how your super s tracking. Find that form! Super is no stranger to paperwork and forms. Whenever we refer to a form in this Member Guide, you ll fi nd it online at guildsuper.com.au, or by calling our Member Services team on 1300 361 477. And don t forget, our Superannuation Consultants can even help you fill them in it s all part of the service. We re with you for life... It s easy to stay with GuildSuper when you change jobs. It s as simple as giving your future employer a Choice of Superannuation Fund Form to tell them you re already a GuildSuper member. even in retirement GuildSuper provides access to a Transition to Retirement Pension and an Account-Based Pension. Plus receive extra benefits if you d like to choose your investments If you choose your investments through our MyMix investment selection, you ll also be entitled to: Access eight different investment options Our MyMix solution offers a wide range of investment options with differing levels of risk and investment return, for those wishing to customise their investment portfolios. Administration fee rebate We provide a rebate of up to 1% on the percentage-based administration fee to MyMix members on the portion of your account over $25,000. This means that more money stays in your account to grow your savings. Maternity/Paternity leave fee waiver For MyMix members, GuildSuper waives the dollar-based administration fee while you re on maternity/paternity leave for up to 12 months if you are 100% invested in MyMix. 5
2. Growing your account Super is essentially a long-term savings account. It helps you save money while you re working, so you ve got enough to support your lifestyle in retirement. The more super you can save now, the more money you ll have when you retire and there are plenty of ways to help you build those savings. Think about this: The more super you save now, the more money you ll have when you retire. Keeping one fund for life can save you fees and make your super easier to manage. Even adding extra small amounts will help make a real difference to your super s growth. To help encourage saving through super, the government taxes contributions, earnings and benefit payments favourably. One account for life Keeping all of your super in one account will help reduce the number of fees you pay as well as make it easier to keep track of your money. Here are two easy ways you can keep your super money in one place: 1. Rolling over your other super accounts to GuildSuper You probably have money in other super funds. Consolidating them into one account is easy. Just follow the directions on the Rollover Form to arrange the transfer. 2. Have future employers pay into your GuildSuper account All you need to do is give your new employer the Choice of Superannuation Fund Form and they ll pay your contributions into GuildSuper for you. And remember, all forms are available online at guildsuper.com.au or from Member Services. Try our personalised rollover service As a GuildSuper member, you can take advantage of our personalised rollover service. We ll even help you fi nd your lost super, and help you with the paperwork it s all part of the service. Simply call 1300 361 477 to speak to our Member Services team, or visit guildsuper.com.au for more information. Boost your balance At GuildSuper we re committed to helping you achieve the best possible lifestyle in retirement and that means helping you save the money you need. One of the quickest ways to increase your super savings is to make regular additional contributions to your account. Even a small amount paid regularly can build up to make a huge difference over time. Of course, while it is good to start early, it s really never too late to give your super balance a helping hand there s never a bad time to add to your account. In general, contributions can be made into your account either by you or your employer. Below, we ve summarised some great ways to boost your super balance. Note that as super receives special tax breaks, the government limits how much of each type of contribution can be made these limits are referred to as contribution caps and are explained a little more in the information that follows. Employer contributions (sometimes called concessional contributions) Employer contributions include any Superannuation Guarantee (SG) contributions from your employer, currently required to be 9.5% (see page 52 for more information) of your salary, and salary sacrifi ce contributions, which are discussed below. These are taxed at a low 15%. For many people this is lower than their marginal tax rate. Your employer can pay up to $30,000 each fi nancial year if you are under 50 years old and $35,000 each fi nancial year if you are 50 years old or over (this amount may increase with indexation each year) to your super account. Salary sacrifi ce (before-tax) contributions also count towards this total. Any contribution over this amount will be taxed at your marginal tax rate and will also count towards your personal (non-concessional) contributions cap. This limit also applies if you are self-employed. 6
How to make salary sacrifice (before-tax) contributions Salary sacrifi ce contributions are deducted by your employer from your before-tax pay and can be a tax-effective way to grow your super. You ll need to ask your employer to make this deduction for you. Self-employed contributions To be considered self-employed, no more than 10% of your total: assessable income (i.e. gross income before tax deductions) reportable employer superannuation contributions, and reportable fringe benefi ts for the fi nancial year may be earned as an employee. This means you need to earn at least 90% of your income from your self-employed work. You can claim a full tax deduction for any self-employed contributions that you make, up to the relevant limit (see Employer contributions on page 6) for superannuation contributions, so long as you are under 75 years of age. If you plan to claim a tax deduction for your contributions it is important to complete an ITAA 290-17 Notice please call Member Services and we ll take you through what s required. Personal (non-concessional) contributions Personal contributions are made from your after-tax pay and have already been taxed at your marginal tax rate. Provided you don t exceed the contribution limits, they are not taxed when paid to your super account. Find that form! Don t forget, all forms mentioned in this Member Guide are available online at guildsuper.com.au, or by calling our Member Services team on 1300 361 477. If you are aged from 65 to 74 (inclusive) You must have worked for at least 40 hours within 30 consecutive days during the fi nancial year in which you are making the payment, to be eligible to make a personal contribution of up to $180,000 per year. If you are aged 75 or over You can t make personal contributions to your super once you are aged 75 or over. How to make a personal contribution There are several ways to make a personal contribution to your GuildSuper account: By BPAY BPAY to Biller Code 40865. You can obtain your reference number by calling Member Services. By cheque complete a Member Personal Contribution Form and send it to us with a cheque made payable to GuildSuper. By direct debit complete a Member Direct Debit Request Form to authorise a regular direct debit payment from your bank account to your super account. All you need to do is complete this form and send it to us. If you are under age 65 You can make up to $180,000 in personal contributions (this includes any spouse contributions you receive) each fi nancial year. You can contribute more than $180,000 in a year, provided you do not contribute more than $540,000 over a three-year period. 7
2. Growing your account continued Spouse contributions If your spouse s assessable income (including reportable fringe benefi ts) is below $13,800 per annum, you may also be eligible for a tax rebate of 18% on up to $3,000 if you make a contribution into their account. The maximum rebate of $540 is available when your spouse s assessable income is $10,800 or less and reduces to zero when assessable income is $13,800 or more. Any spouse contribution will count towards your spouse s non-concessional contribution limit. How to make a spouse contribution To make a spouse contribution: By cheque complete a Member Spouse Contribution Form and send it to us with a cheque made payable to GuildSuper. By direct debit complete a Member Spouse Contribution Form and a Member Direct Debit Request Form to authorise a regular direct debit payment from your bank account to your super account. All you need to do is complete this form and send it to us. Keep your member card handy When you become a GuildSuper member, we ll send you a GuildSuper member card that shows your member number. Don t forget to keep your card handy you ll need your member number for easy online access to your personal account information. Plus, simply give your member number to your new employer so they can pay your contributions straight into your GuildSuper account. More information on contributions For more information on making the most of your super, go to guildsuper.com.au. Please be aware that the fi gures mentioned on this page are subject to change, due to changes in legislation, or annual indexation. To access the latest fi gures you can call the Australian Tax Offi ce (ATO) on 13 10 20 or visit ato.gov.au. Boost your balance three ways we can help today 1. To help reduce your paperwork and the number of fees you pay, consider rolling your other funds into GuildSuper (if you haven t already), with help from our Member Services team. 2. And while you re there, let us help you track down any lost super that you may have, and then consolidate that super into your GuildSuper account, too. 3. Think about building your savings by making extra contributions. If you decide to, complete and return a Member Personal Contribution Form or a Member Direct Debit Request Form to us. Call us on 1300 361 477 and find out how our Member Services team can help. 8
3. Some investment basics How you invest your super savings can make a big difference to your balance upon retirement and the type of retirement lifestyle your funds will support. But in order to decide how best to invest your super, it s good to be across some of the investment basics. Consider this: Choosing the best investments for you depends on a range of factors, such as how long you have to invest, and how comfortable you are with investment risk. Different types of investments have different levels of risk and return. Generally, the higher the level of potential return associated with an investment, the higher its level of risk. Your super investments don t have to retire when you do in fact, many people remain invested well into their retirement, only drawing down small amounts of money at regular intervals. What s right for you? There are a number of factors to consider when determining which investment option will help you to make the most of your super and retire how and when you want. These include: your investment horizon how comfortable you are with investment risk the level of savings you want when you retire, and any other investments you may have. Consider your investment horizon Your investment horizon is the length of time your super will be invested. Generally speaking, the longer you have, the more aggressively you can potentially invest. This is because you have time to make up for any falls in the market that you may experience in the short term. We can help you decide You don t have to go it alone when it comes to determining what you need from your super and which investments will be right for you we can help. Simply contact Member Services and they ll work with you to identify the right solution for your needs and there s no charge. Call us on 1300 361 477 Asset classes and risk Investment risk is the chance that you ll lose money on your investment (i.e. receive a negative return). All investments carry a degree of risk and super is no different. The level of risk that your investments might experience depends on the types of investments you choose. In general, the higher the level of risk associated with an investment, the higher its potential return, and the lower the level of risk, the lower its potential return. Different types of investments are broadly categorised into asset classes including cash, fi xed interest, shares, property and alternative investments these asset classes each carry different levels of potential risk (as well as different levels of potential return). In addition, investments are generally described as being either growth assets or defensive assets. Generally, growth assets are expected to provide the highest return over the long term. Shares and property are growth assets. Growth assets also have the highest chance (or risk) of producing a negative return in the short to medium term. Defensive assets tend to provide lower returns over the long term, but also have a reduced chance of providing a negative return. Cash and fi xed interest investments are considered defensive assets. Your super doesn t have to stop working when you do Of course, when considering how long you ve got to invest, don t forget to keep in mind how long you re likely to be retired. In fact, you may choose not to withdraw your entire super balance as soon as you retire. Instead, you may choose to keep the bulk of it invested and make small, regular withdrawals to replace your income. This would mean that your investment horizon may in fact extend well into your retirement. 9
3. Some investment basics continued The table below allows you to compare the different types of investments and their typical features. Asset class Types of investments Risk and return Growth or defensive Cash Fixed interest Property Shares Alternative investments Represents cash on hand and demand deposits, as well as cash equivalents. Represents a loan, placement or debt security. Loans are fi nancial assets that are created when a creditor lends funds directly to a debtor, and are evidenced by documents that are nonnegotiable. Placements are liabilities of entities not described as authorised deposit-taking institutions, e.g. State treasuries. Debt securities are securities which represent borrowed funds which must be repaid by the issuer with defi ned terms. Represents an investment in real estate where the earnings and capital value are dependent on cash fl ows generated by the property through sale or rental income. Represents an ownership interest in a business, trust or partnership. Includes: common shares, preference shares and units. Excludes: units in property trusts and units in infrastructure trusts. Represents a growing range of investments that do not fall within the four main asset classes. Alternative investments can be based on publicly traded securities like shares, bonds and derivatives, which include hedge funds, absolute return funds and commodity investments. Cash is the least risky of the four major asset classes and has historically generated the lowest returns of the four major asset classes over the longer term. Generally expected to be less volatile than shares and property but with a lower expected return in the long term. The interest rate is generally fi xed and usually paid on a set date so the risk is relatively low and returns relatively stable, however market values may vary based on interest rate movements. Property related investments are historically less volatile than shares but provide the potential for higher returns than fi xed interest securities and cash. However, they are also subject to market sentiment and are infl uenced by general economic conditions and events that affect the overall share market. Shares have historically delivered the best return of the major asset classes, over the longer term. However, they are the most volatile as their value can be impacted by the expectation of their earnings and profi ts, industry trends and general market sentiment. Alternative investments have a very wide range of return, risk and correlation characteristics. Some have high return expectations and can be risky. Some have lower return expectations and can be less risky. Defensive Defensive Growth Growth May be growth or defensive 10
Different risks that can affect your investments Investment risk can come from a number of sources depending on the investments you choose for your super, they may be exposed to some or all of these risks. Market risk this is the general term used to describe the impact of market forces and the health of the economy. Inflation risk the rate of infl ation can exceed the return from your investment. Liquidity risk the ability of GuildSuper s investments to be readily converted into cash to meet expected cash fl ow requirements. Currency risk depending on whether investments are held or purchased outside Australia, the value of the Australian dollar relative to other currencies will infl uence the price paid for the assets, thereby affecting investment returns. Interest rate risk fl uctuations in interest rates over time can impact the economy and as a consequence they may adversely impact investment returns from all asset classes. GuildSuper balancing the risks No-one likes to see their investments lose money, but it s important to strike the right balance when it comes to your investments. For example, it s also important not to invest so conservatively that you don t save enough money to live the lifestyle you want when you retire. Fortunately, there are ways to manage risks when it comes to our investments. Considering your time horizon when choosing your investments, and diversifying your investments across a number of different types of investments or assets, are two key ways to manage risk. GuildSuper offers a range of investment options which take these important risk management strategies into account. For example, all of GuildSuper s investment options offer diversifi cation in one or more ways; across asset classes, investments within an asset class, across different managers or across countries. In the following section of this guide, we take you through your GuildSuper investment options in more detail. How the Trustee manages risk The Trustee manages investment risks by establishing appropriate investment strategies that consider the risk, return, diversifi cation and cash fl ow needs of GuildSuper, as well as by providing members with a range of investment option choices to meet their own needs. The Trustee monitors investment performance on a regular basis to seek to ensure the investment objectives of each investment option are appropriate. Are you ready to invest? Have you considered how long your super will be invested for? Do you know how you feel about investment risk and the level of risk that you re prepared to tolerate? Have you considered how you ll balance those risks with the financial goals you ve set for your retirement lifestyle? Have you spoken to our Member Services team, to clarify your needs and the types of investments that may be right for you? Call our Member Services team on 1300 361 477 if you d like some help choosing your GuildSuper investments. Remember at no extra charge! 11
4. Your GuildSuper investment options Everybody s different, and that s why GuildSuper offers different ways to invest your super. So whether you take a keen interest in your super and want to make your own investment choices, or you prefer to leave the decision making to us, we ve got an investment option to suit you. GuildSuper fast facts: GuildSuper offers two ways to invest either we can choose an investment strategy for you, or you can select your own investment mix from a range of different options. With GuildSuper you can change how your money is invested at any time. Check out all the investment options available to you on pages 14 to 19. If you don t make your own choice, your money will be invested in the MySuper Lifecycle Investment Strategy described on page 14. The information on pages 14 to 20 of this document forms part of the Product Disclosure Statement for GuildSuper issued on 1 July 2014. MySuper We ll select for you A lifecycle investment strategy, so there s no need to choose your investment mix. Your super contributions are automatically invested in a portfolio designed to suit your age. As you get older, your investments are automatically adjusted to reduce the level of investment risk. This helps to protect your money by gradually making your investments more stable as you approach retirement. Lower cost and suitable for those who are happy to keep things simple. How GuildSuper invests your money The Trustee aims to achieve the objectives of each investment option by investing in pooled investment products that are managed by external professional investment managers. The performance of each manager is closely monitored and changes are made when appropriate. The Trustee s investment strategy is to invest in a diversifi ed portfolio of asset classes including: shares, property securities, fi xed interest, alternatives and cash in accordance with each respective benchmark. Each investment option s investment mix is managed by the Trustee in accordance with the investment strategies set out in the following pages. The actual asset allocation may vary from time to time but will generally remain within the investment ranges set out in the following pages. The asset allocation may move outside those ranges in limited circumstances such as any large transition of assets. Making your investment choice GuildSuper offers two solutions when it comes to your super investments the MySuper Lifecycle Investment Strategy and the MyMix suite of investment options each one specifi cally designed with the needs of members in mind. In this section, we explain each option in detail, but here s how they compare in a nutshell: MyMix It s your choice Designed for those who want to have a greater say in where their money is invested. Easy access to a wide range of investment options across diversifi ed and sector-specifi c investments providing differing levels of risk and investment return. Change your investment selections at any time as your needs change. Enjoy great benefi ts over and above the standard features of GuildSuper membership. What if I don t choose? If you don t make an investment choice, your super contributions will automatically be invested in the MySuper Lifecycle Investment Strategy see pages 15 to 19 for more investment options. 12
4. Your GuildSuper investment options MySuper Solution MySuper solution The Lifecycle Investment Strategy This strategy is made up of three age-based investment options or lifestages. Your super contributions are automatically invested in the option that suits your age. Then, as you approach retirement your investments are automatically adjusted to reduce the level of investment risk. This helps to protect your money by gradually making your investments more stable as you approach retirement. Here s how it works The three lifestage options (Building, Growing and Consolidating) are summarised below. As you approach retirement the proportion of growth assets (which tend to be more volatile) decreases, while the proportion of defensive assets (which tend to be more stable) increases. This helps to protect your savings from short-term fl uctuations in investment markets and makes your investments more predictable as you approach retirement. When you are aged You will be invested in the following lifestage option, with a target investment mix as shown Under 40 Building 100% 40 to 55 Growing 75% 25% 56 and over Consolidating 50% 50% Total growth assets Total defensive assets So for example: If you are young and just beginning your career, our Building Lifestage option automatically invests more in growth assets, which have the potential to provide higher returns over the longer term. Then as you approach retirement we ll automatically switch your account into the Growing Lifestage and then the Consolidating Lifestage investment options. Each of these options include more lower-risk investments than the previous option. This helps to protect your money by gradually making your investments more predictable and less volatile in the short term. Note that your age is determined at 1 July each year as your age next birthday. The date when any changes to your investment options are made is also 1 July. Changes do not actually take place on your birthday. Would you prefer to choose your own investments? Of course, the MySuper Lifecycle Investment Strategy may not suit you. And so in addition to this strategy, GuildSuper offers you a choice of eight other investment options so you ll have the fl exibility to choose how your super s invested, whatever stage of life you re at. See pages 15 to 19 to learn more about these options. 13
4. Your GuildSuper investment options MySuper Solution The table below shows the investment objectives and strategies of the three lifestage options. Building Growing Consolidating Return target* CPI + 3.5% p.a. over rolling 10 year periods CPI + 3.0% p.a. over rolling 10 year periods CPI + 2.5% p.a. over rolling 10 year periods Total growth assets Total defensive assets 100% 75% 25% 50% 50% Asset class: Benchmark (%) Range (%) Benchmark (%) Range (%) Benchmark (%) Range (%) Australian shares 39 25 to 55 28 15 to 41 17 5 to 40 International shares 39 20 to 60 27 10 to 50 17 5 to 40 Property 10 0 to 25 9 0 to 20 7 0 to 20 Alternatives (growth) 12 0 to 30 11 0 to 30 9 0 to 30 Total growth 100 90 to 100 75 60 to 90 50 35 to 65 Fixed interest 0 0 to 15 11 0 to 30 19 0 to 45 Alternatives (defensive) 0 0 to 5 3 0 to 10 5 0 to 15 Cash / Money market securities 0 0 to 10 11 0 to 20 26 5 to 45 Total defensive 0 0 to 10 25 10 to 40 50 35 to 65 Who might it suit? Investors who seek strong returns over the long term and are comfortable with periods of short-term volatility. Investors who seek to maximise long-term returns without being overly concerned with short-term volatility. Investors who seek a balanced option of growth and defensive assets and can withstand some short-term volatility. Minimum suggested timeframe 10 years 8 years 5 years Risk level High Medium to high Low to medium Expected frequency of negative returns Estimated investment fee 4 to 6 times every 20 years 3 to 4 times every 20 years 1 to 2 times every 20 years 0.75% 0.67% 0.58% * Return targets are after all investment and administration fees, costs and taxes. From time to time changes may be made to the availability of investment options. We will inform you, where possible, in advance of the change to allow you the opportunity to review your individual circumstances. 14
4. Your GuildSuper investment options MyMix Solution MyMix solution designed for those who want to choose GuildSuper also offers you a choice of eight other investment options through our MyMix solution. So, should the MySuper Lifecycle Investment Strategy not be suitable for you, you can choose any combination of the eight MyMix investment options each offers a different level of risk and potential return. With the MyMix solution, fl exibility is key you can even choose to invest a proportion of your money in the MySuper Lifecycle Investment Strategy, and then invest the rest in any combination of MyMix investment options. Plus, at any time you can change the investment option for all or part of your super, or direct your future contributions to a different option. Please note that if you choose to spread your money across the MySuper and MyMix solutions, you will be subject to different levels of fees. Risk levels The risk levels shown on pages 14 to 19 for each investment option have been determined using the Standard Risk Measure proposed by industry and the regulators. This measure is an estimate of the number of negative returns expected from an investment option over any 20 year period. The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. While this will help you understand the risk associated with each option, you should still ensure you are comfortable with the range of risks and potential losses associated with each investment option. The MyMix investment options at a glance The following tables show the investment objectives and strategies of the MyMix options. Secure Investment objective Investment mix To provide gross investment returns at least equal to the UBS Bank Bill Index returns over rolling 1 year periods. 100% Defensive Asset class Benchmark (%) Cash / Money market securities 100 Total defensive 100 Who might it suit? May suit investors who are primarily concerned with short-term security of capital. Minimum suggested timeframe 1 year Risk level Very low Expected frequency of negative returns Less than 0.5 out of every 20 years Estimated investment fee 0.25% 15
4. Your GuildSuper investment options MyMix Solution continued Conservative Investment objective Investment mix To provide net (after investment fees and tax) investment returns of at least 2.0% per annum above CPI increases over rolling 3 year periods. 25% Growth 75% Defensive Asset class Benchmark (%) Range (%) Australian shares 9 0 to 20 International shares 7 0 to 25 Property 5 0 to 20 Alternatives (growth) 4 0 to 20 Total growth 25 10 to 40 Fixed interest 27 0 to 60 Alternatives (defensive) 7 0 to 20 Cash / Money market securities 41 20 to 60 Total defensive 75 60 to 90 Who might it suit? May suit investors who seek some exposure to capital growth, but who may also be concerned with short-term volatility of returns. Minimum suggested timeframe 3 years Risk level Very low Expected frequency of negative returns Less than 0.5 out of every 20 years Estimated investment fee 0.49% Balanced Investment objective Investment mix To provide net (after investment fees and tax) investment returns of at least 2.5% per annum above CPI increases over rolling 5 year periods. 50% Growth 50% Defensive Asset class Benchmark (%) Range (%) Australian shares 17 5 to 40 International shares 17 5 to 40 Property 7 0 to 20 Alternatives (growth) 9 0 to 30 Total growth 50 35 to 65 Fixed interest 19 0 to 45 Alternatives (defensive) 5 0 to 15 Cash / Money market securities 26 5 to 45 Total defensive 50 35 to 65 Who might it suit? May suit investors who seek capital growth, but who may also be concerned with short-term volatility of returns. Minimum suggested timeframe 5 years Risk level Low to medium Expected frequency of negative returns 1 to 2 times out of every 20 years Estimated investment fee 0.58% 16
Growth Investment objective Investment mix To provide net (after investment fees and tax) investment returns of at least 3.0% per annum above CPI increases over rolling 8 year periods. 75% Growth 25% Defensive Asset class Benchmark (%) Range (%) Australian shares 28 15 to 41 International shares 27 10 to 50 Property 9 0 to 20 Alternatives (growth) 11 0 to 30 Total growth 75 60 to 90 Fixed interest 11 0 to 30 Alternatives (defensive) 3 0 to 10 Cash / Money market securities 11 0 to 20 Total defensive 25 10 to 40 Who might it suit? May suit investors who seek to maximise long-term returns without being overly concerned with short-term volatility of returns. Minimum suggested timeframe 8 years Risk level Medium to high Expected frequency of negative returns 3 to 4 times out of every 20 years Estimated investment fee 0.67% High Growth Investment objective Investment mix To provide net (after investment fees and tax) investment returns of at least 3.5% per annum above CPI increases over rolling 10 year periods. 100% Growth Asset class Benchmark (%) Range (%) Australian shares 39 25 to 55 International shares 39 20 to 60 Property 10 0 to 25 Alternatives (growth) 12 0 to 30 Total growth 100 90 to 100 Cash / Money market securities 0 0 to 10 Total defensive 0 0 to 10 Who might it suit? May suit investors who want to achieve strong returns over the long term and are comfortable with periods of short-term volatility. Minimum suggested timeframe 10 years Risk level High Expected frequency of negative returns 4 to 6 times out of every 20 years Estimated investment fee 0.75% 17
4. Your GuildSuper investment options MyMix Solution continued Property Securities Investment objective Investment mix To provide gross investment returns at least equal to the UBS Global Real Estate Investors Index in $A (hedged) over rolling 7 year periods. 100% Growth Asset class Benchmark (%) Range (%) Listed property 100 90 to 100 Total growth 100 90 to 100 Cash / Money market securities 0 0 to 10 Total defensive 0 0 to 10 Who might it suit? May suit investors who want to achieve strong returns over the long term and who are comfortable with periods of short-term volatility. Minimum suggested timeframe 7 years Risk level High Expected frequency of negative returns 4 to 6 times out of every 20 years Estimated investment fee 0.67% Australian Shares Investment objective Investment mix To provide gross investment returns at least equal to the S&P/ASX 300 Accumulation Index returns over rolling 7 year periods. 100% Growth Asset class Benchmark (%) Range (%) Australian shares 90 80 to 100 Australian small companies 10 0 to 20 Total growth 100 90 to 100 Cash / Money market securities 0 0 to 10 Total defensive 0 0 to 10 Who might it suit? May suit investors wishing to invest in the Australian share market and who are comfortable with periods of short-term volatility. Minimum suggested timeframe 7 years Risk level Very high Expected frequency of negative returns 6 times or more out of every 20 years Estimated investment fee 0.70% 18
International Shares (unhedged) Investment objective Investment mix To provide gross investment returns at least equal to the MSCI World Index (ex-australia) in Australian Dollars Net Dividends Reinvested (unhedged), over rolling 7 year periods. 100% Growth Asset class Benchmark (%) Range (%) International shares 90 80 to 100 Overseas emerging markets 5 0 to 10 Overseas small companies 5 0 to 10 Total growth 100 90 to 100 Cash / Money market securities 0 0 to 10 Total defensive 0 0 to 10 Who might it suit? This option may suit investors wishing to invest in international share markets and who are comfortable with periods of short-term volatility. Minimum suggested timeframe 7 years Risk level High Expected frequency of negative returns 4 to 6 times out of every 20 years Estimated investment fee 0.75% Changing your investments You can change which investment option(s) your super is invested in at any time. To do this, either log into your account with your member number and password at guildsuper.com.au, or complete and return a Change of Investment Form which is available online at guildsuper.com.au or from Member Services. You should note that investing in a specifi c portfolio means that you are allocated units in an underlying investment pool. You do not have a direct entitlement to the underlying assets of that portfolio. Other investment information Investment performance The investment performance of each investment option is regularly monitored by the Trustee to ensure the investment strategy of each option remains appropriate. The most up-to-date investment returns are available at guildsuper.com.au. If you don t have internet access, please call Member Services and we will mail you this information. All investment returns are after the deduction of investment fees and investment tax. It is important to remember that past performance is not a reliable indicator of future returns. Derivatives policy for investment options Derivatives are securities that derive their value from other security types. Examples of derivatives include futures and options. The Trustee will not normally invest directly in derivatives, but may do so as a short-term mechanism to achieve a desired asset allocation during the transitioning of assets between investment managers. Underlying investment managers may use derivatives to assist in managing investment risk. Asset consultants The Trustee may use independent asset consultants, where appropriate, to provide investment market information and/or to advise on various issues relating to the investment options offered. Labour standards or environmental, social or ethical considerations The Trustee does not take into account labour standards or environmental, social or ethical considerations in selecting, retaining or realising the investment options offered through GuildSuper. The underlying investment managers currently used by the Trustee may have their own policy on the extent to which labour standards or environmental, social or ethical considerations are taken into account when making investment decisions. For more information, you should refer to the disclosure documents of the underlying investment managers. These are available upon request. 19
4. Your GuildSuper investment options continued Closed/terminated or suspended investment options From time to time the Trustee may change the investment options. This can occur when the Trustee decides to suspend or close investments, or if the investments are no longer economically viable or have not reached the required volume to sustain investment strategies and objectives. In addition, if superannuation law changes and particular investments are no longer permissible, or if other changes make it prudent to do so, the Trustee may dispose of the investment on such reasonable basis and terms as it decides. If an investment option you have selected is to be closed, terminated or suspended, we will inform you, where possible, in advance of the change to allow you the opportunity to review your individual circumstances. If you do not notify the Trustee of the changes you wish to make to your investments (where applicable) within the period specifi ed by us, we will implement default arrangements, as advised in the notice provided to you. If an investment option needs to be terminated immediately and we are unable to inform you in advance, we may determine a nearest equivalent replacement to transfer your investment into until you have time to review your investment options. Unit pricing The Trustee generally calculates the unit price of each investment option daily (this may vary depending on the circumstances). A unit price will be calculated for each of the investment options based on the net market value and number of units on issue for each option. The net market value of each investment option will be determined by taking into account: the value of assets in the investment option plus investment earnings minus relevant fees and costs and Government taxes or charges. The investment option s unit price is calculated each time the investment option is valued and is based on the net market value. Entry and exit unit prices are also calculated at this time. The entry and exit unit prices include an allowance for transaction costs called buy/sell spreads that would be incurred if the unit s share of the assets were purchased or sold on the day the unit prices are calculated. Helpful investment hints: If you are already a GuildSuper member: Check what option(s) you are currently invested in. If you need help to check if this is right for you, call Member Services to talk to someone about your investment selection. To make a change, complete and return a Change of Details Form. If you aren t a GuildSuper member yet, when you join: Decide if you want to use the MySuper Lifecycle Investment Strategy or choose your own investment mix. To get help making your investment decision, simply call Member Services. Tell us your decision by completing Section 4 of the Member Application. The entry price is the price applied when you invest in an investment option. For example, when your employer makes a contribution or a rollover is made into your account, units are purchased at the entry price. The exit price is the price applied when money is withdrawn from an investment option. For example, when withdrawals are made from your account for investment switches, benefi t payments, fees or insurance premiums, units are sold at the exit price. The performance of your investments will depend on a range of factors including when the units are purchased and sold, your investment selection and any investment switches you make. Guarantees Neither the Trustee nor its associated entities guarantee the return of capital, the earning of income or investment performance for your investment in GuildSuper. Your investment in GuildSuper is not guaranteed and the value of your investment can rise or fall. If you leave GuildSuper or withdraw your money from any one or more investment options after joining, you may get back less than the amount of contributions paid in because of the level of returns earned by the investment option (including negative returns) and GuildSuper s fees and costs. 20