Suncorp WealthSmart
®
Product Guide
This Product Guide provides further information to the Suncorp WealthSmart Personal Super and Pension Product Disclosure Statement issued 1 July 2014 and the Suncorp WealthSmart Business Super Product Disclosure Statement issued 1 July 2014. The information contained in this Product Guide is of a general nature only and doesn’t constitute financial advice. We haven’t taken into consideration the personal objectives, circumstances or financial needs of any individual.
Before deciding to open an account or continuing to hold an interest, you should consider how the information contained in this Product Guide relates to your own situation. We recommend that you speak to a financial adviser who will be able to help you with your investment and insurance decisions.
If you’re interested in Suncorp WealthSmart you should read this Product Guide together with the relevant Product Disclosure Statement (PDS) before making any investment decisions. If you’re interested in Suncorp WealthSmart Business Super, you should read this Product Guide together with the PDS for Suncorp WealthSmart Business Super before making any investment decisions. Unless otherwise stated, terms in the Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension PDS and the Suncorp
WealthSmart Business Super PDS have the same meaning in this Product Guide.
Suncorp Portfolio Services Limited (Trustee) (ABN 61 063 427 958, AFSL 237905, RSE Licence No L0002059), and Suncorp Life and Superannuation Limited (insurer) (SLSL) (ABN 87 073 979 530, AFSL 229880) are related bodies corporate of Suncorp-Metway Limited (Suncorp) (ABN 66 010 831 722, AFSL 229882). The obligations of the Trustee and SLSL aren’t guaranteed by any other company within the Suncorp Group. Except as otherwise stated in the PDS and this Product Guide, Suncorp and its subsidiaries don’t guarantee the repayment of capital invested in or the investment performance of this product. This product isn’t a bank deposit or liability and is subject to investment risk including possible delay in repayment and loss of the interest and principal invested.
Except as otherwise stated, an investment manager doesn’t guarantee the repayment of capital invested in or the investment performance of their investment option.
The Trustee is the issuer of this Product Guide and takes responsibility for its contents. Investment option information is provided by the investment managers which includes their objectives, strategies, asset allocations, investment fees and buy-sell spreads. The investment managers have consented to the publication of this information in this Product Guide and haven’t withdrawn their consent at the time of its
preparation. They take no responsibility for any other information in this Product Guide.
This Product Guide is also the Product Disclosure Statement for Suncorp EASE™ (Suncorp EASE PDS). SPSL is the issuer of Suncorp EASE (clearing house) for employers and the Suncorp EASE PDS and takes responsibility for its contents. Part 2 of this Product Guide contains important information about Suncorp EASE which is a service for employers to make contributions to Suncorp and non Suncorp superannuation funds.
Suncorp WealthSmart Personal Super (SPIN and Unique Superannuation Identifier RSA0004AU), Suncorp WealthSmart Pension (SPIN and Unique Superannuation Identifier RSA0002AU) and Suncorp WealthSmart Business Super (SPIN and Unique Superannuation Identifier RSA0003AU) (Suncorp WealthSmart) are part of the Suncorp Master Trust (Fund) (ABN 98 350 952 022, RSE Fund Registration No. R1056655). If you print an electronic copy of this document, please ensure you print all pages. The Trustee reserves the right to refuse or reject an application for membership or insurance. Insurance cover offered through Suncorp WealthSmart is provided by the insurer in a policy issued to the Trustee. This policy is a non-participating policy. As a result you don’t have any right to any surplus in the statutory fund.
Administration services are provided to Suncorp WealthSmart by SPSL (ABN 61 063 427 958), a wholly owned subsidiary of the Suncorp Group.
The Trustee is authorised by the Australian Prudential Regulatory Authority to offer a MySuper product under section 29T of the SIS Act in relation to the Suncorp Master Trust, Suncorp Lifestage Fund. Unique identifier 98350952022938.
The Payment agent is the person appointed by us from time to time to administer the distribution of contributions to external funds through the clearing house. The current payment agent is PayClear Services Pty Limited (PayClear) AFSL 314357.
You can get a copy of the PDS and this Product Guide from our website at suncorp.com.au/super or for a printed version, free of charge, just call us on 13 11 55.
The information in the PDS and this Product Guide and its underlying Trust Deed may change. Where the change isn’t materially adverse, we may update the information on our website at suncorp.com.au/super.
The PDS (and any material incorporated by reference) can only be used by persons receiving it (electronically or otherwise) in Australia.
Applications from outside Australia will not be accepted. Definitions of terms used in the Suncorp WealthSmart PDS and in this Product Guide Throughout the PDS and this Product Guide, unless otherwise specified, references to:
• ‘Suncorp WealthSmart’ means Suncorp WealthSmart Personal Super, Suncorp WealthSmart Pension and Suncorp WealthSmart Business Super
• ‘Suncorp WealthSmart PDS’ means the Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension PDS or the Suncorp WealthSmart Business Super PDS
• ‘we’, ‘us’, ‘our’ and ‘Trustee’ mean Suncorp Portfolio Services Limited
• ‘insurer’ means Suncorp Life & Superannuation Limited • ‘bank account’ means an Australian bank, building society or
credit union account
• ‘business day’ means a Sydney business day other than a Saturday, Sunday or public holiday in Sydney
• ‘licensee’ means an organisation that has obtained an Australian Financial Services Licence (AFSL) for the provision of financial services.
• For Suncorp WealthSmart Business Super members, ‘Suncorp Lifestage Fund’ means a MySuper product • ‘MySuper member’ means any Suncorp WealthSmart Business Super member who has an investment in the Suncorp Lifestage Fund.
In the Suncorp WealthSmart PDS and Part 1 of this Product Guide:
• ‘you’ and ‘member’ means a member of Suncorp WealthSmart • ‘employer’ means your employer, whether registered as an
employer under Suncorp WealthSmart or not. In Part 2 of this Product Guide:
• ‘you’ or ‘employer’ means an employer registered as an employer under Suncorp WealthSmart
• ‘ clearing house’ means SPSL as holder of the Australian Financial Services Licence 237905 which offers a (non-cash payment) clearing house service to employers for the collection and distribution of contributions to multiple superannuation funds.
Suncorp WealthSmart Product Guide
Suncorp WealthSmart® Product Guide | 3
This Product Guide is divided into two parts
Part 1 is for:• customers who’d like to learn more about Suncorp WealthSmart, and
• employees who joined Suncorp WealthSmart as part of their employer’s super plan. Part 2 is for employers who want to learn more about:
• Suncorp WealthSmart and opening a Suncorp WealthSmart employer plan for their employees, and
• Suncorp EASE™ (our online super administration and payment system).
This Product Guide works together with the eight-page Product Disclosure Statement (PDS) for Suncorp WealthSmart. Here’s how:
• The Suncorp WealthSmart PDS is a summary of all the best things about Suncorp WealthSmart, and some easy to digest information about super generally. It also includes some information that we’re required to tell you about by law, such as the risks of super.
• This Product Guide picks up where the PDS left off. If you want more detail about Suncorp WealthSmart and how it works, this is the first place you should look.
This Product Guide contains material that we referred to in the Suncorp WealthSmart PDS. We have to describe this by the legal expression ‘incorporated by reference’. It is very important that before making any investment or insurance decisions, you read:
• the Suncorp WealthSmart PDS
• this Product Guide, and
• other material incorporated by reference.
If you’ve got any questions, or would like a copy of the Suncorp WealthSmart PDS, this Product Guide or any material incorporated by reference, just call us on 13 11 55 or email us at
[email protected]. We’ll be happy to help.
Changes to the PDS
In the world of superannuation, as in the real world, things change from time to time. So the information in the Suncorp WealthSmart PDS and any material incorporated by reference, such as this Product Guide and its underlying Trust Deed, may change at any time. (The Trust Deed is a legal document that sets out the rules within which we have to operate and your rights as a Suncorp WealthSmart account holder.) If the change isn’t likely to be materially adverse for our Suncorp WealthSmart customers, we’ll update the information on our website suncorp.com.au/super or by writing to you. If you’d like a free paper copy of the updated information, just call us.
About this Product Guide
Part 1
1 About Suncorp WealthSmart Page 4
2 Putting money into your Suncorp WealthSmart
super account
Page 6
3 Taking money out of your Suncorp WealthSmart
account
(this section includes details on opening a pension account and receiving pension payments)
Page 9
4 Risks of super Page 12
5 How we invest your money Page 14
6 Fees and costs Page 49
7 Tax Page 54
8 Insurance in your super Page 56
9 Other important information Page 65
Part 2
10 Suncorp WealthSmart for Business and Suncorp
Fees and costs for the Suncorp Lifestage Fund
in Suncorp WealthSmart Business Super
By law we are required to offer all Suncorp WealthSmart Business Super members invested in the Suncorp Lifestage Fund (MySuper) a standard set of fees and costs. Fees and costs associated with any Suncorp WealthSmart Business Super investment in the Suncorp Lifestage Fund will be separate from your other investment options. You’ll find fees and costs associated with each of these separated on your online account and on any account statements issued, including your annual statement.Comprehensive insurance cover within
your super
There can be big advantages in taking out life insurance inside your super instead of arranging it independently. You can protect yourself and your family via your Suncorp WealthSmart account with the following types of insurance:
• Death cover to a maximum of $5 million
• Total and Permanent Disablement (TPD) cover to a maximum of $3 million
• Income Protection cover with a ‘benefit period’ of 2 years, 5 years or until age 65 and a maximum of $25,000 per month.
Insurance offered through Suncorp WealthSmart is provided by Suncorp Life and Superannuation Limited, an award-winning insurer that is part of the Suncorp Group with a proud heritage of protecting Australians that stretches back for 175 years.
Stay in control with easy online access
You can view and manage your Suncorp WealthSmart account online whenever you like. When you join, you’ll automatically receive your online user ID and password. This allows you to access your account online at any time via suncorp.com.au/super.Through Suncorp WealthSmart online you can:
• check your account balance and investment holdings
• view and update your personal details
• view your super contributions plus your transaction and correspondence history
• change your pension payment strategy
Congratulations on taking an important step
to securing your financial future
Suncorp WealthSmart has the features and flexibility to help you reach your financial goals and enjoy the retirement lifestyle you want.
Competitive fees
Suncorp WealthSmart has competitive fees, and the administration fee may be discounted for larger account balances. We may also offer discounts if you link your Suncorp WealthSmart account with accounts held by your family members.
Investment choice to suit all types of investors
Suncorp WealthSmart provides a wide range of options to suit your changing needs with a choice of 41 investment options:• Nine Suncorp diversified portfolios that have investments in a range of different asset classes
• 32 single sector investment options, including Suncorp WealthSmart Term Deposits.
Default investment option for business super
Our default investment option for Suncorp WealthSmart Business Super members is the Suncorp Lifestage Fund.• When you join Suncorp WealthSmart Business Super, you’ll automatically be invested in our simple, cost effective and MySuper compliant Suncorp Lifestage Fund.
• It’s a diversified investment option that automatically changes its investment mix as you grow older.
More about MySuper
On 1 January 2014 the Australian Government introduced the MySuper reforms which have been designed to improve the way superannuation works in Australia.
MySuper is a simple, cost effective superannuation investment. For Suncorp WealthSmart Business Super members, our MySuper investment option is the Suncorp Lifestage Fund.
The PDS and this Product Guide provides all the information you need to know about the Suncorp Lifestage Fund.
• update your future investment strategy
• switch between investment options (excluding Suncorp WealthSmart Term Deposits)
• view your insurance details and nominated beneficiaries
• generate and print a report on your account
• choose to receive correspondence from us by email instead of post
• submit your tax file number (TFN)
• send us a question!
If you’d prefer not to go online, you can call us on 13 11 55 or write to us. Our contact details are on the back page.
Other things you can find on our website at
suncorp.com.au/super
• product dashboards
• daily unit prices
• monthly investment performance reports and asset allocation reports
• forms and other publications
• annual reports and product updates
• investment fund profiles and disclosure documents
• Suncorp WealthSmart Insurance premium rates guide.
Tips and tools to help you grow your savings
With our DIY educational support tools and resources, we’ll show you how taking steps to boost your super needn’t be time-consuming or difficult with:• regular email updates with links to online articles, news and investment market updates
• online updates on financial markets and investing
• an interactive online retirement simulator to help you see if your savings are on track
• an online risk profiler to help you learn which types of investments might best suit you
• an online super rollover wizard for easy combining of multiple super accounts into your Suncorp WealthSmart account
• an online learning centre with resources and education modules.
Suncorp WealthSmart® Product Guide | 5
Email communications
If you want to keep your super paperwork to a minimum, we’ll send you important communications such as annual
statements, and confirmations of transactions and changes to your account by email.
It’s easy to add to your super
You can choose from the following methods of making contributions to your Suncorp WealthSmart account:
• direct debit
• BPAY® (from savings and credit card) • cheque
• transfer from another super fund
• deposits at a Suncorp branch.
‘Set and forget’ death beneficiary nomination
You can have certainty over who’ll receive your super benefit if you die, without the hassle of having toperiodically update your nomination. Suncorp WealthSmart offers a range of estate planning options. For example, you can nominate a ‘reversionary beneficiary’ to tax-effectively receive your pension payments if you die. You can also provide your children under age 18 with a tax-effective income stream if you die.
Tax refund
Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension provides an anti-detriment benefit if you die. This means your beneficiaries may get an amount that represents contributions tax you paid. This benefit is limited to your spouse (legal or de facto) or children and is only payable on lump sum benefits.
Tax is complex and we recommend you consult a suitably qualified professional when considering tax matters relating to investing in your account. Amounts held in super and pension accounts are treated very differently for tax purposes.
How do you..? What form do you need to use?
Transaction options
Apply for insurance cover Insurance application
form
ü
ü
– – –Change your investment
options Investment change form
ü
– –ü
ü
Add or amend theauto-rebalancing service Investment change form
ü
– –ü
ü
Set up or change a regularcontribution plan Direct Debit Request form
ü
– –ü
– Change your address Change of details formü
–ü
ü
ü
Change your name Change of details formü
ü
– – – Change your bank accountdetails Direct Debit Request form
ü
ü
– – – Change your pensionpayment and bank account details
Change of details form
ü
ü
– – –Transfer funds from
another super provider Transfer authority form
ü
ü
– – – Make a withdrawal Withdrawal formü
– –ü
– Nominate a pensionpayment strategy Investment change form
ü
– –ü
ü
Nominate or change yourdeath beneficiary Non-lapsing death benefit nomination form
ü
ü
–ü
– Provide your TFN Change of details formü
–ü
ü
ü
Appoint an authorisedrepresentative Authorised representative form
ü
– –ü
– Cancel a request Put your request in writingü
– –ü
– Set up a personal advice2 Putting money into your Suncorp WealthSmart super account
Super is simply a way of saving for your retirement. All you are doing with super is growing a pot of money you can live off when you stop working. Your super account should grow through a combination of investment returns and the money, or contributions, which you and/or your employer put into it.
Contribution types
Super contributions fit into one of two categories. These are summarised below: Pre-tax (‘concessional’) contributions After-tax (‘non-concessional’) contributions • Compulsory employer contributions (known as Super Guarantee (SG) or Award)
• Personal contributions that are tax deductible
• Salary sacrifice
• Voluntary employer contributions (above the compulsory Award/SG minimum amount).
• Personal contributions made from after-tax dollars (your ‘take home pay’)
• Spouse contributions.
Compulsory employer contributions
Your employer must make Award or Superannuation Guarantee (SG) contributions to your account (unless you’re an exempt employee) at least every quarter. The SG contribution amount is currently equal to 9.5% of most employees’ salary (and is gradually rising to 12%). To find out how much your employer is contributing on your behalf, speak to them or check your payslip.The contributions your employer makes for you may not be enough to provide you with the kind of lifestyle you want in retirement. Here we’ve outlined some ways to help boost your super account.
Salary sacrifice contributions
Salary sacrificing part of your pre-tax salary into your super is one of the easiest and most tax-effective ways of boosting your super account balance. Because the money paid into your super through salary sacrifice isn’t subject to income tax, you can generally save up to 32%† on tax (based on the
highest income tax rate of 47%), including the Medicare levy for the 2014/15 financial year.
And because these contributions don’t count as part of your salary for income tax purposes, salary sacrificing into super may reduce your overall taxable income. So the drop in your take home pay is less than the amount of money going into your super account.
† A 30% contributions tax will apply to pre-tax contributions
for individuals earnings over $300,000 pa.
Personal, after-tax contributions and
government co-contributions
If you make a personal contribution from ‘after-tax’ money (that’s money you’ve paid income tax on – ie, your take-home pay), you may be eligible to receive an additional contribution into your account from the Government. This is known as the Government co-contribution scheme. If you earn less than $34,488 a year (in the 2014/15 financial year) and you make a $1,000 after-tax contribution, the Government may contribute the maximum $500 to your retirement savings. The
Government’s co-contribution amount decreases for those on higher incomes, but you can still benefit from the co-contribution scheme if you earn less than $49,488 a year (2014/15 financial year).
Spouse contributions
Contribution to your account
If you earn less than $13,800 a year you could benefit from the spouse contribution scheme. By making a contribution on your behalf, your spouse may be entitled to a tax offset of up to $540 which can be claimed through their personal tax return. The offset is equal to 18% of a maximum contribution of $3,000 a year – ie $540. This maximum rebate applies when the recipient spouse has a total income of less than $10,800 a year. The rebate gradually reduces up to the $13,800 a year earnings limit.
Contributions to your spouse
Suncorp WealthSmart® Product Guide | 7
Contribution caps
There are limits (sometimes called ‘contribution caps’) on the amounts you can contribute to super in any one financial year (from 1 July to 30 June), without penalty.
Contribution Caps 2014/2015
Pre-tax (‘concessional’) contributions
• $30,000 per year
• $35,000 per year (for individuals age 50 or older). After-tax
(‘non-concessional’) contributions
$180,000 per year. If you’re under age 65, you can contribute up to three times the cap in one or two financial years by combining some future years’ caps.
What happens if you contribute amounts
above the caps?
Depending upon the circumstances, you may pay additional tax /charges or the contributions will be rejected.
Excess concessional contributions are taxed at the marginal tax rate and you can request the release of up to 85% of these contributions from super. An additional interest charge applies.
Investing your future contributions
Note, if you are a Suncorp WealthSmart Business Super member and have an investment in the Suncorp Lifestage Fund as well as other investment options, your future contributions can’t be split. This means that 100% of your future contributions must be made to either the Suncorp Lifestage Fund or across a selection of other investment options. You can however make additional contributions to your other investment options if you wish to do so, or switch super money between the Suncorp Lifestage Fund and other investment options.
If you are a member of Suncorp WealthSmart Personal Super you can split your future contributions across all investment options, including the Suncorp Lifestage Fund.
Putting money into the Suncorp Lifestage
Fund
If you are a member of Suncorp WealthSmart Business Super it is important to note that any investment you have in the Suncorp Lifestage Fund is subject to our MySuper fees and costs. Fees and costs have been outlined in the PDS and in more detail in the Fees and costs section of this Product Guide.
Self-employed?
If you’re self-employed, you don’t receive SG contributions from an employer to help you save for your retirement. The good news is that if you’re self-employed or substantially self-employed and under age 75, you may be able to claim a tax deduction for personal contributions.
You can claim a tax deduction on all contributions you make as long as less than 10% of your income comes from an employer and you do not create a tax loss.
2 Putting money into your Suncorp WealthSmart super account
Who can open a super account?
You can open a Suncorp WealthSmart Super account at any age if you’re receiving SG or certain Award employer contributions. You can make contributions into your super account if you’re under age 65 (or aged 65 to 74 and have worked at least 40 hours in a consecutive 30-day period within the current financial year).
Investment minimums
If you are opening a Personal Super account you will require a minimum investment of $2,000 and a minimum of $2,000 for your ongoing account balance. There is no minimum if you’re starting a Business Super account, although you will require a minimum ongoing account balance of $1,200.
Transition to retirement option and pension account
You will find information on how to open a transition to retirement option or pension account, as well as additional information on these features in the next section of this Product Guide.
It’s easy to pay money into your super account
There is a range of flexible methods for making contributions into your Suncorp WealthSmart super account.
Contribution methods
Direct debit You, your spouse and your employer can make regular contributions into your Suncorp WealthSmart account by setting up a direct debit facility. There’s a minimum $100 per month for you or your spouse per contribution, but no minimum for direct debits made by your employer. Deductions from the nominated bank account are made on or around the first of each month. You can change or cancel this arrangement at any time, but we must receive your request on or before the 25th of the month for it to be effective for the next scheduled direct debit.
BPAY® BPAY® allows you to contribute from your savings or credit card account by phone or internet. You’ll need your Suncorp
WealthSmart Customer Reference Number (CRN) and the BPAY® code for the type of contribution you want to make. Your CRN
is included in the welcome letter you’ll receive after joining Suncorp WealthSmart or you can find it anytime by logging into your online account. If your employer or spouse is contributing to your account by BPAY®, you’ll need to give them the relevant biller
code and your CRN.
®Registered to BPAY Pty Ltd ABN 69 079 137 519.
Contribution type Biller
code
Personal contribution 787275 Spouse contribution 787283 Employer SG/Award contribution 787309 Employer salary sacrifice contribution 787317 Employer voluntary contribution 787291 Cheque Please make cheques payable to ‘Suncorp Portfolio Services Limited’ with your account name and number on the back of the cheque, and send it with an Additional investment
form (available on our website) to us at: Suncorp WealthSmart® GPO Box 2585 Brisbane QLD 4001 Visit a Suncorp branch
Suncorp WealthSmart® Product Guide | 9
Super is meant to help you save to fund your retirement, so it’s logical that restrictions apply to when you can access your money. To give your super time to grow, it’s ‘preserved’ throughout your working life, and access is generally restricted until you reach retirement age or meet what’s called a ‘condition of release’. However, you can transfer (rollover) your account balance to another complying super fund at any time.
Preserved and non-preserved benefits
Within your super account balance, different sums of money may be categorised into different types of benefits, which may determine how accessible that money is, as shown below:Type of benefit When you can access these benefits
A preserved benefit
You can only get access to these benefits once you’ve satisfied a ‘condition of release’. (See the table on the right for more information.) A restricted
non-preserved benefit
These benefits can be accessed under the same conditions of release as your preserved benefits, but can also be paid to you when you leave the employer whose contributions made up these benefits. Generally, restricted non-preserved benefits arise from personal contributions made to an employer fund from 1 July 1983 up to 30 June 1999, and for which you couldn’t claim a tax deduction. An unrestricted
non-preserved benefit
You can get access to this money at any time.
Conditions of release
You can access your preserved super benefits if you satisfy a ‘condition of release’ as shown below:
Condition of release What types of super benefits can you access
Permanently retiring after reaching your ‘preservation age’
All
Leaving your employer after turning age 60
All Reaching age 65 All Permanent incapacity All
Severe financial hardship You may be limited to one lump sum payment between $1,000 and $10,000 within a 12 month period depending on your circumstances.
Compassionate grounds You’ll need to make an application to the Department of Human Services to have your benefits released. The amount you receive is determined by the Department of Human Services.
Eligible temporary residents departing Australia
All Termination of your employment with the employer who contributed for you
You can access all your restricted non-preserved benefits. If the amount is less than $200, you can access your preserved benefits.
Lost member All - If contact is restored and your account balance is low enough. Using your benefits to start a
non-commutable income stream after reaching your ‘preservation age’
You’ll need to commence a transition to retirement option. This is non-commutable, which means you can’t make a lump sum withdrawal from your account.
Terminal illness All
Temporary incapacity You can access your super benefits as long as the withdrawal amount isn’t greater than your income before becoming temporarily incapacitated. You can only receive the payments as a non-commutable income stream.
Death All
Your ‘preservation age’
Your preservation age depends on when you were born. It determines when you can access some of your benefits. Once you’ve reached age 60 and retired, your super benefits can be withdrawn tax-free as either a pension or lump sum amount.
Your date of birth Before July 1960 1 July 1960 – 30 June 1961 1 July 1961 – 30 June 1962 1 July 1962 – 30 June 1963 1 July 1963 – 30 June 1964 1 July 1964 onwards Your ‘preservation age’ 55 56 57 58 59 60
3
Taking money out of your Suncorp WealthSmart account
(continued)
What happens if you die?
Your Suncorp WealthSmart account will be paid to your beneficiary. Your ‘beneficiary’ is the person or people you’ve chosen to receive your super benefit (including any insurance benefit) if you die. There are rules around who you can nominate to receive your super benefit on your death – but it must be paid to your estate or one or more of your
dependants. A dependant includes:
• your spouse (legal and de facto – including same-sex partners)
• a child of any age
• a person in an interdependency relationship with you, and
• a financial dependant.
Make sure your beneficiary nomination is valid
For your nomination to be valid, your beneficiary must be a dependant or your legal representative. Further information on who can be a dependant and how to make a death benefit nomination is on this page. If you don’t nominate a beneficiary or your nomination is invalid, we can use our discretion to pay any death benefit, generally to your dependant(s) and/or your estate. If we can’t find your dependants or your estate, and we haven’t received a contribution for you for at least two years, your benefit will be considered ‘unclaimed money’ and transferred to the Australian Tax Office.To provide certainty as to who’ll receive your benefit, Suncorp WealthSmart gives you the following options for nominating a beneficiary:
1. Non-lapsing death benefit nomination 2. Child pension nomination 3. Reversionary pension nomination
(pension members only).
1. Non-lapsing death benefit nomination
A non-lapsing death benefit nomination allows you to nominate your dependants and/or your estate to receive part or all of your death benefit (including any insurance benefit). We must pay the benefit to your beneficiaries when you die (provided your nomination is valid at the time).
For your nomination to be valid:
• each beneficiary must be a dependant and/or your legal representative at the time of your death
• if there is more than one beneficiary, the apportionment of your benefit must be clear and add up to 100%
• two adult witnesses who aren’t beneficiaries must witness and sign the nomination.
While your nomination is non-lapsing, it’s still a good idea to keep it up to date. We recommend you review your
nomination whenever your circumstances change – eg. with marriage, divorce, birth of a child or when a beneficiary ceases to be a dependant.
2. Child pension nomination
The child pension is an extension of the non-lapsing death benefit nomination. You can nominate your child under age 18 to receive an income stream paid from your benefits when you die. You can restrict your child from accessing their account until a pre-determined age. However the pension must be paid out as a lump sum when the child reaches age 25 (unless they’re permanently disabled and meet certain other requirements).
3. Reversionary nomination (pension members only)
A reversionary nomination allows your nominated beneficiary to tax-effectively continue to receive your pension payments when you die. You can only nominate a reversionary beneficiary at the time you apply for a Suncorp WealthSmart Pension by completing the relevant section of the application form. You can’t add or change a reversionary beneficiary other than by stopping your current pension and starting a new one.
Using the transition to retirement option
Have you reached the age when you can retire but aren’t quite ready to leave the workforce? Using Suncorp WealthSmart’s transition to retirement option allows you to access your super benefits as a retirement income stream while still continuing to work. It’s particularly beneficial for those aged 60 or over. There are minimum amounts you must withdraw (the same as pension) and you can’t withdraw more than 10% of your account balance in a financial year.If you’re transitioning to retirement the income stream is non-commutable, which means you can’t take lump sum cash withdrawals until you reach 65 or meet another ‘condition of release’, such as retirement.
Suncorp WealthSmart® Product Guide | 11
Funding your retirement with a Suncorp
WealthSmart Pension
If you’re ready to retire, Suncorp WealthSmart makes the change simple and hassle-free. A Suncorp WealthSmart Pension provides regular income to fund your retirement needs, while continuing to let your savings grow at a tax-effective rate.
Information on how to apply for a pension account is available through the Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension PDS.
Opening a pension account
You can open a Suncorp WealthSmart Pension account if you:
• have reached your ‘preservation age’ and want to access your preserved benefits through the transition to retirement option within a Suncorp WealthSmart Pension. To find your ‘preservation age’, please see Your ‘preservation age’ on page 9 of this Product Guide
• have reached your ‘preservation age’ and have ceased gainful employment and intend never again to work 10 hours or more in a week
• are aged 60 to 64 and have retired, or since turning 60 have resigned from or changed your employment
• are aged 65 and over
• are permanently incapacitated
• have a super lump sum consisting entirely of unrestricted non-preserved benefits
• are still able to contribute to super but meet an immediate ‘condition of release’.
Pension minimum
The minimum amount for opening a pension account is $25,000. Once your pension account is established, you can’t add any further money.
Flexible regular payments
You’ve worked hard over the years to build your retirement savings, so you want to make them last once you stop working. If you have a pension account, you can access the entire balance of your account at any time. You can do this by receiving regular income payments or by requesting an additional lump sum withdrawal from your account. You can choose to receive your pension payments in your nominated bank account:
• monthly
• quarterly (you choose the month)
• half-yearly (you choose the month)
• yearly (in the month before the anniversary date of your pension starting).
Payments are made into your nominated bank account on or around the 15th of the month.
Pension payment strategy
You can choose which investment options you’d like your pension payments drawn from (excluding Suncorp WealthSmart Term Deposits). We’ll continue to fund your pension payments from your nominated investment options until they have a nil balance. We’ll then choose which investment options to draw the remainder of your pension payments from (excluding Suncorp WealthSmart Term Deposits).
If you don’t provide a drawdown nomination, your pension payments will be taken proportionally across your
investments (excluding Suncorp WealthSmart Term Deposits).
Minimum pension payment amounts
By law, in each financial year you must receive at least one pension payment, and the total amount of your payments must be at least the minimum amount specified by the Government for your age. There are no limits on how much you can withdraw from your pension account, except if you are under age 65 and haven’t met another ‘condition of release’ that gives you access to all your benefit.
Your age Minimum pension amount you must withdraw from your account balance (each financial year)†
Under 65 4% 65 – 74 5% 75 – 79 6% 80 – 84 7% 85 – 89 9% 90 – 94 11% 95 or older 14%
† Pro-rata amounts apply if you start your pension part of the
4 Risks of super
Even though the government makes it partly compulsory, investing in super carries certain risks. One of the biggest (aside from super generally being preserved until you retire) is that you won’t end up with enough money to meet your retirement needs.
This could happen:
• when an investment decreases in value
• where money is invested conservatively in assets which provide more stable but lower long-term returns.
It’s a good idea for you to consider what these risks might mean for you. If you’re not sure how you feel about risk, log into your online account and check out our range of tools and calculators on super and investing or give us a call and we can help you.
General risks that could affect your Suncorp WealthSmart account
Some of the risks that could affect the investments in your super account are shown below. We regularly monitor these risks for their impact on the investment menu as a whole, but it’s a good idea for you to consider what they might mean for you.
Risk type What is it?
Market risk This can arise due to changes in government or economic policy, interest rates and exchange rates, market sentiment, global events, technological change, environmental conditions or changes in legislation. All these things can adversely affect the financial markets in which your super may be invested.
Investment options risk Investment managers and the strategies they adopt may change, which may not be in line with your expectations when you first invested. They may also fail to meet their stated investment objectives. It’s also possible an investment option may be terminated.
Liquidity risk This arises where an investment can’t be easily converted into cash or sold at fair value, at a time when you need it.
Credit risk This is where someone doesn’t meet their obligations to, or relating to, the investment option. For example, it includes the risk that we or an underlying investment manager are unable to make payments.
Interest rate risk The value of fixed interest investments such as bonds will fall when interest rates rise, and vice versa.
Inflation risk If inflation exceeds an investment’s return, it will reduce the investment’s purchasing power. Inflation risk is more common in low-risk investments such as cash, which generally fluctuate less but potentially provide lower long-term returns.
Currency risk The value of international investments will change with the rise and fall of the Australian dollar. An investment manager can manage currency risk via a strategy referred to as ‘currency hedging’. Generally, if the Australian dollar rises, the value of unhedged international investments (those not currency hedged) held in other countries will fall and vice versa.
Derivatives risk Derivatives are securities that derive their value from another security. Commonly known derivatives include futures and options. Investment managers may use derivatives to manage risks in a portfolio or to leverage a portfolio in the hope of generating greater returns. The risks of using derivatives include that they may be costly or difficult to reverse and their value may not move in line with that of the underlying security.
Gearing risk Gearing involves borrowing money to invest in an asset. Geared investment options are internally geared, meaning the investment option borrows the money, rather than you. The cost of borrowing, including interest rates, and the level of gearing influence returns on a geared investment. Gearing magnifies both the gains and losses of an investment option.
Changes in law Super and tax legislation changes frequently. These changes could affect when you can access your benefits and how they’ll be treated upon withdrawal. We’ll tell you about any changes we think are likely to affect your investment. Generally, we do this through the annual report.
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Reduce your risk via diversification
The most common way to reduce your risk is by diversification, or ‘not putting all your eggs in the one basket’. Suncorp WealthSmart can help you diversify your investments:
How we can help you diversify your super investment
Across asset classes Our nine diversified investment options are invested across a range of investments, including Australian and international shares, Australian and international fixed interest, Australian and international property, cash and alternative assets. You can also create your own investment mix from our 32 single sector investment options.
Within an asset class You can invest in different markets, different industries or different investment styles within one asset class.
Across investment managers
With a choice of quality investment managers to select from, you can invest with different investment managers of differing investment styles.
The relationship between risk and return
As a general rule, investments with a higher level of risk will provide a higher potential return. By the same token, the smaller the risk an investment poses, the smaller the potential return it will provide. This is illustrated below:
Cash and Term Deposits Fixed interest Growth investments Property Shares Income investments High
Low
Risk
HighRet
ur
n
Standard Risk Measure
The Standard Risk Measure (SRM) is a calculation we do to help make it easier for you to compare the riskiness of investment options. Technically it tells you how many negative annual returns an investment option can be expected to deliver over any 20 year period.
The SRM is not a complete assessment of all forms of investment risk. For instance, it doesn’t detail what the size of a negative return could be or the potential for a positive return to be less than you may require to meet your objectives. Further, it doesn’t take into account the impact of the administration fee or any part of the management fee that is not paid to an investment manager, and tax on the likelihood of a negative return.
You should still ensure you are comfortable with the risks and potential losses associated with your chosen investment option(s).
You can find more information on the methodology we use to calculate the SRM, and a SRM for all of our investment options, in the Understanding Investment Risk flyer on our website.
The SRMs are shown below:
Risk band
Risk label Estimated number of
negative annual returns over any 20 year period
1 Very Low Less than 0.5 2 Low 0.5 to less than 1 3 Low to medium 1 to less than 2 4 Medium 2 to less than 3 5 Medium to high 3 to less than 4 6 High 4 to less than 6 7 Very high 6 or greater
Asset class What is it?
Cash Cash generally refers to short-term liquid investments and may include bank deposit securities, such as term deposits.
Fixed interest Fixed interest generally refers to debt instruments issued by governments and companies. Investments may include bonds, debentures and other hybrid securities. The value of fixed interest assets may go up or down.
Property Property generally refers to direct or indirect property investments in Australian and international property via listed and unlisted real estate trusts (REITs), exchange traded funds (ETFs) and companies. Shares Shares represent a part ownership in a company (ie a share). Returns from the ownership of shares
combine both the income received (dividends) and growth (capital gains) through the increase in the share price. The value of international shares may also be affected by fluctuations in the exchange rate. Alternative assets Alternative assets are investments that are not classified or may not be correlated to the traditional
asset classes of cash, fixed interest, property or shares. Typically they may involve investments in asset classes (eg. commodities such as gold, infrastructure or private equity) or investment strategies (eg. financial instruments such as exchange traded or Over The Counter (OTC) derivatives, or trading techniques) that aren’t liquid and require specialised skills to manage.
Making the right investment choice could make a big difference to your super savings.
Suncorp WealthSmart provides a wide range of options to suit your changing needs with a choice of 41 investment options:
• Nine Suncorp diversified portfolios, including the Suncorp Lifestage Fund, that have investments in a range of different asset classes
• 32 single sector investment options, including Suncorp WealthSmart Term Deposits.
The choice is yours and we provide a full list of the investment options available later in this section, please see The Suncorp WealthSmart investment menu on page 19 of this Product Guide.
Things you should know before investing
Understanding the asset classes
Each investment option is invested into what are called ‘underlying assets’. These underlying assets have different characteristics and may be either ‘income’ assets, ‘growth’ assets, or a combination of both.
• Income assets include such things as cash and fixed interest, which provide income returns in the form of interest
• Growth assets include property, shares and alternative assets, which provide for investment returns comprising both capital growth (increase in value of the investment) and income.
Default investment option for Suncorp WealthSmart Business Super
Your super contributions will be automatically invested in the Suncorp Lifestage Fund. This means you will be invested in the Suncorp Lifestage Fund for your year of birth. For example, if you were born in 1982 you will be invested in the Suncorp Lifestage Fund 1980-1984.
This could be a perfectly reasonable investment option for you. But no single investment option suits everyone. And the risk you take is that the default investment option won’t deliver what you want, or need, from your investments.
Matching your investments to your risk profile, and to your long-term lifestyle goals, is a good start to achieving your retirement goals. With so much choice there’s sure to be an investment option, or a combination of investment options, to suit you. It’s just a matter of finding out what they are and discussing with your financial adviser the investment strategy that’s right for you.
Details of your investments are included in your welcome pack.
Who manages the Suncorp WealthSmart investment options?
The 41 investment options available in Suncorp WealthSmart are managed by world class investment managers including Ibbotson Associates Australia Limited (Ibbotson).
For more information, please see Information about the investment managers on page 45 of this Product Guide.
About the investment options
For some investment options, a PDS is issued by the underlying investment manager, free of charge. You can download copies from our website or ask us for a printed version.
Before you select or change your investments to a new investment option, you should consider the relevant investment manager’s PDS.
In general, if there’s a conflict between the terms and conditions shown in an investment manager’s PDS and the Suncorp WealthSmart PDS and this Product Guide, you should refer to the Suncorp WealthSmart PDS and this Product Guide to understand the terms and conditions applying to your investment.
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Suncorp WealthSmart Term Deposits
If you’re looking for income certainty for your super or pension, you can invest as little as $1,000 in a Suncorp WealthSmart Term Deposit and receive a fixed interest rate for your chosen investment term.
With Suncorp WealthSmart Term Deposits:
• you won’t pay any management fees on balances invested in term deposits
• income (interest) earned will be paid into your account yearly and on maturity (interest is calculated using simple interest)
• interest will be paid to the Suncorp Cash Fund
• you have the choice of six month, one, three or five year terms
• you can invest in as many term deposits as you like† provided you don’t invest more than 70% of your account balance
in total
• you won’t get a Suncorp Bank Term Deposit directly, because under superannuation law we’re required to hold term deposits and other fund assets on behalf of members.
You can get the latest Suncorp WealthSmart Term Deposit rates from our website or by calling us.
† You may select a maximum of 20 investment options at any time. Please note, each Suncorp WealthSmart Term Deposit
you hold counts as one investment option.
How you can invest in Suncorp WealthSmart Term Deposits
Simply switch at least $1,000 from your other investment options into the term deposit and choose your preferred term. You can’t invest more than 70% of your account balance in term deposits. The information below shows what happens if your investment in term deposits exceeds this amount.
What happens on maturity or when your term deposit is broken?
With a Suncorp WealthSmart Term Deposit, your money is generally ‘locked’ in for your chosen investment term. However, there are some circumstances when you, or we can ‘break’ your term deposit early:
Breaking a term deposit
When can you break your term deposit?
• If you ask to switch out of a term deposit before it matures
• If you request a partial withdrawal and there’s not enough money in your other investment options to pay out your requested amount
• If you ask to withdraw or rollover in full, or close your Suncorp WealthSmart account. When can we
break your term deposit?
• If the balance of your account invested in Suncorp WealthSmart Term Deposits exceeds 85% of your account balance at any time. You’ll need to make sure you maintain at least 15% of your account balance in other investment options (not in term deposits)
• If there’s not enough money left in your other investment options to pay for fees, costs, insurance fees, contributions tax, pension payments, or any other amount we need to deduct.
If we need to break your term deposit for one of the reasons shown above, we will break the term deposit which is closest to maturity.
If you’d like to find out what the differences are in investing into an investment option through Suncorp WealthSmart as opposed to investing directly with the underlying investment manager, please see page 17 of this Product Guide.
Please note that we don’t take labour standards, environmental, social and ethical considerations into account when selecting, retaining or terminating investment options.
Multi-manager investment options
A multi-manager approach to investing uses the skills of more than one investment manager. It’s based on the view that no single investment manager consistently outperforms the market in all conditions. Over any given timeframe, it’s difficult to predict which investment managers or which investment style will outperform the market and its peers. Some investment styles will perform well in one stage of the market cycle, while others may perform poorly in the same conditions. Suncorp WealthSmart’s multi-manager investment options blend a combination of quality investment management styles to create investment options aimed at reducing investment risk and the volatility of returns.
Can you change your investment options?
Because your financial needs may change, you have the flexibility to switch between investment options at any time, without paying a switching fee. This includes switching between the Suncorp Lifestage Fund and other investment options. You may incur a buy-sell spread, which is charged by the investment manager, depending on the options you select. For more information, please see Buy-sell spreads in the Fees and costs section of this Product Guide.
Changing investment options
Changing your future investment strategy (or switching your investment) from the Suncorp Lifestage Fund to other investment options in Suncorp WealthSmart Business Super may mean:
• A change to the fees and costs you pay, including investment and administration fees. Please see Fees and costs in this Product Guide for more information.
• A change in your investment strategy and risk on your investment. Please see The Suncorp WealthSmart investment menu in this
Other important information
Investment performance
Investment performance lets you see how your investment is going.
How is investment performance calculated?
Your super balance can go up and down. Past performance is not an indicator of future performance.
In accordance with industry standards, investment performance is generally calculated net of taxes, levies and ongoing fees such as the administration fee, member fee, performance fee, and investment fee. However, when calculating investment performance, we generally don’t take into account contributions tax, entry fees, deferred entry fees, exit fees and any discretionary ongoing fees such as
insurance fees and adviser service fees. If we calculate the investment performance for an investment option in a way different from that set out above, we’ll explain this in the monthly Suncorp WealthSmart investment performance report which is available from our website.
You should be aware that the investment performance information for the investment options may differ from the performance of the underlying investment managers. This may be due to:
• holding some assets in cash or short-term securities, for liquidity purposes, or
• provisions for tax, levies and distribution of tax credits, or
• the fees and charges that apply, or
• a lag between when the underlying investment managers report their performance and when the value of the underlying investment option is reflected in the unit prices. If your term deposit is broken for any reason, it will be broken
in full. In other words it can’t be partially broken. If your term deposit is broken before the end of your chosen investment term, any interest earned will be adjusted, as shown below:
Term completed Interest adjustment
(% of interest earned reduced by the percentage shown below)
0%–25% (eg. within the first three months of a 12 month term) 80% 26%–50% 60% 51%–75% 40% 76%–100% 20%
Interest earned is calculated by adding together interest that has been accrued (but not yet paid) plus any interest that has been paid. This means that if the interest adjustment is greater than what has been accrued to your account, the difference will be taken from the principal (ie the amount you originally invested into the term deposit).
When your Suncorp WealthSmart Term Deposit matures or is broken (including if you switch out from it), we’ll invest the proceeds in the Suncorp Cash Fund (for a switch, this is temporary until your money is invested in your chosen replacement option). The amount we’ll pay is your principal invested, plus interest accrued, less any applicable interest adjustment and any applicable taxes (which may include some of your principal).
Suncorp Traditional Capital Guaranteed Fund (closed to new members)
The Suncorp Traditional Capital Guaranteed Fund isn’t unit priced. SLSL declares interest rates in arrears for this investment option at 30 June each year. Interest is calculated on the daily account balance and credited to your account on 30 June each year.
An investment in the Suncorp Traditional Capital Guaranteed Fund provides a participating benefit. This means that the profits arising in respect of this option are allocated 80% to members and 20% to SLSL as shareholder.
SLSL guarantees that the interest credited to your account at 30 June each year won’t be negative.
We use an interim interest rate to calculate interest on full withdrawals made before the interest rate is declared (including full switches to another investment option). The interim rate can be changed by SLSL at any time and will apply from the previous 1 July. The final declared rate on 30 June may be less than the interim rate that has applied during the past year.
The declared interest rates are determined based on several factors, including:
• the investment income received after an allowance for tax, including both realised and unrealised capital gains and losses
• transfers to and from reserves in order to smooth returns over time and provide for guarantees
• administration and investment fees
• expenses such as brokerage, stamp duty, taxes, and other expenses incurred in managing the assets.
Suncorp WealthSmart® Product Guide | 17 Investing through Suncorp WealthSmart and investing directly
When you invest with Suncorp WealthSmart, we hold the investment on your behalf, instead of you holding it directly. There are differences in investing into an investment option through Suncorp WealthSmart as opposed to investing directly with the underlying investment manager. These include:
Timing of information
An investment manager’s PDS may have a different preparation date from this PDS and may include investment information effective as at different dates.
Differing returns Investment returns based on unit prices as calculated for Suncorp WealthSmart are likely to differ from any returns in an investment manager’s PDS or reports. This could be due to differences in investment fees, costs, taxes, and the timing impact of differences in transactions for the investment options offered within Suncorp WealthSmart relative to those for the investment manager’s financial product.
Differing fees The fees incurred when investing through Suncorp WealthSmart are likely to differ from the fees charged by the investment manager as a result of fees levied to administer Suncorp WealthSmart.
Minimum and maximum transaction amounts
An investment manager’s PDS may set out minimum and maximum investment amounts. These don’t apply to you when investing through Suncorp WealthSmart.
Tax implications Suncorp WealthSmart is liable to pay tax for each investment option. The unit prices of investment options in Suncorp WealthSmart will reflect any applicable tax liability.
Receipt of reports You won’t receive reports directly from investment managers when you invest in Suncorp WealthSmart.
The rights to attend and vote at unit holder meetings
When you invest in Suncorp WealthSmart, you won’t hold any rights to attend and vote at meetings of unit holders of the underlying financial product.
Before you make any investment decisions, you should consider the relevant investment manager’s PDS. You can download copies from our website or you can ask us for a printed version, free of charge.
The information in an investment manager’s PDS may change from time to time. This means that when you make a contribution into an investment option, you may not have referred to the most recent PDS for that investment option. You may not therefore be aware of material changes or significant events that would be in the most recent PDS.
However, you can download from our website information about material changes or significant events that affect a matter in the underlying PDS. We’ll provide this information as soon as practicable after the change or event takes place. You should therefore check our website each time you make an additional contribution to see whether any matter in the PDS has been affected by a materially adverse change or significant event.
Unit prices
For all investment options, except the Suncorp Traditional Capital Guaranteed Fund and Suncorp WealthSmart Term Deposits, your account balance is calculated by multiplying the number of units you hold by the investment option’s exit price and moves up and down over time. Your unit balance represents a partial holding in an investment option.
Buying units
When you invest or switch into an investment option, units in your chosen investment option are allocated to you. The number of units allocated will depend on the investment option’s entry price of the units at the time and the amount you invest.
Selling units
When we sell units in an investment option, the amount you receive will depend on the exit price of the investment option’s units at the time and the number of units sold. We can sell units from your investment options to pay for taxes, insurance fees (if applicable) and certain fees or charges. We can also sell units when you switch to another investment option, request a withdrawal or transfer to another super fund.
Switching between investment options
If you request a switch, we’ll sell units from one investment option and use the proceeds to buy units in the other investment option. The buy-sell spread is applied to cover transaction costs associated with processing the switch.
Calculation of unit prices
Unit prices are usually calculated daily and reflect the value of the underlying assets of the investment option. This takes into account income entitlements, investment fees, taxes, levies and other expenses and liabilities. The underlying asset value is divided by the number of units on issue to arrive at the price per unit. Buy or sell spreads are then applied to this price per unit to calculate the entry and the exit prices, respectively. Like the values of the underlying investments, the price of units can move up and down.
If an investment option is closed, suspended or terminated, this may cause delays in processing withdrawals and transfer requests. This delay may be more than 30 days and the unit price used to process your transaction may differ from the price applicable on the day you lodged your request. Where an investment option is closed, suspended or terminated, we’ll write to you in advance (where possible) to tell you. You’ll then be able to review your investment strategy with your financial adviser or call us.
If we can’t tell you in advance, we’ll choose a replacement investment option in which to invest your money until you’ve been able to review your investment strategy.
Related companies
We, Suncorp Custodian Services Pty Limited (ABN 85 010 421 931), Suncorp Funds Pty Ltd (ACN 153 008 354) (SFPL), Suncorp-Metway Limited (ABN 66 010 831 722, AFSL 229882), SLSL, and the Optimum Pooled Superannuation Trust (SFN 269 403 949) are part of the Suncorp Group. We don’t deal with our related companies more favourably than we would with any other independent service provider.
The Fund invests through either the Optimum PST or a group investment policy with SLSL or directly. The Optimum PST then invests in the underlying investment options. SLSL invests in trusts issued by SFPL. The Fund and SFPL currently invest in bank deposits issued by Suncorp-Metway Limited.
Auto-rebalancing on super accounts
Keeping track of movements in your investment options can be a time-consuming task. Over time, variances in investment performance may result in your investment options moving away from the percentages nominated in your original investment selection.
Unit pricing delays
We may suspend unit pricing where in our opinion:
• a significant event or incident occurs that has the potential to affect investment markets, or
• an event occurs that has the potential to affect unit prices, or
• an external investment manager closes the underlying investment to applications and withdrawals, or
• the unit prices calculated have the potential to prejudice specific members.
Changes to investment options
Suncorp WealthSmart’s investment menu may change from time to time, including the fees and charges relating to the investment options. It’s important to check our website regularly for any changes to your investment options. From time to time, investment options may also be closed, suspended or terminated by an external investment manager or by us. This may happen where:
• the investment option is no longer offered by the investment manager, or
• the total amount of investor’s money in the investment option has grown too large for the investment manager to continue with its current investment strategy, or
• laws change so that some investment types become no longer permissible, or
• we determine that it’s in the best interests of the members, or
• the investment option may no longer be economically viable.
By using the auto-rebalancing service, you can choose to have your investment options regularly rebalanced in line with your future investment strategy without having to constantly monitor your account.
For example, you invest 50% in Option A and 50% in Option B and you want to maintain this investment strategy. Over time, your actual investment allocation may change to 40% in Option A and 60% in Option B as a result of movements in the unit price. Your account will then be automatically rebalanced to your future investment strategy (50% in Option A and 50% in Option B) at the frequency you select.
You can choose to have your account rebalanced:
• quarterly (in March, June, September, and December)
• half-yearly (in June and December), or
• yearly (the month after we receive your request and every June thereafter).
Rebalancing takes effect on or around the 22nd of the month. Auto-rebalancing will not apply to any money invested in Suncorp WealthSmart Term Deposits.
For Suncorp WealthSmart Business Super members, the auto-rebalancing feature is not available if future contributions are invested in the Suncorp Lifestage Fund.
The auto-rebalancing feature works differently on pension accounts, please read the information below.
Auto-rebalancing on pension accounts
Please note that if you select the auto-rebalancing service on your Suncorp WealthSmart Pension, your investment strategy will be rebalanced in line with your pension payment strategy.
For example, if your pension payments are drawn 50% from Option A and 50% from Option B, your investment strategy will be rebalanced to reflect this. If you would like your investments to be allocated differently to your pension payment strategy, you will not be able to use auto-rebalancing and should complete an investment switch if/when your investment strategy changes.
