Your fund. Your wealth. Your future. NGS SELF- MANAGED GUIDE

Transcription

1 Your fund. Your wealth. Your future. NGS SELF- MANAGED GUIDE NGS Self-Managed Guide Issued 15 December 2017

2 NGS Self-Managed offers a new level of choice and direct control over the investment of your Accumulation, Transition to retirement or Income accounts through an online direct investment gateway. It enables you to invest in a wide range of shares, exchange traded funds (ETFs) and term deposit options. The NGS Self-Managed direct investment gateway provides you with access to real-time trading 1 as well as market information provided through Morningstar investment profiles 2 to help you make informed decisions and manage your account. NGS Self-Managed offers a low-cost, easy and hassle-free alternative for members interested in a self-managed super fund (SMSF) as a savings vehicle for retirement, and includes the following key benefits for you: You re in control you have direct choice over the investment of your retirement savings and you re responsible for your own investment outcomes. Easy to manage and hassle-free NGS Super takes care of all the compliance and reporting requirements, so you won t have the burden and unnecessary cost of having to arrange these services yourself. Low costs we offer no set-up costs and low ongoing fees, avoiding the need for expensive set-up charges and the ongoing consulting fees and commissions normally associated with an SMSF. Ongoing support NGS Super can provide support and assistance through NGS Financial Planning, should you have any questions about your NGS Self-Managed portfolio selection (additional fees apply). Morningstar investment profiles. 1 Generally, where system is available and during market hours. 2 Morningstar investment profiles are provided by Morningstar Australasia Pty Ltd. Information about Morningstar Australasia is available from morningstar.com.au. NGS SELF-MANAGED GUIDE 2

3 TABLE OF CONTENTS Things to consider when investing 4 Fees and charges 6 How NGS Self-Managed works 8 Investments in NGS Self-Managed 10 Managing your choices 13 Transaction account rules (terms and conditions) 15 Reference guide 17 Online investment list 19 Information in this guide is correct at the time of publishing and is subject to change. The most up to date information about this product is available on our website at NGS SELF-MANAGED GUIDE 3

4 THINGS TO CONSIDER WHEN INVESTING Before we delve into the details of the NGS Self-Managed options available, it s important to understand how your particular circumstances affect the suitability of which investment option is best for you. What investments do you have outside of super? The answer to this may influence how much you need to save and the type of assets you invest in. You can diversify your retirement savings by investing in a broad range of asset classes. How old are you now and when do you plan to retire? When you plan to retire can have an influence on the level of risk you are prepared to accept. If you are younger, you may decide to pursue higher longterm returns and be prepared to accept the occasional negative return in the short term because you have time on your side. If you are close to retirement however, you may be concerned about a market downturn just before you retire and may prefer the lower risk profile of a more conservative investment strategy. How long will you be retired for? Naturally, this is impossible to pinpoint exactly, but the longer you are retired, the more money you will need. It will be influenced by the age at which you begin your retirement. This may mean increasing the amount you contribute to super or, depending on your risk tolerance, changing to a more aggressive strategy to potentially gain a higher balance over the longer term. What is your objective? In general, the majority of members have as an objective to provide for a comfortable retirement through building their super savings. However, the way this is achieved may change with time and your tolerance to risk. If you are just starting out, you are likely to be looking to grow your super and your objective might be to accumulate a healthy balance for retirement. As you approach retirement, your objective may change to maintaining the balance you have accumulated, with the aim of avoiding significant capital losses. How much control do you want over your super? With NGS Super you can choose the level of choice and control you want over your Accumulation, Transition to retirement or Income accounts. Whether you invest in a single option or combination of options, there s an investment strategy suitable for your needs and lifestyle objectives. Level of choice and control None Select from our pre-mixed choices and leave the rest to us Build your own strategy by selecting from our range of sector-specific options Do-it-yourself super your choice your way, easy and hassle-free Provides direct control over your super. This option is only for members who will accept responsibility for their own investment decisions and may not be suitable if you do not want a high level of involvement with investing your super or pension. Investment options Default If you don t want to make a choice, your account will be invested in the default investment option. NGS Super s Diversified (MySuper) is the default option for the Accumulation and Transition to retirement accounts. For the NGS Income account, Moderate Growth is the default option. Pre-mixed choices a selection of options that combine various investment types (also known as asset classes ). NGS Super manages the mix of asset classes and selects investment fund managers for each option. Sector-specific choices a selection of individual asset class options, which are managed by fund managers selected by NGS Super. This is suitable if you wish to choose your investment sectors but not your individual shares or term deposits. NGS Self-Managed (direct investment gateway) Your choice of shares from the S&P/ASX 300 Index, selection of exchange traded funds and term deposits, this option provides the greatest level of choice and flexibility with your Accumulation, Transition to retirement or Income accounts. Available to NGS Accumulation, Transition to retirement or Income account members with at least $7,000 invested in their account. Please note you are required to keep a minimum of 20% of your total (Accumulation, Transition to retirement or Income account) balance or $2,000, whichever is higher, in one or more of NGS Super s pre mixed or sector-specific options. It is important to leave sufficient funds in your account to cover costs such as insurance premium deductions. NGS SELF-MANAGED GUIDE 4

5 You should also be aware of factors that can impact certain types of direct investments, such as: short-term share price fluctuations trading and trying to time the markets making short-term decisions lack of diversification. Please remember that super is a long-term investment and short-term performance doesn t always give you a complete picture of long-term performance. Seek advice before investing It s a good idea to seek financial advice when making major investment decisions such as choosing how to invest your super and investing in individual shares. As a member of NGS Super you have the ability to discuss your investment options and receive advice where required. You can seek advice: over the phone face to face with the NGS Financial Planning service. To speak with a planner or make an appointment, contact our friendly Customer Service Team on NGS SELF-MANAGED GUIDE 5

6 FEES AND CHARGES NGS Self-Managed has a direct investment gateway administration fee of $4.75 per week ($247 per year), which includes access to Morningstar investment profiles. This fee is calculated daily and deducted on a monthly basis from your NGS Accumulation, Transition to retirement or Income account pre-mixed or sector-specific options, as long as your NGS Self- Managed cash account remains open. This fee will be charged separately for each NGS account held (Accumulation, Transition to retirement and Income accounts) which you then use to access NGS Self-Managed investments. Brokerage charges below apply when you trade shares and ETFs, and are based on the range each trade amount falls into. Transaction amount $0 $4,167 $12.50 flat fee $4,168 $10, % $10,001 $30, % $30,001 $50, % $50,001 $100, % Brokerage fee (excludes GST) Fees for exchange traded funds Fees incurred by ETFs range from 0.05% p.a. to 0.68% p.a. and includes management fees, custody and any other expenses. The price quoted on the ASX reflects all fees and expenses incurred, which may be deducted from the securities held in the ETF. For full details of management fees, visit the website of the relevant ETF provider. Fees for breaking a term deposit There are no fees for investing in term deposits, however, if a term deposit is broken before it matures, the term deposit provider will generally charge a break fee (or retain interest) from the term deposit interest earned to date. Refer to the Online investment list section on page 19 for further details on break fees. for trade component $100, % For example, if you traded $50,000 of securities your total brokerage fee would be $90 (excl GST). In addition to the above fees, NGS Super has an: administration fee of $1.25 per week and, asset-based fee of 0.10% p.a. The asset-based fee is calculated on all the assets in your NGS Super accounts with a maximum limit of $500 a year 3. The asset-based fee calculated on your NGS Self- Managed investments is deducted from your account and will appear on your member statement. This is different to the asset based fee in relation to NGS Super s other pre-mixed and sector-specific options, which are factored into the unit prices applicable to those investments, rather than showing as a direct deduction from your account. 3 If at 30 June you have paid an asset-based fee greater than $500 since the previous 1 July, a fee rebate will be credited to your account if you are still an NGS Super member when the rebate is to be credited. The rebate will be in the form of additional units which will be credited to your pre-mixed or sector-specific investments. NGS SELF-MANAGED GUIDE 6

7 Transaction accounts The NGS Self-Managed direct investment gateway is available to NGS Accumulation, Transition to retirement or Income account members with at least $7,000 invested in their account. You are required to keep a minimum of 20% of your total (Accumulation, Transition to retirement or Income account) balance or $2,000, whichever is higher, in one or more of NGS Super s pre-mixed or sector-specific investment options. NGS SELF-MANAGED GUIDE 7

8 HOW NGS SELF- MANAGED WORKS How NGS Self-Managed works quick reference NGS Accumulation, Transition to retirement or Income account pre-mixed or sector-specific options (limit applies) NGS Self-Managed cash account (limit applies) S&P/ASX 300 Your choice of individual shares from the top 300 Australian Securities Exchange (ASX) listed companies ETFs Your choice from a range of exchange traded funds. For further details, please refer to the Online investment list on page 19 4 Term deposits Your choice of: term selection from 1, 3 or 6 months from a selection of term deposit providers. For the full list of providers, please refer to the Online investment list on page 19 4 For further details regarding investing, please refer to the Investments in NGS Self-Managed section on page 10 as well as the Transaction account rules (terms and conditions) section on page The list of investments is subject to change over time NGS SELF-MANAGED GUIDE 8

9 How to start investing To commence using this service you must: be a member of NGS Super have access to your NGS Super Member Online account have a valid address (to receive any term deposit, corporate action or other important notifications) have read and accepted the NGS Self- Managed account terms and conditions move money from your regular NGS Accumulation, Transition to retirement or Income account pre-mixed or sectorspecific options 5 into your NGS Self- Managed cash account. For members with a defined benefit account, NGS Self Managed will only be available if you have an associated voluntary accumulation account with access to investment choice. Once your initial investment in your NGS Self-Managed account is available, you can start using the direct investment gateway. Moving money from your regular NGS Accumulation, Transition to retirement or Income account premixed or sector-specific options is done via your secure Member Online account, by nominating a specific dollar switching value. This function is also available online between standard NGS Accumulation, Transition to retirement or Income account investment options. If you request to switch investments into NGS Self-Managed, this is processed using your NGS Accumulation, Transition to retirement or Income account pre mixed or sector-specific unit price determined at the close of business on the last business day of the week your switch request is made. Your request must be completed by 5pm (AEST/AEDT) on the last business day of the week for funds to be available in your direct investment gateway cash account in the following week. For further details, please refer to the Reference guide on page You can make one free pre-mixed or sector specific investment switch each financial year. Each additional switch in the same financial year costs $30 per transaction and will be deducted from your account (for example if you wish to move further contribution payments into your NGS Self-Managed account or transfer funds back). NGS SELF-MANAGED GUIDE 9

10 INVESTMENTS IN NGS SELF-MANAGED Shares Exchange Traded Funds (ETFs) Term deposits Investments Refer to the Online investment list on page 19 4 Refer to the Online investment list on page 19 4 Refer to the Online investment list on page 19 4 Objectives To gain returns on capital with stock dividends and increased share value To provide market performance, before fees and charges, of a particular group of assets. Please refer to page 11 for further explanation of ETFs. To provide a fixed interest return over a fixed term Investing frequency During ASX trading hours During ASX trading hours Daily (invested from the next business day) Investment limits $7,000 The minimum balance you must have in your Accumulation, Transition to retirement or Income account before you can transfer an amount to NGS Self-Managed 80% The maximum percentage of your relevant account balance that can be transferred to NGS Self-Managed (including $500 that must be invested initially in an NGS Self-Managed cash account) $2,000* The minimum amount that you must have in your relevant account, after an NGS Self-Managed transfer, that is not invested in NGS Self-Managed minimum $500 buy order minimum $500 buy order minimum $5,000 per term deposit maximum 20% of your total balance in a single stock *(or 20% of the total balance of the relevant account, if higher) $500 The minimum amount that you can transfer to NGS Self-Managed at any time $500 minimum sell order (unless your shareholding is less than $500) cannot buy and sell same securities (unless with different funds that are available in your cash account) on the same day maximum 80% of your total term deposit providers may balance in a single ETF 6 have maximum limits. For further information, refer to the term deposit terms and conditions, which are available online through your Member Online account $500 minimum sell order (unless your shareholding is less than $500) cannot buy and sell same ETF (unless with different funds that are available in your cash account) on the same day Minimum suggested investment period Please refer to below information Please refer to below information Risk levels for the time invested 7 Short-term (<5 years) High Varies visit website of relevant Very Low Medium-term (5 to 20 years) Medium ETF provider and refer to Medium to High Long-term (>20 years) Low to Medium individual disclosure statement High Expected frequency of a negative annual return Approximately 5 to 6 out of every 20 years Approximately 5 to 6 out of every 20 years Not expected For more information on understanding risk and your investment timeframe, please refer to the Investment guide available on our website at 6 individual ETFs may have different maximum amounts you can invest depending on their type 7 Investment options have different levels of risk according to different time horizons. The above table shows the level of risk for the different investment time horizons based on wide market exposure and will vary depending on the investments you choose. NGS SELF-MANAGED GUIDE 10

11 S&P/ASX 300 Australian Shares This option includes the top 300 listed companies by size on the Australian Securities Exchange (ASX). This enables you access to a range of companies that invest and are involved in a range of industries. Refer to the Online investment list on page 19 for details regarding how to view the shares available. The stocks included in the S&P/ASX 300 will change over time. If you purchase shares in a stock that is subsequently replaced in the top 300, you can keep the shares and sell them at any stage but you will not be able to purchase more shares in that stock. The benefits of investing include: high long term potential returns shares can be easily bought and sold on the ASX making them a liquid investment. The risks of investing include: shares are generally volatile, but offer the potential for higher long-term returns investing for the short term lack of diversification (depending on the number of stocks held and in what industries) depending on what ETFs or other NGS Accumulation, Transition to retirement or Income account investment options you are invested in. For further information, please refer to your secure Member Online account. Exchange Traded Funds ETFs provide access to a range of assets in Australian and international markets. Refer to the Online investment list on page 19 for the details of ETFs available. ETFs are traded on exchanges, like shares, but contain a collection (basket) of securities for a particular group of stocks or market index (for example ASX 200, Global /World stocks, Emerging Markets). ETFs provide an effective way to invest in a range of Australian and international markets without having to select the underlying investments yourself. The benefits of investing include: they provide an effective way to invest in a range of Australian/ international markets that offer a level of diversification depending upon which ETF you invest in they can generally be bought and sold on the ASX. The risks of investing include: depending on the types of securities held in the ETF they will still be subject to market risk. For example, shares are generally volatile in the short term, but offer the potential for higher longterm returns. Term Deposits This option allows a range of term deposit terms from a selection of term deposit providers. Refer to the Online investment list on page 19 for details of term deposits available. The benefits of investing include: stable returns, but are subject to market interest rate fluctuations fixed interest/outcome for the term selected no investment management fees competitive interest rates low risk. The risks of investing include: interest rates may fluctuate and this can result in missing out on a higher interest rate (if interest rates rise) during the term of your deposit. Once you have agreed to a term, you cannot break this without incurring an interest reduction, unless this is waived by the term deposit provider. the risk level, when taking into consideration inflation over longer timeframes, as returns are expected to be relatively low. Your investment in term deposits may be pooled with other investors who wish to invest for the same term and with the same provider. Interest reduction (also referred to as a break fee) if leaving a term deposit early If a term deposit is broken before maturing, the term deposit provider will generally charge a break fee (or retain interest) from the interest earned to date on that term deposit. Once you have purchased a term deposit, you can elect to have it automatically rollover to a new term with the same provider, for your principal amount only or including interest earned from the maturing deposit. Where you have made an election to rollover at maturity, the election will continue to apply until the maturity election is modified to cash out. Please note that if you elect to rollover your interest earned, you must have sufficient funds in your cash account (doesn t apply to NGS Income account investments) to cover earnings tax on your interest, otherwise an automatic transfer of funds may be triggered. For further information, please refer to your secure Member Online account. NGS SELF-MANAGED GUIDE 11

12 Dividends Once you register to use the NGS Self- Managed direct investment gateway and you have purchased a security, you have the option to elect if you wish to participate in a dividend reinvestment plan or DRP. DRP is the ability to reinvest dividends and receive payments in the form of additional shares, instead of receiving income into your NGS Self- Managed cash account (default option). DRP elections can be made or changed at any time once you hold an eligible security. The election must be made at least seven days before the security goes ex-dividend for it to take effect for that dividend. For some securities, neither cash payments nor dividend reinvestments may be available. If you elect to close your NGS Self- Managed account and there are outstanding dividends, your account will remain open until outstanding payments are made and final closure of the account can occur. This may take some time to complete and doesn t require any further member instruction. Any residual payments are allocated to members accounts as a final transaction. For further details about closing your NGS Self- Managed account, please refer to the Other information section on page 14. Corporate Actions These are actions taken by a company that affect shareholders. Where you are eligible to participate in a corporate action, you will be sent an with information about the action. For example, this may include share buybacks, rights issues (for additional shares) or share purchase plans. To review your individual actions you will need to login into your online direct investment account to view the notifications. Actions such as voting at meetings are not available through this service. If you elect to close your NGS Self- Managed account and there are outstanding corporate actions, your direct investment account will remain open until outstanding actions are completed and final closure of the account can occur. This may take some time to complete and doesn t require any further member instruction. Any residual payments are allocated to the member s account as a final transaction. For further details about closing your NGS Self Managed account, please refer to the Other information section on page 14. NGS SELF-MANAGED GUIDE 12

13 MANAGING YOUR CHOICES Transaction guide Access to the Summary Page is through the your investments screen (or direct investment details link) of your secure Member Online account. A guide on how to navigate is provided below: Corporate actions this page provides disclosure information for any corporate actions that you are eligible to take part in. How to automatically elect to rollover your term deposit to a new term through the Term Deposits page you can choose from the following election options: cash out, with your principal and interest being paid back to your NGS Self-Managed cash account at the end of the term (the default if no election is made) rollover principal and interest rollover principal only. How to buy a term deposit you can purchase term deposits through either the Summary page (shown here) or the Term deposits page. How to place orders for shares and exchange traded funds (ETFs) you can place orders to buy and sell shares and ETFs from the Summary page (shown here) or the Shares page. How to view market information on shares and ETFs you can access stock prices, brr media market communications and Morningstar investment profiles (including financial and profitability details for shares and performance and holding details for ETFs) from both the Summary and Markets pages. The brr media and Morningstar investment profiles are provided by third parties. The material is intended as general information only and should not be considered as investment or taxation advice or projections of performance. How to view and report on your investments the Summary page (shown here) provides an overview of your investments, or a more detailed view can be generated from the Reports page. NGS SELF-MANAGED GUIDE 13

14 Markets In the markets tab you will find a range of brr media market information and a link to Morningstar investment profiles to help you make informed decisions and manage your account. Transferring from super to pension If you are an existing NGS Accumulation account member using NGS Self-Managed direct investments and you apply for an NGS Transition to retirement or Income account, your direct investments cannot be transferred directly 8 from your Accumulation account to your new Transition to retirement or Income account. You would first need to: sell your current investments (or allow term deposits to mature) and await proceeds to be credited to your NGS Self-Managed cash account, and then await transfer to your current NGS Accumulation or Transition to retirement account pre-mixed or sector-specific options before being able to purchase direct investments again, after you have commenced your NGS Transition to retirement or Income account. The same principle applies to transfers back from an NGS Income or Transition to retirement account to an NGS Accumulation account. Tax With all NGS Self-Managed direct investments being made via NGS Super, you benefit from: concessional maximum 15% tax applying to Accumulation and Transition to retirement account investment earnings no tax applying to Income account investment earnings. Capital Gains Tax If you realise a capital gain during the financial year, NGS Super will adjust your accounts and tax position on the disposal that gave rise to the capital gain. Capital Gains Tax (CGT) on shares and ETFs is 15% on Accumulation and Transition to retirement account investments for those assets held for less than 12 months and 10% for assets held for more than 12 months. No tax applies to Income accounts. Capital gains tax on shares and ETFs Accumulation account Transition to retirement account Held for less than 12 months 15% 15% Nil Held for more than 12 months 10% 10% Nil Income account Franking credits and annual taxation adjustments Franking credits benefit both Accumulation, Transition to retirement and Income account holders. Any credits applicable (also referred to as imputation credits), which allow companies to pass on a credit for taxes that have already been paid on profits, are processed as part of end of financial year processing (along with any other related tax adjustments). These are expected to occur by November each year. To receive any applicable credits you must be an NGS Super member when the end of financial year processing occurs. If you close your NGS Self Managed account, any credits will be allocated between your current NGS Accumulation, Transition to retirement or Income account pre-mixed or sector-specific options. If you are no longer an NGS Accumulation, Transition to retirement or Income account member, you will lose any applicable credits and these will be added to the Fund s reserve. Other information Are my NGS Self-Managed direct investments affected by unit pricing? Transfers from NGS Accumulation, Transition to retirement or Income account pre-mixed or sector-specific options into your NGS Self-Managed cash account are based on the unit price at the time of transfer. However, a decrease in unit prices may occur between the time of your request being made and transfer being completed. Should the value of your transfer be equal to or greater than 95% of premixed or sector-specific option(s) you have selected, the system will give you the option of transferring the full option holding(s) or reducing the amount of your request to take into account any unit price decrease. The value of the securities you purchase from your NGS Self Managed account are then determined by the market price of your investments and/or the amount held in any term deposit/s and your cash account, taking into account any adjustments for transaction fees or other expenses applied to your cash account. Closing your NGS Self-Managed account If you wish to close your NGS Self- Managed account, you must first sell your NGS Self-Managed investments (or allow term deposits to mature) and await proceeds to be credited to your cash account, before transferring to your current NGS Accumulation, Transition to retirement or Income account pre-mixed or sector-specific options. Depending on the types of investments you have, this may take some time to process. Capital losses As part of calculating your annual tax position, any capital losses on the disposal of your assets will be applied against capital gains you may have accrued. The ability to make a tax adjustment will depend on the overall capital gain position of NGS Self-Managed investments and/or the Fund. 8 NGS Super is working towards introducing a facility to directly move securities between Accumulation, Transition to retirement and Income accounts. NGS SELF-MANAGED GUIDE 14

15 TRANSACTION ACCOUNT RULES (TERMS AND CONDITIONS) What securities can I invest in? stocks included in the S&P/ASX 300 from a range of exchange traded funds a range of term deposit terms from a selection of term deposit providers. How do I view my investments? You can: view all recent orders made (within the last 28 days) on your secure Member Online account, including those on market, waiting processing, completed or invalid/rejected orders, and run reports on your Member Online account, including for orders made more than 28 days ago. Who owns the securities? All your investments in the NGS Self- Managed direct investment gateway are held by Bond Street Custodians Limited (ABN ; AFSL No ), under a Custody Deed for the benefit of NGS Super as trustee. Buying and selling Access to buying and selling is only available by logging onto your secure Member Online account. For shares and ETFs, members can place orders on: market value (taking the price available when the buy/sell trade is placed 9 ), or a trade at limit purchase or sale (at no more or less than a specific limit price). Trading is subject to the trading terms and conditions and the rules, regulations, customs and practices of ASIC and the ASX. Orders remain in the market until the purchase or sale has been reached or after 22 business days of a request being placed (regardless of or whether a security is suspended during this time). NGS Super does not guarantee the availability of all securities or that access will always be available to our website, your secure Member Online account and/or the direct investment gateway due to maintenance, internet server issues, exceptional market conditions or other unforeseen circumstances. This may lead to circumstances where a trade is delayed or unable to be completed. Cash account This account is used to fund purchases as well as any tax and/or brokerage costs. How much do I have available to trade? All purchases are funded from your NGS Self-Managed available cash balance, calculated as: your cash balance less any pending purchases less $500, which is the minimum amount that must be held in the NGS Self Managed cash account. When should I expect my funds to be available in/from my NGS Self-Managed cash account? If you have requested to move money to/ from your NGS Self-Managed account by 5pm (AEST/AEDT) on the last business day of a week, the balance takes until the following Thursday to be reflected in your account. Transfers into your NGS Self- Managed cash account will start to accrue interest from the following Thursday, whereas transfers out continue to earn interest until the following Tuesday. How are my transactions confirmed? You can view recent transactions online through the orders section of the Shares or Term Deposits pages by logging onto your secure Member Online account. Is it possible to transfer my existing SMSF assets into my NGS Self-Managed account? If you wish to close an existing SMSF, you would first need to sell assets before transferring proceeds into your NGS Accumulation, Transition to retirement or Income account. In addition, if you and your partner wish to invest in NGS Self-Managed, you would do so as individual members. 9 The price of a stock or security on an exchange may not be a live quote, and price shown may not be your actual transaction price. You can refresh stock figures while you are in a session (during market open hours). NGS SELF-MANAGED GUIDE 15

16 In what situations can my trade request reject? If you have requested a trade that is outside of your permitted limits, for example you have selected to invest more than the maximum 20% of your total balance in a single shareholding, your request will be rejected. For other situations refer to the trading terms and conditions which are available online through your Member Online account. Can NGS Super automatically transfer funds? NGS Super can automatically transfer funds if there is insufficient money in your NGS Self-Managed cash account to pay brokerage or outstanding tax. If this situation occurs, the required shortfall plus $500 cash account requirement will automatically be transferred from your pre-mixed and/or sector-specific options into your NGS Self-Managed cash account. You will be notified of the transaction by . In addition, if the balance in your premixed and/or sector-specific investment options falls below $2,000 (when monthly system checks are performed), you will be requested by to top up your balance by transferring funds from your NGS Self-Managed cash account. In the unlikely event that you fail to perform the required transfer, the amount required will automatically be deducted (the timing of transaction will be at the discretion of NGS Super) and transferred in the following order: from available funds in your NGS Self Managed cash account from listed securities starting with the listed security with the highest market value from breaking (if applicable) of term deposit, which will generally result in a break fee (or retained interest) from the term deposit interest earned to date. Also, if a member dies, rules apply regarding the disposal of NGS Self- Managed direct investments. For further details, please refer to the How to make a death benefit claim fact sheet on our website at How long must I hold eligible investments to qualify for franking credits from dividends paid? In general, you must hold investments for at least 45 days and have purchased the security before the ex dividend date. What if I am unsure about any rules? If you are unsure about any rules or terms or conditions for the NGS Self-Managed direct investment gateway, please seek formal confirmation from NGS Super before proceeding. You can do this by either calling between 8am and 8pm Monday to Friday (AEST/AEDT) or you can contact us directly via the contact us page at What happens when my term deposit matures? You can either: have the principal and interest earned paid back into your NGS Self-Managed cash account, which is the default option/setting. You will receive an prior to your deposit maturing, to remind you that you can reinvest your deposit into another term. elect to have your deposit automatically rollover to a new term deposit with the same term and with the same provider (for your principal amount only or including interest earned from the maturing deposit). Please note that: any election is required to be made (or cancelled) before 5pm AEST/ AEDT at least one business day prior to maturity if you have selected this option, an automatic application will be created for the new term deposit, based on the rate applicable at the time of processing the new term deposit application the transaction of moving from your current deposit, to when the next term deposit starts, is automatically processed through your NGS Self-Managed cash account. The application for the next term deposit can be viewed online via your secure Member Online account rollovers of principal and interest earned may not proceed if deduction of earnings tax (if applicable) reduces your available cash account below the value of the principal and interest. Breaking a term deposit before it matures If a term deposit is broken before it matures, the term deposit provider will generally charge a break fee (retain interest) from the interest earned to date on that term deposit. Requests to break a term deposit prior to maturity are subject to the Term Deposit Terms and Conditions (available online). A notice period and interest adjustment may apply. Refer to the Online investment list on page 19 for further details on break fees. All break requests are required to be provided in writing by completing a Term deposit cancellation form, available on our website at NGS SELF-MANAGED GUIDE 16

17 REFERENCE GUIDE Transactions When can I transact? Close off time for transactions When invested When are details reflected in my account? Term deposit requests Daily Applications must be received prior to midnight (Sydney time) on a business day. Next NSW business day Next business day after transaction Share and ETF requests During ASX trading hours ASX close Generally immediately, where system is available and during market hours Settlement occurs two business days after transaction Cash transfers from current NGS Accumulation, Transition to retirement or Income account pre-mixed or sector-specific options into NGS Self- Managed cash account Weekly 5pm (AEST/AEDT) on the last business day of the week Thursday of following week Thursday of following week 10 Cash transfers from NGS Self-Managed cash account into your other current NGS Accumulation, Transition to retirement or Income account premixed or sector-specific options Weekly 5pm (AEST/AEDT) on the last business day of the week Beginning of following week By Thursday of following week NGS Super does not guarantee when details will be reflected in accounts, due to public holiday delays, exceptional market conditions or other unforeseen circumstances. NGS SELF-MANAGED GUIDE 17

18 Transferring funds from your pre-mixed or sector-specific options into your NGS Self-Managed NGS Accumulation, Transition to retirement or Income account pre-mixed or sector-specific options Your request must be completed by 5pm (AEST/AEDT) on the last business day of the week for funds to be available in your NGS Self-Managed cash account in the following week. NGS Self-Managed cash account The transfer takes until the following Thursday to be reflected in your NGS Self-Managed cash account. You will receive a confirmation notification by . Settlement occurs on the second business day after the transaction for: S&P/ASX 300 Your choice of individual stock selections ETFs Your choice of a range of traded funds. Close-off time for daily term deposit transactions is midnight Sydney time on a business day, to be invested from the next NSW business day: Term deposits Your choice of term (from 1, 3 and 6 months) from the available term deposit list. To view, login to your secure Member Online account. Subject to the terms and conditions available via your secure Member Online account. Transferring funds from NGS Self-Managed into your pre-mixed or sector-specific options (including where funds are required as part of a withdrawal request). Only funds shown in the NGS Self-Managed available cash can be transferred back into your NGS Accumulation, Transition to retirement or Income account pre-mixed or sector-specific options. S&P/ASX 300 and ETFs settlement occurs on the second business day after the transaction Term Deposits after maturity and ensuring deposit election is set to (default) cash out NGS Self-Managed cash account Your request must be completed by 5pm (AEST/AEDT) on the last business day of the week for funds to be available in your NGS Accumulation, Transition to retirement or Income account pre-mixed or sector-specific options in the following week. NGS Accumulation, Transition to retirement or Income account pre-mixed or sector-specific options The balance takes until the following Thursday to be reflected in your account. You will receive a confirmation (or rejection) notification by . Standard benefit payment processing timeframes (if applicable) apply from that time. When making transfers from NGS Self-Managed it is important to plan ahead (especially where funds are required as part of a withdrawal request) to allow time for processing. NGS Super does not guarantee against potential redemption delays. NGS SELF-MANAGED GUIDE 18

19 ONLINE INVESTMENT LIST This list is correct as at 15 December 2017 but is subject to change. The most up-to-date information about this product is available on our website at Please note that limits are applied at the time of purchase. ASX code Name Maximum percentage of your total Accumulation, Transition to retirement or Income account balance that can be invested in a single security Shares S&P/ASX 300 refer to ASX website at for current list and trading codes 20% Exchange Traded Funds (ETFs) The following table lists ETFs provided in six areas: Australian shares, international shares, emerging markets, listed property, fixed income and commodities Australian Shares IHD ishares S&P/ASX High Dividend 80% ILC ishares S&P/ASX 20 80% IOZ ishares MSCI Australia % VAS Vanguard Australian Shares Index 80% VHY Vanguard Australian Shares High Yield 80% VLC Vanguard MSCI Australian Large Companies Index 80% VSO Vanguard MSCI Australian Small Companies Index 80% International Shares IAA ishares Asia 50 80% IEU ishares S&P Europe 80% IJH ishares Core S&P Mid-Cap 80% IOO ishares Global % IRU ishares Russell % IVE ishares MSCI EAFE 80% IVV ishares Core S&P % IXI ishares Global Consumer Staples 80% VEU Vanguard All-World ex-us Shares 80% VGAD Vanguard MSCI Index International Shares (Hedged) 80% VGS Vanguard MSCI Index International Shares 80% VTS Vanguard US Total Market Shares 80% WXHG SPDR S&P World ex-australia (Hedged) Fund 80% Emerging Markets IEM ishares MSCI Emerging Markets 80% Listed Property VAP Vanguard Australian Property Securities Index 80% Fixed Income RSM Russell Australian Semi-Government Bond 80% VAF Vanguard Australian Fixed Interest Index 80% VGB Vanguard Australian Government Bond Index 80% Commodities GOLD ETFS Gold 80% table continued over NGS SELF-MANAGED GUIDE 19

20 ASX code Name Maximum percentage of your total Accumulation, Transition to retirement or Income account balance that can be invested in a single security Term Deposits Term deposit break fees The following table lists term deposits provided by ANZ, ME Bank, Macquarie Bank and National Australia Bank Limited (NAB) ANZ 1 month ME Bank 1 month Macquarie Bank 1 month National Australia Bank Limited (NAB) 1 month ANZ 3 months ME Bank 3 months Macquarie Bank 3 months National Australia Bank Limited (NAB) 3 months ANZ 6 months ME Bank 6 months Macquarie Bank 6 months National Australia Bank Limited (NAB) 6 months ANZ Any request to withdraw an ANZ Term Deposit before the agreed maturity date will be subject to the approval of ANZ and will result in an interest rate reduction based on the percentage of the original Term Deposit and term remaining. Percentage of TD term remaining 0 to less than 20% 20% 20 to less than 40% 40% 40 to less than 60% 60% 60 to less than 80% 80% 80 to less than 100% 90% Interest rate reduction on amount withdrawn ME Bank Any request to withdraw an ME Bank Term Deposit before the agreed maturity date will be subject to the approval of ME Bank and you providing 31 days notice to ME Bank. It will result in an interest rate reduction based on the percentage of the original Term Deposit term that has elapsed. Percentage of TD term elapsed 0 to less than 20% 90% 20 to less than 40% 80% 40 to less than 60% 60% 60 to less than 80% 40% 80 to less than 100% 20% Interest rate reduction on amount withdrawn Term deposit providers may have maximum limits. For further information, refer to the term deposit terms and conditions, which are available online through your Member Online account. table continued over NGS SELF-MANAGED GUIDE 20

21 ASX code Name Maximum percentage of your total Accumulation, Transition to retirement or Income account balance that can be invested in a single security Term deposit break fees cont. Macquarie Bank The interest adjustment is currently 25% of earned interest and will be deducted from the interest paid to your NGS Self-Managed Cash Account. For example, if you have a $100,000 Term Deposit invested at 5.00%p.a. for a term of 90 days and you terminate the Term Deposit 65 days into the term, then $ will be deducted from the interest paid to you. This calculation is as follows: $100,000 x 5.00% x (65/365) x 25% = $ National Australia Bank Limited (NAB) Any request to break a NAB Term Deposit before the agreed maturity will be subject to the approval of NAB; and will result in reduced interest generated on that term deposit. What is early withdrawal and reduction of return? Where you request an early withdrawal of the term deposit prior to the agreed maturity, NAB will reduce the interest generated on the term deposit. NAB will calculate the reduction in interest based on the proportion of the term remaining according to the percentages shown below: Percentage of TD term remaining 0 to less than 20% 80% 20 to less than 40% 60% 40 to less than 60% 40% 60 to less than 80% 20% 80 to less than 100% 10% Percentage of interest paid Here s an example of how NAB calculates its reasonable cost: John opens a $100,000 NAB Term Deposit for 6 months at 4% p.a. after four months John requests an early withdrawal since John held the Term Deposit for 4 months the percentage of term remaining falls into the category of 60 to less than 80% which reduces the interest to 20% of the original rate of 4%, i.e. 0.8% the calculation is therefore $100,000 x 0.8% p.a. = $ NGS SELF-MANAGED GUIDE 21

22 Further information If you are thinking about choosing or changing investment options, you should consider obtaining professional advice from a licensed financial adviser to understand how this works for your personal situation. NGS Super offers a financial planning service. To make an appointment or to speak with a planner, please call Cash account (NGS Self-Managed cash account) is: an interest-earning account (required minimum $500) held through NGS Super s custodian with Macquarie Bank Limited (ABN ; AFSL No ) a flexible transactional facility all transactions into or out of your NGS Self-Managed account, including dividends and associated tax, are processed through this account as well as access to term deposits used to buy and sell investments. Before transacting you must have sufficient available cash in your NGS Self-Managed cash account. Cash for settlement will generally be reserved at the time of placing the trade request and withdrawn to pay for the purchase on the day of settlement. If you sell assets from your account, the proceeds cannot be used for another transaction (or withdrawal request) until settlement occurs and proceeds are cleared into your NGS Self-Managed cash account. The interest you earn on the NGS Self- Managed cash account will be calculated daily and paid monthly in arrears on or around the last business day of the month. Accrued interest is not reported in your account until it is paid. The interest rate is set by Macquarie* and can vary on a daily basis. Accordingly there is no guarantee of a particular rate of interest being earned. Please contact NGS Super if you would like information on how the Federal Government s Financial Claims Scheme may apply to this cash account. Contact us For more information visit our website. You can also contact us at or call our Customer Service Team on between 8.00am and 8.00pm (AEST/AEDT), Monday to Friday. Important information This Guide provides key information for NGS Super members. You should also consider all the information contained in the: Product Disclosure Statement and incorporated fact sheets before making a decision about investing in NGS Super. With NGS Self-Managed, you re in control of your investments and you re responsible for your own investment outcomes. The information provided in this Guide is general information only and does not take into account your objectives, financial situation or needs. Before making a financial decision, please assess the appropriateness of the information to your individual circumstances and consider seeking professional advice. NGS Financial Planning Pty Ltd, ABN , is a corporate authorised representative # of Guideway Financial Services Pty Ltd, ABN , AFSL No and offers financial planning services on behalf of NGS Super ABN Service providers The NGS Self-Managed direct investment gateway service is provided through Macquarie Investment Management Limited ABN AFSL , with investments held by Bond Street Custodians Limited ABN AFSL Other than the NGS Self-Managed direct investment gateway cash account, which is a deposit with Macquarie Bank Limited ABN AFSL , neither Macquarie Bank nor any Macquarie group companies guarantees the performance of the NGS Self-Managed direct investment gateway. *Macquarie means any member of the Macquarie Group. NGS SELF-MANAGED GUIDE 22