Risks of super. Inside. Accumulation 1, Personal Account and Spouse Account members. University of Western Australia, Perth

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1 Risks of super Accumulation 1, Personal Account and Spouse Account members The information in this document forms part of the following UniSuper Product Disclosure Statements (as supplemented from time to time): Accumulation 1 Product Disclosure Statement issued 1 October 2017 Personal Account Product Disclosure Statement issued 1 October 2017 Spouse Account Product Disclosure Statement issued 1 July 2017 This document was prepared on 1 October Inside General risks that may affect your super 1 Investment risks that may affect your super 2 Managing investment risk 3 University of Western Australia, Perth

2 SuperRatings, a superannuation research company, has awarded UniSuper a Platinum Choice rating for its accumulation products, something only the best value for money funds receive. Our Accumulation products have also achieved a 10-year Platinum Performance rating. Go to for details of its rating criteria. SuperRatings doesn t issue, sell, guarantee or underwrite this product. SuperRatings has consented to the inclusion in this document of the references to SuperRatings and the inclusion of its logos in the form and context in which they are included. Chant West awarded UniSuper Super Fund of the Year in both 2015 and 2016 something no other fund has been able to achieve. UniSuper was also awarded Best Fund: Advice Services in UniSuper s accumulation products have received a 5 Apples rating. For information about the methodology used, see Chant West has consented to the inclusion in this document of the references to Chant West and the inclusion of its logos in the form and context in which they are included. This document contains important information about the main sources of risk to your super. UniSuper, ABN , MySuper Authorisation No , is referred to as UniSuper or the Fund. UniSuper Limited, ABN , AFSL No , is referred to as USL or the Trustee. UniSuper Management Pty Ltd, ABN , AFSL No , is referred to as UniSuper Management or USM. USL has delegated administration of UniSuper to USM, which is wholly owned by USL in its capacity as UniSuper s Trustee. UniSuper Advice is operated by USM, which is licensed to deal in financial products and provide financial product advice.

3 Risks of super ACCUMULATION 1 AND PERSONAL ACCOUNT 1 Risks of super Super is designed to provide you with an income for your retirement. It aims to build up your retirement savings in a cost-effective way to help you achieve financial security when you retire. However, there are also certain risks that you should be aware of. The types of risks your super may be exposed to can be broadly categorised as either general or investment risks. General risks that may affect your super The impact of these risks may be short or long term, depending on the conditions and circumstances that have given rise to them. PLEASE NOTE Unless otherwise noted, references to UniSuper Personal Accounts in this document also relate to UniSuper Spouse Accounts. IMPORTANT INFORMATION If changes (which aren t materially adverse) are made to information in this booklet, updated information will be available at unisuper.com.au or by calling You can request a paper or electronic copy of updated information without charge. GENERAL RISKS Legislative risk Operational risk This is the risk that legislation governing super (for example, the way super is taxed and how and when you can take your benefit) may alter in the future. This may result in you paying more tax than you had initially planned, not being able to take your benefit exactly as and when you had planned, or other unanticipated consequences. This is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. These may result in the Trustee failing to properly administer and manage the Fund, your account, the investment options and the Fund s investments. External events might include, for example, system failure, market closures, significant market movements, significant redemption or switching activity, actions taken by our external investment managers and other service providers, industrial disputes, terrorist acts, wars, or natural disasters and civil disturbances. The Trustee has measures in place that are intended to mitigate both internal and external risks. However, the Trustee cannot guarantee that these kinds of occurrences will not interrupt normal operations. Cyber risk Other general risks This is the risk of financial or data loss, business disruption, or damage to UniSuper s reputation as a result of a threat or failure to protect the information or personal data stored within its informational technology systems and networks. The fees and costs (including insurance premiums) associated with your membership may increase in the future. However, we ll give you 30 days written notice in advance of any increases in fees and charges (except in the case of annual indexation of fees) payable to UniSuper (as opposed to third parties). There s also the possibility that a new fee may be introduced. There s also the chance that the Trust Deed may be amended or that changes to the Fund (as permitted by law) may affect your rights and entitlements as a member. We ll keep you informed of such changes, as required by law.

4 2 Risks of super ACCUMULATION 1 AND PERSONAL ACCOUNT Investment risks that may affect your super Investment risk is the potential for your super account to rise or fall as a result of how it s invested. As a result, the amount of your final benefit when it comes time to withdraw it from the Fund may be less than the total contributions made into your account. In other words, your final benefit may be less than you need to achieve your desired lifestyle in retirement. We offer a range of investment options that give you the flexibility to invest your super according to the level of investment risk you re comfortable with. While each investment option involves some level of risk, some involve higher levels than others. As a general rule, investments that offer higher returns tend to be higher risk, while those that offer lower returns tend to be lower risk. Risks relating to particular types of investments are set out below. INVESTMENT RISKS Specific investment (or security) risk Investment manager risk Market risk Country risk Currency risk The risk that a specific investment held in an investment option may experience negative returns and lose money, or may fail to perform in line with expectations. The risk that UniSuper, or an external investment manager appointed by UniSuper to manage certain investments, may underperform the general market, or may fail to perform in line with expectations, for example due to their investment management style or management decisions. The risk that a specific investment market (for example the share market or the fixed interest market), may not perform well and may diminish the value of the investments held in those markets. Factors such as interest rates and inflation, as well as government policy and economics, can all influence market risk. The risk that investment options that hold securities from an individual country may not perform well as a result of economic or political pressures specific to that country and the investment options may lose money as a result. The risk that the changing value of currency either in Australia or overseas may change the value of any overseas investment. For example, if the investment option contains investments denominated in US dollars and the Australian dollar rises against the US dollar, the value of those US investments may fall when calculated in Australian dollar terms. UniSuper may from time to time hedge some or all of the Fund s foreign currency exposures but will not necessarily do so at all times. Different currencies may be hedged to different extents (or possibly not at all). Credit risk Inflation risk Liquidity risk Derivatives risk Investment option risk The risk that an organisation UniSuper deals with fails to meet its obligations and causes an investment option to incur a financial loss. The risk that inflation and/or interest rates may fluctuate and affect investment returns and the real value of your investment. The risk that a particular asset cannot be easily converted into cash at a particular time, leading to a delay and resulting loss when the asset is eventually sold. UniSuper and some of its external investment managers use derivatives to gain exposure to certain types of investments or to hedge risks, as considered appropriate. Importantly, UniSuper doesn t use derivatives to leverage the Fund s assets. With derivatives, there s a risk that the value of the derivative will fail to move in line with the value of the underlying asset, or that the obligation under the derivative contract held by another party won t be honoured. The risk that during your membership, UniSuper may discontinue the investment option you re invested in and require you to transfer to another option or make substantial changes to your chosen investment option. However, if this were to occur, you would receive advance notification and have an opportunity to switch to any of our other investment options available at that time. Similarly, UniSuper may change the default option that applies to members who don t make a choice.

5 Risks of super ACCUMULATION 1 AND PERSONAL ACCOUNT 3 Managing investment risk While risk is an inevitable part of investing, it s possible to manage investment risk and therefore moderate its impact on your investments. Two strategies for managing such risks are: Diversification spreading your money across a number of different investments, rather than just a few or even a single investment, and Investing according to your timeframe choosing investments that are expected to be best suited to the length of time you intend to hold those investments. When it comes to deciding how you want your super to be invested, UniSuper has a wide range of investment options to choose from. All of these options offer a diversified selection of investments, some within specific asset classes and some across a range of different asset classes. In addition, we generally encourage you to take a long-term view when it comes to your super. You should consider your individual circumstances when deciding how to manage investment risk. You may decide to seek professional financial advice to help assess your investment risk tolerance and approach. MORE INFORMATION You can read our How we invest your money booklet for more information about investing with UniSuper.

6 CONTACT US HELPLINE UNISUPER ADVICE 1800 UADVICE ( ) FAX WEBSITE unisuper.com.au enquiry@unisuper.com.au ADDRESS UniSuper Level 1, 385 Bourke Street Melbourne Vic 3000 Australia IMPORTANT INFORMATION: This document has been prepared and issued by UniSuper Limited ABN AFSL No (referred to throughout this document as either UniSuper or the Trustee) as trustee of UniSuper ABN (referred to throughout this document as the Fund). The information in this document is of a general nature only and does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of the information having regard to your personal circumstances and consider consulting a qualified financial adviser before making an investment decision based on information contained in this document. The value of your investments can go up or down and investment returns can be positive or negative. The Trustee does not guarantee the performance of the Fund s investment options. To the extent that this document contains any information which is inconsistent with the UniSuper Trust Deed and Regulations (together, the Trust Deed) the Trust Deed will prevail. UniSuper Limited 2017 UNISIBR