Commonwealth Personal/Business Superannuation & Investment Products

Transcription

1 Commonwealth Personal/Business Superannuation & Investment Products Changes to The Colonial Mutual Life Assurance Society Limited (CMLA) managed investment options and asset s The Colonial Mutual Life Assurance Society Limited (CMLA) has an ongoing process in place to review the investment strategies for investment options. For some of the investment options, the investment strategies are designed and managed by CMLA, even though the day-to-day investment management activities are completed by another specialist investment manager. Following a recent review, from 1 April 2017 the following key changes were made to some of the investment options designed and managed by CMLA: updated the risk category to reflect a revised assessment of investment risk updated the suggested minimum to reflect the revised assessment of investment risk updated the time-horizon for investment objectives to align with the minimum investment horizon updated the investment strategy in order to improve expected return and risk outcomes, including: - increasing the to growth assets for most of the multi-sector options, mainly through an increased to alternatives - some of the strategic asset ranges have been adjusted to accommodate the revised strategic asset targets - changing the currency hedging for global shares from 50 per cent to 0 per cent. 1

2 Summary of investment options impacted in each product The table below lists the investment options within a product that are impacted by the changes. Where an investment option for a product is not shown, this is because there is no change for that investment option. A full list of investment options available for each product can be found at Investment Options Sector Code Investment Category Commonwealth SuperSelect and Commonwealth PensionSelect Commonwealth Australian Shares S3C/S3XC Australian Shares Commonwealth Shares 3FC/3FXC Aggressive Shares Commonwealth Growth G3C/G3XC Growth Commonwealth Managed M3C/M3XC Managed Commonwealth Balanced B3C/B3XC Balanced Commonwealth Capital Defensive 3EC/3EXC Capital Defensive Commonwealth Saving R3C/R3XC Savings Account Commonwealth Capital Secure (Pension only) C3XC Capital Secure Commonwealth Life Corporate/Business Super Bonds Growth G3C Growth Managed M3C Managed Balanced B3C Balanced Capital Secure C3C Capital Secure Commonwealth Personal Superannuation & Rollover Plan and Commonwealth Rollover Fund Commonwealth Australian Shares S3XC Australian Shares Commonwealth Growth G3C Growth Commonwealth Managed M3C Managed Commonwealth Balanced B3C Balanced Commonwealth Capital Secure C3C Capital Secure Commonwealth Savings R3C Savings Account Commonwealth Life Rollover Bonds Managed Fund M3C Managed Capital Secure Fund C3C Capital Secure Commonwealth Life Insurance & Family Bonds Capital Secure Funds C1C Capital Stable Managed Fund M1C Managed A closer look at the changes for each of the impacted investment options This section provides detail on the changes specific to each investment option. The changes apply to all investment options in the same Investment Category listed in the previous product summary section. 2

3 Commonwealth Single Sector Options Savings Account The following changes have been made to the Savings Account investment options: To provide income from investments in money market securities with a very low risk of capital loss. To outperform the option s over a rolling one year period before To provide income from investments in money market securities with a very low risk of capital loss. To outperform the option s before fees and taxes. fees and taxes. Benchmark 11am cash at call + 0.5% Bloomberg AusBond Bank Bill Index 1 year 0 years Risk Low Very Low Australian Shares The following change has been made to the Australian Shares investment options: To provide long term capital growth through investment in Australian listed company shares. This option may have a high level of short to mediumterm volatility. To outperform the option s over a rolling three-year period To provide long term capital growth through investment in Australian listed company shares. This option may have a high level of short to mediumterm volatility. To outperform the option s over a rolling seven-year period Benchmark S&P/ASX 300 Accumulation No change Index 7 years No change Risk High Very High 3

4 Commonwealth Multi-Sector Options Currency exposure for multi-sector funds For all Commonwealth multi-sector funds the currency hedging for global shares changed from 50 per cent to zero per cent. Capital Secure The following change has been made to the Capital Secure investment options: portfolio of fixed interest and money market securities expected to generate a mix of income and some long-term capital growth with an emphasis on stable returns and a high level of security. To Price Index (CPI) plus 1.0% p.a. over a rolling one-year period portfolio of fixed interest and money market securities expected to generate a mix of income and some long-term capital growth with an emphasis on stable returns and a high level of security. To Price Index (CPI) plus 1.0% p.a. over a rolling three-year period 1 year 3 years Risk Very Low No change Capital Defensive The following changes have been made to the Capital Defensive investment options: portfolio of predominately defensive assets expected to generate a mix of income and long-term capital growth with an emphasis on stable returns and a high level of security. To Price Index (CPI) plus 1.5% p.a. over a rolling two-year period portfolio of predominately defensive assets expected to generate a mix of income and long-term capital growth with an emphasis on stable returns and a high level of security. To Price Index (CPI) plus 1.5% p.a. over a rolling three-year period 2 years 3 years Risk Low No change 4

5 Asset class target minmax target Growth Assets Australian shares Global shares* Alternatives Defensive Assets Fixed interest Cash min-max Capital Stable The following changes have been made to the Capital Stable investment options: No change generate a mix of income and long-term capital growth with an emphasis on stable returns and a reasonably high level of security. To achieve a return of Consumer Price Index (CPI) plus 2.5% p.a. over a rolling three-year period before fees and taxes. 3 years No change Risk Low to Medium No change Asset class target minmax target Growth Assets Australian shares Global shares* Alternatives Defensive Assets Fixed interest Cash min-max 5

6 Balanced The following changes have been made to the Balanced investment options: capital growth and income with a moderate level of security and relatively stable returns. To achieve a return of Consumer Price Index (CPI) plus 3.0% over a rolling threeyear period before fees and taxes. capital growth and income with a moderate level of security and relatively stable returns. To achieve a return of Consumer Price Index (CPI) plus 3.0% over a rolling fiveyear period before fees and taxes. 4 years 5 years Risk Medium Medium to High Asset class target minmax target Growth Assets Australian shares Global shares* Alternatives Defensive Assets Fixed interest Cash min-max Managed The following changes have been made to the Managed investment options: capital growth and income, but which may be volatile in the short to medium term. To Price Index (CPI) plus 3.5% p.a. over a rolling three-year period before fees and taxes capital growth and income, but which may be volatile in the short to medium term. To Price Index (CPI) plus 3.5% p.a. over a rolling six-year period before fees and taxes 5 years 6 years Risk Medium to High High 6

7 Asset class target minmax target Growth Assets Australian shares Global shares* Alternatives Defensive Assets Fixed interest Cash min-max Growth The following changes have been made to the Growth investment options: portfolio of predominately growth assets expected to capital growth and income but which may be quite volatile in the short to medium term. To Price Index (CPI) plus 4.0% p.a. over a rolling three-year period portfolio of predominately growth assets expected to capital growth and income but which may be quite volatile in the short to medium term. To Price Index (CPI) plus 4.0% p.a. over a rolling seven-year period 6 years 7 years Risk High No change Asset class target minmax target Growth Assets Australian shares Global shares* Alternatives Defensive Assets Fixed interest Cash min-max 7

8 Aggressive Shares The following changes have been made to the Aggressive Shares investment options: portfolio of Australian and global listed company shares expected to generate a mix of long-term capital growth and income but which may have a high level of short to mediumterm volatility. To achieve a return of Consumer Price Index (CPI) plus 5.0% p.a. over a rolling three-year period portfolio of Australian and global listed company shares expected to generate a mix of long-term capital growth and income but which may have a high level of short to mediumterm volatility. To achieve a return of Consumer Price Index (CPI) plus 4.0% p.a. over a rolling seven-year period 7 years No change Risk High No change Things you should know: Issued by The Colonial Mutual Life Assurance Society Limited ABN AFSL (CMLA) and Colonial Mutual Superannuation Pty Limited ABN AFSL (Trustee), the Trustee of the Colonial Super Retirement Fund ABN CMLA and the Trustee are wholly owned, but non-guaranteed subsidiaries of Commonwealth Bank of Australia ABN AFSL Commonwealth Financial Services is a registered business name of CMLA and the Trustee. Commonwealth SuperSelect, Commonwealth PensionSelect and the Commonwealth Personal Superannuation & Rollover Plan are issued by the Trustee. All of the other products noted in this document are issued by CMLA. The Trustee is only responsible for products issued by it. This general advice has been prepared without taking into account your particular financial needs, circumstances or objectives. You should consider the appropriateness of this information in light of your circumstances and the relevant PDS before making a decision to buy or continue to hold a product. This advice is based on our understanding of current law, as at 31 July 2017, and is based on its continuance unless stated otherwise. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional financial planning and tax advice before acting on the information contained in this document. 8