Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension Product Disclosure Statement

Transcription

1 Inside this PDS Issued 4 July 2013 Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension Product Disclosure Statement Superannuation law requires that we call this booklet a Product Disclosure Statement (PDS). But in effect, it s a summary guide to Suncorp WealthSmart and to super generally About Suncorp WealthSmart How super works Benefits of investing with Suncorp WealthSmart Risks of super How we invest your money Fees and costs How super is taxed Insurance in your super How to open an account How to contact us This PDS, prepared on 4 July 2013, provides a summary of the key information you need to make a decision. It includes references to additional information that is part of this PDS (marked with a ) which is material incorporated by reference. The information in this PDS is general information only and doesn t take into account your personal objectives, financial situation or needs. Before making a decision, you should consider the information in this PDS and should obtain financial advice tailored to your personal circumstances. Suncorp Portfolio Services Limited (Trustee) (ABN , AFSL , RSE Licence No L ) is the trustee of Suncorp WealthSmart and the issuer of this PDS (and any information incorporated by reference) and takes responsibility for its contents. Contact us If you have any questions about Suncorp WealthSmart or would like a free paper copy of this PDS or any information incorporated by reference, contact us on or suncorpwealthsmart@suncorp.com.au.

2 1 About Suncorp Wealthsmart 2 How super works Suncorp WealthSmart is a comprehensive, efficient and simple to understand means of saving for your retirement and then funding your lifestyle once you ve retired. Suncorp WealthSmart is three things in one: a complete super account, for when you re working and building up your savings a transition to retirement option, for when you re approaching the end of full-time work a pension account, for after you ve stopped working. Suncorp WealthSmart is provided by Suncorp Portfolio Services Limited (SPSL), a wholly owned subsidiary of Suncorp Group Limited. SPSL is the trustee of Suncorp WealthSmart. (The trustee is a semi-independent body that makes sure our super fund is run in the best interests of our customers and as per superannuation law.) Throughout this booklet you ll see wording in grey boxes, like the one at the bottom of this page. This means we are required by law to include it. Your super savings accumulate in three ways: 1. Super is partly compulsory in that employers must contribute 9.25% (rising to 12% by 2019) of most employees salary into a super fund. Most people can choose which super fund their employer pays their contributions into. 2. Your money doesn t sit idle - it s invested. Your account balance may fluctuate but over time it should grow. The Government helps by providing various tax savings. 3. You can add more money to it yourself. You might consider doing this because relying on your employer s contributions and your investment returns might not be enough on their own. There are several things you can do to grow your super. Make extra contributions from your take-home pay You can make a one-off contribution or set up a regular direct debit payment plan with as little as $100 per month. If you re on a lower income you might also benefit from the Government s co-contribution scheme. Salary sacrifice into your super Asking your employer to allocate a portion of your pre-tax salary into your super may be the easiest and most tax-efficient way to boost your account. There are limits (called contribution caps ) on the amounts you can contribute to super in any one financial year, and financial penalties if you exceed them. Check with your financial adviser, or refer to Putting money into your Suncorp WealthSmart account in the Product Guide for more information. Combine multiple super accounts into one By transferring all your super into the one account, you stop paying multiple sets of fees and receiving multiple sets of paperwork. Combining your super into a Suncorp WealthSmart account is easy, and we ll help you through the process. You can even do most of it electronically with our online super rollover wizard. If you have a transition to retirement option or pension account (rather than a super account), please note that you can t make additional contributions to it once your account has been opened. For more information on how these super contribution strategies could work for you, speak to your adviser. Withdrawing your super 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. Withdrawing from a transition to retirement option You can t make lump sum withdrawals from a transition to retirement option, but you can receive income payments up to a maximum of 10% of the account balance. Withdrawing from a pension account You can generally access the money in your pension account at any time, either by receiving regular income payments or by requesting a lump sum withdrawal of all or part of your account. You should read the important information about How super works before making a decision. Go to Putting money into your Suncorp WealthSmart account and Taking money out of your Suncorp WealthSmart account in the Product Guide. The material relating to How super works may change between the time when you read this PDS and the day when you sign the application form. 2 Suncorp Superannuation

3 3 Benefits of investing with Suncorp WealthSmart 4 Risks of super 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 is even discounted for larger account balances, or if you link your Suncorp WealthSmart account with those held by your family members. Investment choice to suit all types of investors You can choose from 40 investment options, which include: eight diversified portfolios managed by specialist investment manager, Ibbotson Associates a diverse range of single sector options Suncorp WealthSmart Term Deposits. Comprehensive insurance cover within your super There can be big advantages in taking out life insurance inside your super. 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 cover to a maximum of $3 million Income Protection cover up to age 65 and a maximum of $25,000 per month. Stay in control with easy online access You can view and manage your Suncorp WealthSmart account online whenever you like. Our secure site lets you update your details, view your account balance and insurance details, easily switch between investment options (other than Suncorp WealthSmart Term Deposits), and much more. Tips and tools to help you grow your super 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 updates with links to online articles, news and investment market updates online video 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 to easily combine multiple super accounts into your Suncorp WealthSmart account an online learning centre with resources and education modules. communications If you want to keep your super paperwork to a minimum, we can send you important communications such as annual statements, transaction confirmations and confirmations of changes to your account by where possible. All types of investment, including super, carry risk. As a general rule, riskier investments will provide a higher potential long-term return. By the same token, the smaller the risk an investment poses, the lower the potential return it will provide. The level of risk tolerance for different people varies according to things like their age, how long they plan to keep the investment for, and what other investments they ve got. That s why it s important to speak to your adviser before making any investment decisions. Most importantly, you should understand that: The overall risk with super is that you may not end up with enough money to provide you with an adequate lifestyle when you stop working. The value of your investments (and thus your super account balance) may go up or down. Unless specified, investment performance is not guaranteed, which means you could lose some or all of your money. Investment returns will vary. Just because an investment or asset class has done well in the past doesn t necessarily mean it will do well in the future. Laws affecting super (such as superannuation, taxation and social security laws) change. Super is generally preserved until you retire or meet another condition of release. 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, you ll find tools and calculators on our website or give us a call and we can help you. You should read the important information about the Benefits of investing with Suncorp WealthSmart before making a decision. Go to About Suncorp WealthSmart in the Product Guide. The material relating to Benefits of investing with Suncorp WealthSmart may change between the time when you read this PDS and the day when you sign the application form. Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension Product Disclosure Statement 3

4 4 Risks of super (cont) 5 How we invest your money 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. For more information, including a SRM for all of our investment options, please see the Understanding Investment Risk Flyer on our website. You should read the important information about the Risks of super before making a decision. Go to Risks of super in the Product Guide and the Understanding Investment Risk Flyer. The material relating to the Risks of super and the Understanding Investment Risk Flyer may change between the time when you read 4 Suncorp Superannuation Suncorp WealthSmart gives you a choice of 40 investment options, which fall into two categories: 1. Diversified investment options Multi-manager investment options These investment options blend a combination of different investment management styles to create options aimed at reducing investment risk and the volatility of returns. Suncorp diversified portfolios Designed for straightforward investing, these portfolios were designed in conjunction with Ibbotson Associates (Ibbotson), a leader in investments, with the aim of achieving the diversification you need in one portfolio. There s one to suit everyone no matter what your risk profile. 2. Individual investment options If you re looking for a more customised solution and want to choose your own mix of asset classes, there are 32 single sector investment options to choose from. These include the security of the Suncorp Cash Fund and Suncorp WealthSmart Term Deposits. Before making a choice, you should consider the possible return and risk of the investment options and how long you plan to keep them. In addition, you should consult your adviser to help you decide what investment strategy is right for you. You can change your investment strategy at any time by logging into your online account. If you don t choose a specific investment option when you join Suncorp WealthSmart or your instructions are unclear, we ll put your money into the Suncorp Balanced Portfolio (details can be found in the next table). Fund profile for the Suncorp Balanced Portfolio Investment objective Investment strategy Strategic asset allocation Recommended minimum time to keep the investment Aims to achieve a return that exceeds Consumer Price Index increases by at least 2.5% pa over rolling 5 year periods. Invests in a mix of assets across various traditional and alternative asset classes via investment in the Ibbotson sector trusts which are managed within a multi-manager framework; and/or investment in registered managed investment schemes with similar asset classes; and/or mandates with similar asset classes; and/or through the use of derivatives to gain exposure to similar asset classes and/or foreign currencies and Exchange Traded Funds for dynamic asset allocation and hedging purposes. The fund is optimally constructed and managed to meet its risk/return investment objectives. Asset type Strategic asset allocation (%) this PDS and the day when you sign the application form. You should read the important information about How we invest your money before making a decision. Go to How we invest your money in the Product Guide. The material relating to How we invest your money may change between the time when you read this PDS and the day when you sign the application form. Style Range (%) Australian shares International shares Australian property securities International property securities Global infrastructure Australian bonds International bonds (hedged ) Global inflation-linked securities (hedged ) Cash Alternative investment strategies years plus Multi-sector International shares are actively hedged. Hedged means the investment return is largely unaffected by changes in the value of the Australian dollar, the effects of which can erode returns on international investments.

5 6 Fees and costs This following section provides a summary of the fees you may be charged on your Suncorp WealthSmart account. You can also use it to compare fees with other super funds. DID YOU KNOW? Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask us or your financial adviser. TO FIND OUT MORE If you d like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (moneysmart.gov.au) has a super fee calculator to help you compare different fee options. Summary of fees and costs Type of fee or cost 1 Amount Fees when your money moves in or out of the fund Establishment Fee Nil Contribution fee 2 Up to 4% of each contribution or transfer Withdrawal Fee Nil Termination Fee Nil Management costs The fees and costs for managing your investment Administration fee 2 Up to 1.31% per year of your account balance. Investment fee 3 This depends on the investment option(s) you choose. It ranges from 0.00% to 2.63% per year (plus performance fees of between 0% and 31% per year of the performance over a specified benchmark. These are payable if your investment option(s) provide a return higher than a specified benchmark). Member fee (super only) $5 per month if your account balance is below $20,000 on the day this fee is deducted. 1. Other fees and costs may apply. For example, if you are a nil entry fee member. Please see the Fees and costs section in the Product Guide. 2. This fee can be negotiated with your adviser. 3. Investment fees are available in the Suncorp WealthSmart investment menu section of the Product Guide, and may be subject to change in the future. An investment fee does not apply to the Suncorp Cash Fund or Suncorp WealthSmart Term Deposits. Administration fee discount If your account balance is between $100,000 and $250,000 you will receive an administration fee discount of 0.10% a year on that part of your account balance. A 0.50% pa discount applies to amounts in excess of $250,000. Adviser service fee You can authorise us to pay an adviser service fee to your financial adviser (agreed by us) and have the fee charged to your Suncorp WealthSmart account. Talk to your adviser, or refer to their Statement of Advice, for details of this fee. Fees and costs in this PDS may be deducted from your investment, or from the returns on your investment or from the Fund assets as a whole. All fees are quoted after the effect of income tax and inclusive of GST (less any available reduced input tax credit). This means that the fees you see are the fees you ll actually pay. We can introduce certain new fees or change the level of current fees that you pay at any time. But if we need to do this, we ll notify you in writing at least 30 days before any adverse change. Example of fees and costs The following table gives you an example of how the fees and costs can affect your super investment over a one-year period. You should use this table to compare Suncorp WealthSmart with other super products. Balance of $50,000 with total contributions of $5,000 during the year Contribution fee PLUS management costs 1 EQUALS cost of fund Up to 4% For every $5,000 you put in, you ll be charged between $0 and $ %, 2 And, for every $50,000 2 you have in Suncorp WealthSmart, you ll be charged $935 each year. If you put in $5,000 during a year and your balance was $50,000, then for that year you ll be charged fees from: $935 to $1,135 What it costs will depend on the investment options you choose and the fees you negotiate with your fund or adviser. 1. You ll receive an administration fee discount if your account balance is $100,000 or more. You can also link multiple accounts of your own and those of family members to obtain this discount. 2. This includes the administration fee of 1.31% pa and investment fee of 0.56% pa for the Suncorp Balanced Portfolio. You should read the important information about Fees and costs before making a decision. Go to Fees and costs in the Product Guide. The material relating to Fees and costs may change between the time when you read this PDS and the day when you sign the application form. Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension Product Disclosure Statement 5

6 7 How super is taxed 8 Insurance in your super Super can be more tax effective than putting cash in a bank savings account or investing directly in managed funds. The table below summarises the ways in which super can be taxed: Tax Contributions When you or your employer put money ( contributions ) into your account, or if you transfer money from another super account (a rollover ) On your investment earnings Withdrawals When you take money out of your account (you generally have to be over a certain age to do this at least 55) * Plus Medicare levy. Super only 0% on after-tax ( non-concessional ) contributions 15% on pre-tax ( concessional ) contributions 45%* (including 15% contributions tax on pre-tax contributions) on excess amounts over the contribution caps (these are limits on the amounts you can contribute in any one financial year without penalty) 15% if your transfer contains any untaxed components. Up to 15% on investment earnings 0% on your transition to retirement or pension account. For lump sum withdrawals: 0% if you re aged 60 or over Either 15%* or 20%* depending on your circumstances if you re under age 60 For death benefits paid as a lump sum withdrawal: 0% if paid to a tax dependant Either 15%* or 30%* depending upon your circumstances if paid to a non-tax dependant. The Government has proposed that a 30% contributions tax will apply to pre-tax contributions for individuals earning over $300,000 from 1 July The Government has proposed that excess concessional contributions made from 1 July 2013 may be refunded to the individual and taxed at their marginal tax rate. An additional interest charge may also apply. The Government has proposed that from 1 July 2014, tax-free earnings on investments within pensions are limited to the first $100,000 pa. You could inadvertently become liable for additional tax if you put more money into your super in any one financial year than the contribution caps allow, so it s important to talk to your adviser before making any decisions. There s more information on the way pension accounts are taxed in the Tax section of the Product Guide. Tax file numbers While you don t have to give us your tax file number (TFN), there are disadvantages in not doing so. You may be taxed more and we may not be able to accept certain contributions. For more information on this, please see the Tax file numbers (TFN) section in the Product Guide. You should read the important information about How super is taxed before making a decision. Go to Tax in the Product Guide. The material relating to How super is taxed may change between the time when you read this PDS and the day when you sign the application form. Taking out insurance cover within your super can be very cost-effective, because your premiums are deducted from your super account balance. This means you don t have to dip into your take-home pay, as you would if you arranged insurance cover outside super. Insurance cover options Suncorp WealthSmart offers Death only, Death & Total and Permanent Disability (TPD) and Income Protection insurance. This cover is subject to you being under age 65 (Death & TPD and Income Protection), and being employed for more than 15 hours per week (TPD and Income Protection). Cover will start on the date you are successfully underwritten for cover. More information about the cover options is available in the next table. Applying for cover To apply for cover you must be: aged over 15 and under 65 an Australian resident, or a non-australian resident holding a valid visa. For TPD and Income Protection you must be gainfully employed on a permanent basis for at least 15 hours per week to apply for cover. To apply, please fill out an Insurance application form, which you can download from suncorp.com.au/super. Acceptance of your application depends on the outcome of an underwriting assessment by the insurer, which will require you to provide evidence of your health. Insurance costs There are costs associated with insurance. Your premiums (ie the amounts you pay) are calculated from a number of factors including the type and amount of cover, your age, occupation, gender, smoker status, and whether or not you engage in any hazardous pursuits. Your premiums are deducted monthly from the balance of your super account. For the rates and examples of how premiums are calculated, please see the Suncorp WealthSmart Insurance premium rates guide, which is available on our website. 6 Suncorp Superannuation

7 9 How to open an account The following types of cover are available within your Suncorp WealthSmart Personal Super account: Death cover Total and Permanent Disablement (TPD) Income Protection Type of benefit payable A lump sum benefit is paid if you die (or earlier if you become terminally ill ). A lump sum benefit is paid if you become totally and permanently disabled. A monthly benefit is paid if you become totally disabled or partially disabled. Cover options Fixed benefit amount less your account balance Fixed benefit amount in addition to your account balance Up to a maximum insured amount of $5 million for Death cover (including a maximum of $3 million for terminal illness cover). Fixed benefit amount less your account balance Fixed benefit amount in addition to your account balance Up to a maximum insured amount of $3 million. Up to 75% of your salary, plus optional super contributions of up to 10% of your salary, up to a maximum insured amount of $25,000 per month Two year or five year benefit period or until you reach age 65 30, 60 or 90 day waiting period. You should read the important information about Insurance in your super before making a decision. Go to Insurance in your super in the Product Guide. The material relating to Insurance in your super may change between the time when you read this PDS and the day when you sign the application form. Opening an account is easy Your first step is to speak to your financial adviser, who can take you through the process and help you get the most from the investments, insurance and other features and benefits of a Suncorp WealthSmart account. To start your application now, please visit our website or call us. Our contact details are on the back page. What if you change your mind? You get a 19-day cooling-off period after joining Suncorp WealthSmart. If you want to close your account within that time, all you have to do is write and tell us. The cooling-off period starts when you receive your membership confirmation or five days after your account has been set up, whichever is earlier. Your feedback We d like to hear from you, including if you have any problems or complaints. We ll try to resolve your complaints quickly. Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension Product Disclosure Statement 7

8 10 How to contact us Suncorp WealthSmart GPO Box 2585, Brisbane QLD 4001 Customers and ask for Super Suncorp Financial Planners, Authorised Representatives and Independent Financial Advisers suncorpwealthsmart@suncorp.com.au suncorp.com.au/super Suncorp Portfolio Services Limited (Trustee) (ABN , AFSL , RSE Licence No L ) and Suncorp Life & Superannuation Limited (SLSL) (insurer) (ABN , AFSL ) are related bodies corporate of Suncorp-Metway Limited (Suncorp) (ABN , AFSL ). The obligations of the Trustee, and the insurer SLSL, aren t guaranteed by any other company within the Suncorp Group. Except as otherwise stated, Suncorp and its subsidiaries don t guarantee the repayment of capital invested in or the investment performance of this product. This product is not a bank deposit or other liability and is subject to investment risk including possible delays in repayment and loss of the interest and principal invested. The Trustee is the issuer of this PDS and takes responsibility for its contents. Investment option information is provided by the investment managers which includes their objectives, strategies, asset allocations, fees and buy/sell spreads. The investment managers have consented to the publication of this information in this PDS and haven t withdrawn their consent at the time of its preparation. They take no responsibility for any other information in this PDS. Suncorp WealthSmart Personal Super and Suncorp WealthSmart Pension are part of the Suncorp Master Trust (Fund) (ABN , RSE Fund Registration No. R ). Applications can only be accepted from persons receiving this PDS (including electronically) within Australia. If you print an electronic copy, please ensure you print all pages of this PDS. We reserve 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 us. This policy is a non-participating policy. As a result you don t have any right to any surplus in the statutory fund /07/13 A