Pursuit Core Personal Superannuation Supplementary Product Disclosure Statement

Transcription

1 Pursuit Core Pursuit Core Personal Superannuation Supplementary Product Disclosure Statement Dated: 31 March 2011 Issuer: IOOF Investment Management Limited ABN , AFSL , as Trustee of the IOOF Portfolio Service Superannuation Fund ABN This Supplementary Product Disclosure Statement (SPDS) supplements and updates information contained in the Pursuit Core Personal Superannuation Product Disclosure Statement dated 1 September 2009 (PDS) and is to be read in conjunction with the PDS. All terms in this SPDS have the same meaning as in the PDS. The purpose of this SPDS is to update the PDS to include information about: the increase in the maximum Salary Continuance benefit Pursuit Core members now having access to a retail insurance product transferring external assets into your account. Increase in the maximum Salary Continuance benefit On page 16 of the PDS, in the table under the heading What are the main insured benefits available? increase the maximum Salary Continuance benefit from $20,000 per month to $25,000 per month. Access to a Retail Insurance Product At the end of Section 4 Taking out insurance on page 18 of the PDS, insert the following: Please note: The TOWER Accelerated Protection cover is an individual insurance product issued separately by the Insurer and owned by IOOF Investment Management Limited as Trustee of the IOOF Portfolio Service Superannuation Fund. Insurance options Under the Accelerated Protection Policy you can select from the following retail insurance options (subject to meeting eligibility requirements): Life Insurance. Total & Permanent Disability (TPD) Insurance. Income Protection. Insurance premiums Premiums for retail insurance cover are deducted from your Cash Account and vary according to the type and amount of insurance cover you select. Commissions Any commission that may be payable to a financial adviser for insurance cover is factored into the cost of your cover. Any amount paid is as agreed between you, your financial adviser and the Insurer. Retail Insurance In addition to group life and income protection insurance offered through Pursuit Core Personal Superannuation, retail insurance cover issued by TOWER Australia Limited ABN AFSL (the Insurer) is now available to members. For members who may be interested in acquiring retail insurance, please consider the TOWER Accelerated Protection Product Disclosure Statement, which can be obtained from our website ( through your financial adviser or by calling our client services team on

2 Pursuit Core Retail Insurance Administration Fee In the fee table on page 20 of the PDS, insert the following text under Management Costs : Type of fee or cost Retail Insurance Administration Fee (Note: This fee is only applicable if you select a retail insurance policy.) Amount Up to $65 p.a. How and when paid The Retail Insurance Administration Fee represents the fee charged by us where you elect to take out a retail insurance policy through Pursuit Core Personal Superannuation. This covers the additional expense incurred by the Trustee to administer this arrangement on your behalf. The Retail Insurance Administration Fee is calculated daily. It is charged monthly in arrears and is deducted from your Cash Account at the beginning of each month. Transferring external assets into your account On page 30 of the PDS, after the section Transferring from another product within the Fund, insert the following new section: Transferring assets into your Pursuit Core account Any external assets that you currently hold may be able to be transferred into your account in the Fund. As a transfer of external assets is treated as a contribution to the Fund, tax and superannuation rules may apply to the transfer. The Trustee will treat the contribution as having been received by the Fund when legal title passes to the Trustee. Where the Trustee permits the transfer of assets into the Fund, any external expenses (including stamp duty) incurred by the Trustee in facilitating the transfer shall be debited to your account. In addition, the Trustee may apply an administration fee per asset transferred into the Fund. PLA-2127

3 Core Personal Superannuation Dated 1 September 2009 Product Disclosure Statement Issuer: IOOF Investment Management Limited (ABN , AFS Licence No ), as Trustee of the IOOF Portfolio Service Superannuation Fund (ABN )

4 This Product Disclosure Statement (PDS) has been prepared and issued by IOOF Investment Management Limited (IOOF) ABN , AFS Licence No IOOF is the Trustee of the IOOF Portfolio Service Superannuation Fund (Fund), ABN Pursuit Core Personal Superannuation is a super product forming part of the Fund. About the Trustee About Perennial Investment options offered Insurer General advice warning Updated information As Trustee, IOOF is responsible for operating the Fund honestly and in the best interests of members. IOOF is also responsible for holding the assets of the Fund on behalf of members and undertakes all of the administrative tasks through Australian Wealth Management Service Co Pty Ltd ABN IOOF has investment and service contracts with related parties within the IOOF Group, including Perennial Investment Partners Ltd and Australian Wealth Management Service Co Pty Ltd. IOOF is solely responsible for the content of this PDS. This PDS was prepared by IOOF based on its interpretation of the relevant legislation as at the date of issue. Contributions made to and investments in Pursuit Core Personal Superannuation do not represent assets or liabilities of IOOF (other than as trustee of the Fund) or any other company or business within the IOOF Group, comprising IOOF Holdings Limited ABN and its related bodies corporate. The terms our, we, us and Trustee in this PDS refer to IOOF. Neither IOOF, nor any other related or associated company, the investment managers providing the managed funds, service providers or the related bodies corporate of the parties mentioned, guarantee the repayment of capital or the performance or any rate of return of the investment options chosen in Pursuit Core Personal Superannuation. However, note that investment options which solely invest in financial products that are explicitly guaranteed by the Commonwealth Government are available through Pursuit Core Personal Superannuation. Investments made into the investment options in Pursuit Core Personal Superannuation are subject to investment risks and other risks. This could involve delays in the repayment of principal and loss of income or principal invested. IOOF operates Pursuit Core Personal Superannuation on the terms and conditions outlined in this PDS and in accordance with the Fund s Trust Deed. IOOF may change any of the terms and conditions set out in the PDS at any time where permitted to do so under the Trust Deed and superannuation (super) law. IOOF is also the Responsible Entity of the Perennial Trusts and the IOOF MultiMix Trusts (the Trusts), which are some of the investment options offered in Pursuit Core Personal Superannuation (as listed in Pursuit fact sheet 202: Pursuit Core investment options menu), and we receive fees under the Constitutions of the Trusts. Perennial Investment Partners Limited (Perennial) ABN , AFS Licence No , another company within the IOOF Group has been appointed by IOOF to manage the investment assets of the Perennial Trusts. Perennial is paid arms-length asset management fees by IOOF (as the Responsible Entity) for the management of the Perennial Trusts. IOOF makes no recommendation regarding the investment options set out in Pursuit fact sheet 202. As Trustee, IOOF regularly monitors the investment options available to members in Pursuit Core Personal Superannuation and provides no assurance that any investment option currently available will continue to be available in the future. IOOF has the right to suspend or cease investments in a specific investment option and if necessary, can redeem and transfer your investments to your Cash Account in circumstances where the investment option is no longer available and no alternative instructions are provided. IOOF will notify you of any such change where possible before the change occurs. The investment managers have not authorised or caused the issue of this PDS but have consented to the inclusion of statements which relate to their particular managed fund. In order to choose an investment option for your investment strategy, you should review the information in Pursuit fact sheet 201: Pursuit Core investment strategies. Before selecting an investment option your adviser should give you the product disclosure statement for that managed fund or the product guide for the term deposit. These documents provide you with important information to consider and evaluate prior to investing. Product disclosure statements for each managed fund and product guides for each term deposit are also available on our web site at All insurance cover available through Pursuit Core Personal Superannuation is provided by TOWER Australia Limited (TOWER) ABN , AFS Licence No TOWER (the Insurer) is a member of TOWER Australia Group Limited, a publicly listed specialist Australian life insurance company. Pursuit Core Personal Superannuation is only available to persons receiving this PDS (electronically or otherwise) within Australia. IOOF may refuse an application to join the Fund without providing reasons for the refusal. You become a member of the Fund when we accept your completed application and record you as a member. The information contained in this PDS 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 this information having regard to your objectives, financial situation and needs and you may want to seek advice from a financial adviser before making a decision about Pursuit Core Personal Superannuation. Naturally, the information referred to in this PDS may change from time to time. So we will inform you of any significant changes that could affect you, or other significant events that may affect the information in this PDS. Any updated information that is not materially adverse may be obtained by: checking our web site at ing us at clientservices@ioof.com.au or calling us on A paper copy of the updated information will be provided free of charge on request.

5 What is inside? Section Contents Page Section 1 - An introduction to Pursuit Core Personal Superannuation Snapshot of Pursuit Core Personal Superannuation 6 Section 2 - How does Pursuit Core Personal Superannuation work? What is super? Investing in Pursuit Core Personal Superannuation Withdrawing money from Pursuit Core Personal Superannuation Dependants paying benefits if you die Making investment choices Section 3 - Managing your super account Using Portfolio Online Your Investment Instructions Changing your investment options (switching) Your Cash Account Section 4 - Taking out insurance What are the main insured benefits available? What insured benefits are payable? How to make a claim Who provides the insurance? Section 5 - The nuts and bolts What will this cost me? What are the risks? How do the taxes work? Section 6 - General information Do I have a cooling off period? Your instructions and communications Keeping track of your investments Electronic communications Transferring from another product within the Fund How can I change my details? Financial Adviser Authority What if I have a complaint? Your privacy Anti Money Laundering and Counter Terrorism Financing legislation Section 7 How do I apply? Application procedure 34 3

6 What is inside? How do I find my way around this PDS? This PDS is important because it will help you decide whether Pursuit Core Personal Superannuation will meet your needs. You can use it to compare Pursuit Core Personal Superannuation with any other super product you may be considering. The PDS describes the key features, risks and purpose of Pursuit Core Personal Superannuation. It also contains some information we are required to include by the law. You will see that the PDS refers to a number of fact sheets these contain statements and information that we are required by law to disclose to you. The contents of the fact sheets is classified by a unique identifier and a description of what is covered. You can then use this description to decide whether to read the information. By law the statements and information in these fact sheets are taken to be included in the PDS. This PDS and the fact sheets can be downloaded from our web site at or contact us and we will send you a paper copy at no charge. Key words There may be some words in this PDS and the fact sheets you may not be familiar with. To help you understand those terms we have defined them in Pursuit fact sheet 8: Key words explained for personal super. Each time a defined term is first used in the body text of any section of this PDS or in a fact sheet it is written in italics like this. 4

7 Section 1 - An introduction to Pursuit Core Personal Superannuation Investing your super wisely is arguably one of the most important investment decisions you will ever make. Choosing a quality investment partner is a key step towards achieving your long-term financial goals. Pursuit Core Personal Superannuation can help you control and manage your retirement savings. Pursuit Core Personal Superannuation can be used to accumulate contributions and other super savings from a variety of sources in a tax effective way. It also offers you competitive insurance options to protect your income and provide for your family or dependants if you unexpectedly get sick, injured or die. Benefits are then payable as permitted by super law. In this introduction you will find important information about Pursuit Core Personal Superannuation, including its key features and benefits to help you meet your retirement savings needs. Investing in Pursuit Core Personal Superannuation You select the investment strategy using one convenient administration facility. This includes having access to: a well researched range of Australian and international investment managers; a simple process to move from Pursuit Core Personal Superannuation into one or more pension products offered under the Pursuit banner; secure online access to your account details; a simple Regular Contribution Plan; a straight-forward cost structure; and consolidated reporting. This makes it very simple for you to manage your retirement goals. IOOF Portfolio Service Superannuation Fund Pursuit Core Personal Superannuation Investment options Insurance options Contributions are invested by us on your behalf in accordance with your investment strategy. The value of the investment options you select forms part of your super account. You do not directly invest into (or hold an interest in) any investment option. This means investing in Pursuit Core Personal Superannuation is not the same as personally investing in shares, term deposits or managed funds. Pursuit offers switchability Pursuit has been created to meet the changing needs of members. Switchability is a distinctive characteristic of Pursuit which provides the flexibility to make this possible. The Pursuit Core and Select models are competitively priced, based on your investment needs and offer you access to a professional service under a single administration facility. Whether you want a simple vehicle for wealth creation or to maintain control over your investments, Pursuit can be tailored to suit your retirement or investment needs. See Pursuit fact sheet 11: Switchability for further information. Who is the IOOF Group? The IOOF Group has demonstrated expertise in the administration and management of investments, superannuation savings and retirement income solutions. The IOOF Group has over 160 years experience in financial services. It is important to know that what may just be one of the biggest investments in your life, your super, is being managed by a trusted company. 5

8 An introduction to Pursuit Core Personal Superannuation Snapshot of Pursuit Core Personal Superannuation The following table provides a snapshot of the key features and benefits. Investing Page Regular Contribution Plan Direct debit facility to enable you to make regular contributions from your nominated 9 financial institution account into your super account. Bpay 1 Make regular or one-off contributions without a direct debit facility. 9 Investment options Easy Choice offers a range of IOOF multi-manager Trusts. 11 Cash Account Income distributions Investor Choice offers over 35 sector or asset class specific managed funds and term deposits. The Cash Account records all transactions and aims to generate a competitive investment return on that part of your super account that is required to be held in cash. Options for income distributions from your investment option(s) are: re-invest the distribution back into the same investment option; or retain distributions in your Cash Account Options Estate planning options Insurance options Managing Switchability 2 Portfolio Online Choose from the following estate planning options: Binding Nomination; or Non-Binding Nomination. We retain the flexibility to pay your benefit under either of these nominations as a lump sum or pension. The following insurance options can be selected (subject to meeting eligibility requirements and underwriting): Death cover; or Death and Total & Permanent Disablement (TPD) cover; and/or Salary Continuance cover. Switchability allows you to move: between investment options in the same product; between similar products in the Core and Select models; and between super and pension products available under the Pursuit banner. View your account details online, normally 24 hours a day, 7 days a week with secure access to your account over the internet. Page Page Bpay registered to Bpay Pty Ltd ABN Only available if your nominated financial institution offers this service. 2 Some conditions apply. See Pursuit fact sheet 11: Switchability for further information. 6

9 Minimum amounts Page Initial contribution $2, Additional contributions (one-off) $100 per contribution. 9 Regular Contribution Plan $100 per frequency. 9 Lump sum withdrawals 3 (one-off) Account balance $2, Investment options 5 The lesser of $1,000 or your account balance. $100 per managed fund (no minimum per managed fund with a Regular Contribution Plan). $5,000 per term deposit. Cash Account Each contribution requires a minimum allocation to the Cash Account of 1%. 15 Switching instruction 5 1. Unless you are redeeming the balance held in a managed fund: a) the minimum amount that must be redeemed from a managed fund is $100; and b) the minimum amount that must be retained in a managed fund is $ If you select a new managed fund you must invest at least $ If you select a term deposit you must invest at least $5, Fees Page Entry or Exit Fees Nil 6,7. 20 Administration Fee Up to 1.30% p.a. of your account balance. 21 Management Cost applied by Charged separately by the investment manager of each managed fund. 20 each investment manager Switching Fees 7 Nil. 20 Performance-based Fees We do not charge any Performance-based Fees for Pursuit Core Personal 22 Superannuation. An investment manager may charge a Performance-based Fee for a particular managed fund. Insurance premiums Premiums are deducted from your Cash Account and vary according to the type and 22 amount of insurance cover. Adviser Service Fee(s) You and a financial adviser selected by you have the flexibility to nominate an amount (if any), within limits that are set by us. If you do not have a financial adviser, this fee is not charged Commonwealth Government regulations impose restrictions on when you can make lump sum (cash) withdrawals from super (see Pursuit fact sheet 5: Accessing your personal super). 4 If a member holds an investment in a term deposit the minimum account balance will be $2,000 plus the value of that term deposit. 5 Investment limits apply to the proportion of your portfolio which can be held in restricted investments and term deposits. For further information regarding these limits, see Pursuit fact sheet 201: Pursuit Core investment strategies and Pursuit fact sheet 202: Pursuit Core investment options menu. 6 An Exit Fee may apply to certain members who had invested in another product in the Fund (under the Deferred Entry Fee option) and who transfer their benefit into Pursuit Core Personal Superannuation. Refer to Transitional fee arrangements on page 24 of this PDS. 7 When you move money in or out of Pursuit Core Personal Superannuation or when you switch between managed funds, you may incur a buy/sell spread which is included in the unit price of the managed fund you choose (see Transaction costs on page 22 and Pursuit fact sheet 202: Pursuit Core investment options menu. 7

10 Section 2 - How does Pursuit Core Personal Superannuation work? What is super? Super is a long-term, tax-effective savings vehicle used to help you accumulate money to support yourself during retirement. Access to your super is restricted to ensure it is available in your retirement. Longer life expectancies mean many Australians are spending more time in retirement than ever before 8, increasing the importance of accumulating super. Saving through super can be much more tax-effective for most people than saving the same amount outside super. Any contributions your employer makes or you make personally that are tax deductible (up to a certain limit) and any investment earnings on your super are taxed at a maximum of 15 per cent, rather than your marginal tax rate which could be as high as 45 per cent. Investing in Pursuit Core Personal Superannuation Making a start You can start your super account with an amount (called a contribution ) of $2,000. Contributions can come from a range of sources rollovers from other super funds, employer contributions (including salary sacrifice contributions), personal contributions and even contributions from the Government (called Government Co-contributions). Once started, you can add to your super account on an ongoing basis. Pursuit fact sheet 3: Everything you need to know about contributions to personal super details the types of contributions that can be made and provides information on age restrictions and caps on contributions. See also the How do the taxes work? section of this PDS starting on page 26 for details of the tax concessions and possible tax liabilities relating to super contributions. Contributions made into your account are credited first to your Cash Account. Your contributions (less any nominated Adviser Service Fee - Upfront 9 ) will be invested in accordance with your Investment Instructions. Information on how your Cash Account balance is invested is contained on page 20. How to contribute One of the benefits of Pursuit Core Personal Superannuation is that you can contribute to your super account using a variety of methods such as Bpay, cheque and Regular Contribution Plan (direct debit). Unfortunately when it comes to super contributions, we cannot accept cash or credit cards. All cheques should be made payable to: IOOF Pursuit - [your full name or account number] For more information regarding the Adviser Service Fees available refer to page 22 of this PDS. 8

11 Types of contributions 1. Initial contribution If your initial contribution is made by cheque, please complete Part B or C of Step 3 of the Application form (Form A) located in the Pursuit Core Personal Superannuation Forms Booklet. If you are transferring your super benefits from another super fund, please complete Part A of Step 3. The transfer must be accompanied by a cheque. Alternatively, we can facilitate the transfer on your behalf; if you complete the Request to transfer a superannuation benefit (Form C). If you are transferring your benefit from an existing IOOF Portfolio Service Superannuation Fund product, please complete Part E of Step Additional contribution (one-off by cheque or Bpay ) You can make additional one-off contributions to your account by either cheque or Bpay if this facility is available from your nominated financial institution. For contributions made via Bpay, a Biller Code and Customer Reference Number are provided on your Statement of Membership. Where a one-off contribution is made by cheque, you may nominate investment options which differ from your Primary Instruction (refer to Specific Instruction on page 14). 3. Additional transfers You can transfer your benefits held with another super fund to Pursuit Core Personal Superannuation at any time. The transfer must be accompanied by a cheque or alternatively, if you complete the Request to transfer a superannuation benefit (Form C), we can facilitate a transfer from another super fund or super income stream on your behalf. 4. Regular Contribution Plan (direct debit) A Regular Contribution Plan facility allows you to set up a direct debit arrangement for regular monthly, quarterly or half-yearly contributions to your super account by completing a Direct Debit Request (Form F). The direct debit will occur from your nominated account with a financial institution once a month or at the frequency you have chosen. Payroll deductions You can also make personal contributions by a regular deduction from your after-tax salary, as agreed with your employer. Contributions can be paid by: Bpay ; direct debit; or cheque. Personal and spouse contributions and the amount should be clearly identified to avoid confusion with employer contributions such as salary sacrifice contributions. Withdrawing money from Pursuit Core Personal Superannuation Accessing your super The Government has placed restrictions on when you can access your super account as super is a long-term investment. Usually you cannot access your super until you retire, after you reach at least age 55. However, if you were born from 1960 onwards, you may have a later access age (up to age 60). This is known as your preservation age. To see when you are eligible to access your super after you retire, see Pursuit fact sheet 5: Accessing your personal super. 9

12 How does Pursuit Core Personal Superannuation work? What are my access options? Your money can stay in super as long as you like, and you don t have to access your benefits when you retire. However, once you reach preservation age there is a tax-effective way to access your super. That is by converting your accumulated super into a retirement income stream such as a Pursuit Core Allocated Pension. This is a particularly tax-effective way to take your benefits because not only are the payments tax-free from age 60, but the investment assets backing the pension are held in a tax-free environment. Even if you are still working, once you reach your preservation age you can commence a Pursuit Select Allocated Pension using the Transition to Retirement pension option. Under this option, you can receive tax-effective income through your pension while continuing to contribute to your super account. Pursuit Core Personal Superannuation members can transfer their super into a Pursuit Select Allocated Pension (including the Transition to Retirement pension option) without incurring Capital Gains Tax (CGT). See Pursuit fact sheet 5: Accessing your personal super for more information about accessing your super benefits including the circumstances which may enable you to access your super early. What happens if you decide to leave or make a withdrawal? You can ask us to transfer your account balance to another super fund at any time and we usually have to do this within 30 days. You can also ask us to transfer your account balance to another super product in the Fund. See Pursuit fact sheet 9: Other personal super information you may find useful. 10 If you qualify you can make a lump sum (cash) withdrawal. The minimum amount you can withdraw is the lesser of $1,000 or your remaining account balance. Withdrawals will be redeemed from the investment option with the highest balance. Alternatively, a withdrawal can be redeemed from the investment option(s) you specify. Upon leaving Pursuit Core Personal Superannuation, you will receive an Exit Statement by mail showing your closing balance and all transactions since the opening of your account or your last annual Member Statement. Dependants paying benefits if you die If you die while you are a Pursuit Core Personal Superannuation account holder, superannuation law requires that we will pay your Death Benefit (your account balance including any insurance proceeds that may be payable as a result of your death) to one or more of your nominated dependants and/or your estate. When you apply to become a member, you are able to make a Binding Nomination or Non-Binding Nomination to inform us how you would like us to pay your Death Benefit. You can nominate one or more people and allocate your benefit between them in any proportion. Any person you nominate must be a dependant as defined by super law. Dependants include your spouse, de facto spouse, same-sex partner and children. Binding Nominations If you have a valid Binding Nomination in effect at the date of your death, we must pay your benefit to the dependant(s) and/or Legal Personal Representative that you have nominated in the proportions that you have set out in your nomination. A valid Binding Nomination remains in effect for three years from the date it was first signed, last amended or confirmed. Non-Binding Nominations Your nomination is not binding on us but rest assured we will take it into account when we determine who to pay your benefit to. You can amend your Non-Binding Nomination at any time by sending us a new Non-Binding Nomination. No nomination If you do not make a nomination, we must pay your Death Benefit to your Legal Personal Representative, unless your estate is insolvent. Further information about dependant nominations is available in Pursuit fact sheet 6: Dependant nominations for personal super. Important note When we receive evidence of your death, if there is no nomination in place or you have made a Non-Binding Nomination or a Binding Nomination to pay your Legal Personal Representative, we will sell your investment options and put your money into your Cash Account until the Death Benefit is paid. 10 Commonwealth Government regulations impose restrictions on when you can make lump sum (cash) withdrawals from super (see Pursuit fact sheet 5: Accessing your personal super). 10

13 Making investment choices Your investment strategy Pursuit Core Personal Superannuation provides access to over 35 managed funds and term deposits. With so many investment options you can construct a portfolio to help achieve your retirement goals. Your investment strategy should be a reflection of your attitude to investing, the level of risk you are comfortable accepting and your investment timeframe. What investment options can I choose? You may choose from a range of investment options within the following sections. Section Easy Choice Investor Choice Overview of objectives Offers you access to a spread of different asset classes designed to meet particular investment objectives. IOOF multi-manager Diversified and Sectoral Trusts simplify the investment selection process by combining the best of the best manager blends to suit your investment objectives. This is where you and your financial adviser can tailor the investments to suit your investment strategy. Investor Choice allows you to select from a range of managed funds and term deposits. Pursuit fact sheet 201: Pursuit Core investment strategies provides more information about the range of investment options. Choose what is right for you The investment options available vary in risk, investment objectives (goals), strategies (ways of achieving those goals) and the types of assets in which investments are made. This allows you to invest in a range of investment options which may be diversified across different asset classes, investment managers and investment styles. Importantly, you can switch between different managed funds at any time and you can also select diversified managed funds managed by a range of leading Australian and international investment managers. IOOF carefully researches leading Australian and international investment managers before selecting managed funds to be part of the investment menu. IOOF also monitors and reviews the investment managers and managed funds on an ongoing basis and may add or remove managed funds from time to time. The list of investment options is set out in Pursuit fact sheet 202: Pursuit Core investment options menu and also in the Investment Instructions form (Form B) contained in the Pursuit Core Personal Superannuation Forms Booklet. The list may change from time to time. You can obtain the most current list of managed funds from our web site at or request a copy free of charge by calling a Client Services Officer on Important note More information about each of the managed funds available is detailed in the product disclosure statement issued by the investment manager for the particular managed fund and the product guide for the particular term deposit. Before investing, a financial adviser should provide you with a copy of the product disclosure statement for the managed fund(s) and the product guide for any term deposit(s) you have selected. Alternatively, you can obtain a copy free of charge by requesting it from a Client Services Officer on or directly from our web site at Product disclosure statements include information about performance, asset allocation, costs and the risks associated with investing in a particular managed fund and must be read and considered before selecting a managed fund. It is recommended that you consult a financial adviser prior to selecting the investment options that you would like to invest in. 11

14 How does Pursuit Core Personal Superannuation work? Portability of super benefits If you provide us with a request to transfer your benefits out of the Fund, super law requires that we transfer your benefits within 30 days of receiving all relevant prescribed information (including all information necessary to process your request). However, restricted investments may have extended redemption periods. This means if you have invested in an investment option that is a restricted investment, we may not be able to transfer part or all of your withdrawal benefit within 30 days because the underlying investment managers may take up to 360 days to process our withdrawal request. Before you invest in restricted investments, you are required to sign a written consent (which is set out in the declaration section of your Investment Instruction form) confirming that you accept that a period longer than 30 days may be required (in respect of the whole or part of your requested transfer amount) to effect the transfer because of the illiquid nature of restricted investments and that you understand the possible extended redemption period applicable to your investment. Investment options that fall into the category of restricted investments are identified in Pursuit fact sheet 202: Pursuit Core investment options menu. Term deposits Terms and conditions relating to an investment in a term deposit are contained in the product guide and Pursuit fact sheet 13: Investing in a term deposit. Where you invest in a term deposit or a restricted investment part or all of a withdrawal or switching request may be delayed until sufficient assets from that investment can be redeemed to fund the withdrawal. Important note The maximum percentages that can be allocated to each of restricted investments and term deposits are detailed in Pursuit fact sheet 201: Pursuit Core investment strategies. 12

15 Section 3 - Managing your super account This section provides you with instructions about how to select and maintain your Investment Instructions and manage the operation of your Cash Account. Using Portfolio Online Portfolio Online is a valuable tool to help manage your investment. This user friendly web site gives you access to a range of current and historical transaction and performance details about your super account, including the following. Portfolio summary Account transactions Account information Statements Reports Electronic communications View the total value of your account ( portfolio ). View all your transactions including your contributions, withdrawals and income distributions. View information about your Investment Instructions and other account features. View current and historical Member Statements online. View your portfolio history, Cash Account statement, asset allocation and performance reports. View the Trustee s communications to members which you elect to receive electronically. How can I register for Portfolio Online? You can register for Portfolio Online once you have received your client number. Simply apply online at and we will send you an allowing you to create your own password. Once you have activated your online access, you will see that your super account operates a bit like a bank account. Put simply, your super account works like this. Compulsory contributions (9% Super Guarantee) Voluntary contributions Transfers from other super funds Fund earnings Fees Insurance premiums Taxes = Fund losses Transfers to other super funds Your super account balance Your balance is the value of your Pursuit Core Personal Superannuation account and you can view it online. 13

16 Managing your super account Your Investment Instructions Your Investment Instructions outline how you would like your contributions (less any Adviser Service Fee Upfront 11 ) to be invested. You can instruct us to invest your contributions in two different ways. You provide your Investment Instructions on the Investment Instructions form (Form B) located in the Pursuit Core Personal Superannuation Forms Booklet. Types of Investment Instructions 1. Primary Instruction This is your main Investment Instruction and is used for all contributions unless alternative instructions are provided to us. A Primary Instruction will include the following information: the managed fund(s) you wish to invest in for each contribution; the percentage of your contribution to be invested in each managed fund; and the allocation to the Cash Account (which must be at least one per cent). To confirm your allocation to each managed fund you can view your current Primary Instruction via Portfolio Online or you can call a Client Services Officer on Specific Instruction This is a one-off instruction for contributions made by cheque only. When provided it will override the use of the Primary Instruction for that particular contribution. Please note that the total percentage allocated to each managed fund and/or term deposit and your allocation to the Cash Account (of at least one per cent), must add up to 100 per cent for both types of Investment Instructions. Re-investing income distributions Income distributions may be paid from your investment option(s). You determine how this income is to be re-invested. Any income distributions that you receive from your investment option(s) are automatically credited to your Cash Account. This income can then be re-invested using one of the following two methods (only one method can be selected). 1. Re-invest (default option) 12 This method allows you to automatically re-invest 100 per cent of the income distribution back into the same managed fund that made the income distribution. The re-investment will normally be completed within five business days following receipt of your income distribution into your Cash Account. Where we have suspended or stopped investments in a managed fund or where a managed fund is redeemed in full (except where a managed fund is no longer held due to the requirement to top up your Cash Account) income distributions received from that managed fund will be retained in the Cash Account. Re-investment of income distributions will involve the purchase of new units in one or more investment options. 2. Retain in your Cash Account Leave all income distributions to accumulate in your Cash Account 13. Income distributions will remain in your Cash Account until we receive an Investment Instruction from you. Changing your Investment Instructions To update your Primary Instruction, please complete the Investment Instructions form (Form B) located in the Pursuit Core Personal Superannuation Forms Booklet and send it to us. Where we have suspended or stopped investments in a managed fund or where a managed fund is redeemed in full (except where a managed fund is no longer held due to the requirement to top up your Cash Account), that managed fund will be removed from any Investment Instruction and the Instruction will be re-weighted. We will do this automatically and you will not be advised of the change. For example Maria submits a request to fully redeem her investments in Fund C. As a result, Maria s Primary Instruction is automatically updated to remove Fund C and to re-weight the remaining funds. Managed fund Cash Account Existing holding Withdrawal request Primary Instruction before after 3% 3% 3% Fund A 17% 17% 22% Fund B 60% 60% 75% Fund C 20% 100% 20% 11 For more information regarding the Adviser Service Fees available refer to page 22 of this PDS. 12 Any re-investment of income distributions will involve the purchase of new units in one or more managed funds. Please note that you may not have the most recent product disclosure statement for the managed fund at the time these re-investments are made. 13 This may not reflect your retirement savings goals. 14

17 Changing your investment options (switching) Pursuit Core Personal Superannuation gives you the ability to change your selected investment options. The decision is yours. Changing your managed fund selection generally requires you to redeem units from one or more of your existing managed funds and purchase units in one or more managed funds selected by you. This process is often referred to as a switching instruction. We currently do not charge a separate fee for switching between managed funds in your account. A switching instruction can be made by completing the Investment Instructions form (Form B) located in the Pursuit Core Personal Superannuation Forms Booklet. Unless you are redeeming the full balance held in a managed fund: the minimum amount that must be redeemed from a managed fund is $100; and the minimum amount that must be retained in a managed fund is $100. If you select a new managed fund you must invest a minimum of $100. Switching between managed funds generally involves redeeming units in one or more of your managed funds. This means you must complete a redemption transaction before you can purchase units in a new managed fund. The proceeds of any redemption transaction are first deposited into your Cash Account before units are purchased in the new investment option(s). The product disclosure statement for a managed fund may be updated or replaced by the investment manager from time to time. This means that you may not always have the most recent copy of the applicable product disclosure statement for a new managed fund before making your switch request. IOOF provides electronic versions of product disclosure statements for the available managed funds via Portfolio Online. You can also obtain a copy free of charge by contacting a financial adviser or by calling a Client Services Officer on Important note Switching between managed funds may give rise to a CGT liability which may reduce the value of your account. Please speak to a financial adviser or tax adviser for more information. A buy/sell spread may be incurred when switching between managed funds. See Transaction costs on page 22 and Pursuit fact sheet 202: Pursuit Core investment options menu. Your Cash Account Why do I have a Cash Account? Your Cash Account is used to process all cash transactions that occur within your super account. For example, all money paid into your account and any earnings from your investment options goes through your Cash Account and all fees, insurance premiums and taxes are paid out of this account. Competitive investment returns from your Cash Account The Cash Account provides you with exposure to a mix of Australian short-term money market securities and cash. Interest generated by these investments (less bank fees and charges) is calculated daily and credited monthly to your Cash Account. The Cash Account provides competitive returns (when compared to cash funds) and represents a very low risk investment strategy. Any income distributed by your chosen investment options is deposited into your Cash Account. From there it can then be re-invested using one of the two methods available (see Re-investing income distributions on page 14). Surplus cash We will review your Cash Account on or around the 20th day of February, May, August and November. If your Cash Account exceeds the percentage nominated in your Primary Instruction plus $200, we will invest the excess according to your Primary Instruction. The excess (if applicable) will normally be invested within five business days following our review of your Cash Account balance. Should you choose to leave all income distributions to accumulate in your Cash Account, we will not invest the excess under this feature. Minimum allocation to your Cash Account You are required to maintain a minimum of one per cent of your super account balance in your Cash Account. This amount is used for funding fees and expenses, taxes and insurance premiums (where applicable). You can nominate a higher percentage as your minimum Cash Account balance if you wish, to fund these expenses as they fall due. If we determine that the balance in your Cash Account is likely to fall below zero within the next seven days, we will top up your Cash Account to one per cent of your account balance (or any higher percentage you have nominated) by redeeming the necessary amount from your managed fund with the highest balance. In making our determination we will take into consideration any fees, insurance premiums and taxes that will be deducted from your Cash Account during this period. We recommend that you talk to a financial adviser about the minimum Cash Account requirement. 15

18 Section 4 - Taking out insurance Everyone s lifestyle is different. Only you truly understand the effect your death, disablement or inability to work would have on you and your family. While nobody wants to consider their own death or suffering a permanent disability, the reality is that life is full of unexpected events; life insurance can provide you with the peace of mind that you or your family will be able to financially survive an unexpected death, illness or injury. No doubt you already have insurance to protect your home, car or valuable possessions from damage or theft, but if you become seriously ill or injured those assets could still be lost if you re unable to work to keep up with the repayments. This financial distress can be avoided by arranging adequate insurance to protect your family and lifestyle and best of all, this can all be done tax-effectively. Purchase the life insurance you need with pre-tax dollars through your Pursuit Core Personal Superannuation account. Death cover and Total & Permanent Disablement (TPD) cover provide a lump sum benefit whereas Salary Continuance (often called income protection ) cover provides a regular monthly benefit for the insured period while you are off work due to illness or injury. What are the main insured benefits available? Type of insurance Death TPD Salary Continuance What is it? Death cover provides your family with financial security in the event of your death. If you die, your insured benefit will be paid to your dependants or estate in addition to your super account balance. TPD cover provides you and your family with financial security in the event you become totally and permanently disabled and are unable to work. If this happens, your insured benefit may be paid out to you in addition to your super account balance. Salary Continuance cover provides you with a regular monthly income if you become totally disabled because of illness or injury and are unable to work and earn your income. You can choose terms of 2 or 5 years or to age 65 after a 30, 60 or 90 day waiting period. How much? There is no limit to the amount of Death Benefit you can apply for. The maximum TPD Benefit available is $3 million. The maximum amount of Salary Continuance insurance you can apply for is 75% of your Declared Earned Income (plus up to 10% super contributions when disabled) not exceeding $20,000 per month. Who can apply? Eligibility for insurance is dependent on a number of factors including your age, type of occupation and in some cases hours worked. The eligibility requirements for Death, Death & TPD and Salary Continuance cover are set out in Section 1 of Pursuit fact sheet 12: Insurance through personal super. There are certain occupations considered by the Insurer to be hazardous or uninsurable. Please note, if you re working in one of these types of occupations at the time you apply for cover or an increase in cover, you might not be accepted for the cover you want. See Hazardous occupations in Section 1 of Pursuit fact sheet