PRINT. MEDIA. ENTERTAINMENT. ARTS. OURCOMMUNITY GUIDE Issued 1 July 2018
CONTENTS Who can invest? 4 Direct Investment features 5 Fees 7 Getting started with Direct Investment 9 Shares & exchange-traded funds 11 Term deposits 15 Reporting and research 17 Direct Investment for pension members 17 Tax and Direct Investment 19 Other important information 20 Glossary of useful terms 21 Your Financial Planners 22 This Direct Investment Guide was prepared on 1 July 2018 and issued by Media Super Limited, Level 15, 45 Clarence Street, Sydney NSW 2000, ABN 30 059 502 948, AFSL 230254 (Trustee), the trustee of Media Super (ABN 42 574 421 650, SPIN PIN 0100AU, Media Super USI 42574421650001, Media Super Pensions USI 42574421650799) (Fund). The information in this document forms part of the Media Super Member Guide Product Disclosure Statement issued 1 July 2018 and the Media Super Pensions Guide Product Disclosure Statement issued 1 July 2018 (each, a PDS). You can obtain a copy of the relevant PDS by contacting us on 1800 640 886 or via our website at mediasuper.com.au. You should read this document in conjunction with the relevant PDS before you make a decision about Media Super. Warning: The information in this document is general information only. It has been prepared without taking into account your objectives, financial situation or needs. Because of that, before acting on the information, you should consider its appropriateness, having regard to your objectives, financial situation and needs. We recommend that you also consider obtaining financial advice from a licensed financial planner. Information in the relevant PDS and the additional information that forms part of the relevant PDS (including this document) may change from time to time. We will notify members in writing of any significant events or material changes. We may update information that is not materially adverse via our website at mediasuper.com.au. A paper copy of any updated information is available without charge on request. Any statements given by third parties in this document have been given with their consent, which has not been withdrawn at the time of issuing this document. Except as outlined in the relevant PDS and the additional information that forms part of the relevant PDS, we can change matters which are the subject of representations set out in these documents at any time without notice. PRINTED IN AUSTRALIA. MEDIA SUPER SUPPORTS AUSSIE PRINTERS.
PRINT. MEDIA. ENTERTAINMENT. ARTS. 3 YOUR SUPER YOUR DECISION Media Super s Direct Investment option offers eligible members much more control and freedom over their super savings than ever before. If you have ever wanted to pick which shares you re invested in, been attracted by term deposits, or wanted to invest in exchange-traded funds (ETFs), Direct Investment may be just what you re looking for. Although Media Super takes into consideration environmental, social and governance issues when investing your money, we understand that this can be a personal issue for members. Members can use this option to invest (or not invest) their super in companies based on their own particular views. Members can also choose to invest their super towards particular themes, such as technology companies, renewable energy companies or those focused on health and aging. More control over your super Choose your own investments Flexibility and freedom with your super Outlined in this booklet are the product features and rules that will help you to take control and manage your super investment.
4 WHO CAN INVEST? 1 To be eligible to invest in the Direct Investment option, you must have a minimum of $10,000 in your Media Super account. The minimum amount you can transfer in to the Direct Investment option is $500. 2 A maximum of 90% of your total Media Super account balance can be invested in the Direct Investment option, subject to a minimum balance of $2,000 remaining in one or more of Media Super s other investment options. 3 As the Direct Investment option is administered wholly online, you must provide your email address when registering. Further information is available at mediasuper.com.au/directinvestment Please read the terms and conditions published in your Media Super online account.
PRINT. MEDIA. ENTERTAINMENT. ARTS. 5 DIRECT INVESTMENT FEATURES You now have even more control over your super investment than ever before. Our Direct Investment option gives you the opportunity to manage your super investment in a range of shares, ETFs and term deposits. Below are the key product specifications. Investment overview The Direct Investment option allows you to take greater control and manage how your super is invested, providing you with choice and the flexibility to make the investment decisions yourself. As the asset mix of this option is not set or managed by Media Super, and is instead selected by you, the investment objectives both return and risk are your responsibility. Intended to be suitable for You can choose a mix of growth assets (ASX300 listed shares and a range of ETFs) and defensive assets (term deposits). These types of assets are capable of supporting a range of return objectives, from conservative to aggressive, so that you can set a risk and return objective appropriate for your situation. Investment objectives The types of assets offered are capable of supporting a range of risk objectives, from low to very high risk, so that an individual member can set a risk and return objective appropriate to their own situation and risk appetite. In particular, the likelihood of a negative return will vary, depending on each member s chosen allocation to ASX300 listed shares, ETFs and term deposits. The return and risk characteristics for each asset type will help you to set your own objectives. ASX300 listed shares.. Investment objectives The objective will be set by the member as appropriate to their own situation and risk appetite. Return: Returns may be made via stock dividends and increased share values. Risk: The estimated chance that negative returns will occur in any financial year is less than 1 in 3. Recommended minimum investment timeframe Long (10+ years) Standard Risk Measure Risk band: 7 Risk label: Very High Estimated number of negative annual returns over any 20-year period: 6 or greater. ETFs.. Investment objectives The objective will be set by the member as appropriate to their own situation and risk appetite. Return: Returns are intended to track market performance, before fees and charges, of a defined group of assets. Risk: The estimated chance that negative returns will occur in any financial year is less than 1 in 3. Recommended minimum investment timeframe Long (10+ years) Standard Risk Measure Risk band: 6 Risk label: High* Estimated number of negative annual returns over any 20-year period: Please see note** Term deposits.. Investment objectives The objective will be set by the member as appropriate to their own situation and risk appetite. Return: Returns achieved on capital, via a fixed interest rate over a fixed term. Risk: The estimated chance that negative returns will occur in any financial year is negligible. Recommended minimum investment timeframe Short (0-1 year) Standard Risk Measure Risk band: 1 Risk label: Very Low Estimated number of negative annual returns over any 20-year period: less than 0.5. * The levels of risk for ETFs will vary depending on the ETF chosen but because ETFs are listed, risk can be categorised as High or Medium to High. (See the Investment Profile for any ETF you are considering available in the Direct Investment section of your Media Super online account or read the PDS for the ETF on the ETF provider s website for more information.) ** Estimated frequency of negative annual returns of an ETF will depend on the risk profile of the individual ETF and the underlying investment mix. ETFs are traded on the ASX, so the expected frequency can be similar to shares, however diversification within the ETF can reduce volatility. (See the PDS for the ETF on the ETF provider s website for more information.)
6 Investor requirements Shares available Term deposit providers Term deposit terms (months) ASX300 listed shares See mediasuper.com.au/ directinvestment Varies Minimum total account balance to be eligible for Direct Investment $10,000 Minimum transfer in to Direct Investment $500 Minimum balance required in other Media Super investment options $2,000 Maximum percentage of total account in Direct Investment 90% Maximum percentage of total account in shares and/or ETFs 90% Maximum percentage of total account in a single share (or ETF) 20% Minimum buy or sell order (for shares or ETFs) $500 Minimum amount to invest in a term deposit $5,000 Minimum balance that must be maintained in cash transaction account $500 Transferring funds timeframe Type of transaction How often can I transact? What is the deadline for my request? # When will my request be actioned? When will my cash transaction account be updated? Cash transfers from pre-mixed or single asset class options into Direct Investment Weekly 12am (AEST) on a Sunday Wednesday of following week* Thursday of following week* Cash transfers from Direct Investment into your current pre-mixed or single asset class options Weekly 12am (AEST) on a Sunday Wednesday of following week* Wednesday of following week* Term Deposit requests Daily 12am AEST on a business day Next business day Next business day after transaction Share and ETF requests During ASX trading hours ASX close Immediately** Settlement occurs on the second business day after transaction # If your transaction request is received after the stated deadline, the transaction request will be treated as if it has been received on the next business day. * If for any reason updated unit prices are not available on the Wednesday, your switch will be processed on the first subsequent business day that updated unit prices become available. The unit prices on the day your switch was processed will be applied and your cash transaction will be updated for a transfer into Direct Investment on the next business day. ** Generally immediately, where the system is available and during market hours. NOTE: delays can be expected, due to public holidays, exceptional market conditions or other unforeseen circumstances.
PRINT. MEDIA. ENTERTAINMENT. ARTS. 7 FEES Outlined below are the main fees and costs applicable to super invested through Direct Investment. Other fees and costs in addition to those disclosed below will apply in respect of your investment in Media Super. For members with a superannuation (accumulation) account in Media Super, please refer to the Additional Information About Your Super Guide for full details of the fees and costs applicable to you in Media Super. This document is available at mediasuper.com.au/pds For members with a pension account in Media Super, please refer to the Pensions Guide Product Disclosure Statement for full details of the fees and costs applicable to you in Media Super. This document is available at mediasuper.com.au/pds IMPORTANT: If you choose to invest in ETFs, other fees and costs in relation to the ETF may be deducted from the underlying investment in the ETF. In order to understand all of the fees and costs applicable in respect of your investment, you will need to read the relevant Investment Profile for any ETF you are considering, available on the Direct Investment option website or the ETF PDS on the ETF provider s website. You may also obtain a printed copy of the ETF PDS at no additional charge to you, by request to the ETF provider. For an updated list of the ETFs available, please visit mediasuper.com.au/directinvestment Type of fee Amount How and when paid Investment fee 0.10% p.a. of your account balance plus $209.00 p.a. (indexed annually on 1 April in line with Average Weekly Ordinary Times Earnings per other indexed fees, but only applies where the indexation to the pre-gst fee is $4 or more and, if so, the pre-gst fee will increase by $5 or the nearest multiple of $5) For the portion of your account balance invested in the Direct Investment option, the 0.10% p.a. fee will be calculated then deducted from your account balance at the end of every month, or on ceasing to hold the option. The $209.00 p.a. Direct Investment option fee is deducted from your account balance at the end of every month and when you exit the Fund. Administration fee 0.10% p.a. of your account balance For the portion of your account balance invested in the Direct Investment option, this 0.10% p.a. fee will be calculated then deducted from your account balance at the end of every month, or on ceasing to hold the option. Other fees and costs Activity Fees Brokerage fees Brokerage fees apply when you trade shares and ETFs. A flat fee of $13.75 applies to the first $4,167 of your trade. As the total of your trade value increases, the brokerage paid as a percentage of the trade value decreases as follows: Trade Value $ Brokerage fee (including GST) 0-4,167 $13.75 (flat fee) 4,168-10,000 0.33% 10,001-30,000 0.22% 30,001-50,000 0.198% 50,001-100,000 0.165% 100,001 + 0.11% Brokerage fees are added to the purchase of a buy transaction or deducted from the sale proceeds of a sell transaction. Continued on next page...
8 Type of fee Amount How and when paid Other fees and costs (continued) Activity fees (continued) Term deposit break fee The fee for breaking a term deposit prior to maturity will depend on the issuer, and may change from time to time without notice. You should read the terms and conditions issued by the Term Deposit provider for more information. If you request to break a term deposit in the Direct Investment option before it matures, the Term Deposit provider may charge a fee or reduce the interest you receive. (See the Term Deposit Terms and Conditions available in the Direct Investment section of your Media Super online account for more information.) Indirect cost ratio Varies from 0.00% to 1.00% p.a. (estimated*) of your account balance. Shares: nil. ETFs: ETFs generally have lower fees than managed funds not traded on the exchange. Fees incurred by the ETF, (including management fees, custody costs and other expenses) may be deducted from the returns from the underlying securities in the ETF. Because the price quoted on the ASX for the ETF reflects all fees and expenses of the ETF, the total return may be different to the return of the index that the ETF is aiming to track. For individual ETFs, please visit mediasuper.com.au/directinvestment Term deposits: nil. Cash transaction account: 0.05% p.a. (estimated*) The indirect cost ratio is an estimate of costs that are not charged to members as a fee but are deducted from the Fund s assets when the costs are incurred prior to valuation of your investment, which reduces the return on your investment. * This ratio has been determined for the financial year before this document was issued. A fee or cost for the Direct Investment option deducted directly from your account will be deducted from your account balance in each investment option in proportion to your total account balance (excluding Direct Investment and LifetimePlus options).
PRINT. MEDIA. ENTERTAINMENT. ARTS. 9 GETTING STARTED WITH DIRECT INVESTMENT Access to the Direct Investment option is available through your Media Super online account. To get started, log into your Media Super online account and go to the Direct Investment section to switch* funds from your other Media Super investment options to the Direct Investment option. You will need to transfer at least $500 into the Direct Investment option. When your first transfer to the Direct Investment option, your cash transaction account will open automatically which you will be able to access via your Media Super online account. Transfer requests received before 12pm Sunday will be processed the following Thursday #. The transferred funds will be in your cash transaction account on the first business day after processing, ready for you to invest in shares, ETFs and term deposits. (See Shares & Exchange-Traded funds on page 11 and Term Deposits on page 15 for more information.) Once you re set up, all activities in the Direct Investment option are conducted online. You ll be able to: > > check the value of your investments; > > transact in ASX300 listed shares, selected ETFs and term deposits; > > place buy and sell orders for ASX300 listed shares and ETFs on market (during ASX trading hours); > > access personalised share trading information, open orders, trading history; and > > view detailed information about the share market as it is updated. * A switching fee may apply to each investment switch you make. (See the Fees and other costs in the Additional Information About Your Super Guide (for superannuation members) or the Pensions Guide Product Disclosure Statement (for pension members) for more information). # If for any reason updated unit prices are not available on the Wednesday, your switch will be processed on the first subsequent business day that updated unit prices become available. The unit prices on the day your switch was processed will be applied and your CTA will be updated for a transfer into Direct Investment on the next business day. Cash transaction account (CTA) The CTA is a holding account used to transfer money between your other Media Super investment options and the underlying investments in the Direct Investment option. The interest rate that applies to the CTA is set by Macquarie, and can vary on a daily basis. Accordingly, there is no guarantee of a particular rate of interest being earned. The interest on the CTA will be calculated daily and paid to your CTA on a monthly basis in arrears, on or around the last business day of the month, usually the first business day of the following month. Accrued interest is not reported on your account until it is paid. Details of the applicable interest rates are available at mediasuper.com.au/directinvestment Keep an eye on your balance You will need to maintain a minimum balance of $500 in your Direct Investment CTA and under certain circumstances you may be required to top-up your CTA to fund tax payments within Direct Investment. For example, this will occur if: > > you select a dividend re-investment plan for one or more of the shares you are invested in and the earnings tax payable (at 15%) is greater than the cash holding within the Direct Investment CTA. (See Dividend Reinvestment Plans (DRP) on page 12 for more information.); > > you roll over the principal and interest for a term deposit and the tax payable is greater than the cash holding within the CTA. (See Rolling over a term deposit [maturity election]) on page 16 for more information; or > > your trades exceed cash holdings due to market movement affecting the price and/or brokerage. In the event that a CTA top-up is necessary, the amount required will automatically be deducted from your other Media Super investments and transferred to your Direct Investment CTA. The top-up amount will be deducted by selling down your other Media Super investments in the same manner as other deductions from your account.
10 Deposit guarantee The CTA is held through Media Super s custodian with Macquarie Bank Limited (ABN 46 008 583 542, AFSL 237502) and is pooled with other investors. The Financial Claims Scheme (FCS) guarantees the deposits of account holders up to a limit of $250,000 per account holder per authorised deposit-taking institution (ADI, such as Macquarie Bank). Your interest in your CTA will not be directly protected by the FCS. However, you may have a pro-rata interest in the Fund s aggregate cap amount of $250,000 per account holder, per ADI. Further information can be found at apra.gov.au Transferring funds into Direct Investment You can transfer funds between your other Media Super investment options and the Direct Investment option through your Media Super online account*. (See Transferring funds timeframe on page 6 for more information.) * A switching fee may apply to each investment switch you make. (See Fees and other costs in the Additional Information About Your Super Guide [for superannuation members] or the Pensions Guide Product Disclosure Statement [for pension members] for more information). Minimum balance in other Media Super investment options You are required to keep a minimum account balance of $2,000 in your other Media Super investment options. In the event that this balance falls below the required minimum, as identified when monthly checks occur, you will be contacted via email with a reminder to top-up your Media Super account balance. If you fail to restore your investments to the $2,000 minimum, investments within your Direct Investment option will be sold and the funds transferred into your other Media Super investment options. Investments will be sold in the following order*: > > listed shares or ETFs (starting with the holding that has the highest balance); and > > term deposits (with the term deposit that has the maturity date being the closest to the current date being broken first). If this transfer reduces your Direct Investment holding below $500, your Direct Investment account will be closed and any funds will be transferred to your other Media Super investment options. Closing your Direct Investment account If you wish to exit the Direct Investment option, you must sell your entire holdings. Once all trades have been settled, accrued dividend entitlements have been credited and/or term deposits have matured and all proceeds are available in your CTA, you can close the Direct Investment option account. In order to do this you must request a switch from Direct Investment into your other Media Super investment options. If there are any outstanding dividends or distributions to be received or any corporate actions to be processed, your CTA will remain open until these have been finalised. Once these amounts are paid and/or processed, these funds will be transferred to your other Media Super investment options and you will no longer be invested in the Direct Investment option. Risks of super Like any other investment, super is subject to risk. Investment risk refers to the likelihood that your investment could lose money or not make as much as expected. The significant risks of investing in super are outlined: > > for members with a superannuation (accumulation) account in Media Super in our Investment Guide; and > > for members with a pension account in Media Super in our Pensions Guide Product Disclosure Statement, each available at mediasuper.com.au/pds Risks of transacting online To the extent permitted by law, Media Super accepts no responsibility should online access to the Direct Investment option be unavailable. Media Super reserves the right to temporarily change, suspend or cancel operations in the Direct Investment option without prior notice. * Please note any available cash in your CTA will be utilised before any investments are sold down.
PRINT. MEDIA. ENTERTAINMENT. ARTS. 11 SHARES & EXCHANGE-TRADED FUNDS The Direct Investment option gives you access to two main types of securities: the shares included in the S&P/ASX 300 Index, and selected ETFs. Shares are investments that represent part ownership of a company. The shares included in the S&P/ASX 300 Index are the 300 largest Australian securities, based on the total value of the securities on issue. These securities make up approximately 80% of the Australian share market, and include companies in financial services, consumer goods, energy, telecommunications, health care, consumer discretionary, utilities, and information technology. Exchange-traded funds (ETFs) are securities that aim to provide the same returns as a particular index or benchmark by investing in a range of securities that make up that index or benchmark. The index or benchmark may be Australian shares, overseas shares, fixed interest, or a commodity. ETFs are traded on the stock exchange. What you can invest in Members in the Direct Investment option can invest in: > > the 300 shares that form part of the S&P/ASX 300 Index at the time their order is placed; and > > selected ETFs. For an updated list of the ETFs available, please visit mediasuper.com.au/directinvestment For information on individual ETFs, see the PDS on the ETF provider s website. To buy and sell shares or ETFs, you will need to log in to your Media Super online account and then access the Direct Investment section where you can transact in shares or ETFs directly from the Shares screen. If you want to buy or sell, simply search for the company name or ASX code of the ETF or listed security. You can also buy or sell shares once you ve looked up market information about a company in the Markets section of Direct Investment. If you need help transacting in Direct Investment, a useful Help feature is available, which can provide you with the answers to many frequently asked questions. Shares and ETFs are valued at their last available trading price on the ASX. Any orders that you request will generally be placed on-market once they are confirmed online. This means that, as long as the ASX is trading that day and your order is confirmed online between 10am and 4pm (Sydney time), it will generally be placed on-market as soon as possible, where there is an available and orderly market for that share. (See Placing a trade following for more information.) Some ETFs may increase or decrease in price at specific times of the day, due to time differences between the ASX trading hours and the trading hours of the overseas exchanges on which they are listed. IMPORTANT: Before investing in an ETF, you should obtain and consider the product disclosure statement or other disclosure document available from the website of the ETF provider. For an updated list of the ETFs available, visit mediasuper.com.au/directinvestment. NOTE: You must hold shares before you can sell them, and if you sell them, they must settle before you can use the cash proceeds to fund another purchase. Placing a trade Trades are placed in accordance with the Trading Terms and Conditions available in the Direct Investment section of your Media Super online account. When you place a buy or sell order, it will be either at limit or at market-to-limit, subject to orderly market conditions. An at market-to-limit order is a request to buy or sell a security at the best buy or sell price available at that time (subject to orderly market conditions). You can choose whether an at market-to-limit order is valid for today only or until cancelled, which determines the amount of time the order remains open if it is unfilled. Sometimes, only part of an at market-to-limit order will be able to be filled at the time. If this occurs, the remainder of the securities will be placed on an at limit order, at the same price as the at market-tolimit price. You may amend the remainder of the order at this time if you wish.
12 An at limit buy order is an instruction to buy securities at a price up to the maximum you specify. Likewise, an at limit sell order sets a minimum price at which securities can be sold. NOTE: you can nominate today only or until cancelled ; you cannot specify a particular date. Orders for today only are only open for a single business day, while until cancelled orders remain open until they are filled or you cancel them. If neither of these occurs, ASX business rules require that an order will expire 22 business days from the day it was placed. Confirmation of transaction Once you have logged into your Media Super online account, you can view confirmations for each transaction in the Direct Investment section on the Orders screen. Transaction limits The following transaction limits apply to any investments you make within the Direct Investment option: 1. The minimum buy order for shares or ETFs is $500. 2. You also need to maintain at least $500 in your CTA at all times, to cover your transactions and related fees and taxes. 3. You cannot invest more than 20% of your total account balance in a single share or ETF. 4. You cannot invest more than 90% of your total account balance in shares and ETFs. Minimum trade amount When you are buying or selling shares or ETFs, the minimum trade value is $500. However, if the value of an investment has fallen below $500, a sale of less than $500 will be accepted. Brokerage fees Brokerage is calculated on the value of your trade, and will be added to the price of a buy transaction or deducted from the sale proceeds of a sell transaction. (See Fees table on page 7 for more information.) Trading and settlement Settlement will usually occur on a trade date + two business days (T+2) basis, and your Media Super online account will reflect the T+2 settlement. When you submit a request to buy securities, funds will be reserved to pay for that purchase from your CTA. The money will then be deducted from your CTA balance two business days later, unless the order is cancelled before the purchase occurs. This is to prevent you from overdrawing your CTA. When you sell shares, the proceeds cannot be used for another transaction or transfer until settlement occurs and the proceeds are cleared in your CTA. Orders failing Orders that fail will be cancelled in accordance with the Direct Investment Trading Terms and Conditions available in the Direct Investment section of your Media Super online account. An order may fail if, for example: > > you request an order that is contrary to the rules of the Direct Investment option (for example, if you try and invest more than 20% of your total Media Super balance in a single share), the order request will be rejected after it is entered; > > an order fails to find a buyer or seller at your desired price; or > > an order may not be completed or may be purged. (See Incomplete orders on page 14 and the Trading Terms and Conditions available in the Direct Investment section of your Media Super online account for more information.) Dividends Payment of dividends You must hold shares for at least 45 days before you can be eligible for franking credits from any dividends. To be eligible for a dividend, you must have purchased the shares before the ex-dividend date. Dividend or distribution payments will generally be credited to your CTA within a few days of the payment date, which is the date on which a company s dividend is paid to shareholders or when an ETF s distribution is paid. Dividend Reinvestment Plans (DRP) For many securities, you can decide to reinvest the dividends from your shares back into those investments or have them paid into your CTA. If you wish to put a DRP in place, you must make this election in the Direct Investment section of your Media Super online account. The default option is usually to pay the dividend into your CTA. Regardless of whether you accept dividends in cash or reinvest through a DRP, tax on earnings will be collected from your CTA. Where you have selected a DRP, this can cause the balance of your CTA to fall below the required minimum. (See Transferring funds into Direct Investment on page 10 for more information.) NOTE: cash payments and/or DRP will not be available for all shares.
PRINT. MEDIA. ENTERTAINMENT. ARTS. 13 When you reinvest your dividends, the amount of the dividend payment is rarely equal to the cost of an exact number of shares there is almost always a dividend amount left over. Depending on the DRP rules, this amount could be treated in various ways. It may be: > > retained by the issuer of the listed security on your behalf, added to future dividend and distribution payments, and allocated under a future DRP allocation; or > > retained by the issuer of the listed security with no future benefit to you. The amount may be retained by the issuer, or is sometimes paid by the issuer to a charity. You can change your reinvestment election online at any time. Corporate actions From time to time, publicly listed companies take actions in relation to their shares ( corporate actions ). In a corporate action, you are often given a choice of options, in which case you need to choose the option that you believe is more beneficial given your own circumstances (an elective corporate action). Where an investor is not given a choice, it is called a mandatory corporate action. When you hold shares in the Direct Investment option, you will often be able to make an election in the case of an elective corporate action. However, in complex corporate actions, or where there are capital gains tax implications, the issue will be referred to specialist consultants for advice. This can cause delays in processing the action or paying an associated benefit. However, the transaction will always be processed at the effective date of the corporate action, so that you are not disadvantaged. Corporate actions will be advised to you by email. You can make your election in the Direct Investment section of your Media Super online account. If you do not respond by the due date, the action will expire. Therefore, it is very important to keep your registered email address up to date. Media Super will not participate in off-market share buy-backs, partly paid shares (instalment receipts), rights issues or class actions in the Direct Investment option, and we reserve the right not to take part in other actions as and when they arise. NOTE: The limits and restrictions specified under Investor requirements on page 6 are not taken into consideration for corporate actions. Important information about buying and selling securities in the Direct Investment option Trading within Direct Investment will be conducted according to the Trading Terms and Conditions available in the Direct Investment section of your Media Super online account. In particular, you should note that: > > you cannot trade in a listed security while it is suspended from trading on the Australian Securities Exchange (ASX). Normal market rules dictating expiry timeframes for orders will still apply while a listed security is suspended; > > under certain circumstances, if a trade is delayed or not able to be placed, ASX rules may not allow your trade to be placed in part or in full; > > once placed, you may be able to change a listed security order with a status of on market or invalid. These can be amended online; > > where an at market-to-limit order cannot be fulfilled at the best prevailing price due to lack of volume in the market, the remaining volume of the order will be executed at a limit price. The order will not be completed until volume becomes available or you adjust the limit price. (See Trading Terms and Conditions available in the Direct Investment section of your Media Super online account for more information.); > > if you hold a security that is no longer part of the S&P/ASX 300 index, you may continue to hold that security, receive dividends and act on eligible corporate actions, but you may not purchase more of it (unless it returns to the index). You can sell a security that has fallen outside the S&P/ASX 300 index subject to an available market and orderly market conditions; > > where an ETF is no longer approved by Media Super, you may continue to hold that ETF and receive distribution payments, but you may not purchase more of it. You can sell an ETF that is no longer approved subject to an available market and orderly market conditions; and > > execution of orders through Direct Investment is subject to a best execution policy. The policy ensures that all reasonable steps are taken to deliver the best outcome for each member in relation to the execution and allocation of orders. This policy is available from macquarie.com.au/melbestexecution
14 Incomplete orders In certain circumstances, subject to the rules and regulations of the ASX and the Trading Terms and Conditions your orders may not be completed, or they may be purged from the market. This could happen if, for example: > > ASX rules and regulations prevent the order from being completed; > > there is no market for that security; > > there has been a suspension or other trading halt on that security; > > an at market-to-limit order is going to cause a significant change to the market price or trade volumes; > > the price at which an order is placed is deemed to be too far from the prevailing market price, either by the ASX or by Macquarie; > > a security is quoted Ex as defined by the ASX for the purposes of determining an entitlement to shares, an offer to shareholders, a dividend or distribution payment, or for any other reason; > > the trade exceeds cash holdings due to market movement affecting the price and/or brokerage; > > the trade has been executed in error; > > the trade will, or is likely to, interfere with the integrity or orderly nature of the market in any way; > > the basis for a security s quotation on the ASX changes; > > the security has been removed from official quotation on the ASX; > > the trade is likely to result in a breach of the law or ASX rules and regulations; > > the order expires (if it has not been executed or cancelled within 22 business days of your request being processed); > > the order has been purged in accordance with ASX rules; > > a trading restriction is imposed on Macquarie; > > there has been a disruption in the operation of the ASX; or > > the ASX determines the order should be purged for any other reason. DIRECT INVESTMENT LETS YOU TAKE CONTROL OF YOUR SUPER INVESTMENTS
PRINT. MEDIA. ENTERTAINMENT. ARTS. 15 TERM DEPOSITS Term deposits are investments with an interest rate that is fixed for a set term. Generally, term deposits offer a low level of return, but they are also less risky than other types of investments. Term deposits can be purchased through the Direct Investment option, using available cash in your cash transaction account (CTA). At the end of the term, the deposit matures (pays the agreed amount of interest in addition to the amount invested). Any taxes on the earnings from your term deposit will be deducted from your CTA. Choice of terms The terms offered on the term deposits available through the Direct Investment option typically range from one month to one year, however this may vary. For an updated list of the term deposits available, please visit mediasuper.com.au/directinvestment Ownership of term deposits in the Direct Investment option The term deposits available through Direct Investment are held in the Trustee s name or that of the Trustee s custodian on behalf of the Trustee, not in your name. Your term deposit may be pooled with the funds of other investors who invest with the same provider for the same term as you. The FCS guarantees the deposit of account holders up to a limit of $250,000 per account holder per ADI. Your interest in the term deposits available through the Direct Investment option will not be directly protected by the FCS. However, you may have a pro-rata interest in the Fund s aggregate cap amount of $250,000 per account holder, per ADI. Further information can be found on APRA s website. If you do not have sufficient funds to purchase a term deposit and leave at least $500 in your CTA, your request will not be processed. You will need to transfer money to your CTA and make your application again. Applications for term deposits are generally invested the following business day, provided that you have sufficient funds in your CTA. The funds will be deducted from your CTA on the day the application is made to the provider of the term deposit. You can track your term deposit maturity date(s) in the Summary page of Direct Investment. IMPORTANT: Before investing in a Term Deposit, you should review the Term Deposit provider s terms and conditions available through your Media Super online account. Term deposit interest rates The interest earned on term deposits will be fixed for the term of the investment, subject to early termination adjustments, and will be calculated based on the total number of days you are invested in the term deposit. The interest rates applicable are available through Direct Investment online and at mediasuper.com.au/directinvestment Any interest you earn from a term deposit will be reported through Direct Investment online when it is paid into your CTA at maturity. We will not report on any accrued interest before a term deposit matures. Getting started in term deposits Once you have registered for the Direct Investment option and transferred at least $500 to your CTA, log into Direct Investment online and go to the Term deposits section. From here, you will see the available term deposits in which you can invest. Click on the Buy Term Deposit button, and follow the instructions to make your investment. The minimum amount for a term deposit is $5,000.
16 Term deposit maturity You will receive an email to let you know when your term deposit is maturing. It is important that you notify us of any change to your email address, or you may not receive your email notifications. You can elect for interest on term deposits to be: > > paid into your CTA upon maturity; or > > reinvested or rolled over into a new term deposit, together with the principal amount. Rolling over a term deposit (maturity election) You may elect to roll over the term deposit when it matures to a new term deposit for the same term from the same issuer. You can roll over the principal or the principal plus any interest earned. Partial rollovers are not available. If you elect to roll over into a new term deposit, an automatic application into the new term deposit will be created showing the amount specified. Where you choose to roll over into a new term deposit the following apply: > > your principal and interest from the maturing term deposit will initially be credited to your CTA; > > tax on interest received from a term deposit will be deducted from your CTA after maturity; > > the interest rate for the new term deposit will be the prevailing rate at the time of processing the new term deposit application; > > an application into the next term deposit will be visible online; > > your available CTA balance will reduce by the amount you are reinvesting; > > the funds will be deducted from your CTA on the next commencement date for the new term deposit; > > if there is insufficient money in your CTA at this time or your CTA balance falls below the $500 minimum after the roll over, the new application will not proceed; and > > rollover elections must be made or cancelled before 5pm (AEST) at least one business day prior to maturity. Breaking a term deposit prior to maturity Any request to break a term deposit before the agreed maturity must be made directly to Media Super in writing. Requests to break a term deposit prior to maturity are subject to the Term Deposit Terms and Conditions (available in the Direct Investment section of your Media Super online account) and a notice period and interest adjustment may apply. The fee for breaking a term deposit prior to maturity will depend on the issuer, and may change from time to time without notice. If you request to break a Term Deposit in the Direct Investment option before it matures, the Term Deposit provider may charge a fee or reduce the interest you receive. You can access information in regards to the break fee by reading the terms and conditions issued by the term deposit provider. NOTE: The break fee applicable may be significant and, therefore, is a risk that you should consider before making a decision to break a term deposit.
PRINT. MEDIA. ENTERTAINMENT. ARTS. 17 REPORTING AND RESEARCH You can track the investments within the Direct Investment option via your Media Super online account. The site also provides an up-to-date summary of your investments as well as a number of online reports. These reports are generally updated each weekday (with data as at the close of the previous business day). Reports include details of: > > your Direct Investment balance and the latest available market value of your investments; > > all transactions on your direct investments; > > details of income you received from your direct investments, including your cash transaction account; > > realised and unrealised gains and losses within your direct investments; and > > ASX-listed company, ETF and investment profiles. You can also find research on the individual shares listed in the S&P/ASX 300 Index and the ETFs available via Direct Investment in the Individual Investment profiles* provided by Morningstar Australasia Pty Ltd (ABN 95 090 665 554, AFSL 240892). Media Super is not responsible for the content of these profiles. However, you may find this additional information useful. * While the Trustee of Media Super aims to make the most recent investment profiles available, Media Super is reliant on provision of these profiles by Morningstar Australasia Pty Ltd. Information about Morningstar Australasia Pty Ltd is available from morningstar.com.au. The information provided in these profiles is from a third-party source, and the Trustee of Media Super does not endorse the contents. While they are believed to be reliable, no responsibility for errors or omissions is accepted by the Trustee of Media Super. DIRECT INVESTMENT FOR PENSION MEMBERS Direct Investment is also available to pension members of Media Super. Members with existing investments in the Direct Investment option through a Media Super accumulation (super) account cannot transfer these directly to a pension account. You will need to close your super account and sell your Direct Investment holdings, then transfer to a pension account and make purchases through the Direct Investment option via your pension account. Full payment of pension Before a full pension payment can be processed, you must sell all investments you hold in the Direct Investment option and transfer the resulting cash to your other Media Super investment options (other than the LifetimePlus investment option). If there are dividends that have been declared on shares you hold that have not yet been paid, your CTA will be kept open until all outstanding dividends are paid. Other events, such as corporate actions or liquidity issues can also delay the closure of your CTA and delay the full payment of your pension. Partial payment of pension All regular partial pension payments and lump sum payments will be paid from your other Media Super investment options (other than the LifetimePlus investment option). If there are insufficient funds in your other Media Super investment options to process the payment, the payment request will be rejected and you will be asked to re-submit it once sufficient funds are available, which may necessitate you selling down your Direct Investment holdings in order to transfer money into your other Media Super investment options.
PRINT. MEDIA. ENTERTAINMENT. ARTS. 19 TAX AND DIRECT INVESTMENT As all investments in the Direct Investment option are made via Media Super, you may benefit from the concessional tax treatment applicable to super investments. Capital gains tax If a capital gain is realised in respect of your Direct Investment holdings during the financial year, Media Super will make an adjustment to your CTA in respect of the tax payable on the capital gain you realised. In addition, any franking credits and other related tax adjustments will generally be applied to your CTA annually, as part of the end of financial year processing. As part of calculating your annual tax adjustment, capital losses on the sale of assets held for you will be applied against capital gains you have realised. At the end of a financial year where your capital losses exceed your capital gains, Media Super may either: > > pay a benefit for all or part of your net capital loss. The rate of the benefit will be calculated annually, and will range between 10 and 15% of the portion of the net capital loss you realised; or > > carry forward the net capital loss (to the extent that a capital benefit has not been paid to you on this loss) so that it can be utilised in a future end of financial year tax adjustment. The ability to pay you a capital loss benefit will depend on the overall capital gains position of the Direct Investment option and the Fund. Annual tax adjustments Individual tax processing within the Direct Investment option enables you to benefit from your individual investment decisions. You may receive franking credits, benefits from capital losses and other related tax adjustments as part of the annual tax adjustment. You may receive an annual taxation adjustment for the tax year ending 30 June after Media Super s tax position has been determined. This adjustment will be credited to your CTA. If you are in a super (accumulation) account or a Transition to Retirement pension account, your account will be charged tax progressively at 15% of the gross income earned on your investments. Capital gains will be charged tax, based on the period that the investment was held for. In line with the tax-free nature of superannuation benefit payments for those aged 60 and above, pension accounts (not including Transition to Retirement pension accounts) will not be charged tax on applicable investment earnings. Tax on capital gains and income earned on your Direct Investment holdings will usually be deducted at the time those transactions are processed However, any capital gain or loss as the result of a corporate action(s) will be applied as part of end of financial year processing. To receive the applicable annual tax adjustment (including franking credits), you must be a Media Super member when the end of financial year processing occurs. If you are no longer a member, you will lose the benefits of any applicable tax credits which will instead be added to the Fund s Reserves. If you are eligible to receive an annual tax adjustment (including franking credits) after the end of financial year processing has occurred, but you are no longer invested in the Direct Investment option, the applicable tax credits will be allocated to your investment option(s) that apply to your future contributions or pension payments, as applicable.
20 OTHER IMPORTANT INFORMATION You should be aware of some important differences between investing in shares, ETFs or term deposits directly (in your own name) and investing through the Direct Investment option. These include: > > all investments acquired via the Direct Investment option through the Fund are held by Media Super, not in your name. This means that you will not receive communications from the issuers of shares, ETFs or term deposits; > > investment earnings within a super fund are taxed at 15% for super members, which may be lower than your marginal tax rate. Such earnings are tax-free for pension members (not for Transition to Retirement Pension members). As a result, you may pay less tax on any earnings from term deposits, ETFs and/or shares held through the Direct Investment option than you would if you held the investments directly; > > when investing in shares, ETFs and term deposits via the Direct Investment option, Media Super s fees and costs will apply; > > if you invested outside this product directly in an ETF or in a term deposit, you may have the benefit of a 14-day cooling off period. If you invest through Media Super you are not entitled to any cooling off period, because Media Super is considered to be a wholesale investor; or > > if you invested directly in shares, ETFs or a term deposit, any queries or complaints that you have would be handled directly by the issuer of the relevant share, ETF or term deposit. When you invest via the Direct Investment option, any queries or complaints you have will be handled by Media Super s enquiries and complaints handling procedures, which are outlined at mediasuper.com.au You need to agree to the Trading Terms and Conditions when you switch money to Direct Investments. The Trading Terms and Conditions are available in the Direct Investment section of your Media Super online account. Service providers The Media Super Direct Investment option is provided by arrangement with Macquarie Investment Management Limited (MIML) ABN 66 002 867 003 AFSL 237492, with investments held by Bond Street Custodians Limited (ABN 57 008 607 065, AFSL 237489), as custodian for Media Super Limited as Trustee for Media Super. Both MIML and Bond Street Custodians Limited are wholly owned subsidiaries of Macquarie Group Limited (ABN 94 122 169 279). Other than the Direct Investment cash transaction account, which is a deposit with Macquarie Bank Limited (ABN 46 008 583 542, AFSL 237502), neither Macquarie Bank nor any Macquarie Group company guarantees the performance of the Direct Investment option. Media Super has made references to the names, products and services of service providers with their consent. This consent has not been withdrawn at the date of issue of this guide. Seek financial advice We recommend seeking advice from a qualified financial planner when choosing an investment option. See page 22 for more information.
PRINT. MEDIA. ENTERTAINMENT. ARTS. 21 GLOSSARY OF USEFUL TERMS Available cash The amount of cash available in your Direct Investment cash transaction account (CTA). Brokerage A fee charged by a broker for the execution of a transaction, such as buying or selling listed securities, expressed as either a percentage of the total value of the transaction, or as a flat dollar figure. Buy or sell order When you place a trade to buy or sell shares or ETFs. Capital gains tax A tax on the increase in the capital value of investments, payable when the capital gain is realised (e.g. when the investment is sold). Corporate actions An action taken by a publicly listed company relating to its securities. You will be notified of any corporate actions that impact your portfolio in the Actions and Alerts box when you login to your Media Super online account. Dividend Reinvestment Plan A Dividend Reinvestment Plan (DRP) automatically reinvests your dividends into more shares rather than providing them as a cash payment. Exchange Traded Fund An Exchange Traded Fund (ETF) is a managed fund that tracks a market or sector index and is traded on a securities exchange like shares. Franking credit Tax credits that are passed on to shareholders who have received dividends in relation to their shareholdings, with tax already paid by the company. Also called an imputation credit. Maturity The term of a fixed interest investment, such as a term deposit. Macquarie An entity within the Macquarie Group. Portfolio The total basket of investments chosen by a member. Rights issues When raising money from shareholders, a company can offer a rights issue. In this instance, existing shareholders have the right to buy a specified number of new shares from the company at a specified price within a specified time. A rights issue is offered to all existing shareholders individually, and may be rejected, accepted in full or (in a typical rights issue) accepted in part by each shareholder. Rights are often transferable, allowing the holder to sell them on the open market. Rights can be renounceable (can be sold separately from the share to other investors during the life of the right) or non-renounceable (shareholders must either take up the rights or let them lapse). Once the rights have lapsed, they no longer exist. Standard & Poor s ASX 300 Index (S&P/ASX 300 Index) The S&P/ASX 300 Index is recognised as the industry standard for measuring the performance of the top 300 companies in the Australian share market. Stock code A unique code used to identify companies listed on the Australian Securities Exchange (ASX). Also called an ASX code. Index An index measures the changes in value of a market or sectors of a market. For example, the S&P/ASX 300 Index. (See definition at right).
22 FINANCIAL PLANNING SERVICES Media Super members have access to an integrated range of financial advice services. From general enquiries about investment options, insurance or salary sacrifice, to the development of a comprehensive retirement savings plan, we re here to help. Meet with a planner Our Financial Planners* are available to meet with you to assess the health of your super, set goals and develop strategies to achieve them. As a valued member of Media Super, you are entitled to an initial one hour, face-to-face or phone consultation with a Media Super Financial Planner, at no cost to you and without any obligation. Your planner will only suggest you seek advice if they are confident that it will improve your situation and is in your best interests to do so. Find your state-based planner at mediasuper.com.au/financial-planners or call our Super Helpline 1800 640 886 to be put in touch. Over the phone advice We have a highly trained team of telephone-based advisers** who can assist you with limited personal advice about contribution strategies, insurance and investment options available to you within Media Super. Simply call our Super Helpline 1800 640 886. * Media Super has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of Media Super. Advice is provided by one of our Financial Planners who are Representatives of IFS. Fees may apply. Further information about the cost of advice is set out in the relevant Financial Services Guide, a copy of which can be obtained by calling IFS on 1300 138 848. IFS is responsible for any personal advice given to you by its Representatives. ** Helpline Advisers are representatives of Mercer Financial Advice (Australia) Pty Ltd, ABN 76 153 168 293, Australian Financial Services Licence No. 411766.
FOR MORE INFORMATION Super Helpline 1800 640 886 mediasuper.com.au Print. Media. Entertainment. Arts. Superannuation. Insurance. Retirement. Financial Planning. MSUP 53905