|
A.
|
There is no switch fee, but you will incur a buy/sell spread when you change investment options.
|
|
|
A.
|
Yes, fixed interest investments can produce negative returns. Negative returns can occur when interest rates increase.
|
|
|
|
A.
|
All of the Fund’s returns are listed after tax and fees. If you have your money invested in a bank, the earnings will be taxed at your marginal tax rate and the earning rate declared will be before taxation.
|
|
|
|
A.
|
You can change your investment option(s) once a week.
Investment switches are processed on a forward pricing basis. This means that your switch will be processed at unit prices that are set after your switch application is received.
Unit prices are normally set on a Tuesday. To receive the unit price set on a particular Tuesday, your application must be received by close of business (5:30 pm AEST or AEDST) on the previous Friday.
|
|
|
|
A.
|
Future contributions can be directed to different investment option(s) than those investment options in which you have your existing account balance invested.
|
|
|
|
A.
|
The Balanced option is designed for members who are looking for a medium to high level of return over a five-year period and are prepared to accept a medium to high level of volatility. This option may not be suitable for everyone and the Trustee offers 11 different investment options so that members can make an investment choice to best suit their requirements.
To achieve its return objectives, the Balanced option is invested 75% in growth assets (eg shares and property). These assets will sometimes produce negative returns.
|
|
|
|
A.
|
In positive years, the Fund’s Allocated Pension Plan members receive the benefit of higher returns as there is no tax on investment earnings in the Fund, but when returns are negative this is reversed.
When returns are negative, the Superannuation Plan members receive the benefits of tax credits due to investment losses, whereas the pension members do not receive these benefits as there is no tax payable.
|
|
|
