Investment switching

Member investment choice allows you to choose the investment approach that you are most comfortable with and that is appropriate for your needs.

Saving and investing through superannuation has been designed to be the foundation of your financial independence in retirement. As superannuation exists for your retirement benefit, you may wish to have the opportunity to decide on the style of how your money is managed. You know better than anyone else what your needs are now and into the future. As well, you know how many years you want to work until you retire from the workforce and the level of investment risk that is relevant to your situation.

ACSRF provides you with 11 investment options. Each investment option presents a different degree of investment risk, together with a different expected level of earnings (return) on your investment. This is because each option is made up of different proportions of growth assets and defensive assets.

You are able to select one or a combination of any of the 11 investment options available.

Historically, growth assets such as Australian shares, international shares and property, carry a higher level of investment risk over shorter periods, with the possibility of high returns over the longer term. Returns are likely to be negative in some years.

Defensive assets such as bonds, cash and deposits, have a lower investment risk but usually offer lower returns in the longer term. With the exception of cash, defensive assets can provide negative returns in some years, although the risk is lower than for growth assets.

When choosing your investment option(s), you may wish to consider:

• the amount of time your money will be invested before you use it in retirement
• level of investment earnings (return) which you are looking for and
• level of risk with which you are comfortable for your retirement savings.

Through member investment choice, you are able to select the investment approach that is appropriate for your needs and risk profile.

If, on joining the Fund, you do not make an investment choice, your total account will be invested in the Balanced option. This is the Fund's default option.

The Trustee recommends that you refer to the Fund's Product Disclosure Statement which provides further information on the investment objectives, strategy and asset allocation for each of the 11 investment options currently available. The Trustee does not recommend one investment option over another. If you are not sure which portfolio is most suitable for you, please refer to the Fund's Risk Profile calculator and seek independent financial advice from a reputable financial adviser. Should you wish to speak to one of our authorised financial advisers, please contact your local ACSRF office on 1300 658 776.

Switching investment options should only be made after consideration of your individual circumstances eg your financial situation, your age, your level of acceptance of investment market volatility. Switching your investment option should not be made simply on the recent investment performance of the various portfolios the Fund offers. Entering into the more volatile sectors at the wrong time can lead to a long period before the original investment is recovered. Economic conditions prevailing at the time will have a bearing as to which of the investment options will perform best during any one year.

You can change your investment option on a weekly basis. ACSRF does not charge a fee for this service, however, the buy/sell spread will apply. You can choose one or a combination of any of the 11 investment portfolios provided. Applications must be on the Fund's Investment choice form. Unsigned applications will not be accepted. Applications may be mailed or faxed to the Fund’s head office. Written confirmation of your change in option/s will be provided by the Fund.

Please note that the Trustee reserves the right to add, alter or withdraw any of the investment options. Any proposed changes would be communicated to affected members through the Trustee's reports to members.

ACSRF pays investment management fees for the management of the assets that make up each of the investment options. These investment management fees are deducted from the investment earnings returned to members. The investment management fees are deducted before the unit price is determined. They are therefore reflected in the unit price.

The Fund also pays investment consultancy fees and custodial fees that are also deducted from the investment earnings returned to members.

Investment consultancy fees vary from year to year and are based on a fee for service for work commissioned on behalf of the Trustee.

Custodial fees are based on the Fund's total investments under management. These fees reduce proportionally as the total investments under management grow.

Investment management fees, investment consultancy fees and custodial fees are not deducted from individual members' accounts. They are all reflected in the unit price. Further details on fees and charges are contained within the Fund’s Product Disclosure Statement.

A once only buy/sell spread applies to the price of units in the different investment options. The spread covers costs such as brokerage and is determined by the level of costs in buying and selling the assets in each investment option. The buy/sell spread is variable and applies each time you buy or sell units in any investment option, either through new contributions or investment option switches.

The total buy/sell spread for each investment option as at 1 July 2009 is as follows:

Investment option Buy spread Sell spread Total Diversified Shares 0.26% 0.26% 0.52% Growth 0.29% 0.29% 0.58% Balanced 0.31% 0.31% 0.62% Socially Responsible Balanced 0.22% 0.22% 0.44% Conservative Balanced 0.23% 0.23% 0.46% Conservative 0.15% 0.15% 0.30% Australian Shares 0.19% 0.19% 0.38% International Shares 0.33% 0.33% 0.66% Diversified Property 1.07% 1.07% 2.14% Diversified Fixed Interest 0.00% 0.00% 0.00% Cash 0.00% 0.00% 0.00%