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PRODUCT DISCLOSURE STATEMENT
01/ 21 NOVEMBER 2014
Telstra Super
RetireAccess® Make the most
of your future
Contents
01 02 03 04 05 06
About How it works Investment Tax Fees and Insurance
Telstra Super guide other costs
RetireAccess
4 6 12 28 32 38
About this product
disclosure statement
This product disclosure statement It also outlines the investment options We encourage you to read this product
outlines the main features and benefits available to you and explains important disclosure statement before making any
of Telstra Super RetireAccess. investment concepts to help you make investment decisions.
your choice.07 08 09 10 11
How to apply Important Privacy Glossary Additional
information information information
41 42 45 47 49
Telephone 1300 033 166
Facsimile 03 9653 6060
www.telstrasuper.com.au
contact@telstrasuper.com.au
Information in this product disclosure statement Telstra Super is a superannuation fund that Telstra Super Pty Ltd has a licence to deal in and
that does not materially affect your super provides super benefits to current and former provide general advice about superannuation
may change from time to time. Any updated employees of the Telstra Group as well as products. Telstra Super Pty Ltd acts on its own
information will be available on our website at eligible family members of existing Telstra behalf in providing these services. Telstra Super
www.telstrasuper.com.au or a copy of any Super members. Telstra Super RetireAccess is Pty Ltd ABN 86 007 422 522, AFSL 236709 is
updated information can be requested free of designed for those who are about to retire or the trustee of the Telstra Superannuation Scheme
charge by calling 1300 033 166. have already retired. (Telstra Super), ABN 85 502 108 833.PRODUCT DISCLOSURE STATEMENT
01/ TELSTRA SUPER RETIREACCESS
01/
About Telstra Super RetireAccess
A flexible, low-fee, professionally managed income stream.
Why invest in an income stream?
Tax-free income payments for members aged 60 or over. Or, if you are
under age 60, a 15% tax offset on your assessable pension income.
Tax-free earnings.
Choice of monthly, twice-monthly, quarterly or annual payments.
Income payments directly credited into your bank account.
Why choose Telstra Super RetireAccess?
Access to expert financial advice through Telstra Super Financial Planning.
Ongoing personal service.
Competitive fees.
A broad range of investment options for the conservative through to the
aggressive investor.
Automatic* base death insurance cover for just $1.18 per week.
Access to unlimited death cover†.
Estate planning flexibility, offering a reversionary beneficiary nomination,
binding or non-binding beneficiary nomination.
24-hour access to your super online at www.telstrasuper.com.au
Administration fee rebate on the amount of your balance that exceeds
$1.328m.
Glossary
To help us keep super as simple as possible for you, we have included explanations
of some super terms in our glossary on page 44. These words are in bold print
throughout this book.
* If aged under 75. Conditions apply. See page 37 for details.
†
Subject to approval from the insurer. See page 37 for details.
Page 4Joining Telstra Super Is Telstra Super RetireAccess right Cooling off period
RetireAccess for you? When joining Telstra Super
If you have any queries about RetireAccess you have 14 days to
Who is Telstra Super Telstra Super RetireAccess and the decide if this is the right choice for
RetireAccess for? benefits it can offer you, please call you. The 14 days start from either the
Telstra Super RetireAccess is a flexible us on 1300 033 166 and ask to speak day you receive your welcome letter
account based income stream suitable to a dedicated Member Services or five days after your investment
for people who: Consultant, available Monday to is accepted – whichever is earlier.
Friday from 8.00am to 5.30pm If during this cooling off period you
• are close to retiring (Melbourne time). cancel your membership in Telstra
• have already retired Super RetireAccess and withdraw
You should also consider seeing
your account balance:
• have received a Total & Permanent a Financial Adviser who can give
Disablement (TPD) payment. you advice according to your • the amount returned to you
personal circumstances. You can upon cancellation will be based
Who can join Telstra Super make an appointment with Telstra on the unit price applicable
RetireAccess? Super Financial Planning by calling on the date of cancellation
You are welcome to join Telstra Super 1300 033 166 or emailing • the unit price will reflect investment
RetireAccess if you are: appointments@telstrasuper.com.au earnings fluctuations and will
• a current Telstra Super member. also take into account reasonable
administration fees incurred.
• a former employee of the Telstra
Group and not a current Telstra Super Note: your closing balance could be
member. To qualify you will need to a greater or lesser sum than your
have been an employee of the Telstra opening balance.
Group on, or after, 1 July 1990.
• an eligible family member of a
Telstra Super member. For the current
list of eligible family members visit
www.telstrasuper.com.au/whyjoin
Page 502/
How it works
Your Telstra Super Super you transfer to open
RetireAccess income your account
stream consists of You generally open your Telstra Super
RetireAccess income stream by
Super you transfer to open
+ your account
transferring at least $10,000
unrestricted non-preserved money.
Your regular income payments
- (pre-tax)
If you are still working and have
reached your preservation age
- Any withdrawals (pre-tax) (currently age 55), you can open
a Telstra Super RetireAccess income
- Management costs stream using any super monies.
See page 10 for details.
- Insurance premiums
Once opened, your income stream
+ Any fee rebate cannot be added to, but another
account (of at least $10,000) can
= Number of units held be opened.
Unit prices (after adjusting for
x buy/sell spreads) Your regular income
payments (pre-tax)
= Your super’s value
You can choose how much income
you receive (above a minimum limit)
and how often you receive your income
payments. You can also change the
frequency of your payments (see page
8 for more information).
Lump sum withdrawals
(pre-tax)
You can take a lump sum one-off
income payment or a lump sum partial
or full commutation (withdrawal).
These withdrawals are taxed differently
and may affect your social security
benefits, see page 9 for details.
Page 6Insurance premiums Unit prices Unit prices are released on our
website at www.telstrasuper.com.au
If applicable, the cost of death Percentage based administration and each Victorian Business Day.
insurance cover is deducted by investment fees are deducted as
reducing the number of units at the part of the daily unit price calculation. Your balance can be requested
end of each quarter*. See page 37 anytime from SuperOnline at
Telstra Super RetireAccess has a www.telstrasuper.com.au
for more information on insurance.
percentage based administration fee of
0.22% pa (including government levy†)
Fee rebate which is calculated daily and is deducted
If you have an account balance of over when calculating daily unit prices.
$1.328m, or you are part of an eligible Unit prices reflect the earnings on the
couple whose combined Telstra Super investments of your chosen investment
Corporate Plus, Telstra Super option. A new unit price is set each
Personal Plus and/or Telstra Super Victorian business day, reflecting the
RetireAccess account balances changing value of the underlying assets
exceed $1.293m, you may receive in the investment option(s).
an administration fee rebate. Defined
benefit members are not eligible for the
fee rebate. Conditions apply; see page Example
38 for more information.
Mandy’s opening Telstra Super
RetireAccess account balance is
Your units $200,000. The buy unit price for
The money you transfer to Telstra Super her chosen investment option
RetireAccess to open your account the day she joined Telstra Super
buys units in the investment option/s RetireAccess and purchased her
of your choice (see the Investment guide units was $1.00000. Therefore,
section on pages 12 to 27 for more Mandy has 200,000 units.
information on investment choice). Your
After one month, the sell unit
income payments, withdrawals and
price for Mandy’s chosen
insurance premiums reduce your number
investment option has risen to
of units. Any applicable fee rebate will
$1.05375. As she has received
increase your number of units.
no income payments and made
no withdrawals, her number of
Number of units held
units is still 200,000 but her Telstra
x daily unit price
Super RetireAccess balance is now
= your super's value
$210,750.
* If you leave the fund or your balance is
transferred to a different Telstra Super product
during the quarter, the applicable fees and taxes
will be deducted at that time.
† The government-imposed levy is a fee being paid by
all super funds to cover the cost of the government's
Stronger Super reforms. For more information visit
www.telstrasuper.com.au/governmentlevy
Page 7How much and how Age* Percentage factor† Convenient payments
often you will get paid For your safety and convenience all
Under 65 4% Telstra Super RetireAccess income
Regular income payments payments are made directly to your
65-74 5%
Telstra Super RetireAccess is designed nominated bank, building society or
to provide a flexible income stream to 75-79 6% credit union account. Simply provide
meet your financial needs. You choose us with your account details (including
how much income you receive (above 80-84 7% BSB) on the application form and
a minimum Government limit) as well a copy of your bank statement or
as how often you receive your money 85-89 9% passbook (containing your full name,
— monthly, twice-monthly, quarterly or address and bank account details).
90-94 11%
annually. With Telstra Super there is no fee for
You can change your income or the 95+ 14% receiving income payments.
frequency of your payments twice If you are receiving monthly, quarterly
a year — on 1 July and at one other or annual payments and change your
time at your discretion. The amount banking details, notify us before the 20th
of income you choose will depend on of the month so that we can deposit your
your retirement goals and a legislated
Example
money into the correct account.
minimum annual income limit. Kate is retired, and as at 1 July 2014
Members receiving twice-monthly
she will be 66 with a Telstra Super
According to Government regulations payments must notify us by the 8th of
RetireAccess balance of $150,000.
you must: the month in order for changes to be
Therefore her minimum income
• choose a payment amount at made in time for your payment on the
payment for the 2014/2015 financial
or above your minimum 14th. Changes received between the 9th
year is $7,500, calculated as follows:
annual income limit and 20th of the month will be processed
5% x $150,000 = $7,500 in time for your payment on the 28th of
• receive at least your minimum the month.
payment each financial year
• receive at least one income Notification can be made by completing
How often do I receive a Telstra Super RetireAccess Change of
payment each financial year.
my income? Personal and Banking Details form
Minimum annual limits You can choose to receive your income available from our website or by calling
payments monthly, quarterly or annually. 1300 033 166.
Standard minimum annual limits are
calculated as the relevant percentage Your payments are made on the * Pensioner’s age at 1 July in financial year when
factor multiplied by the member following days: the income payments are to be made or in the
financial year income payments commence.
account balance at 1 July of the year in • twice-monthly - 14th day and 28th day
which the payments will be made, or of each month † Percentage of account balance on 1 July in the
commencement date. financial year when the income payments are to
• monthly — 28th day of each month be made.
• quarterly — 28th March, 28th June,
28th September and 28th December
• annually — 28th day of the
month you nominate.
If your payment day falls on a public
holiday or weekend, your payment will
be processed on the previous business
day. Payments cease when your account
balance reaches zero.
Page 8What if I need more money? If you would like to make a withdrawal,
contact one of our Member Services
There are two options available if you Consultants for a Telstra Super
require more than your regular RetireAccess Application for
income payment: Withdrawal form, or download a form
• one-off income payments from www.telstrasuper.com.au
• full or partial commutations. To ensure withdrawals are paid within
Government guidelines, there could
There is no fee to make a withdrawal be a small delay in processing your
in addition to your regular income request. Please call us if you have any
payments, however, different taxes queries about the timing of payments.
and conditions apply to one-off
income payments and full or partial
withdrawals.
If you are still working, there are
restrictions on the withdrawals you
can make, see page 10 for details.
The following table compares withdrawal types:
One-off income payment Full or partial commutation
What is the minimum $1,000 $2,000
I can withdraw?
Do I need to meet my No. You can make a one-off income payment Yes. Partial commutations are paid in
minimum annual regardless of whether or not you have met your addition to your minimum income payment.
income limit? minimum annual income limit.
You must have received your annual pro-rata
minimum income payment amount before a
commutation can be paid.
How is the One-off income payments are taxed as Full or partial commutations are taxed as
withdrawal taxed? assessable income under the PAYG system and superannuation lump sums and do not
may qualify for the pension tax offset. qualify for the pension tax offset.
See the Tax section for details. See the Tax section for details.
What are the As one-off income payments are included in your Full or partial commutations are not included
Centrelink assessable income you need to report these in your assessable income but still need to
implications? payments to Centrelink and they may impact your be reported to Centrelink and may impact
Centrelink entitlements. your entitlement.
How is the One-off income payments are made via Electronic Full or partial commutations may be paid:
withdrawal paid? Funds Transfer (EFT) into the same bank account
into which your regular income payments are • v ia EFT into the same bank account into
made. which your regular income payments are made
• by cheque sent to your residential address
• b
y cheque directly into an alternate
super account.
Page 9Telstra Super RetireAccess Receiving income payments Lump sum full or partial
while working Income payments made while you are commutations
still working are subject to the same If you are still working, you are generally
If you are over 55 and still working, minimum limits as retirees. In addition, not allowed to make full or partial
you can join Telstra Super a maximum annual limit of 10% of your lump sum commutations except in the
RetireAccess under the Transition account balance (as at 1 July in the year following circumstances:
to Retirement legislation. the payments are to be made) will apply.
• you wish to cash your unrestricted
The Transition to Retirement legislation non-preserved portion of your benefit
was introduced to help people ease • to pay a superannuation surcharge
into retirement, potentially cutting back Example
debt
on working hours and coming to terms Murray is still working and as at
with their lifestyle change. To encourage • to meet a Family Law payment
1 July 2014, he will be 64 with an
this, it also allows those approaching account balance of $250,000. • you transfer your income stream into
retirement but still working to heavily In accordance with his age, an accumulation super arrangement
salary sacrifice into super while at the Murray’s minimum limit is 4% of his • you transfer your income stream
same time receiving tax-effective account balance. into another non-commutable
income payments from a retirement income stream
income stream. Standard minimum limit:
4% x $250,000 = $10,000 • you retire from the workforce.
Adopting this strategy, your super can
Maximum limit For more information on withdrawal
be boosted by your employer’s SG
10% x $250,000 = $25,000 types, see page 9.
contributions and your additional pre-tax
contributions which are all taxed at
Drawing down your benefit
15% up to the pre-tax contribution limit
(this tax is 30% for members with eligible Making extra withdrawals Your income payments will initially
income over $300,000). You can then be drawn from the unrestricted
Restrictions apply to withdrawing non-preserved portion of your super
top-up your income from your retirement additional lump sum amounts from your
income stream. benefit. The restricted non-preserved
Telstra Super RetireAccess account portion of your benefit will be reduced
To find out if this strategy may be while you are still working. next and finally the preserved portion
suitable for you, make an appointment of your benefit.
with Telstra Super Financial Planning Lump sum one-off income payments
by calling 1300 033 166 or by One-off income payments in addition
sending an email to to your regular payments may be made
appointments@telstrasuper.com.au provided that the withdrawal is not in
excess of your maximum annual limit of
10% of your account balance (as at 1
July in the year the withdrawal is to
be made).
Page 10Keeping your income How long will my Telstra Super Keep your details up-to-date
stream going RetireAccess income last? Make sure Telstra Super has your correct
You will continue to receive payments postal address so we can keep you
At the end of the financial year until your Telstra Super RetireAccess up-to-date on your super investment.
As a Telstra Super RetireAccess balance reaches zero. How long your
Remember to give us your current
member, you have the opportunity to income lasts depends on how much you
bank details (and a copy of your bank
review your annual payment amounts initially invest, the investment earnings
statement) to ensure that you receive
at the end of each financial year. applicable to your chosen investment
your income payments on time.
option, the level of income payments you
You will receive a Change of Payment choose, and the number of lump sum
form and a Statement of Income Limits Reporting to Social Security
withdrawals you make.
showing your new minimum income Your Telstra Super RetireAccess balance
limit (and maximum if applicable) Information about your investment may affect your eligibility for Government
and payment details for the new income support. Your ongoing account
Each year you will receive:
financial year. balance is assessable for the asset test
• advice of your minimum income limit and your annual income is assessable
You will also receive a Payment for the coming financial year under the income test. This may change
Summary and details of your tax offset in the future.
for the past financial year for your tax • a payment summary (formerly called
return (if aged under 60 for any part of a group certificate) to include with your In accordance with Government
the financial year). tax return for the previous financial requirements Telstra Super will provide
year (if aged under 60 for any part Centrelink with details of members'
If you wish to make any changes to your of the previous financial year) account balances electronically. For more
current payments, simply complete and • a quarterly Super Statement information about this process, please
return the Change of Payment form. showing details of your account contact Telstra Super on 1300 033 166.
If you choose not to return the balance, fees, audited investment
For more information about your
completed Change of Payment form and returns and payment details
Centrelink entitlements, please call
you have been receiving the minimum • an annual report available online Centrelink on 132 300.
income, your payments will automatically at www.telstrasuper.com.au
be adjusted to reflect the new minimum which gives details of investment
limit, if applicable. performance, Telstra Super’s financial
If you choose not to return the details and products, and other
completed Change of Payment form relevant information.
and you have been receiving an amount You will also receive written
other than the minimum: acknowledgement when you:
• your payments will continue at that • withdraw a lump sum one-off income
amount for the next financial year if payment and/or make a lump sum
your current payment amount falls partial or full commutation
above the new minimum limit, or • make any change to your payments
• you will automatically receive the or your personal or bank details, or
minimum payment if your current • contact Telstra Super Pty Ltd and
payment amount is less than your request written details regarding
new minimum. your account.
If aged under 60 for any part of the
financial year, you will be required to
report your income received in the
financial year (which appears on the
letter attached to your Statement of
Income Limits) to the Australian Taxation
Office (ATO) with your tax return.
Page 1103/
Investment guide
Setting your retirement goals Tax savings The ASFA Retirement Standard release
When deciding on a retirement regular figures indicating the costs of
Before you choose an investment option, living for couples or singles to achieve
you should have a clear understanding investment plan, always consider
the tax advantages. Because of the a moderate or comfortable lifestyle
of your retirement goals. These goals in retirement.
might include maintaining your current Government tax concessions enjoyed
lifestyle, paying off your mortgage, taking by superannuation, income streams For up-to-date information on how
that long awaited holiday or helping your may provide you with more net income much super is enough and the ASFA
family with their financial needs. than a similar investment outside of Retirement Standard, visit the Life
superannuation. Changes section at
So how do you meet your retirement www.telstrasuper.com.au
goals? Work out how much income you How much income will you need?
will need in your retirement based on The table below estimates the lump sum
As a general rule, experts say you will
information today by identifying your: required to provide different levels of
need between 60% and 80% of your final
income at different ages, but it is to be
• current expenses annual salary to maintain your current
used as a guide only, because everyone’s
• short and long term goals lifestyle in retirement. Much will depend
individual circumstances are different.
on your own personal circumstances.
• level of debt. You should seek financial advice about You may also find the Telstra Super
the level of income you will need to live Simulator and Budget planner helpful in
When working out your long term
on in retirement. Generally, you can calculating your lump sum needs on our
goals, think about...
use the percentage noted above as a website at www.telstrasuper.com.au
Your retirement age quick gauge, but it is worth calculating
estimated costs to make sure you
Your needs will vary, depending on
take your personal circumstances into
your age. Younger members may feel
account (and do not forget to include
comfortable in taking higher risks for
inflation when estimating how much
greater long term growth. Others may be
things will cost in the future).
more comfortable with security of capital.
The table below indicates the estimated lump sum required to provide different levels of income at different ages
Net annual income Net annual income Net annual income Net annual income
Retirement
of $20,000 requires of $30,000 requires of $40,000 requires of $50,000 requires
age
a lump sum of a lump sum of a lump sum of a lump sum of
55 $364,400 $548,750 $731,645 $917,550
60 $328,650 $493,000 $657,250 $821,550
65 $285,300 $427,950 $570,600 $713,250
Source: Telstra Super Financial Planning
Assumptions • Taxation has been taken into account on the • The figures in the table are based on a
• Investor purchases an income stream basis that the superannuation benefit used to full financial year and are applicable at the
equivalent to Telstra Super RetireAccess and it purchase the income stream has no tax free commencement of an income stream.
is their only taxable income. element. • Future performance is not guaranteed.
• Investor does not convert any part of their • Calculations are based on personal income • Figures are an estimate only.
income stream to a lump sum or make tax rates that apply from 1 July 2014 and
additional contributions after retirement. allowance has been made for tax payable
on the income payments (assuming the 15%
• Calculations are in year 2014 dollars based offset is applicable).
on a ‘real’ rate of return of 4% pa after 3%
inflation (total return of 7%). • The capital is virtually expended at age 85.
Page 12The risks of investing The risks of investing are:
There are significant risks Risk Description
associated with investing and Inflation risk Inflation may exceed the return on your investment,
your super. reducing its real value.
You need to be aware that super and tax
Individual investment risk The investment option you choose may drop
laws change often and this can impact
in value.
on your investments. Also, the investment
option you choose will change in value Market risk Changes in investment markets due to economic or
over time and may perform differently political factors may occur, possibly causing changes
at different times due to various factors. in your investments and returns.
Interest rate risk Changes to interest rates may impact on
Risk investment returns.
The relationship between risk and Hedging risk Telstra Super invests in overseas investments, for
return is simple: the higher the potential (currency) example international shares, and if the currency of
return, the higher the short term risk. those countries rises or falls, or if the Australian dollar
It is important to achieve a balance rises or falls, the value of your investment
between being too aggressive in your may change.
investment option and too conservative
to achieve your long term goals. Derivative risk Telstra Super uses derivatives to reduce risk, reduce
An aggressive growth strategy has higher transaction costs and as an efficient way to gain
short term risk. However, if you invest too exposure to certain asset classes, including Australian
conservatively you may run the risk of and international shares and fixed interest. Derivatives
falling short of your retirement needs. are not used for speculative purposes or for gearing.
Risk associated with derivatives includes the value
The risk you feel comfortable with will of the derivative falling, which may affect your
depend on your own financial needs, investments. We aim to minimise derivative
retirement plans and personal situation. risk by constantly monitoring the fund’s contracts
See opposite for more information on and by entering into derivative contracts with
the risks of investing. reputable parties.
Changes to law Super and tax laws change often and these changes
Inflation
may affect your investment.
It is very important that your retirement
Manager risk The risk an investment manager will not perform to
investment strategy is aggressive enough
expectation (which might put at risk your investments).
to beat inflation, otherwise it may be
Telstra Super’s manager risk is reduced through using
difficult to fund your retirement goals.
a diverse range of specialist investment managers
This is because inflation erodes the
chosen to provide competitive performance as well
purchasing value of your dollar. In other
as specialist skills. Performance is carefully monitored
words, a dollar will buy you less in the
and managed.
future than it buys today.
Page 13Investment option risk
ASFA/FSC Standard Risk Measure Categories
measures
See pages 12 to 27 for more detailed Estimated number of
information on our investment options. Risk Label Risk Band negative annual returns
over any 20 year period
The Trustee seeks to satisfy the
requirements of the Standard Risk Very Low 1 Less than 0.5
Measure guidance released by ASFA and
the FSC in July 2011 by adopting the Low 2 0.5 to less than 1
Standard Risk measure categories below.
Low to Medium 3 1 to less than 2
The SRM requires the reporting of risk
by ‘Risk Bands’ and ‘Risk Label’. Medium 4 2 to less than 3
There are seven Risk Bands with Risk
Labels ranging from ‘Very Low’ to Medium to High 5 3 to less than 4
‘Very High’. The Risk Bands relate to
High 6 4 to less than 6
a measure of the estimated number
of negative annual returns in a 20 year Very High 7 6 or Greater
period. See the table to the right.
The Standard Risk Measure categories detailed above are applied to each investment
option in this guide.
Page 14Investment choice section of the Telstra Super RetireAccess If you would like to change your
application form. Alternatively, you can investment option, you can do so
Everyone’s plans and financial select a different investment option on securely using SuperOnline at
goals are different the application form and the usual buy/ www.telstrasuper.com.au
sell spread will be charged. Alternatively you can change your option
Now that you are ready to build your
by filling in a Telstra Super RetireAccess
investment for retirement you need to If you choose more than one investment
Investment Choice form, available by
consider how to invest your money in option, you can have your income drawn
calling 1300 033 166 or on our website,
order to meet your income needs. from any one of your selected investment
www.telstrasuper.com.au
options or drawn proportionately from
As a member of Telstra Super
your chosen mix of investment options,
RetireAccess, you control where your Investment performance
in accordance with your percentage split.
money is invested. You can choose from Investment performance figures for each
a broad range of investment options, To let us know your investment choice, option are provided every year in the
including Growth, Balanced, Diversified complete the Investment Choice section annual report and are available on the
Income, Defensive Growth, Conservative, in the Telstra Super RetireAccess website. Investment earnings applied to
International Shares, Australian Shares, Application form available from our Telstra Super RetireAccess are tax-free
Property, Fixed Interest or Cash — or a website www.telstrasuper.com.au while they remain in your account.
combination of any of these options. or by calling 1300 033 166.
The future performance of any
Each option has different objectives investment option is not guaranteed.
and strategies so you can invest your Changing your investment option Past performance is not a reliable
retirement savings in the investment At Telstra Super we understand that your indicator of future performance.
options that best suit you (for more circumstances may change. That is why
information on the investment options our investment choice is flexible and Members should be aware that
available, see pages 12 to 27). allows you to change your investment Telstra Super’s investment options
option at any time. may produce negative returns in certain
You must choose an option circumstances. Therefore the money
Investment option switches are covered invested in each investment option is
Remember, your Telstra Super
by a cost known as buy/sell spreads. not guaranteed and the value of the
RetireAccess account cannot be
When making an investment switch investment may rise or fall.
opened until you have chosen your
you are effectively buying and/or selling
investment option.
investment units, similar to how you The importance of diversifying
If you have already chosen an investment would purchase and sell shares in Investing in a mix of asset classes —
option with Telstra Super, you must make a company. such as shares, property and fixed
your choice again when joining Telstra interest — is known as diversification.
The cost of the buy/sell spread is not
Super RetireAccess — any previous Diversification helps reduce investment
directly deducted from your account, but
investment option will not apply. risk. Different asset classes often perform
is reflected in calculating the unit prices.
As required by law, an income stream This will therefore affect the amount of well at different times. Therefore, if
cannot be commenced directly from units you are able to purchase in an one asset class is not performing well,
a MySuper investment. If you were investment option. For more information performance of the other asset classes
previously invested in MySuper, your please see page 36. in your investment strategy may help to
balance will be transferred to the balance the overall investment return.
Changing your investment option may
equivalent choice investment option (for
affect your investment earnings.
example from MySuper Conservative to
To find out how earnings are applied
Conservative) before commencement
when you change investment options,
of a Telstra Super RetireAccess income
please refer to the information about
stream. This transfer will not incur a buy/
applying investment returns to your
sell spread. If you wish to stay in the
account on page 17.
equivalent choice investment option,
indicate that in the Investment Choice
Page 15Asset ranges Choosing a mix of investment options In selecting a mix of investment options
Many investment options invest in Members who wish to individually tailor the mix will change as investment
different asset classes within a certain their investment can do so by choosing earnings accrue and income payments
range. Telstra Super uses the asset a mix of investment options. are made. Sally should therefore be
ranges to take advantage of market careful to review her choice regularly
opportunities and vary the levels of to ensure that her selection remains
investment in each asset class. The asset Example appropriate.
ranges are displayed in brackets next to Sally has $100,000 in her account When you have invested across a
the investment mix benchmark figures and would like to divide it between a mix of investment options, investment
for these options on pages 12 to 27. mixture of investment options, which earnings depend on the combination
Varying the investment mix within these she can do by allocating specific of options you choose.
ranges may also cause the split percentages to the options of her
between growth and financial assets Telstra Super does not guarantee that a
choice. The following table shows mixture of any two or more investment
to vary from the target investment mix how Sally allocates her money.
from time to time. options will provide earnings consistent
with the performance of the investment
Investment option Percentage options designed by Telstra Super.
Growth 25% Investment earnings for each option
will be applied via the unit price.
Balanced 45%
Telstra Super does not balance your
Diversified Income - account to keep your chosen split.
Income returns (net of fees and taxes)
Defensive Growth -
for the Diversified Income option are
Conservative 15% distributed on a monthly basis* and
used to purchase Cash investment
International Shares - option units at that time. Telstra Super
RetireAccess members are able to
Australian Shares - drawdown this income as part of their
pension payment, reducing the need to
Property - sell capital to fund their retirement, or they
can choose to re-invest the Cash units in
Fixed Interest - another investment option. Accumulation
members are also able to re-invest the
Cash 15%
Cash units in another investment option.
Total 100% The total income earned for the month
is applied within seven business days of
the following month. If a full withdrawal is
made before the month end, no income
distribution will take place for that month.
Instead the withdrawal benefit will be
inclusive of income accrued at the time of
redemption.
* Subject to investment performance.
Page 16Applying investment Your investment managers
returns to your account Example
Telstra Super has selected a diverse
Jane makes an investment range of specialist investment managers.
Investment returns or earnings are
switch on SuperOnline at This means your investment is managed
applied to your account according to
www.telstrasuper.com.au at by specialists in fixed interest, shares
your chosen investment option. Telstra
11.00am, Monday 11 August. and property.
Super declares daily unit prices for the
Jane’s investment switch is
purpose of applying investment earnings Telstra Super also manages investments
processed using the unit prices
to your account. The unit price applied internally, including Australian shares,
declared for Monday 11 August.
depends upon your account activity and property, infrastructure and asset
These prices are declared on the
the Effective Day for transactions. allocation overlay.
following day.
Effective Day cut-off times for Jane can view her updated Investment risks are reduced as they are
transactions investments on SuperOnline on spread across a number of investment
Tuesday 12 August after the unit portfolio managers and asset types.
Telstra Super must receive investment
prices have been declared. Each manager is carefully chosen to
option switches before 5.30pm on a
provide competitive performance as well
Victorian business day in order to be
as specialist skills in particular markets.
transacted at that day’s declared unit
price. Unit prices for a particular day For the latest list of our investment
are declared on the following Victorian managers please visit
business day. If received after 5.30pm www.telstrasuper.com.au
the switches will be transacted using the
next day’s unit price.
Labour standards,
environmental, social and
ethical considerations
Telstra Super believes that incorporating
environmental, social and governance
considerations into investment decision
making is part of good risk management
and making better investment
decisions. Telstra Super has no pre-
determined methodology for taking into
account these issues other than the
extent that they may financially affect
the investments. In order to deliver
responsible financial returns to our
members, Telstra Super is committed
to integrating environments, social and
governance considerations across the
investment portfolio. Telstra Super does
not take into account labour standards in
making investment decisions.
Page 17Investment options Return objective
Outperform CPI+4%p.a.
Growth option
Investment timeframe
Objective 7 – 10 years.
To build an investment portfolio
Risk objective
to achieve the stated return within
the stated risk parameters over the A high level of risk generating 4 to less
specified timeframe. than 6 negative annual returns over any
20 year period.
Who should invest?
Long-term investment mix*
This option involves a higher level of
risk to achieve greater returns over the 89% growth assets,
longer term. As a result, the value of 11% defensive assets.
your investment may rise or fall in the
short term.
Investment strategy
Strong bias towards growth assets,
such as Australian and International
Shares, and Property, with a smaller
allocation towards defensive assets
such as Fixed Interest and Cash.
Investment mix and asset ranges
International Shares 35% (20-55%)
Australian Shares^ 35% (20-55%)
Property 10% (0-25%)
Hedge Funds 5% (0-20%)
Infrastructure 5% (0-15%)
Private Equity 4% (0-15%)
Australian Fixed Interest 3% (0-15%)
Cash 3% (0-20%)
Opportunities 0% (0-10%)
International Fixed Interest 0% (0-15%)
Credit 0% (0-10%)
Income Securities 0% (0-10%)
The aim of this information is to provide members with investment objective and strategy details
(including investment mix) that we consider members reasonably need to understand the Fund’s
investments and reflect the manner in which objectives and strategies have been formulated by the
Trustee pursuant to superannuation law and discretionary powers under the Trust Deed.
* The long-term investment mix is used as a strategic guide for investing. The split of financial and growth
assets can vary from time to time as investment in each asset class may vary within the allowable
ranges.
^
Currently Telstra Super’s Australian Shares investment option contains a small percentage of shares
not listed on an Australian stock exchange (ASX). This has resulted from the removal of 21st Century
Fox (FOX) from the ASX, effective 1 May 2014. The Telstra Super Investment Committee has approved
a transitional sell-down period of the 12 months for 21st Century Fox shares currently held within the
Australian Shares option. This decision was made as we believe it will help maximise potential sale
returns and be in the best financial interests of members. Members currently invested in Australian
Shares or considering investment in Australian Shares should be assured that investment in this option
is not subject to any currency risk exposure, with all the stock being fully hedged.
Page 18Balanced option Return objective
Outperform CPI+3%p.a.
Objective
To build an investment portfolio Investment timeframe
to achieve the stated return within 5 – 10 years.
the stated risk parameters over the
specified timeframe. Risk objective
A high level of risk generating 4 to less
Who should invest? than 6 negative annual returns over any
This option suits those who are seeking 20 year period.
growth but who wish to lower the risk
of rapid changes in value over the short Long-term investment mix*
term. This option is designed to provide 73.5% growth assets,
lower levels of risk and return than the 26.5% defensive assets.
Growth option, but higher returns than
the Conservative and Cash options.
Investment strategy
The Balanced option has a moderate
bias towards growth assets, such as
Australian and International Shares,
and Property, balanced by an allocation
towards defensive assets such as Fixed
Interest and Cash.
Investment mix and asset ranges
Australian Shares^ 28% (15-50%)
International Shares 27% (15-50%)
Property 10% (0-25%)
Australian Fixed Interest 9% (0-25%)
International Fixed Interest 5% (0-25%)
Infrastructure 5% (0-15%)
Private Equity 4% (0-15%)
Cash 4% (0-25%)
Hedge Funds 4% (0-15%)
Credit 2% (0-10%)
Income Securities 2% (0-10%)
Opportunities 0% (0-10%)
The aim of this information is to provide members with investment objective and strategy details
(including investment mix) that we consider members reasonably need to understand the Fund’s
investments and reflect the manner in which objectives and strategies have been formulated by the
Trustee pursuant to superannuation law and discretionary powers under the Trust Deed.
* The long-term investment mix is used as a strategic guide for investing. The split of financial and growth
assets can vary from time to time as investment in each asset class may vary within the allowable
ranges.
^
Currently Telstra Super’s Australian Shares investment option contains a small percentage of shares
not listed on an Australian stock exchange (ASX). This has resulted from the removal of 21st Century
Fox (FOX) from the ASX, effective 1 May 2014. The Telstra Super Investment Committee has approved
a transitional sell-down period of the 12 months for 21st Century Fox shares currently held within the
Australian Shares option. This decision was made as we believe it will help maximise potential sale
returns and be in the best financial interests of members. Members currently invested in Australian
Shares or considering investment in Australian Shares should be assured that investment in this option
is not subject to any currency risk exposure, with all the stock being fully hedged.
Page 19Diversified Income option When selecting investments,
preference is made for expected
Objective returns predominately driven by income
To build an investment portfolio rather than capital growth. Income is
to achieve the stated return within accrued as underlying investments pay
the stated risk parameters over the income distributions during the month.
specified timeframe and to produce a Due to the varying income distributions
distributable income above the cash of the underlying investments, the
rate over the medium term, while income payment to members will vary
protecting the value of capital. from month to month.
Who should invest? Return objective
Members who are looking for an Outperform CPI+2%p.a.
income stream, while still achieving
Investment timeframe
some growth on their initial investment
capital. A minimum investment of 4 – 6 years.
$100,000 applies.
Risk objective
Investment strategy A high level of risk generating 4 to less
The Diversified Income option is than 6 negative annual returns over any
uniquely structured to distribute 20 year period.
income it receives from investments,
Long-term investment mix*
allowing members to fund part of their
retirement needs without the need to 55% growth assets,
sell capital assets. 45% defensive assets.
Investment mix and asset ranges
Australian Shares^ 30% (15-55%)
Income Securities 10% (0-30%)
Cash (includes term deposits) 10% (0-50%)
Australian Fixed Interest 10% (0-40%)
Property 10% (0-20%)
Infrastructure 10% (0-20%)
International Shares 10% (0-25%)
Credit 10% (0-30%)
Opportunities 0% (0-10%)
The aim of this information is to provide members with investment objective and strategy details
(including investment mix) that we consider members reasonably need to understand the Fund’s
investments and reflect the manner in which objectives and strategies have been formulated by the
Trustee pursuant to superannuation law and discretionary powers under the Trust Deed.
* The long-term investment mix is used as a strategic guide for investing. The split of financial and growth
assets can vary from time to time as investment in each asset class may vary within the allowable ranges.
^
Currently Telstra Super’s Australian Shares investment option contains a small percentage of shares
not listed on an Australian stock exchange (ASX). This has resulted from the removal of 21st Century
Fox (FOX) from the ASX, effective 1 May 2014. The Telstra Super Investment Committee has approved
a transitional sell-down period of the 12 months for 21st Century Fox shares currently held within the
Australian Shares option. This decision was made as we believe it will help maximise potential sale
returns and be in the best financial interests of members. Members currently invested in Australian
Shares or considering investment in Australian Shares should be assured that investment in this option
is not subject to any currency risk exposure, with all the stock being fully hedged.
Page 20Defensive Growth option Return objective
Outperform CPI+2%p.a.
Objective
To build an investment portfolio Investment timeframe
to achieve the stated return within 2 – 6 years.
the stated risk parameters over the
specified timeframe. Risk objective
A medium to high level of risk
Who should invest? generating 3 to less than 4 negative
Members who want to enjoy annual returns over any 20 year period.
moderate growth with greater security.
This option is designed to give more Long-term investment mix*
flexibility for members who might be 55% growth assets,
looking to access their superannuation 45% defensive assets.
in the short and medium term and
want to continue participating in
capital growth.
Investment strategy
The Defensive Growth option is
uniquely structured to adjust its
exposure to a range of growth and
defensive assets, based on the
performance and confidence of
investment markets at any point in time.
Investment mix and asset ranges
Australian Shares^ 25% (0-50%)
International Shares 15% (0-40%)
Income Securities 10% (0-40%)
Credit 10% (0-40%)
Australian Fixed Interest 10% (0-30%)
Infrastructure 10% (0-30%)
Property 10% (0-30%)
International Fixed Interest 5% (0-30%)
Cash 5% (0-30%)
Opportunities 0% (0-10%)
The aim of this information is to provide members with investment objective and strategy details
(including investment mix) that we consider members reasonably need to understand the Fund’s
investments and reflect the manner in which objectives and strategies have been formulated by the
Trustee pursuant to superannuation law and discretionary powers under the Trust Deed.
* The long-term investment mix is used as a strategic guide for investing. The split of financial and growth
assets can vary from time to time as investment in each asset class may vary within the allowable ranges.
^
Currently Telstra Super’s Australian Shares investment option contains a small percentage of shares
not listed on an Australian stock exchange (ASX). This has resulted from the removal of 21st Century
Fox (FOX) from the ASX, effective 1 May 2014. The Telstra Super Investment Committee has approved
a transitional sell-down period of the 12 months for 21st Century Fox shares currently held within the
Australian Shares option. This decision was made as we believe it will help maximise potential sale
returns and be in the best financial interests of members. Members currently invested in Australian
Shares or considering investment in Australian Shares should be assured that investment in this option
is not subject to any currency risk exposure, with all the stock being fully hedged.
Page 21Conservative option Investment timeframe
3 – 10 years.
Objective
To build an investment portfolio Risk objective
to achieve the stated return within A medium level of risk generating 2 to
the stated risk parameters over the less than 3 negative annual returns over
specified timeframe. any 20 year period.
Who should invest? Long-term investment mix*
Those who are close to retirement or 38.5% growth assets,
who want to maintain some growth, 61.5% defensive assets.
with a lower risk of capital loss than the
Balanced or Growth Options.
Investment strategy
The Conservative option has a bias
towards defensive assets in particular
a high weighting towards cash to
minimise short term fluctuations (risk)
but some exposure to growth assets
for long term growth (return).
Return objective
Outperform CPI+2%p.a.
Investment mix and asset ranges
Australian Fixed Interest 25% (0-40%)
Cash 20% (10-50%)
International Fixed Interest 15% (0-40%)
Australian Shares^ 15% (5-25%)
International Shares 12% (5-25%)
Property 10% (0-20%)
Infrastructure 3% (0-15%)
Hedge Funds 0% (0-15%)
Opportunities 0% (0-10%)
The aim of this information is to provide members with investment objective and strategy details
(including investment mix) that we consider members reasonably need to understand the Fund’s
investments and reflect the manner in which objectives and strategies have been formulated by the
Trustee pursuant to superannuation law and discretionary powers under the Trust Deed.
* The long-term investment mix is used as a strategic guide for investing. The split of financial and growth
assets can vary from time to time as investment in each asset class may vary within the allowable ranges.
^
Currently Telstra Super’s Australian Shares investment option contains a small percentage of shares
not listed on an Australian stock exchange (ASX). This has resulted from the removal of 21st Century
Fox (FOX) from the ASX, effective 1 May 2014. The Telstra Super Investment Committee has approved
a transitional sell-down period of the 12 months for 21st Century Fox shares currently held within the
Australian Shares option. This decision was made as we believe it will help maximise potential sale
returns and be in the best financial interests of members. Members currently invested in Australian
Shares or considering investment in Australian Shares should be assured that investment in this option
is not subject to any currency risk exposure, with all the stock being fully hedged.
Page 22International Shares option Return objective
Outperform CPI+5%p.a.
Objective
To build an investment portfolio Investment timeframe
to achieve the stated return within 8 – 10 years.
the stated risk parameters over the
specified timeframe. Risk objective
A high level of risk generating 4 to less
Who should invest? than 6 negative annual returns over any
Those who want to achieve potentially 20 year period.
higher returns in the long term through
exposure to international shares, while Long-term investment mix
being willing to accept a higher level of 100% growth assets.
volatility in returns.
Investment strategy
The International Shares option
has 100% exposure to international
shares, and is invested through
several investment managers. It aims
to achieve exposure to industries and
companies that are not part of the
Australian market.
Investment mix and asset ranges
International Shares 100%
The aim of this information is to provide members with investment objective and strategy details
(including investment mix) that we consider members reasonably need to understand the Fund’s
investments and reflect the manner in which objectives and strategies have been formulated by the
Trustee pursuant to superannuation law and discretionary powers under the Trust Deed.
Page 23Australian Shares option Return objective
Outperform CPI+5%p.a.
Objective
To build an investment portfolio Investment timeframe
to achieve the stated return within 8 – 10 years.
the stated risk parameters over the
specified timeframe. Risk objective
A very high level of risk generating 6
Who should invest? negative annual returns over any 20
Those who want to achieve potentially year period.
higher returns in the long term through
exposure to Australian shares, while Long-term investment mix
being willing to accept a higher level of 100% growth assets.
volatility in returns.
Investment strategy
100% of the option is invested in
Australian companies.^ Diversification
is achieved through exposure to a
number of investment managers with
different styles of investing.
Investment mix and asset ranges
Australian Shares^ 100%
The aim of this information is to provide members with investment objective and strategy details
(including investment mix) that we consider members reasonably need to understand the Fund’s
investments and reflect the manner in which objectives and strategies have been formulated by the
Trustee pursuant to superannuation law and discretionary powers under the Trust Deed.
^
Currently Telstra Super’s Australian Shares investment option contains a small percentage of shares
not listed on an Australian stock exchange (ASX). This has resulted from the removal of 21st Century
Fox (FOX) from the ASX, effective 1 May 2014. The Telstra Super Investment Committee has approved
a transitional sell-down period of the 12 months for 21st Century Fox shares currently held within the
Australian Shares option. This decision was made as we believe it will help maximise potential sale
returns and be in the best financial interests of members. Members currently invested in Australian
Shares or considering investment in Australian Shares should be assured that investment in this option
is not subject to any currency risk exposure, with all the stock being fully hedged.
Page 24Property option Return objective
Outperform CPI+3%p.a.
Objective
To build an investment portfolio Investment timeframe
to achieve the stated return within 5 – 7 years.
the stated risk parameters over the
specified timeframe. Risk objective
A medium to high level of risk
Who should invest? generating 3 to less than 4 negative
Those who accept that this option annual returns over any 20 year period.
involves a moderate level of risk to
achieve income returns and capital Long-term investment mix
growth over the longer term. 100% growth assets.
Investment strategy
The Property option invests exclusively
in property based assets, including
both listed property and direct
property. For diversification reasons,
this may include investment in
international property and mortgages
or loans secured by property assets.
Investment mix and asset ranges
Property 100%
The aim of this information is to provide members with investment objective and strategy details
(including investment mix) that we consider members reasonably need to understand the Fund’s
investments and reflect the manner in which objectives and strategies have been formulated by the
Trustee pursuant to superannuation law and discretionary powers under the Trust Deed.
Page 25Fixed Interest option by property assets. It may also have
exposure to cash, up to a maximum
Objective of 50%.
To build an investment portfolio to
Return objective
achieve the stated return within the
stated risk parameters over the specified Outperform CPI+2%p.a.
timeframe (in the short term, returns can
Investment timeframe
be negative from time to time).
2 – 4 years.
Who should invest?
Risk objective
Those who are seeking a lower risk
option who wish to generate income A low to medium level of risk generating
returns. Generally provides lower risk 1 to less than 2 negative annual returns
returns than shares. over any 20 year period.
Investment strategy Long-term investment mix
The Fixed Interest option invests 100% defensive assets.
primarily in Australian and International
Fixed Interest, including fixed, variable
and floating interest rate securities
issued by government bodies and
companies, as well as asset and
mortgage- backed securities and
mortgages or loans secured
Investment mix and asset ranges
Australian Fixed Interest 80% (50-100%)
International Fixed Interest 20% (0-50%)
Cash 0% (0-50%)
The aim of this information is to provide members with investment objective and strategy details
(including investment mix) that we consider members reasonably need to understand the Fund’s
investments and reflect the manner in which objectives and strategies have been formulated by the
Trustee pursuant to superannuation law and discretionary powers under the Trust Deed.
Page 26You can also read
