Sunsuper Product update - October 2020 Sunsuper Product update October 2020 contains
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Sunsuper Product update
October 2020
Sunsuper Product update October 2020 contains
information about important changes to super
and your Sunsuper account.
Need some financial advice?
Speak to your adviser or contact Sunsuper to get the advice you need. Call 13 11 84 to speak to
one of our qualified financial advisers1 who can give you simple advice about your Sunsuper account
at no additional cost, quickly over the phone. For more comprehensive advice, we may refer you to
an accredited external financial adviser2. Advice of this nature may incur a fee.
1
Sunsuper employees provide advice as representatives of Sunsuper Financial Services Pty Ltd (ABN 50 087 154 818 AFSL No.
227867) (SFS), wholly owned by the Sunsuper Superannuation Fund. 2 Sunsuper has established a panel of accredited external
financial advisers who are not employees of Sunsuper. Sunsuper is not responsible for the advice provided by these planners and
does not receive or pay any referral fees. These advisers will explain to you how their advice fees are determined.
1
Quick reference guide
Fee and costs changes 4
Insurance changes for Sunsuper for life Corporate members 7
Insurance changes for Sunsuper for life Business members 7
Investment changes 8
Other important changes 11
2
3
Fee and costs changes
Investment fees and costs
The table below provides information on investment options which have experienced a change in estimate investment fees and indirect
costs effective 1 July 2020.
For comparison we’ve also provided estimated investment fees and indirect costs effective to 30 June 2020.
Per $50,000 Per $50,000
% p.a. % p.a.
Investment fees and indirect costs invested invested (from
(to 30 June 2020) (from 1 July 2020)
(to 30 June 2020) 1 July 2020)
Base fee 0.23% $115 0.21% $105
Lifecycle Investment
Performance-related fee 0.04% $20 0.02% $10
Strategy
Indirect cost ratio – Balanced Pool 0.54% $270 0.42% $210
Indirect cost ratio – Retirement Pool 0.51% $255 0.45% $225
Indirect cost ratio – Cash Pool 0.00% $0 0.00% $0
Base fee 0.24% $120 0.21% $105
Growth
Performance-related fee 0.04% $20 0.02% $10
Indirect cost ratio 0.59% $295 0.44% $220
Base fee 0.24% $120 0.21% $105
Balanced
Performance-related fee 0.04% $20 0.02% $10
Indirect cost ratio 0.54% $270 0.42% $210
Base fee 0.07% $35 0.08% $40
Balanced –
Index
Performance-related fee 0.00% $0 0.00% $0
Indirect cost ratio 0.15% $75 0.14% $70
Base fee 0.29% $145 0.20% $100
Conscious
Balanced
Socially
Performance-related fee 0.03% $15 0.04% $20
Indirect cost ratio 0.93% $465 0.91% $455
Base fee 0.25% $125 0.17% $85
Alternatives
Diversified
Performance-related fee 0.02% $10 0.01% $5
Indirect cost ratio 1.57% $785 1.24% $620
Base fee 0.23% $115 0.21% $105
Retirement
Performance-related fee 0.03% $15 0.02% $10
Indirect cost ratio 0.51% $255 0.45% $225
Base fee 0.23% $115 0.20% $100
Conservative
Performance-related fee 0.02% $10 0.02% $10
Indirect cost ratio 0.44% $220 0.43% $215
Base fee 0.23% $115 0.23% $115
Shares
Performance-related fee 0.05% $25 0.03% $15
Indirect cost ratio 0.08% $40 0.06% $30
4Per $50,000 Per $50,000
% p.a. % p.a.
Investment fees and indirect costs invested invested (from
(to 30 June 2020) (from 1 July 2020)
(to 30 June 2020) 1 July 2020)
Base fee 0.26% $130 0.27% $135
Australian
Shares
Performance-related fee 0.12% $60 0.08% $40
Indirect cost ratio 0.23% $115 0.12% $60
Shares – Index
Base fee 0.09% $45 0.09% $45
International
(hedged)
Performance-related fee 0.00% $0 0.00% $0
Indirect cost ratio 0.01% $5 0.02% $10
Markets Shares
Base fee 0.11% $55 0.11% $55
Emerging
Performance-related fee 0.00% $0 0.00% $0
Indirect cost ratio 0.02% $10 0.10% $50
Base fee 0.18% $90 0.13% $65
Property
Performance-related fee 0.00% $0 0.00% $0
Indirect cost ratio 0.81% $405 0.60% $300
Base fee 0.07% $35 0.07% $35
Australian
Property –
Index
Performance-related fee 0.00% $0 0.00% $0
Indirect cost ratio 0.05% $25 0.06% $30
Base fee 0.32% $160 0.23% $115
Diversified
Bonds
Performance-related fee 0.03% $15 0.03% $15
Indirect cost ratio 0.07% $35 0.18% $90
Base fee 0.07% $35 0.07% $35
Bonds – Index
Diversified
Performance-related fee 0.00% $0 0.00% $0
Indirect cost ratio 0.11% $55 0.15% $75
Base fee 0.11% $55 0.11% $55
Guaranteed
Capital
Performance-related fee 0.00% $0 0.00% $0
Indirect cost ratio 0.26% $130 0.22% $110
5Below are updates to the Transactional and operational costs, effective from 1 July 2020.
For comparison we’ve also provided the Transactional and operational costs applicable to 30 June 2020.
Transactional and operational costs
Transactional and operational costs Transactional and operational costs
(% p.a. of your balance) To 30 June 2020 (% p.a. of your balance) From 1 July 2020
Investment option
Explicit Implicit Total Explicit Implicit Total
Lifecycle Investment Strategy –
0.16% 0.05% 0.21% 0.17% 0.07% 0.24%
Balanced Pool
Lifecycle Investment Strategy –
0.16% 0.05% 0.21% 0.19% 0.08% 0.27%
Retirement Pool
Growth 0.17% 0.05% 0.22% 0.16% 0.08% 0.24%
Balanced 0.16% 0.05% 0.21% 0.17% 0.07% 0.24%
Balanced – Index 0.05% 0.00% 0.05% 0.04% 0.00% 0.04%
Socially Conscious Balanced 0.26% 0.17% 0.43% 0.67% 0.04% 0.71%
Diversified Alternatives 0.25% 0.00% 0.25% 0.26% 0.00% 0.26%
Retirement 0.16% 0.05% 0.21% 0.19% 0.08% 0.27%
Conservative 0.14% 0.05% 0.19% 0.19% 0.09% 0.28%
Shares 0.08% 0.07% 0.15% 0.06% 0.10% 0.16%
Australian Shares 0.20% 0.26% 0.46% 0.12% 0.19% 0.31%
International Shares – Index
0.01% 0.01% 0.02% 0.02% 0.02% 0.04%
(hedged)
International Shares – Index
0.01% 0.01% 0.01% 0.01% 0.02% 0.03%
(unhedged)
Emerging Markets Shares 0.02% 0.02% 0.04% 0.10% 0.10% 0.20%
Property 0.27% 0.00% 0.27% 0.28% 0.00% 0.28%
Australian Property – Index 0.00% 0.00% 0.00% 0.01% 0.00% 0.01%
Diversified Bonds 0.07% 0.08% 0.15% 0.18% 0.11% 0.29%
Diversified Bonds – Index 0.05% 0.00% 0.05% 0.09% 0.00% 0.09%
Please refer to the ‘Additional explanation of fees and costs’ section of the Sunsuper for life guide dated 1 July 2020 for complete
information on all investment related fees and costs including, property operational costs and borrowing costs.
6Insurance changes for Sunsuper
for life Corporate and Business
members
Changes to when automatic standard insurance cover starts - Sunsuper for life Corporate
(AIA insured plans only) and Sunsuper for life Business
From 1 October 2020, a Superannuation Guarantee (SG) contribution will no longer be a requirement for the commencement
of this cover. All other rules remain the same as previously advised. For full details of when cover starts please refer to your
employer's Sunsuper microsite from 1 October 2020.
Changes to when insurance cover stops - Sunsuper for life Corporate (AIA insured plans only)
and Sunsuper for life Business
From 1 October 2020, any insurance cover you hold will continue even if the term of your work visa expires or you permanently
depart Australia. For full details of when cover stops please refer to your employer's Sunsuper microsite from 1 October 2020.
Total & Permanent Disability definition change - Sunsuper for life Corporate (AIA insured plans only)
From 1 October 2020, the definition of Total & Permanent Disability has been updated. For full details please refer to your
employer's Sunsuper microsite from 1 October 2020.
Total & Permanent Disability definition change - Sunsuper for life Business only
From 1 October 2020, the definition of Total & Permanent Disability has been updated. Members with Total & Permanent
Disability cover who experience a catastrophic event or are diagnosed with a specified Medical Condition with no chance of
recovery may be paid a single lump sum benefit with no waiting period. The Medical Conditions include items such as Chronic
Lung Disease and Cardiomyopathy.
Prior to 1 October 2020, the Total & Permanent Disability definition included a clause, 'Unable to do basic activities associated
with work ever again' which applied to members who were not employed immediately prior to their date of disablement. For any
members who were employed immediately prior to the date of disablement, the definition referred to a clause, 'Unable to do a
suited occupation ever again'. This part of the definition generally requires members to “be unable ever again to be gainfully
employed in his or her usual occupation, or any other occupation for which he or she is reasonably suited by education, training
or experience.”
In order to improve and standardise the Total & Permanent Disability definitions, Sunsuper is removing the 'Unable to do basic
activities associated with work ever again' definition and extending the 'Unable to do a suited occupation ever again' definition
to members regardless of their employment status. Some members may have another Total & Permanent Disability definition
apply if you were part of a group transfer from another fund or depending on your Employer Plan. You would have been advised
previously if this applies to you.
For full details please refer to your employer's Sunsuper microsite from 1 October 2020.
Removal of indexation for the 2-year Income Protection benefit - Sunsuper for life Business only
If you have Income Protection cover with a 2-year benefit period, your benefit amount will no longer be indexed annually when
Income Protection benefits are payable. Your premium rates will reduce slightly as a result of the removal of claim indexation.
Please refer to your Plan information factsheet from 1 October 2020, for more information on the new Income Protection rates.
7Investment changes
Closure of the Capital Guaranteed investment option
Sunsuper has decided to close the Capital Guaranteed option from 1 January 2021.
If you’re currently invested in the Capital Guaranteed option, you may wish to make a different investment choice for your
balance and/or future contributions before the closure. IMPORTANT: If you’ve not made a choice by 31 December 2020, your
balance and any future contribution allocation will automatically be transferred to the Cash option.
To make an investment choice simply login to Member Online or call us on 13 11 84.
Need help making an investment choice?
Speak to your adviser or contact Sunsuper to get the advice you need. Call 13 11 84 to speak to one of our qualified financial
advisers1 who can give you simple advice about your Sunsuper account at no additional cost, quickly over the phone. For more
comprehensive advice, we may refer you to an accredited external financial adviser2. Advice of this nature may incur a fee.
Name change for the Hedge funds and Alternative Strategies asset class
From 1 October 2020, the name of the 'Hedge funds and Alternative strategies' asset class will be changed to 'Alternative
Strategies'.
Change to Strategic Asset Allocations
From 1 October 2020, we’ll be updating the Strategic Asset Allocations for Growth, Balanced, Retirement, Conservative and
Balanced – Index options, as well as the Balanced and Retirement Pools in the Lifecycle Investment Strategy. These are detailed
below.
Growth option
To 30 September 2020 From 1 October 2020
Strategic % Allowable range % Strategic % Allowable range %
Australian shares 34 0-50 34 0-50
International shares 29.5 0-70 31.5 0-70
Private capital 11 0-20 10 0-20
Property 8.5 0-30 8.5 0-30
Diversified Strategies 4 0-15 2.5 0-15
Infrastructure 8.5 0-20 8.5 0-20
Fixed interest 0 0-20 0 0-20
Alternative strategies 4.5 0-20 5 0-20
Cash 0 0-20 0 0-20
8Balanced option and Balanced Pool
To 30 September 2020 From 1 October 2020
Strategic % Allowable range % Strategic % Allowable range %
Australian shares 26.3 0-50 26.5 0-50
International shares 24.5 0-70 26.25 0-70
Private capital 7 0-15 6.5 0-15
Property 11 0-30 10.5 0-30
Diversified Strategies 4 0-15 2.5 0-15
Infrastructure 8 0-20 7.5 0-20
Fixed interest 9.7 0-30 10.75 0-30
Alternative strategies 6 0-25 5.5 0-25
Cash 3.5 0-25 4 0-25
Retirement option and Retirement Pool
To 30 September 2020 From 1 October 2020
Strategic % Allowable range % Strategic % Allowable range %
Australian shares 19 0-50 19.25 0-50
International shares 13.8 0-55 15.25 0-55
Private capital 6 0-15 6 0-15
Property 10 0-30 9.5 0-30
Diversified Strategies 4 0-15 2.5 0-15
Infrastructure 7 0-20 6.5 0-20
Fixed interest 20.7 0-50 21.5 0-50
Alternative strategies 8 0-15 8 0-15
Cash 11.5 0-25 11.5 0-25
Conservative option
To 30 September 2020 From 1 October 2020
Strategic % Allowable range % Strategic % Allowable range %
Australian shares 9.3 0-30 9.5 0-30
International shares 5.5 0-30 7 0-30
Private capital 5 0-10 5 0-10
Property 9 0-20 8.5 0-20
Diversified Strategies 4 0-15 2.5 0-15
Infrastructure 6 0-20 5.5 0-20
Fixed interest 29.7 0-70 30.5 0-70
Alternative strategies 8 0-15 8 0-15
Cash 23.5 0-100 23.5 0-100
9Balanced – Index option
To 30 September 2020 From 1 October 2020
Strategic % Allowable range % Strategic % Allowable range %
Australian shares 28 20-40 31 0-50
International shares 42 30-50 39 0-70
Property 0 0-20 0 0-30
Fixed interest 30 20-35 30 0—40
Cash 0 0-10 0 0-20
Objective changes
The table below highlights changes to the objective of the Balanced – Index, Shares and Diversified Bonds options, effective
1 October 2020.
Objective To 30 September 2020 From 1 October 2020
Beat inflation over 10 years:
Closely match the return of the performance
benchmark, before investment tax and investment Super-savings account and Transition to
Balanced - Index fees and costs. retirement income account by 3.25% p.a. and
Retirement income account by 3.75% p.a. (after
Performance benchmark: The strategic weight
investment fees and costs and where applicable
return of the market indices for each asset class.
investment taxes).
Beat the performance benchmark by 0.25% p.a. Beat the performance benchmark by 0.25% p.a.
Australian Shares before investment taxes but after investment fees before investment taxes but after investment fees
and costs, over rolling 5-year periods. and costs, over rolling 3-year periods.
Beat the performance benchmark by 0.25% p.a. Beat the performance benchmark by 0.25% p.a.
Shares before investment taxes but after investment fees before investment taxes but after investment fees
and costs, over rolling 5-year periods. and costs, over rolling 3-year periods.
Beat the performance benchmark by 0.5% p.a. before Beat the performance benchmark by 0.3% p.a. before
Diversified Bonds investment tax but after investment fees and costs investment tax but after investment fees and costs
over rolling 3-year periods. over rolling 3-year periods.
Benchmark change
The table below highlights a change to one of the performance benchmarks for the Diversified Bonds option, effective 1 October 2020.
Diversified Bonds To 30 September 2020 From 1 October 2020
50% FTSE World Broad Investment Grade Index 50% Bloomberg Barclays Global Aggregate
Performance benchmark hedged in $A and 50% Bloomberg AusBond Index ($A hedged) and 50% Bloomberg AusBond
Composite 0+Yr Index Composite 0+Yr Index
10Other important changes
Yearly changes to rates and thresholds
Updated rates and thresholds for 2020/21 (including contribution caps and government co-contribution income thresholds) are available
on the ATO website and were published in our updated guides issued 1 July 2020.
Increase in age for after-tax contributions where the work test does not apply
From 1 July 2020, the age at which voluntary after-tax super contributions made by a person doesn’t have the requirement to meet the
work test (being gainfully employed at least 40 hours over a consecutive 30 day period in a financial year) increased from under 65 years
to under 67 years.
Increase in age for spouse contributions
From 1 July 2020, the age at which persons may receive a voluntary after-tax super contribution made by their spouse increased from
under 70 years to under 75 years.
Spouse contributions of $3,000 or less allows the contributing spouse to qualify for a spouse contribution tax offset of up to $540,
depending on the circumstances including the spouse’s assessable income, reportable fringe benefits and pre-tax super contributions.
Increase in age where the ‘bring forward non-concessional contributions’ rule may be used
At the time this Important notice is being issued, the parliament of Australia is considering legislation to increase the maximum age at
which the ‘bring forward non-concessional contributions’ rule may be used from 65 years to 67 years.
If this legislation is passed, from 1 July 2020 persons aged 67 years or less in a financial year may trigger the ‘bring forward
non-concessional contributions’ rule which allows after-tax contributions of up to 3 times the yearly non-concessional cap of $100,000
to be contributed in the first, or over the next two, financial years subject to the work test, if applicable.
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Important information
Please read this Product update and familiarise yourself with all of the changes and make sure you understand how they may affect your super.
Product Disclosure Statements (PDS) and important PDS updates are available at
sunsuper.com.au/pds for Sunsuper for life members or at your employer plan’s microsite for Sunsuper for life Business and Sunsuper for life Corporate members.
The PDS will be updated with the changes outlined in this Product update October 2020 effective 1 October 2020.
This information was current when this document was prepared. We make every effort to ensure the information shown is correct. Sunsuper reserves the right to
make adjustments for any errors, misprints or omissions. A printed copy of the Product update is available on request at no additional cost.
This Product update contains general information only. Any advice does not take into account your personal objectives, financial situation or needs. You should
consider the appropriateness of any advice having regard to your personal objectives, financial situation and needs before acting on that advice. You should consider
the Product Disclosure Statement (PDS) in deciding whether to acquire, or to continue to hold the product. A copy of the PDS can be obtained by visiting
sunsuper.com.au/pds for Sunsuper for life members. Sunsuper for life Business and Sunsuper for life Corporate members should refer to their employer plan’s
microsite. To contact us visit sunsuper.com.au/contactus
Prepared by Sunsuper Pty Ltd ABN 88 010 720 840, AFSL No. 228975, the Trustee and issuer of the Sunsuper Superannuation Fund ABN 98 503 137 921,
MySuper Authorisation 98 503 137 921 996, USI 98 503 137 921 001
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