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Mercer Super Trust
Personal Superannuation Division
Please find attached a Product Disclosure Statement (PDS) including an application
form, rollover form and an application for insurance cover form and a Supplementary
Product Disclosure Statement (SPDS) for the Personal Superannuation Division in the
Mercer Super Trust which should be read in conjunction with each other.
The application form, rollover form and application for insurance cover form are
included at the back of the PDS.
If you are printing off this document you must print off all pages of the document
(which includes the PDS, SPDS, application form, rollover form and application for
insurance cover form). Please note that the forms should be printed as separate
documents so they can be completed and the application form and application for
insurance cover form returned to the Mercer Super Trust and the rollover form sent to
your previous super provider.
The Financial Services Guide (FSG) must be read before you read or print off the
PDS.
If you have any queries on the attached documents or completing the forms please call
the Helpline on 1800 810 558.
®
Supplementary Product Disclosure Statement No. 3
for the Mercer Super Trust
Personal Superannuation Division. 1 July 2008
This Supplementary Product Disclosure Statement No. 3 is only applicable to the Mercer Super Trust Personal Superannuation Division
and is issued by Mercer Investment Nominees Limited ABN 79 004 717 533, Australian Financial Services Licence #235906 as trustee of
the Mercer Super Trust ABN 19 905 422 981. ‘Mercer Wealth Solutions Super Trust’ and the petal logo are registered trademarks of
Mercer Investment Nominees Limited.
About this What this SPDS No. 3 1. Change of Mercer name
document covers On 1 November 2007, Mercer Human
Resource Consulting Pty Ltd changed its
This SPDS No. 3 includes details on the name to Mercer (Australia) Pty Ltd.
This Supplementary Product Disclosure following:
As a consequence the following
Statement No. 3 (SPDS No. 3) is to be Change of Mercer name amendments apply:
read in conjunction with the Product
Disclosure Statement for the Mercer Changes to the application (i) All references in the PDS and the
Super Trust, Personal Superannuation and rollover forms which are application form to ‘Mercer Human
Division dated 1 April 2006 (PDS). This included in the PDS Resource Consulting Pty Ltd’ should be
SPDS No. 3 revokes and replaces Removal of certain read as ‘Mercer (Australia) Pty Ltd’.
Supplementary Product Disclosure investment options (ii) On page 2 of the PDS replace the
Statement No. 2 dated 1 October 2007. Change of name for some first and second paragraphs under the
Mercer Investment Nominees Limited investment options heading “About this Product Disclosure
(MINL) ABN 79 004 717 533, Australian Statement” with the following:
Investment and insurance
Financial Services Licence #235906, is default “Mercer Investment Nominees Limited
• the trustee of the Mercer Super Trust, (MINL) ABN 79 004 717 533, Australian
Electronic member Financial Services Licence #235906, is
ABN 19 905 422 981, communications
• the issuer of this SPDS No. 3 and the the trustee of the Mercer
Lost Super Super Trust, ABN 19 905
PDS, and
Joining the plan and your 422 981,
• a wholly owned subsidiary of Mercer super payout the issuer of this Product
(Australia) Pty Ltd (Mercer) ABN 32
Fee change notice period Disclosure Statement
005 315 917, which is a corporate
(PDS), and
authorised representative #260851 of New risk table
MINL. a wholly owned subsidiary
Fee changes
of Mercer (Australia) Pty Ltd
This SPDS No. 3 should be read
Transaction and operational (Mercer) ABN 32 005 315
carefully and kept for future reference.
costs 917, which is a corporate
The information contained in this SPDS
Death and disability authorised representative
No. 3 is general information only and
insurance premiums #260851 of MINL.”
does not take into account your
individual financial objectives, financial Conditions for accessibility (iii) On the back cover of the PDS
situation or needs. You should speak to of preserved or restricted remove the ‘Mercer Human Resource
a licensed, or appropriately authorised, non-preserved super Consulting’ logo and the words
financial adviser if you need help in immediately below it.
making an investment or insurance About the ERF
decision. Privacy 2. Changes to the
The trustee’s contact details are: Anti-money laundering application and rollover form
Mercer Investment Nominees Limited Unclaimed money (i) In the application form and rollover
ABN 79 004 717 533 Bankruptcy form, which are included in the PDS
GPO Box 4303 Unit prices please replace the disclaimer with the
following
MELBOURNE VIC 3001 Contributions
“Issued by Mercer Investment Nominees
Tel: 1800 810 558 Introduction of new Limited (MINL), ABN 79 004 717 533,
If calling from overseas: investment options AFSL #235906, as trustee of the Mercer
Tel 61 3 8687 1823 Changes to the details of Super Trust, ABN 19 905 422 981.
some of the investment Address GPO Box 4303, Melbourne Vic
options 3001. Tel 1800 810 558. ‘Mercer
Website: mercersupertrust.com Wealth Solutions Super Trust’ and the
Up to date investment petal logo are trademarks of MINL.”
returns
Changes to details about (ii) In the rollover form, which is included
death and disability cover in the PDS please remove the “Mercer
Human Resource Consulting’ logo.
Tax changes.
(iii) On the front page of the application it will be easier for you to find your understand I can access my
form please replace the section under super in the future and ensure that you information by contacting the Privacy
the heading “Providing your email receive all of your super benefit when Officer of the Mercer Super Trust.
address and mobile phone number” with you retire. acknowledge that if I provided my
the following: Choosing not to provide your TFN is not email address and/or mobile phone
“The trustee currently provides an offence. However, if you don’t number in this application form, the
information such as annual reports, provide your TFN now or in the future: trustee may, at its discretion, use that
member and exit statements, notices of the trustee will only be able to accept email address or mobile phone
any material changes or occurrences of contributions made for you by your number (as amended and notified to
significant events and member employer. No other contributions, for the trustee from time to time):
publications (such as “Your Wealth”) in a example, after-tax contributions can be to send me information
written form. In the future the trustee accepted; concerning my super, including
may provide this type of information, any annual reports, member and
together with any marketing or research you may pay more tax on contributions
made for you by your employer. In exit statements, notices of
material by electronic means. By material changes or occurrence
providing your email address or mobile some circumstances you may be able
to claim back this additional tax, of significant events, member
phone number you agree to receive this publications (such as “Your
type of information and/or marketing and however time limits, fees and other
rules may apply; and Wealth”); and
research material electronically (when
applicable in that form) by email (which you may pay more tax on your super for marketing and research
may include a link to a website from payout than you would otherwise purposes, including sending me
where it can be downloaded) or, (where (although you can claim this back information about other financial
applicable) by mobile phone.” when you lodge your tax return).” products or services offered by
the trustee or any of its related
(iv) In step 6 of the application form, (v) In step 7 of the application form, parties (unless I have requested
which is included in the PDS replace the which is included in the PDS replace the you not to do so by contacting
section under ‘Special note:’ with the fourth and fifth dot points with the the Helpline on 1800 810 558).
following: following:
acknowledge that the trustee may
“Special note: In line with the “ provide some or all of the member
Superannuation Industry (Supervision) communications and/or marketing
Act 1993, the trustee of the Mercer understand that my personal
information will be handled by the and research material to me
Super Trust is authorised to ask for your electronically either by:
tax file number (TFN). The trustee will Mercer Super Trust to provide and
only use your TFN for lawful purposes. manage my super. Without this sending it to me by email (which
These purposes may change in the information it may not be able to may include a link to a website
future if there are changes to legislation. provide my super and choices. For from where it can be
this purpose, my personal information downloaded) where I have
The trustee may pass your TFN to any may pass between the trustee of the provided my email address;
other super fund or account to which Mercer Super Trust and its and/or
your super is transferred in the future administrator, professional advisers,
unless you request in writing that this not insurers, government bodies and any making it available to me on a
be done. related or other third party as website from where it can be
required, including the trustee of any downloaded.
By providing your TFN:
other super fund that my super is acknowledge that where the trustee is
the trustee will be able to accept all transferred to. I consent to the unable to accept certain contributions
types of contributions made by you or handling of my personal information in made by me, or on my behalf, then
for you (some limits may apply); this manner. I also agree that my those contributions will be returned by
you can avoid paying tax at a higher personal information can be used for the trustee to me or the person or
rate than would otherwise apply on marketing and research purposes organisation (including my employer)
your contributions; and/or for searching the lost member who made the contribution on my
you can avoid having tax deducted at register of the Australian Taxation behalf and any such contribution will
a higher rate than would otherwise Office (unless I have requested you generally not form part of my super
apply on your super payout; and not to do so by contacting the account balance.”
Helpline on 1800 810 558). I
3. Removal of investment who have not automatically been For more information on investment
transferred from the Corporate options, see the Investment section for
options Superannuation Division) and nil death further details.”
The AMP Capital Balanced Direct and disablement insurance cover. (ii) On page 29 of the PDS, replace the
Option, ANZ Superannuation Pool – If you have been automatically section under the sub-heading “If you
Growth Fund, BT Active Balanced PST, transferred into the Personal don’t make a choice…” with the
Colonial First State PST – Diversified, Superannuation Division from the following:
Credit Suisse Asset Management Corporate Superannuation Division of “If you have joined the PSD without
Capital Growth PST, ING Managed the Mercer Super Trust and have not being automatically transferred from the
Growth Superannuation Fund, previously had the choice of how to CSD, and don’t make an investment
INVESCO Wholesale Diversified Growth invest a part (or all) of your super, choice, your super will be automatically
PST, Legg Mason Growth Trust, MLC
then that part (or all) of your super will invested in the default investment
Capital Stable Fund, Schroders
be invested in the Mercer Cash option. The default is the Mercer Growth
Superannuation Fund and Zurich
investment option until you advise us investment option.
Wholesale Superannuation Managed
otherwise; If you have been automatically
Growth Fund are all described in the
PDS as Select-your-Own investment any future contributions or rollovers transferred into the PSD from the CSD
options. These investment options have will be invested in the Mercer Growth of the Mercer Super Trust and have not
been removed and as a result you are investment option until you advise us previously had the choice of how to
no longer able to invest in any of them. otherwise. invest a part (or all) of your super,
Please ignore all references to any of If you have been automatically then that part (or all) of your super will
these investment options in the PDS. transferred into the Personal be invested in the Mercer Cash
Superannuation Division (PSD) from the investment option until you advise us
4. Change of name for some Corporate Superannuation Division otherwise;
(CSD) of the Mercer Super Trust and
investment options have previously had the choice of how to
any future contributions or rollovers
will be invested in the Mercer Growth
(i) As a result of changes in names of invest any part of your super, then that investment option until you advise us
some of the investment options, replace part of your super will be invested in the otherwise.
all references in the PDS of same investment options as you chose
in the CSD, where possible, or if not, in If you have been automatically
“AMP Capital Balanced Growth transferred into the PSD from the CSD
the investment options which most
Option” with “Non Mercer Balanced – of the Mercer Super Trust and have
closely correspond to those in which
Core Style” previously had the choice of how to
your super was invested in the CSD at
“AMP Capital Conservative Option” the time your super was transferred to invest any part of your super, then that
with “Non Mercer Conservative” the PSD. part of your super will be invested in the
same investment options as you chose
“Maple Brown Abbott PST” with “Non Most of the investment options in the in the CSD, where possible, or if not, in
Mercer Balanced – Value Style” CSD are the same as in the PSD except the investment options which most
“MLC Balanced Fund” with “Non for the investment options set out in the closely correspond to those in which
Mercer Balanced – Multi-Manager table below. This table shows the your super was invested in the CSD at
Style” existing CSD investment options that do the time your super was transferred to
not have an exact PSD equivalent and the PSD.
“MLC Growth Fund” with “Non Mercer hence have been matched to certain
Growth - Multi-Manager Style”. investment options within the PSD. Most of the investment options in the
(ii) As a result of a change in name of CSD are the same as in the PSD except
the Mercer Overseas Shares (Currency CSD existing PSD investment for the investment options set out in the
investment option option table below. This table shows the
Managed) investment option, from 1
September 2008, replace all references existing CSD investment options that do
Schroders Growth Mercer Growth
in the PDS and SPDS of “Mercer not have an exact PSD equivalent and
Overseas Shares (Currency Managed)” Intech Assertive Plus Mercer Shares hence have been matched to certain
with “Mercer Hedged Overseas Shares”. investment options within the PSD.
Intech Assertive Mercer High
Growth
5. Investment and insurance
Intech Balanced Plus Mercer Growth
default
Intech Moderate Mercer Moderate
(i) On page 3 of the PDS, replace the Growth
section under the sub-heading “If you
don’t fill out the application form…” with Intech Defensive Mercer
the following: Conservative
Growth
“If you don’t fill out the application form,
the ‘default’ option(s) will apply which Intech Enhanced Mercer Cash
may not be the most suitable choices for Cash
your particular circumstances. The
default options are the Mercer Growth
investment option (only for members
(iii) On page 21 of the PDS, replace the
7. Lost Super second dot point in the third paragraph
CSD existing PSD investment under the heading “The governing rules”
investment option option On page 4 of the PDS, include the
with the following:
following after the section “Let us know if
Schroders Growth Mercer Growth your details change”. “
• you change your employment status.
Intech Assertive Plus Mercer Shares
“Lost Super In the case of moving to a casual or
Intech Assertive Mercer High
With millions of Australians having lost part-time arrangement, your insurance
Growth options may be limited.”
super, there are now billions of dollars
Intech Balanced Plus Mercer Growth recorded on the Tax Office’s lost
member register.
Intech Moderate Mercer Moderate
Growth As a member of the Mercer Super Trust, 8. Fee change notice
a ‘SuperMatch’ process will be used to
Intech Defensive Mercer search the lost member register, on your The references to “45 days” should be
Conservative behalf, at least annually (unless you replaced with “30 days” in the following
Growth
have requested for this not to occur by places:
Intech Enhanced Mercer Cash calling the Helpline on 1800 810 558). On page 8 of the PDS in the last
Cash These searches are conducted free of paragraph under the heading “Risks
charge and involve providing members’ associated with being a member of the
It is strongly recommended that you super information to the Australian Mercer Super Trust”,
speak to a licensed, or appropriately Taxation Office (ATO), including account
authorised, financial adviser to work out On page 15 of the PDS under the sub
details and Tax File Numbers.
whether your investment options under - heading “Fee increases (other than
The ATO uses this information to search indexation)”, second paragraph and
the PSD continue to suit your personal
lost super accounts, for funds belonging fourth paragraph under the sub-
needs and circumstances.”
to Mercer Super Trust members. If heading “Other fees that can arise”,
funds belonging to you are identified,
6. Electronic member On page 22 of the PDS under the sub
you will be advised in writing.
- heading “Material changes and
communications For more information, simply log into significant events”.
mercersupertrust.com, sign in using
On page 4 of the PDS, under the sub-
your personal membership details, and
heading “As a member of the Personal
look for the ‘Lost Something?’ hyperlink.
Superannuation Division of the Mercer
From this link you will be guided through
Super Trust you’ll receive:” include the
the search process.”
following at the end:
“We reserve the right to provide some
or all of the member communications
8. Joining the plan and your
to you electronically, either by: super payout
- sending them to you by email (which (i) On page 6 of the PDS, replace the
may include a link to a website from section under the heading “Joining the
where they can be downloaded) Personal Superannuation Division” with
where you have provided an email the following:
address; and/or
“You can join the Personal
- making them available to you on a Superannuation Division of the Mercer
website from where they can be Super Trust provided:
downloaded.”
• you have an account balance of at
least $1,500 and make regular
contributions*; or
• the minimum amount transferred into
the Personal Superannuation Division
to open your account is $3,000.
* Please note if you are age 65 or over,
please refer to “Working past age 65” in
the Contributions section of the PDS
for the circumstances under which you
can make contributions Please call the
Helpline on 1800 810 558 for more
details.”
(ii) On page 6 of the PDS, remove the
fourth paragraph under the heading
“Your super payout”.
“Investment option investment risk table
9. Risk Table
Currency Risk
On page 9 of the PDS, replace
Liquidity Risk
Manager Risk
Inflation Risk
Political Risk
Timing Risk
Market Risk
Investment
Credit Risk
the table “Investment option
Asset Risk
Individual
investment risk table” with the
following: Investment option
Mercer Shares L H L L H L L L H
Ready-made
Mercer High Growth L H L L H L L L M
Mercer Growth L M L L M L L L M
Mercer Moderate Growth L M L L M L L L L
Mercer Conservative Growth L L L M L L L L L
Mercer Cash L L L H L L L L -
Mercer Shares Plus L H L L H L L L H
Mercer High Growth Plus L H L L H L L L M
Mercer Plus
Mercer Growth Plus L M L L M L L L M
Mercer Australian Shares Plus L H L L H L L L -
Mercer Overseas Shares Plus (Unhedged) L H M L H L L L H
Mercer Income Plus# L L L H M L M L L
Mercer Australian Shares L H L L H L L L -
Mercer Australian Core Shares L H L L H H L L -
Mercer Australian Growth Shares L H L L H H L L -
Mercer Australian Value Shares L H L L H H L L -
Mercer Australian Small Companies L H L L H L L L -
Mercer Overseas Shares (Unhedged) L H M L H L L L H
Mercer Overseas Shares (Currency
L H M L H L L L L
Managed)^
Mercer Overseas Core Shares# L H M L H H L L H
Mercer Sector
Mercer Overseas Growth Shares# L H M L H H L L H
Mercer Overseas Value Shares# L H M L H H L L H
Mercer Overseas Small Companies L H M L H M L L H
Mercer Emerging Markets# L H M L H M L L H
Mercer Property L H L L H M L L M
Mercer Direct Property# H H L L H M L H L
Select-your-Own
Mercer Australian Listed Property# L H L L H M L L L
Mercer Overseas Listed Property L H M L H M L L H
Mercer Fixed Interest L M L H M L M L L
Mercer Australian Fixed Interest# L M L H M M M L L
Mercer Overseas Fixed Interest# L M L H M M M L L
Mercer Diversified Alternatives L H M L H L M M H
Mercer Target 2015* L M L L M L L L M/L*
Mercer
Target
Mercer Target 2025* L H/M* L L H/M* L L L M/L*
Mercer Target 2035* L H/M* L L H/M* L L L H/L*
Mercer Target 2045* L H/M* L L H/M* L L L H/L*
Mercer Socially
Responsible
Mercer Socially Responsible Shares L H L L H M L L H
Mercer Socially Responsible Growth L M L L M L L L M
Indexed Shares L H L L H L L L H
Indexed Australian Shares L H L L H L L L -
Indexed
Indexed Overseas Shares L H M L H L L L H
Indexed Growth L M L L M L L L M
Indexed Conservative Growth L L L M L L L L L
Non Mercer Growth – Multi-Manager Style L M L L M L L L M
Non Mercer
Non Mercer Balanced – Multi-Manager Style L M L L M L L L M
Non Mercer Balanced – Core Style L M L L M H L L M
Non Mercer Balanced – Value Style L M L L M H L L M
Non Mercer Conservative L L L M L H L L L
*The level of risk reduces as these investment options approach their target year (eg. 2015 for the Mercer Target 2015
investment option).
^ The name of this investment option will change to Mercer Hedged Overseas Shares on 1 September 2008.
# These investment options are only available from 1 September 2008.”
10. Fee changes
(i) On page 12 of the PDS, replace the table with the following:
Investment option Investment Performance Administration fee Estimated management costs
management fee range (% pa of account balance) (% pa of account balance)
fee (% pa) First Next Balance First Next Balance
(% pa) $250,000 $250,000 over $250,000 $250,000 over
$500,000 $500,000
Mercer Shares 0.87 0 - 0.05 1.15 0.70 0.00 2.02 - 2.07 1.57 - 1.62 0.87 - 0.92
Ready- made
Mercer High Growth 0.82 0 - 0.05 1.15 0.70 0.00 1.97 - 2.02 1.52 - 1.57 0.82 - 0.87
Mercer Growth 0.77 0 - 0.05 1.15 0.70 0.00 1.92 - 1.97 1.47 - 1.52 0.77 - 0.82
Mercer Moderate Growth 0.72 0 - 0.05 1.15 0.70 0.00 1.87 - 1.92 1.42 - 1.47 0.72 - 0.77
Mercer Conservative Growth 0.67 0 - 0.05 1.15 0.70 0.00 1.82 - 1.87 1.37 - 1.42 0.67 - 0.72
Mercer Cash 0.47 Nil 0.85 0.40 0.00 1.32 0.87 0.47
Mercer Shares Plus^ 1.05 0 - 0.25 1.15 0.70 0.00 2.20 - 2.45 1.75 - 2.00 1.05 - 1.30
Mercer High Growth Plus^ 1.00 0 - 0.25 1.15 0.70 0.00 2.15 - 2.40 1.70 - 1.95 1.00 - 1.25
Mercer Plus
Mercer Growth Plus^ 0.95 0 - 0.25 1.15 0.70 0.00 2.10 - 2.35 1.65 - 1.90 0.95 - 1.20
Mercer Australian Shares Plus^ 1.05 0 - 0.50 1.15 0.70 0.00 2.20 - 2.70 1.75 - 2.25 1.05 - 1.55
Mercer Overseas Shares Plus
1.05 0 - 0.50 1.15 0.70 0.00 2.20 - 2.70 1.75 - 2.25 1.05 - 1.55
(Unhedged)^
Mercer Income Plus ^ # 0.77 0 – 0.25 1.15 0.70 0.00 1.92 – 2.17 1.47 – 1.72 0.77 – 1.02
Mercer Australian Shares 0.82 0 - 0.05 1.15 0.70 0.00 1.97 - 2.02 1.52 - 1.57 0.82 - 0.87
Mercer Australian Core Shares^ 0.82 0- 0.50 1.15 0.70 0.00 1.97- 2.47 1.52 - 2.02 0.82 - 1.32
Mercer Australian Growth Shares^ 0.82 0 -0.50 1.15 0.70 0.00 1.97- 2.47 1.52 - 2.02 0.82 - 1.32
Mercer Australian Value Shares^ 0.82 0 – 0.50 1.15 0.70 0.00 1.97- 2.47 1.52 - 2.02 0.82 - 1.32
Mercer Australian Small Companies^ 0.95 0 - 0.05 1.15 0.70 0.00 2.10 - 2.15 1.65 - 1.70 0.95 - 1.00
Mercer Overseas Shares (Unhedged) 0.90 0 - 0.05 1.15 0.70 0.00 2.05 - 2.10 1.60 - 1.65 0.90 - 0.95
Mercer Overseas Shares (Currency
0.91 0 - 0.05 1.15 0.70 0.00 2.06 - 2.11 1.61 - 1.66 0.91 - 0.96
Managed)^**
Mercer Overseas Core Shares ^ # 0.90 0 – 0.50 1.15 0.70 0.00 2.05 – 2.55 1.60 – 2.10 0.90 – 1.40
Mercer Sector
Mercer Overseas Growth Shares ^ # 0.90 0 – 0.50 1.15 0.70 0.00 2.05 – 2.55 1.60 – 2.10 0.90 – 1.40
Mercer Overseas Value Shares ^ # 0.90 0 – 0.50 1.15 0.70 0.00 2.05 – 2.55 1.60 – 2.10 0.90 – 1.40
Mercer Overseas Small Companies^ 1.30 0 - 0.05 1.15 0.70 0.00 2.45 - 2.50 2.00 - 2.05 1.30 - 1.35
Mercer Emerging Markets ^ # 1.30 0 – 0.50 1.15 0.70 0.00 2.45 – 2.95 2.00 – 2.50 1.30 – 1.80
Mercer Property 0.92 0 - 0.05 1.15 0.70 0.00 2.07 - 2.12 1.62 - 1.67 0.92 - 0.97
Mercer Direct Property ^ # 0.97 0 – 0.50 1.15 0.70 0.00 2.12 – 2.62 1.67 – 2.17 0.97 – 1.47
Select-your-Own
Mercer Australian Listed Property ^# 0.82 0 – 0.25 1.15 0.70 0.00 1.97 – 2.22 1.52 – 1.77 0.82 – 1.07
Mercer Overseas Listed Property^ 1.05 0 - 0.50 1.15 0.70 0.00 2.20 - 2.70 1.75 - 2.25 1.05 - 1.55
Mercer Fixed Interest 0.52 0 - 0.05 1.15 0.70 0.00 1.67 - 1.72 1.22 - 1.27 0.52 - 0.57
Mercer Australian Fixed Interest ^ # 0.52 0 – 0.10 1.15 0.70 0.00 1.67 – 1.77 1.22 – 1.32 0.52 - 0.62
Mercer Overseas Fixed Interest ^ # 0.52 0 – 0.10 1.15 0.70 0.00 1.67 – 1.77 1.22 – 1.32 0.52 – 0.62
Mercer Diversified Alternatives^ 1.50 0 - 1.00 1.15 0.70 0.00 2.65 - 3.65 2.20 - 3.20 1.50 - 2.50
Mercer Target 2015^* 0.76* 0 - 0.05 1.15 0.70 0.00 1.91 – 1.96* 1.46 - 1.51* 0.76 - 0.81*
Mercer
Target
Mercer Target 2025^* 0.80* 0 - 0.05 1.15 0.70 0.00 1.95 - 2.00* 1.50 - 1.55* 0.80 - 0.85*
Mercer Target 2035^* 0.84* 0 - 0.05 1.15 0.70 0.00 1.99 - 2.04* 1.54 - 1.59* 0.84 - 0.89*
Mercer Target 2045^* 0.87* 0 - 0.05 1.15 0.70 0.00 2.02 - 2.07* 1.57 - 1.62* 0.87 - 0.92*
Responsible
Mercer Socially Responsible Shares 0.92 0 - 0.05 1.15 0.70 0.00 2.07 - 2.12 1.62 - 1.67 0.92 - 0.97
Socially
Mercer
Mercer Socially Responsible Growth 0.82 0 - 0.05 1.15 0.70 0.00 1.97 - 2.02 1.52 - 1.57 0.82 - 0.87
Indexed Shares 0.57 Nil 1.15 0.70 0.00 1.72 1.27 0.57
Indexed Australian Shares 0.57 Nil 1.15 0.70 0.00 1.72 1.27 0.57
Indexed
Indexed Overseas Shares 0.57 Nil 1.15 0.70 0.00 1.72 1.27 0.57
Indexed Growth 0.57 Nil 1.15 0.70 0.00 1.72 1.27 0.57
Indexed Conservative Growth 0.57 Nil 1.15 0.70 0.00 1.72 1.27 0.57
Non Mercer Growth – Multi-Manager
1.20 Nil 1.15 0.70 0.00 2.35 1.90 1.20
Style~
Non Mercer
Non Mercer Balanced – Multi-Manager
1.17 Nil 1.15 0.70 0.00 2.32 1.87 1.17
Style~~
Non Mercer Balanced – Core Style 0.82 Nil 1.15 0.70 0.00 1.97 1.52 0.82
Non Mercer Balanced – Value Style 0.78 Nil 1.15 0.70 0.00 1.93 1.48 0.78
Non Mercer Conservative 0.72 Nil 1.15 0.70 0.00 1.87 1.42 0.72
Notes: ^ The combined maximum investment management fee, performance fee and administration fee shall not exceed 4% per annum for these investment options.
* As these investment options approach their target year (e.g. 2015 for the Mercer Target 2015 investment option) the estimated management costs will trend downwards
to those which apply for the Mercer Moderate Growth investment option (MMG). Once a Mercer Target investment option has reached or passed its target year the
estimated management costs will be the same as those which apply for the MMG at that time.
# As these investment options will not be available until 1 September 2008, the fees shown for these investment options are those effective at 1 September 2008.
** The name of this investment option will change to Mercer Hedged Overseas Shares on 1 September 2008.
~ Up to 1 October 2008, the fees for the Non Mercer Growth – Multi-Manager Style investment option are:
(a) Investment management fee 1.17% pa.
(b) Estimated management costs 2.32% (first $250,000), 1.87% (next $250,000), 1.17% pa (balance over $500,000)
~~ Up to 1 October 2008, the fees for the Non Mercer Balanced – Multi-Manager Style investment option are:
(a) Investment management fee 1.14% pa.
(b) Estimated management costs 2.29% (first $250,000), 1.84% (next $250,000), 1.14% pa (balance over $500,000)”
(ii) On page 11 of the PDS, replace the 11. Transaction and For the other investment options (not
last sentence in the 3rd column of the listed above) a single unit price is used
table headed “Example of annual fees operational costs for both the issue and redemption of
and costs for the Mercer Growth On pages 13 and 14 of the PDS, replace units (i.e. the exit price equals the entry
investment option” with the following; the section headed “Transactional and price) and no buy/sell spread is applied.
operating costs” with the following: In calculating the unit prices for these
“What it costs you will depend on the investment options an allowance is
investment option you choose and the “Transaction and made for transaction and operational
fees you negotiate with your fund or costs the amount of which will vary but is
financial adviser.” operational costs estimated to generally be between 0%
and 1.0% except in the case of the
(iii) On page 14 of the PDS, replace the Transaction and operational costs
Mercer Property investment option and
sections under the sub-headings include brokerage, expenses,
the Mercer Emerging Markets
“Indexation of fees” and “Family Law commissions and other fees that are
investment option* where such an
fees” with the following: incurred in buying or selling part or all of
allowance is estimated to be between
the underlying investments of the
0% and 1.5%.
investment option.
“Indexation of fees * This investment option is only available from 1
Transaction and operational costs are September 2008.
The family law fees and the No-TFN tax allowed for in different ways for different
refund fee set out below will be indexed The allowance for transaction and
investment options.
annually each 1 January to Average operational costs whether through a
Weekly Ordinary Time Earnings. The For some investment options the entry buy/sell spread or otherwise is additional
indexed fees for 1 January 2008 are set price for the issue of units may be to the costs you incur as detailed in the
out in this PDS. The next indexation will different from the exit price for the "Fees and other costs" table. No part of
occur on 1 January 2009. redemption of those units. The any transaction and operational cost is
difference between the entry and exit paid to the trustee or any external
price represents an allowance for manager. Neither the buy/sell spread
Family Law fees transaction and operational costs and is nor any allowance for transaction or
commonly referred to as a ‘buy/sell operational costs are subject to GST.
If your super is subject to an agreement
spread’. Buy/sell spreads are applied
or court order which splits your super Where the trustee does not currently
only once at the time the contribution or
between you and your former spouse, a apply a buy/sell spread to a particular
rollover is paid into the Mercer Super
charge of $370 will apply. This is investment option, it reserves the right to
Trust (or switches effected within the
generally split equally between you and do so in the future.”
Mercer Super Trust) and not at the time
your former spouse. This fee is
of making a withdrawal from the Mercer
additional to the fees shown in the “Fees 12. Death and disability
Super Trust.
and other costs table”.
Set out in the table below are estimates insurance premiums
of the buy/sell spreads for those
No-TFN tax refund fee investment options where a buy/sell
On page 14 of the PDS, under the sub-
heading “Death and disability insurance
If we don’t receive your Tax File Number spread is currently applied. The
premiums” replace the third paragraph
(TFN) then additional tax is payable in estimated buy/sell spreads can vary
with the following:
respect of your concessional slightly from day to day.
“The full cost of the commission payable
contributions (see the section ‘You’ll pay Estimated
to MINL is built into the premiums
extra tax if the trustee does not have Investment option buy/sell
your TFN’ in the Tax & super section for spread (%) charged in respect of you.”
more details). If you leave the Personal Non Mercer Growth – Multi-
0.3
Superannuation Division of the Mercer Manager Style
Super Trust and your super payout is Non Mercer Balanced – Multi-
0.3
paid before we receive your TFN, an Manager Style
allowance for this additional tax will be Non Mercer Balanced – Core
0.8
deducted from your super payout. A Style
charge of $830 will apply if you Non Mercer Conservative 0.6
subsequently provide your TFN and
request that this additional tax be
refunded and paid to you or rolled over
to your new super fund from the Mercer
Super Trust. This fee is additional to the
fees shown in the “Fees and other costs
table”.”
13. Conditions for accessibility of Preserved or Restricted Non-preserved super
On page 17 of the PDS, replace the table under the sub-heading “Conditions for accessibility of Preserved or Restricted
Non-preserved super” with the following:
“
Accessibility
Condition Preserved super Restricted non-
payout preserved super
payout
You have permanently retired from work and have reached your ‘preservation age’ (see below). Full Full
You are aged 60 or more and you resign or retire from your current employer. Full Full
You are aged 65 or more. Full Full
The trustee is reasonably satisfied that you are permanently incapacitated.* Full Full
You have compassionate grounds for applying.* Partial or full Partial or full
You suffer severe financial hardship.* Partial Partial
You have a terminal medical condition (and provide the required evidence*) Full Full
You are aged less than 60 and terminate employment with your current employer (but don’t
None Full
permanently retire).
May be available as May be available as
You have reached preservation age but have not retired. a non-commutable a non-commutable
pension or annuity pension or annuity
You leave Australia permanently (if you are a temporary resident and satisfy certain conditions). Full Full
* as provided under superannuation law”
The investment strategy for the AMP 15. Privacy & Unclaimed
14. About the ERF ERF is to invest in a portfolio with a
core of cash and limited exposure to money
On page 18 of the PDS, replace the shares. On page 19 of the PDS, replace the
fourth (including the six dot points), fifth sections under the sub-headings “Your
and sixth paragraphs under the sub- AMP Life declares multi-tiered
crediting rates of investment earnings privacy is important” and “Unclaimed
heading “Small account balances’ with money” with the following:
(interest) with respect to the ERF
the following:
Policy. The interest to be credited to a
“Set out below is a summary of some of
the more significant features of the ERF,
member’s account is calculated based
on a member’s daily balance and
“Your privacy is
current as at the date of this PDS. credited annually (or on withdrawal). important
The assets of the ERF are invested in There are no fees charged directly to a The trustee of the Mercer Super Trust
a capital guaranteed life insurance member’s account by ASL. holds personal information about you.
policy (ERF Policy) issued to AMP Administration and investment fees as Typically this includes your name,
Superannuation Limited (ASL) by AMP well as taxes (including earnings tax) address, date of birth, telephone or
Life Limited (AMP Life). The ERF are deducted by AMP Life before mobile number, gender, occupation,
Policy is a “participating policy” in AMP declaring any interest to be credited salary and tax file number. This
Life’s Statutory Number 1 Fund (AMP under the ERF Policy. information is needed to provide your
No 1 Fund). There is no choice of super.
The ERF is unable to accept
investment available to members
contributions from members or their Your personal information is collected
within the ERF.
employers, however, rollovers from from you. Your personal information may
Returns are guaranteed not to be other superannuation funds are be disclosed to the Mercer Super Trust’s
negative. The investment objective for permitted. administrator, professional advisers,
balances over $2,500 is to provide insurers, government bodies and any
The ERF does not provide insurance
returns which over the longer term related or other third party as required
cover.”
exceed cash returns adjusted for costs including the trustee of any other super
and tax. fund you may transfer to.
By becoming a member of the Mercer 16. Unit Prices
Super Trust, it’s assumed that you
Unclaimed money
consent to this handling of your personal If we’ve written to you twice and both On page 20 of the PDS, replace the
information. If you don’t provide the times the mail has been returned sections under the sub-headings “How
trustee with your personal information, unclaimed and you are under age 65, and when are unit prices calculated?”
we may not be able to provide your we may transfer your super to the ERF. and “Unit pricing and changes to
super and choices. investment options: with the following:
If your super is transferred into the ERF,
Your personal information may also be the trustee of the ERF must ensure that
used for marketing and research all your super is subject to the ‘member “How and when are unit
purposes, including sending you protection rules’ of superannuation law, prices calculated?
information about other financial irrespective of the size of your super
products or services offered by us or any payout. You will no longer be a member Unit prices are calculated on a daily
of our related parties and to search the of the Mercer Super Trust and any basis by the trustee although the trustee
lost member register at the ATO (unless insurance cover you may have had may recalculate prices more frequently
you have requested us not to do so by through the Personal Superannuation when it considers it to be appropriate.
calling the Helpline on 1800 810 558). Division will cease. Where the amount ascertained by the
You can usually see any personal For more information on the ERF see allocation or redemption of units does
information held and correct it if it’s “Small account balances” earlier in this not exactly equal the amount received or
inaccurate. However, there are some section. to be paid, then the trustee may issue or
circumstances where this isn’t possible. redeem a fractional unit equal to the
If you are over age 65 and we have proportion of a whole unit that is
The trustee follows the National Privacy been unable to contact you for a period outstanding.
Principles as described in the Privacy of 5 years, then your payout will be
Act 1988 (Cth) and has a Privacy Policy considered to be unclaimed money and The unit price of a whole unit basically
which describes in detail the way the will be sent to the Australian Taxation reflects the asset value of the
trustee handles members’ personal Office (ATO). investment option divided by the number
information. If you’d like a copy of the of units which are referable to that option
Mercer Super Trust Privacy Policy You can approach the ATO to claim any on issue at the relevant time. In
please call the Helpline on 1800 810 558 such money directly. determining the unit prices of the
or visit our website investment options, an allowance is
mercersupertrust.com (after you sign- Bankruptcy & super made for any transaction and
in to your member account). operational costs. See “Transaction and
contributions operational costs” in the section
Anti-money laundering Government legislation allows a trustee
“Additional explanation of fees and
costs” earlier in this section for more
Under the Anti-Money Laundering and in bankruptcy to recover certain super
details.
Counter Terrorism Financing Act 2006, contributions. The laws apply to super
superannuation funds are required to contributions, made by or for you, after Unit prices are calculated to the fourth
identify, monitor and mitigate the risk 27 July 2006, where a trustee in decimal place. A fractional unit has a
that the Mercer Super Trust may be bankruptcy determines that the value equal to the proportion that it
used for the laundering of money or the contributions were made to deliberately bears to a whole unit. The net asset
financing of terrorism. Because of this, avoid paying creditors. value of an investment option reflects
you may be required to provide proof of the value of the underlying assets of that
Under the Bankruptcy legislation the
your identity that is satisfactory to the option less any liabilities, provisions for
trustee is required to act in accordance
trustee before you withdraw your benefit taxation and other expenses related to
with any notices received from a trustee
from the Mercer Super Trust or in any that option.
in bankruptcy. This may be a notice to
other circumstances which the trustee is pay a certain amount to the trustee in Unit prices may rise or fall depending on
required by law to collect information bankruptcy, or a notice that prevents the fluctuations in the underlying value of
about or verify your identity. At a trustee from paying out or transferring the investments in each investment
minimum, you may be required to any part of your super for a period of at option.
provide the trustee with evidence that least 180 days.
verifies your full name, your date of birth Unit pricing and changes to
Your super payout will be adjusted to
and your residential address.
reflect any payments in respect of you investment options
made to a trustee in bankruptcy under a If you request the trustee to change the
notice issued in accordance with this investment options that apply to part or
legislation.” all of your existing super, the unit price
used for your switch will generally be
one calculated after your request is
received and validated. That is, the unit
prices used will not be those available at
the time the trustee receives and
validates your request.”
17. Contributions
Replace Step 2 – Contributions section of the PDS with the following:
“Step 2 Contributions
Contributing a bit extra to your super now can help you build a
bigger payout later.
In this section you’ll find out:
What you put in - if you want to page 24
Tax on contributions page 24
Rollovers - don’t let multiple fees eat away at your super page 24
Spouse Super page 25
Government Co-contribution page 25
Contribution splitting page 25
Working past age 65 page 26
When the trustee can’t accept contributions page 26
Further queries page 26
Contributions 23
What you put in – Your employer can also The minimum level for
if you want to contribute your account balance
By contributing on your behalf, your
The trustee requires that your super
employer can satisfy their obligations
Lump sum deposits under the Government’s Superannuation
account balance remains above $2,400
at all times, unless you are participating
As a member you can make Guarantee (SG) legislation.
in the Regular Contributions Plan.
contributions at any time. Your initial For further details on how your employer
can contribute, please call the Helpline If you account balance should fall below
balance must be a minimum investment
on 1800 810 558. this level, your super may be transferred
of at least $3,000 unless you participate
to the ERF (the eligible rollover fund
in the Regular Contributions Plan (see
currently used by the Mercer Super
below). Any lump sum contribution you
wish to make thereafter will need to be
Tax on contributions Trust) unless you make further
contributions or request to transfer your
at least $100. You must forward a
Tax is deducted from employer super to another fund (see the Getting
‘Making contributions to the Mercer
contributions including any before tax to know your super section). See
Super Trust - Personal’ form each time
contributions you make and any ‘Small account balances’ in the Getting
you contribute. To obtain a copy of the
personal contributions for which you are to know your super section for further
form you should contact the Helpline on
claiming a tax deduction. It’s applied to details on the ERF.
1800 810 558 or visit our website
mercersupertrust.com. these contributions after any insurance
You can also make contributions via
premiums have been deducted. This tax
is deducted at 15% where you have Rollovers – don’t let
BPAY. If you wish to do so, please
contact the Helpline on 1800 810 558 for
provided your Tax File Number (TFN).
Tax at a higher rate will be deducted multiple fees eat
details. from your employer contributions
including any before tax contributions away at your super
Regular Contributions where you have not provided your TFN.
You can roll over other super money into
Additional tax may also be payable if
Plan employer contributions, any before-tax
the Mercer Super Trust if you want to.
You may also choose to make regular contributions and any personal If you’ve had other jobs in the past, you’ll
contributions using our Regular contributions for which you are claiming probably have super accounts with your
Contributions Plan. In this case your a tax deduction exceed certain annual previous employers. You have the
initial contribution must be at least limits. Tax may also be payable from choice of rolling in all your super into
$1,500 with a minimum regular monthly contributions made by or for you from your Mercer Super Trust account. By
contribution of at least $100. after tax sources (including personal doing this you could improve your super
after tax member contributions you investment overall. You’ll only be paying
Your regular contribution is automatically make and spouse contributions made for one set of fees and you’ll be earning
taken out by direct debit from your investment returns on a bigger sum of
you) where those contributions exceed
nominated bank, building society or cash certain annual limits. The Australian money. It also means you have only one
management trust account. This will Taxation Office (ATO) will assess set of paperwork to think about. Why not
happen on the last day of the relevant whether the relevant limits have been discuss the benefits of rollovers with a
month, or if this falls on a weekend or exceeded and the amount of any tax licensed, or appropriately authorised,
holiday, the next business day. You can payable. For more details refer to the financial adviser?
change your payment details at any Tax & super section.
time.
The Regular Contributions Plan can only
For more details on the annual limits and If you’d like to roll other
the tax on contributions, including the
be used to make member or spouse additional tax payable when the annual super into your Mercer
contributions. While your employer can
make regular contributions on your
limits are exceeded, refer to the Tax &
super section.
Super Trust account…
behalf, this can’t be done through the Complete the rollover form included in
Regular Contributions Plan. If you wish Tax may also be deducted from certain
other contributions (eg contributions this PDS and then send it to your other
to use our Regular Contributions Plan, super fund. They will then contact the
please contact the Helpline on 1800 810 made for you by a person who is not
your employer or spouse), some Mercer Super Trust about rolling the
558, or visit our website money in. Generally there’s no charge
mercersupertrust.com, for the relevant amounts transferred from overseas
funds, amounts rolled over from some for receiving money rolled in from other
forms. funds, although you should check with
“untaxed” funds (generally Government
sector) and certain employment your other funds to see if there are any
termination payments made by withdrawal fees.
employers which are rolled over.
24 Contributions
There’s no minimum amount. You can you make a contribution of at least $600 interested in an update on the progress
roll any amount in no matter how small. you will be eligible for a co-contribution of this legislation.
If the money you roll in is preserved, it of $900. Provided you maintain a super account
stays preserved in the Mercer Super The co-contribution will only be available balance of at least $5,000, you will
Trust. See the Getting to know your to people who earn at least 10% of their generally be able to request a
super section for more details on income from employment as an contribution split of:
preservation. employee or running a business or a 85% of concessional contributions
If you require additional rollover forms, combination of both. (refer to ”Concessional Contributions”
please call the Helpline on 1800 810 558 You must also be under age 71 at the in the Tax & super section of this PDS
or visit our website end of the financial year. The for details) up to a maximum of
mercersupertrust.com co-contribution is not available to most generally $50,000.
temporary residents. The following cannot be split:
Spouse super The co-contribution is also not available
in respect of tax deductible contributions
member contributions (unless you
have advised the trustee that you are
(eg contributions made by a self- claiming a tax deduction), eligible
If your spouse wishes to make super employed person and for which a tax
contributions for you, he or she will need spouse contributions, government co-
deduction is claimed). contributions and untaxed
to complete and return a ‘Your spouse’s
contribution’ form which sets out the The trustee must give the ATO contributions
eligibility requirements. To obtain a information about your contributions and amounts rolled over or transferred into
copy of this form please call the Helpline those made by your employer. Using the Mercer Super Trust
on 1800 810 558 or visit our website this information, and information in your lump sum payments from an overseas
mercersupertrust.com. tax return, the ATO will work out if you super fund
are entitled to receive a co-contribution. employment termination payments
Government Co- Any co-contribution payable will then be
sent directly to the Mercer Super Trust
notional contributions relating to a
member’s defined benefits.
contribution or another fund to which you belong.
There may be other circumstances in
We recommend that you speak to a which the legislation restricts or prohibits
The co-contribution is a contribution, by licensed, or appropriately authorised,
the Government, of up to $1.50 for each contribution splitting depending on a
financial adviser to work out how this member's individual circumstances. We
$1.00 of personal after-tax member might apply to you.
contributions paid to a superannuation will advise you if this applies at the time
fund. you make a request to split
The amount of the co-contribution you Contribution contributions.
will get depends on your income** and The super contribution splitting rules
the personal after tax contribution you splitting work on a financial year basis (ie year
have made during the financial year. ending 30 June).
The maximum amount of co-contribution Super legislation allows eligible super splitting periods will comprise the
for a financial year is $1,500 and is fund members the opportunity to split twelve months from 1 July to 30 June
available to people whose income is their super contributions with their each year.
$30,342* or less. This maximum or cap spouse. Although the legislation is generally, a member will be able to
then phases down by 5 cents for each optional for super funds, the trustee of split once per year and will have 12
dollar of additional income over $30,342 the Mercer Super Trust has agreed to months to make a request to split all or
and cuts out completely for incomes of allow super contribution splitting for most part of a previous year's contributions
$60,342^ or more. You also need to members. once that year is over. However, if
meet other conditions to be eligible for Contribution splitting lets members you leave the Mercer Super Trust
the co-contribution - these are set out transfer eligible contributions to an before the 12 months has elapsed,
below. account in the name of an eligible your request to split contributions must
**Income is your assessable income plus your spouse in a complying superannuation be received by the trustee on or before
reportable fringe benefits for the applicable fund. Conditions apply as to what the time that your super is paid out,
financial year. The Government has announced
contributions can be split and when a rolled over or transferred to another
that from1 July 2009, income will also include any
salary sacrifice superannuation contributions you member can split contributions. super fund.
make. You may also be able to split
Contributions can only be split with an
* This amount is the lower threshold and is eligible spouse who has not permanently contributions made in the financial year
applicable for 2008/2009 and is indexed from 1 of your super payout. However, this can
retired or reached age 65. An eligible
July each year.
spouse includes a person to whom the only take place if your request to split
^ This amount is equal to the lower threshold plus member is legally married or a de facto contributions is provided to the trustee
$30,000.
partner where the couple live together on or before the time that your super is
For example, if your income is $30,342 on a genuine domestic basis as paid out, rolled over or transferred to
or less and you make a personal after- husband and wife. It does not currently another super fund.
tax contribution of $1,000 (and you meet include a same sex spouse, however,
the other conditions set out below) you the Government has proposed that this
will be eligible for a co-contribution of restriction be removed. Contact the
$1,500. If your income is $42,342, and Helpline on 1800 810 558 if you are
Contributions 25
If your super is transferred from the Between ages 65 and 75, you can make
Corporate Superannuation Division personal after tax contributions if you
(CSD) you will, subsequent to your have worked at least 40 hours during
transfer to the Personal Superannuation any period of 30 consecutive days in the
Division (PSD), be able to split both financial year to which the contributions
those eligible contributions you made relate.
whilst you were a member of your Once you reach age 75, personal after
employer’s plan in the CSD and those tax contributions can no longer be
made whilst you are a member of the accepted.
PSD. However it will only be possible to
split contributions made in the year Between ages 65 and 70, contributions
ending on the previous 30 June (and if for you by your spouse and or other
you are leaving the Mercer Super Trust, people can be made if you have worked
contributions made in the year of exit). at least 40 hours during any period of 30
consecutive days in the financial year.
If you would like further information on
contribution splitting please call the Once you reach age 70, contributions for
Helpline on 1800 810 558. you by your spouse or other people can
no longer be accepted.
Please note to request a contribution
split, you will need to complete a Mercer
approved form, which is available on our
website or by calling the Helpline.
When the trustee
It is recommended that you seek advice can’t accept
from a licensed, or appropriately
authorised, financial adviser before contributions
making any decision in relation to
contribution splitting. There are some circumstances when the
trustee is unable to accept certain
contributions made for or by you:
Working past age if you have not provided your TFN –
65 see the Tax & super section of this
PDS for details;
if an individual contribution is greater
If you are still working after age 65,
than the specified limit allowed - see
generally contributions by your employer
the Tax & super section of this PDS
can continue to be made. However the
for details;
law will not allow such contributions in
certain circumstances. if you have not met the work tests set
out in “Working past age 65” earlier in
After age 65, mandated employer this section.
contributions may be made in respect of
you. “Mandated” employer contributions Any contributions received when these
are Superannuation Guarantee (SG) conditions have not been met will be
contributions and/or contributions returned to you or the person, or
required under an award or certified organisation (including where applicable
agreement. your employer), who made the
contribution. The amount returned will
As there are currently no SG generally not form part of your super
requirements beyond age 70, mandated account balance.”
employer contributions after age 70 will
be those that may be required under an
award or certified agreement. Further queries?
Other employer (including salary
sacrifice) contributions and any personal If you have any queries about whether
contributions for which you are claiming you should consider additional
a tax deduction can only be made in contributions for yourself or your spouse,
respect of you up to age 75 if you have please call the Helpline on 1800 810
worked at least 40 hours during any 558. ”
period of 30 consecutive days in the
financial year to which the contributions
relate. These contributions cannot be
made after age 75.
26 Contributions
These Mercer Plus investment options, The Mercer Australian Value Shares and
18. Investments Changes when compared to their equivalent the Mercer Overseas Value Shares
Mercer investment options, may have investment options aim to achieve the
(i) On page 27 of the PDS, include the
different allocations to investment stated objectives by selecting managers
following at the bottom of the page:
managers within asset classes, different who generally invest in companies that
“Important Note: benchmark weights eg greater exposure are considered attractive on traditional
The investment options listed below are to alternative assets where relevant and valuation measures (for example, a low
not available until 1 September 2008. If wider asset allocation ranges. price to earnings ratio) relative to the
any of these options are chosen prior to Certain ‘Mercer Sector’ investment share market/s relevant to that
this date your choice will be invalid and options including the Mercer Australian investment option.
not be acted on, in this event, your Shares and the Mercer Overseas The Mercer Australian Core Shares, the
previous investment option(s) or the Shares (Unhedged) investment options Mercer Australian Growth Shares and
default investment option (where you provide exposure to a number of the Mercer Australian Value Shares
have not made a previous choice) will investment styles, including core, growth investment options are generally
continue to apply. and value. Individual style investment expected to have higher risk
Mercer Income Plus options are also offered which provide characteristics when compared to the
you with the opportunity to invest with a Mercer Australian Shares investment
Mercer Overseas Core Shares particular style of investing (rather than a option. However, there is no guarantee
Mercer Overseas Growth Shares blend of styles) or control the blend of that these expectations will be met over
styles to meet your specific any particular period.
Mercer Overseas Value Shares requirements. The style investment The Mercer Overseas Core Shares, the
Mercer Emerging Markets options are available within the ‘Mercer Mercer Overseas Growth Shares and
Sector’ investment options in this PDS. the Mercer Overseas Value Shares
Mercer Direct Property
Investment options which follow a investment options are generally
Mercer Australian Listed Property
particular investment style and which expected to have similar risk
Mercer Australian Fixed Interest have a benchmark investment in characteristics when compared to the
Mercer Overseas Fixed Interest.” Australian shares are the Mercer Mercer Overseas Shares (Unhedged)
Australian Core Shares, the Mercer investment option. However, there is no
(ii) On pages 28 and 29 of the PDS, Australian Growth Shares, and the guarantee that these expectations will
replace the section headed “The ‘Select- Mercer Australian Value Shares be met over any particular period.
your-Own’ investment options” with the investment options. Investment options
following: You should note that there is a risk that
which follow a particular investment style the performance of any of the individual
and which have a benchmark style investment options could deviate
“The ‘Select-your-Own’ investment in overseas shares are the from the relevant share markets in which
Mercer Overseas Core Shares, the
investment options Mercer Overseas Growth Shares, and
they invest (both positively and
negatively) for extended periods of time.
the Mercer Overseas Value Shares
All the other available investment investment options. The Mercer Target investment options
options make up the Select-your-Own (e.g. Mercer Target 2015) have been
The Mercer Australian Core Shares and designed so that the asset allocation of
options. the Mercer Overseas Core Shares each option will be progressively
They include ‘Mercer Plus’ investment investment options aim to achieve the adjusted to move from the current
options (see below for further details), stated objectives by selecting managers growth (e.g. shares and
specialist investment options invested in who generally invest in a range of property)/defensive (e.g. cash and fixed
one particular asset class or one companies which may have growth interest) asset mix to the
particular style within an asset class and/or value characteristics but without growth/defensive asset mix applicable
(referred to as ‘Mercer Sector’ systematically biasing the overall by their target year (e.g. 2015 for the
investment options in this PDS), ‘Mercer portfolio to either. Mercer Target 2015 investment option).
Target’ investment options (see below The Mercer Australian Growth Shares Over this time, the exposure of each of
for further details), socially responsible and the Mercer Overseas Growth the Mercer Target investment options to
investment options, indexed investment Shares investment options aim to growth assets will fall with a
options (commencing with the word achieve the stated objectives by corresponding increase to the exposure
‘Indexed’) and investment options selecting managers who generally invest of defensive assets and accordingly the
referred to as ‘Non Mercer’ in this PDS. in companies that are expected to suitability and risks of each investment
The Mercer Plus investment options (eg generate a higher level of earnings option will also change.
Mercer Growth Plus) are expected to growth than the market/s relevant to that The Select-your-Own options are
have higher risk and return investment option. described in more detail later in this
characteristics when compared to their section.”
equivalent Mercer investment options
(eg Mercer Growth). However, there is
no guarantee that these expectations
will be met over any particular period.
(iii) Replace page 30 of the PDS, with the following:
“Step 2 – Learn the investment basics
Before we get into explaining the options and how they work, here are a few investment basics
There are lots of different types of
investments, also called asset classes, Growth Investments
for example, shares, property, fixed
interest, alternative assets and cash. Shares Alternative assets
Here’s a brief explanation of the major Property Infrastructure
asset classes that your super can be
invested in. These are types of investments that have the potential to grow over the long term but
are also likely to experience volatility (ups and downs) in performance from year to
year.
Defensive Investments
Alternative assets
Fixed interest
Infrastructure
Cash
High Yield Debt
These are types of investments used when trying to protect the investment from the
chance of a negative return (in other words the value of the investment falls).
Defensive investments tend to produce lower long term but more stable returns than
growth investments.
generally be bought or sold before they
Shares Property mature, potentially resulting in capital
When you buy shares you are actually Investing directly in office buildings, gains or losses.
buying a portion, or share, of a shopping centres, industrial estates and Overseas fixed interest investments are
company. Your investment return will other similar property investments is normally hedged to remove the effect of
depend on how the company performs known as direct property investment. currency movements. Hedging is a
over time and on economic factors. Investors can also buy units in property process of protecting investments
The Australian shares and Australian trusts, which invest in a variety of against, or reducing the risk of a loss.
small companies asset class may properties and property related
companies. These trusts and companies Fixed interest investments are generally
include some investments sourced from expected to be less volatile than shares
overseas as a substitute for Australian may be listed on an Australian stock
exchange or an overseas exchange or and property but with a lower expected
investments. return in the long-term.
they may be unlisted. Overseas property
By investing in overseas shares you are investments may be subject to currency
investing in different economies, which movements which can add to, or take Cash
may assist in reducing overall volatility away from, returns. Cash includes short-term interest
(ups and downs in returns) by increased bearing investments. Generally, the
diversification. Overseas share Like shares, a property investment is
suitable for long-term investment as it likelihood of losing the initial investment
investments (which includes emerging in cash is minimal. While volatility (the
markets) may be subject to currency has the expectation of some ups and
downs in the short-term. chance of ups and downs in value) with
movements which can add to, or take cash is low, the returns are also likely to
away from, the share market return. be lower than those available from fixed
Over the long-term, returns from shares Fixed interest interest, property and shares over the
have in the past tended to be higher Fixed interest investments are issued to long term.
than those achieved by property, fixed investors by Australian and overseas
interest and cash. However, in the short- governments, semi-government
term, performance tends to have more authorities and companies in return for
ups and downs. cash. Interest is paid to the investors
over the life of the investment, usually at
a fixed rate. These investments can
Alternative assets following: next step is to assess, for an option with
a given allocation to growth assets (eg.
Alternative assets generally comprise shares and property) an appropriate mix
those investments which do not fit within “Choosing and of asset classes to give the highest
the traditional broad asset classes (such monitoring investment possible expected return, given the
as shares, property, fixed interest and intended investment approach of that
cash). Examples may include absolute managers investment option. This becomes the
return funds (eg. hedge funds), private recommended benchmark asset
Mercer provides the trustee with a
equity, commodities and various allocation for that option.
comprehensive investment service
structured products.
including managing the selection and Based on Mercer’s experience and
ongoing evaluation of investment expertise, the trustee believes that the
Infrastructure managers, investment manager chosen strategies give the investment
appointments and replacements and options a reasonable probability of
Infrastructure investments are reviews as well as reports on meeting their objectives. There is no
investments made in capital intensive, performance against investment guarantee however, that a particular
long term assets required to fulfil major objectives. objective will be met over a particular
economic and social needs. period.
Characteristics that can be assigned to Mercer uses sophisticated performance
infrastructure investments include the measurement and analytical tools. Changes are made to the objectives and
relatively stable nature of the underlying These quantitative tools are designed to strategies as required in order to ensure
assets and predictable cash flows which complement the extensive qualitative that the objectives continue to have a
are often linked to inflation in some form. research performed into the operations reasonable probability of being attained.
Investors can gain exposure to of investment managers. The overall In addition, the trustee monitors the
infrastructure assets through direct objective of this research is to determine options’ performance against their
investments, unlisted or listed funds with whether the manager has a sustainable objectives, with formal assessments and
the underlying assets themselves being competitive advantage. attribution analysis performed quarterly.
in Australia or overseas. Examples of Details regarding the investment
infrastructure assets may include managers currently used by the trustee How the Mercer Super
airports, toll roads, pipelines, utilities and for each of the investment options can
social infrastructure. be obtained by looking at the Mercer Trust’s assets are
Super Trust website invested
High Yield Debt mercersupertrust.com (after you sign-
in to your member account) or calling The trustee invests the Mercer Super
High Yield Debt securities include loans the Helpline on 1800 810 558. We can Trust’s assets as follows:
and hybrid securities. High yield send you a copy of the updated by appointing professional investment
securities may be riskier than other information, free of charge on request. managers to manage the assets
forms of fixed interest investments (such The trustee may remove, replace, or and/or
as government bonds) and they appoint additional investment managers
generally offer cash yields typically by investing the assets through a
for each of the investment options at its range of trusts (or other investment
superior to other forms of fixed interest discretion.
investments.” vehicles) offered by professional
investment managers and/or the
(iv) On page 31 of the PDS, replace the
paragraph under the heading “Trustee’s
Each of the investment Mercer Investment Funds (MIFs), a
series of wholesale investment trusts.
investment philosophy and approach” options has a set of Professional investment managers are
with the following:
“The trustee has put together a range of
objectives appointed by MINL to manage the
assets of the MIFs either directly or via
investment options that includes all the For each investment option, the trustee external investment vehicles. The
Ready-made and some of the Select- has determined a strategy which it underlying investments of the MIFs are
your-Own investment options (those that believes is reasonably likely to enable invested on an arm’s length basis and
start with ‘Mercer’). These options (we’ll the option to meet its objectives. The are separately identifiable. MINL is the
collectively call them the ‘Mercer strategy includes the selection of a long- trustee or responsible entity of each of
investment options’) are all managed on term mix of investments (asset classes) the MIFs.
what’s called a multi-manager approach. that supports the option’s objectives.
In the sections “Investment philosophy” This mix is chosen after considering the All of the external investments of the
and “Investment approach” we describe advice of Mercer, which also provides Mercer Super Trust are held by National
this approach in more detail.” advice on choosing and monitoring Australia Bank Limited, an independent
investment managers. custodian, including the underlying
(v) On pages 31 and 32 of the PDS, investments of the MIFs. The trustee
replace the sections under the sub- Mercer uses sophisticated financial has not appointed a custodian to hold its
headings “Choosing and monitoring models which use historical data and interest in the MIFs.”
investment managers”, “Each of the economic forecasts to estimate each
investment options has a set of asset class’s future performance. The
“objectives” and “How the Mercer Super model also estimates the probability of
Trust’s assets are invested” with the each projected return occurring. The
19. Investment options and Investment performance
On pages 35 to 56 of the PDS, replace the sections “Step 4 - Making your decision”, “Your Mercer Super Trust investment
options – at a glance”, “Your Mercer Super Trust investment options – in detail”, “Performance of Mercer Super Trust investment
options” and “Performance relative to index” with the following:
“Step 4 – Making your decision
To make this easy we’ve included an at a glance table to give you an overview of all the investment options which is followed by
detailed information on each option. Tables setting out the past performance of the investment options on a single and compound
basis, together with a table of performance relative to a named index, such as CPI (refer to “Option objectives” below for further
details) are also included later in this section of the PDS.
But first… some terms explained
To help you understand the differences between the investment options we’ve explained below some of the terms used in the ‘at a
glance’ table and the Ready-made and Select-your-Own ‘in detail’ sections that follow.
Active investment approach Level of risk to a particular named index such as CPI.
Where this occurs (and the relevant
Managers of investment options with an For each investment option we’ve option has been operating for the full
active approach aim to perform better included the average expected likelihood comparison period) the performance of
than the overall market. of the option giving a negative return (in the option relative to the named index is
other words, falling in value). In this set out in the “Performance relative to
Benchmark and ranges context: index” table included later in this section
The benchmark is the long-term mix of a ‘high’ level of risk means that a of the PDS.
investments. Factors such as the negative return is expected, on Please note that the objectives of any
trustee’s assessment of market average, approximately one year in particular investment option should not
valuations may cause the actual mix to every three to five. be treated, or relied upon as a forecast,
vary from this benchmark but it will indicator or guarantee of any future
a ‘moderately high’ level of risk means
generally stay within the asset allocation returns or performance for that option.
that a negative return is expected, on
ranges. The value of each investment option
average, approximately one year in
may rise and fall.
Consumer Price Index (CPI) every five to six.
a ‘moderate’ level of risk means that a
Is used to measure the rate of inflation.
negative return is expected, on Multi – manager investment
In Australia it’s based on a selection of
household goods and services. average, approximately one year in approach
every six to seven.
More than one specialist manager may
Hedging a ‘moderately low’ level of risk means be appointed to manage assets in each
Hedging refers to the process of that a negative return is expected, on asset class, sector or investment style
protecting investments against, or average, approximately one year in within the investment options.
reducing the risk of, a loss. For example, every seven to nine.
in the context of currency, the value of a ‘low’ level of risk means that a
Socially responsible
overseas investments is affected by negative return is expected on investment approach
rises or falls in the value of the average, less than approximately one
Australian dollar, (eg if the Australian Socially responsible investment involves
year in every nine.
dollar rises in value, then overseas making an investment decision based on
a ‘very low’ level of risk means that a principles of social responsibility in
investments will reduce in value).
positive return is expected over rolling addition to the usual investment criteria.
Investment managers can use various
twelve month periods. See Socially responsible investing
techniques to minimise the effect of
currency movements on overseas Please note that these statements are earlier in this section for further details.
investments – this is currency hedging. based on historical data and shouldn’t
be considered to be a guarantee or
Target benchmark
Indexed investment forecast that a negative return in one The target benchmark is the proposed
approach year will be followed by a positive return mix of investments for the Mercer Target
in the next year. investment options by their target year.
Managers of investment options with an Factors such as the trustee’s
indexed approach (sometimes called a Mix of investments assessment of market valuations may
passive approach) aim to perform in line cause the actual mix to vary from the
This refers to the asset allocation of an
with the overall market. target benchmark but it will generally
investment option.
stay within the asset allocation ranges.
Investment timeframe Option objectives
This is the minimum time you should
These identify the type of return the
consider holding your investment in this
option aims to achieve for investors.
option. This is a guide only.
These are sometimes stated in relation
Your Mercer Super Trust investment options – at a glance
Investment % Growth Investment
Investment option Level of risk
timeframe investments approach
Mercer Shares At least 7 years 100 High
Mercer High Growth At least 6 years 85 Moderately high
Ready-made
Mercer Growth At least 5 years 70 Moderate
Mercer Moderate Growth At least 4 years 50 Moderately low
Mercer Conservative Growth At least 3 years 30 Low
Mercer Cash 1 year or less 0 Very low
Mercer Shares Plus At least 7 years 100 High
Mercer High Growth Plus At least 6 years 85 Moderately high
Mercer Plus
Mercer Growth Plus At least 5 years 70 Moderate
Mercer Australian Shares Plus At least 7 years 100 High
Mercer Overseas Shares Plus (Unhedged) At least 7 years 100 High
Mercer Income Plus# At least 5 years 21 Low
Mercer Australian Shares At least 7 years 100 High
Mercer Australian Core Shares At least 7 years 100 High
Mercer Australian Growth Shares At least 7 years 100 High
Mercer Australian Value Shares At least 7 years 100 High
Mercer Australian Small Companies At least 7 years 100 High
Mercer Overseas Shares (Unhedged) At least 7 years 100 High
Multi–manager
Mercer Overseas Shares (Currency Managed)^ At least 7 years 100 High
Mercer Overseas Core Shares# At least 7 years 100 High
Mercer Sector
Mercer Overseas Growth Shares# At least 7 years 100 High
Mercer Overseas Value Shares# At least 7 years 100 High
Mercer Overseas Small Companies At least 7 years 100 High
Mercer Emerging Markets# At least 7 years 100 High
Mercer Property At least 7 years 100 High
Mercer Direct Property# At least 7 years 100 High
Select-your-Own
Mercer Australian Listed Property# At least 7 years 100 High
Mercer Overseas Listed Property At least 7 years 100 High
Mercer Fixed Interest At least 3 years 0 Moderately low
Mercer Australian Fixed Interest# At least 3 years 0 Moderately low
Mercer Overseas Fixed Interest# At least 3 years 0 Moderately low
Mercer Diversified Alternatives At least 5 years 0 Moderately low
Socially Mercer Target
Mercer Target 2015* At least 5 years 65->50* Moderate-> Moderately low*
Mercer Target 2025* At least 6 years 80->50* Moderately high-> Moderately low*
Mercer Target 2035* At least 7 years 90->50* Moderately high-> Moderately low*
Mercer Target 2045* At least 7 years 100->50* High-> Moderately low*
Responsible
Mercer Socially Responsible Shares At least 7 years 100 Multi- High
Mercer
manager/
Socially
Mercer Socially Responsible Growth At least 5 years 70 responsible Moderate
Indexed Shares At least 7 years 100 High
Indexed Australian Shares At least 7 years 100 High
Indexed
Indexed Overseas Shares At least 7 years 100 Indexed High
Indexed Growth At least 5 years 70 Moderate
Indexed Conservative Growth At least 3 years 30 Low
Non Mercer Growth – Multi-Manager Style At least 5 years 79 Moderate
Multi-manager
Non Mercer
Non Mercer Balanced – Multi-Manager Style At least 5 years 70 Moderate
Non Mercer Balanced – Core Style At least 5 years 74 Moderate
Non Mercer Balanced – Value Style At least 5 years 67 Active Moderate
Non Mercer Conservative At least 3 years 33 Low
* The exposure to growth assets (and therefore the level of risk) reduces as these investment options approach their target year (eg 2015 for the Mercer Target 2015 investment option).
# These investment options are only available from 1 September 2008.
^ The name of this investment option will change to Mercer Hedged Overseas Shares on 1 September 2008.
Your Mercer Super Trust investment options – In detail
Your Ready-made investment options
Mercer Shares Mercer High Growth Mercer Growth
Objective Objectives Objective
achieve a return (after tax and investment achieve a return (after tax and investment achieve a return (after tax and investment
management fees) that exceeds CPI increases by management fees) that exceeds CPI increases management fees) that exceeds CPI
at least 4% pa over rolling seven year periods by at least 3.5% pa over rolling six year periods increases by at least 3% pa over rolling five
achieve a return (over the medium to longer year periods
term) which is competitive with comparable funds achieve a return (over the medium to
that have a similar allocation to growth assets longer term) which is competitive with
and similar risk characteristics comparable funds that have a similar
allocation to growth assets and similar risk
characteristics
Level of risk Level of risk Level of risk
High Moderately high Moderate
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth Growth
80-90 85 65-75 70
Australian shares (f) 30-70 50 investments investments
Overseas shares (a) Australian shares Australian shares
30-70 50 31-51 41 23-43 33
(g) (f) (f)
Defensive Overseas shares Overseas shares
0-10 0 24-44 34 17-37 27
investments (a) (g) (a) (g)
Cash & fixed interest 0-10 0 Property & Property &
0-20 10 0-20 10
Infrastructure (b) Infrastructure (b)
Defensive Defensive
10-20 15 25-35 30
investments investments
Australian fixed Australian fixed
0-5 2.5 0-10 5
interest (c) interest (c)
Overseas fixed Overseas fixed
0-5 2.5 0-10 5
interest (d) interest (d)
Cash 0-5 0 Cash 0-20 10
Alternative assets Alternative
0-20 10 0-20 10
(b) assets (b)
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers for The trustee selects the investment managers The trustee selects the investment
this option. for this option. managers for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
(f) Includes exposure to small companies.
(g) Includes exposure to small companies and emerging markets.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Ready-made investment options
Mercer Moderate Growth Mercer Conservative Growth Mercer Cash
Objectives Objectives Objective
achieve a return (after tax and investment achieve a return (after tax and investment maintain the invested capital and achieve a
management fees) that exceeds CPI increases by management fees) that exceeds CPI increases by return (before tax and investment management
at least 2.5% pa over rolling four year periods at least 2% pa over rolling three year periods fees) above that available on bank bills as
achieve a return (over the medium to longer term) achieve a return (over the medium to longer term) measured by the UBSWA Bank Bill Index on an
which is competitive with comparable funds that which is competitive with comparable funds that annual basis
have a similar allocation to growth assets and have a similar allocation to growth assets and
similar risk characteristics similar risk characteristics
Level of risk Level of risk Level of risk
Moderately low Low Very low
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth Growth
45-55 50 25-35 30
investments investments Growth investments 0
Australian shares Australian shares
12-32 22 1-21 11 Defensive investments 100
(f) (f)
Overseas shares Overseas shares
8-28 18 0-19 9 Cash 100
(a) (g) (a) (g)
Property & Property &
0-20 10 0-20 10
Infrastructure (b) Infrastructure (b)
Defensive Defensive
45-55 50 65-75 70
investments investments
Australian fixed Australian fixed
0-20 10 0-30 15
interest (c) interest (c)
Overseas fixed Overseas fixed
0-20 10 0-30 15
interest (d) interest (d)
Cash 10-30 20 Cash 20-40 30
Alternative assets Alternative assets
0-20 10 0-20 10
(b) (b)
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers for The trustee selects the investment managers for The trustee selects the investment managers
this option. this option. for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
(f) Includes exposure to small companies.
(g) Includes exposure to small companies and emerging markets.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Mercer Shares Plus Mercer High Growth Plus Mercer Growth Plus
Objective Objectives Objectives
achieve a return (after tax and investment achieve a return (after tax and investment achieve a return (after tax and investment
management fees) that exceeds CPI increases management fees) that exceeds CPI increases management fees) that exceeds CPI increases
by at least 4.5% pa over rolling seven year by at least 4% pa over rolling six year periods by at least 3.5% pa over rolling five year periods
periods achieve a return (over the medium to longer achieve a return (over the medium to longer
term) which is competitive with comparable term) which is competitive with comparable
funds that have a similar allocation to growth funds that have a similar allocation to growth
assets and similar risk characteristics assets and similar risk characteristics
Level of risk Level of risk Level of risk
High Moderately high Moderate
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth Growth Growth
90-100 100 75-95 85 60-80 70
investments investments investments
Australian shares Australian shares Australian shares
30-70 50 22-52 37.5 15-45 30
(f) (f) (f)
Overseas shares Overseas shares Overseas shares
30-70 50 20-50 35.5 13-43 28
(a) (g) (a) (g) (a) (g)
Property & Property & Property &
0-10 0 0-25 12 0-25 12
Infrastructure (b) Infrastructure (b) Infrastructure (b)
Defensive Defensive Defensive
0-10 0 5-25 15 20-40 30
investments investments investments
Cash & fixed Australian fixed Australian fixed
0-10 0 0-10 0 0-10 2.5
interest interest (c) interest (c)
Overseas fixed Overseas fixed
0-10 0 0-20 7.5
interest (d) interest (d)
Cash 0-10 0 Cash 0-20 0
Alternative assets Alternative assets
0-30 15 0-40 20
(b) (b)
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers The trustee selects the investment managers The trustee selects the investment managers
for this option. for this option. for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
(f) Includes exposure to small companies.
(g) Includes exposure to small companies and emerging markets.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Mercer Australian Shares Mercer Overseas Shares Mercer Income Plus
Plus Plus (Unhedged)
Objectives Objectives Objective
achieve a return (over the medium to longer achieve a return (over the medium to longer achieve a return (before investment
term) which is competitive with comparable term) which is competitive with comparable management fees) of at least 2.5% per annum
funds that have similar risk characteristics funds that have similar risk characteristics above the UBSWA Bank Bill Index over rolling
outperform the notional return of a benchmark outperform the notional return of a benchmark five year periods
portfolio of suitable market indices over periods portfolio of suitable market indices over periods
of one year or greater of one year or greater Note: this investment option is only available from
1 September 2008.
Level of risk Level of risk Level of risk
High High Low
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 90-100 100 Growth investments 11-31 21
Australian shares 90-100 100 Overseas shares (e) 90-100 100 Australian shares 0-12 6
Defensive investments 0-10 0 Defensive investments 0-10 0 Overseas shares (a) 0-12 0
Cash & fixed interest 0-10 0 Cash & fixed interest 0-10 0 Australian listed property 0-12 6
Australian direct property 3-15 9
Defensive investments 69-89 79
Infrastructure (b) 3-15 9
Alternative assets (b) 6-24 15
High yield debt (c) 20-40 30
Fixed interest (d) 10-30 20
Cash 0-10 5
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers The trustee selects the investment managers The trustee selects the investment managers
for this option. for this option. for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Mercer Australian Shares Mercer Australian Core Mercer Australian Growth
Shares Shares
Objectives Objectives Objectives
achieve a return (over the medium to longer outperform the notional return of a benchmark outperform the notional return of a benchmark
term) which is competitive with comparable portfolio of suitable market indices over periods portfolio of suitable market indices over periods
funds that have similar risk characteristics of five years or greater of five years or greater
outperform the notional return of a benchmark
portfolio of suitable market indices over periods
of one year or greater
Level of risk Level of risk Level of risk
High High High
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi- manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 90-100 100 Growth investments 90-100 100
Australian shares 90-100 100 Australian shares 90-100 100 Australian shares 90-100 100
Defensive investments 0-10 0 Defensive investments 0-10 0 Defensive investments 0-10 0
Cash & fixed interest 0-10 0 Cash & fixed interest 0-10 0 Cash & fixed interest 0-10 0
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers The trustee selects the investment managers The trustee selects the investment managers
for this option. for this option. for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Mercer Australian Value Mercer Australian Small Mercer Overseas Shares
Shares Companies (Unhedged)
Objectives Objectives Objectives
outperform the notional return of a benchmark achieve a return (over the medium to longer achieve a return (over the medium to longer
portfolio of suitable market indices over periods term) which is competitive with comparable term) which is competitive with comparable
of five years or greater funds that have similar risk characteristics funds that have similar risk characteristics
outperform the notional return of a benchmark outperform the notional return of a benchmark
portfolio of suitable market indices over periods portfolio of suitable market indices over periods
of one year or greater of one year or greater
Level of risk Level of risk Level of risk
High High High
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 90-100 100 Growth investments 90-100 100
Australian shares 90-100 100 Australian small company Overseas shares (e) 90-100 100
90-100 100
shares
Defensive investments 0-10 0 Defensive investments 0-10 0
Defensive investments 0-10 0
Cash & fixed interest 0-10 0 Cash & fixed interest 0-10 0
Cash & fixed interest 0-10 0
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers The trustee selects the investment managers The trustee selects the investment managers
for this option. for this option. for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Mercer Overseas Shares Mercer Overseas Core Mercer Overseas Growth
(Currency Managed)^ Shares Shares
^ The name of this investment option will change to Mercer
Hedged Overseas Shares on 1 September 2008.
Objectives Objectives Objectives
outperform the notional return of a benchmark outperform the notional return of a benchmark outperform the notional return of a benchmark
portfolio of suitable market indices over periods portfolio of suitable market indices over periods portfolio of suitable market indices over periods
of one year or greater of one year or greater of one year or greater
Note: this investment option is only available from Note: this investment option is only available from
1 September 2008. 1 September 2008.
Level of risk Level of risk Level of risk
High High High
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 90-100 100 Growth investments 90-100 100
Overseas shares (d)* 90-100 100 Overseas shares (e) 90-100 100 Overseas shares (e) 90-100 100
Defensive investments 0-10 0 Defensive investments 0-10 0 Defensive investments 0-10 0
Cash & fixed interest 0-10 0 Cash & fixed interest 0-10 0 Cash & fixed interest 0-10 0
* Up to 1 September 2008, this investment
option has foreign currency exposure ranging
from partially to fully hedged to Australian
dollars.
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers The trustee selects the investment managers The trustee selects the investment managers
for this option. for this option. for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Mercer Overseas Value Mercer Overseas Small Mercer Emerging Markets
Shares Companies
Objective Objective Objective
outperform the notional return of a benchmark outperform the notional return of a benchmark outperform the notional return of a benchmark
portfolio of suitable market indices over periods portfolio of suitable market indices over periods portfolio of suitable market indices over periods
of one year or greater of one year or greater of one year or greater
Note: this investment option is only available from Note: this investment option is only available from
1 September 2008. 1 September 2008.
Level of risk Level of risk Level of risk
High High High
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 80-100 100 Growth investments 80-100 100
Overseas shares (e) 90-100 100 Overseas small Emerging markets (e) 80-100 100
80-100 100
companies (e)
Defensive investments 0-10 0 Defensive investments 0-20 0
Defensive investments 0-20 0
Cash & fixed interest 0-10 0 Cash & fixed interest 0-20 0
Cash & fixed interest 0-20 0
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers The trustee selects the investment managers The trustee selects the investment managers
for this option. for this option. for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Mercer Property Mercer Direct Property Mercer Australian Listed
Property
Objective Objective Objective
outperform the notional return of a benchmark outperform the notional return of a benchmark outperform the notional return of a benchmark
portfolio of suitable market indices over periods portfolio of suitable market indices over periods portfolio of suitable market indices over periods
of one year or greater of one year or greater of one year or greater
Note: this investment option is only available from Note: this investment option is only available from
1 September 2008. 1 September 2008.
Level of risk Level of risk Level of risk
High High High
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 80-100 100 Growth investments 90-100 100
Property (b) 90-100 100 Direct property 80-100 100 Australian listed property 90-100 100
Defensive investments 0-10 0 Defensive investments 0-20 0 Defensive investments 0-10 0
Cash & fixed interest 0-10 0 Cash & fixed interest 0-20 0 Cash & fixed interest 0-10 0
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers The trustee selects the investment managers The trustee selects the investment managers
for this option. for this option. for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Mercer Overseas Listed Mercer Fixed Interest Mercer Australian Fixed
Property Interest
Objective Objective Objective
outperform the notional return of a benchmark outperform the notional return of a benchmark outperform the notional return of a benchmark
portfolio of suitable market indices over periods portfolio of suitable market indices over periods portfolio of suitable market indices over periods
of one year or greater of one year or greater of one year or greater
Note: this investment option is only available from
1 September 2008.
Level of risk Level of risk Level of risk
High Moderately low Moderately low
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 0 Growth investments 0
Overseas listed property Defensive investments 100 Defensive investments 100
90-100 100
(a)
Australian fixed interest (c) 30-75 50 Australian fixed interest (c) 70-100 100
Defensive investments 0-10 0
Overseas fixed interest (d) 25-75 50 Cash 0-30 0
Cash & fixed interest 0-10 0
Cash 0-30 0
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers The trustee selects the investment managers The trustee selects the investment managers
for this option. for this option. for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Mercer Overseas Fixed Interest Mercer Diversified Mercer Target 2015
Alternatives
Objective Objective Objective
outperform the notional return of a benchmark achieve a return (before tax and investment Outperform the notional benchmark of
portfolio of suitable market indices over periods of management fees) of at least 3.5% pa above the suitable market indices (as it varies toward
one year or greater return on bank bills as measured by the UBSWA the target date of the option) over periods
Bank Bill Index over rolling five year periods. of one year or greater
Note: this investment option is only available from 1
September 2008.
Level of risk Level of risk Level of risk
Moderately low Moderately low Moderate moving to moderately low as the
target date approaches
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Target
Range Benchmark Range Benchmark Range
Bench
Bench
% % % % mark
% mark
%
%
Growth investments 0 Growth investments 0 Growth
45-70 62 50
investments
Defensive investments 100 Defensive investments 100 Australian shares
10-41 28.6 22
(f)
Overseas fixed interest (d) 70-100 100 Alternative assets (b) 70-100 100 Overseas shares
10-39 23.4 18
(a) (g)
Cash 0-30 0 Cash & fixed interest 0-30 0
Property &
5-15 10 10
Infrastructure (b)
Defensive
30-55 38 50
investments
Australian fixed
0-24 7 10
interest (c)
Overseas fixed
0-20 7 10
interest (d)
Cash 4-30 14 20
Alternative assets
0-15 10 10
(b)
As at 1 July 2008, the option’s benchmark will be a
62/38 mix of growth and defensive investments. The
benchmark allocation between growth and
defensive investments will generally change by
between 1% to 2% per annum as the option
approaches its target year of 2015 resulting in a
50/50 target benchmark mix of growth and
defensive investment by the target year.
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers for The trustee selects the investment managers The trustee selects the investment
this option. for this option. managers for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
(f) Includes exposure to small companies.
(g) Includes exposure to small companies and emerging markets.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Mercer Target 2025 Mercer Target 2035 Mercer Target 2045
Objective Objective Objective
Outperform the notional benchmark of suitable Outperform the notional benchmark of suitable Outperform the notional benchmark of suitable
market indices (as it varies toward the target date market indices (as it varies toward the target date market indices (as it varies toward the target
of the option) over periods of one year or greater of the option) over periods of one year or greater date of the option) over periods of one year or
greater
Level of risk Level of risk Level of risk
Moderately high moving to moderately low as the Moderately high moving to moderately low as the High moving to moderately low as the target
target date approaches target date approaches date approaches
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Target Target Target
Bench Bench Bench
Range Bench Range Bench Range Bench
mark mark mark
% mark % mark % mark
% % %
% % %
Growth investments 45-85 77 50 Growth investments 45-95 88 50 Growth investments 45-100 98 50
Australian shares (f) 10-49 36.8 22 Australian shares (f) 10-53 43 22 Australian shares (f) 10-60 48.4 22
Overseas shares (a) Overseas shares (a) Overseas shares (a)
10-45 30.2 18 10-50 35 18 10-55 39.6 18
(g) (g) (g)
Property & Property & Property &
5-15 10 10 5-15 10 10 5-15 10 10
Infrastructure (b) Infrastructure (b) Infrastructure (b)
Defensive Defensive Defensive
15-55 23 50 5-55 12 50 0-55 2 50
investments investments investments
Australian fixed Australian fixed Australian fixed
0-24 4 10 0-24 1.75 10 0-24 0.3 10
interest (c) interest (c) interest (c)
Overseas fixed Overseas fixed Overseas fixed
0-20 4 10 0-20 1.75 10 0-20 0.2 10
interest (d) interest (d) interest (d)
Cash 0-30 5 20 Cash 0-30 0 20 Cash 0-30 0 20
Alternative assets (b) 0-15 10 10 Alternative assets (b) 0-15 8.5 10 Alternative assets (b) 0-15 1.5 10
As at 1 July 2008, the option’s benchmark will be a 77/23 As at 1 July 2008, the option’s benchmark will be a 88/12 As at 1 July 2008, the option’s benchmark will be a 98/2
mix of growth and defensive investments. The benchmark mix of growth and defensive investments. The benchmark mix of growth and defensive investments. The
allocation between growth and defensive investments will allocation between growth and defensive investments will benchmark allocation between growth and defensive
generally change by between 1% to 2% per annum as the generally change by between 1% to 2% per annum as the investments will generally change by between 1% to 2%
option approaches its target year of 2025 resulting in a option approaches its target year of 2035 resulting in a per annum as the option approaches its target year of
50/50 target benchmark mix of growth and defensive 50/50 target benchmark mix of growth and defensive 2045 resulting in a 50/50 target benchmark mix of growth
investment by the target year. investment by the target year. and defensive investment by the target year.
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers The trustee selects the investment managers The trustee selects the investment managers
for this option. for this option. for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
(f) Includes exposure to small companies.
(g) Includes exposure to small companies and emerging markets.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Mercer Socially Responsible Mercer Socially Responsible Indexed Shares
Shares Growth
Objective Objective Objective
achieve a return (after tax and investment achieve a return (after tax and investment match the notional return of a benchmark
management fees) that exceeds CPI increases management fees) that exceeds CPI increases portfolio of suitable market indices over periods
by at least 4% pa over rolling seven year by at least 3% pa over rolling five year periods of one year or greater
periods.
Level of risk Level of risk Level of risk
High Moderate High
Investment approach Investment approach Investment approach
Multi-manager and socially responsible. See Multi-manager and socially responsible. See Indexed
‘Socially responsible investing’ earlier in this ‘Socially responsible investing’ earlier in this
section for details as to what and how SRI section for details as to what and how SRI
considerations are applied to this option considerations are applied to this option
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark
% % % %
Growth investments 90-100 100 Growth Range Benchmark
65-75 70 % %
Australian shares 30-70 50 investments
Overseas shares (a) 30-70 50 Australian shares 23-43 33
Growth
Defensive Overseas shares 90-100 100
0-10 0 17-37 27 investments
investments (a)
Cash & fixed interest 0-10 0 Property & Australian Shares 40-70 50
0-20 10
Infrastructure (b)
Defensive Overseas Shares (a) 40-70 50
25-35 30
investments
Australian fixed Defensive
0-10 5 0-10 0
interest (c) investments
Overseas fixed Cash & fixed interest 0-10 0
0-10 5
interest (d)
Cash 0-20 10
Alternative assets
0-20 10
(b)
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers The trustee selects the investment managers
The trustee selects the investment managers for this option.
for this option. for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Indexed Australian Shares Indexed Overseas Shares Indexed Growth
Objective Objective Objectives
match the notional return of a benchmark match the notional return of a benchmark achieve a return (after tax and investment
portfolio of suitable market indices over periods portfolio of suitable market indices over periods management fees) that exceeds CPI increases
of one year or greater of one year or greater by at least 3% pa over rolling five year periods
achieve a return (over the medium to longer
term) which is competitive with comparable
funds that have a similar allocation to growth
assets and similar risk characteristics
Level of risk Level of risk Level of risk
High High Moderate
Investment approach Investment approach Investment approach
Indexed Indexed Indexed
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 90-100 100 Growth investments 68-72 70
Australian Shares 90-100 100 Overseas shares (e) 90-100 100 Australian shares 35-39 37
Defensive investments 0-10 0 Defensive investments 0-10 0 Overseas shares (e) 22-28 25
Cash & fixed interest 0-10 0 Cash & fixed interest 0-10 0 Property (b) 7-9 8
Defensive investments 28-32 30
Australian fixed interest 9-13 11
Overseas fixed interest (d) 15-19 17
Cash 1-3 2
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers The trustee selects the investment managers
The trustee selects the investment managers for this option.
for this option. for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Indexed Conservative Non Mercer Growth – Multi- Non Mercer Balanced –
Growth Manager style Multi-Manager style
Objectives Objective Objective
achieve a return (after tax and investment deliver returns, net of tax and investment deliver returns, net of tax and investment
management fees) that exceeds CPI increases management fees, in excess of CPI plus 3.5% management fees, in excess of CPI plus 3% on
by at least 2% pa over rolling three year periods on average per annum over the longer term (eg average per annum over the longer term (eg
achieve a return (over the medium to longer rolling 5 year basis) rolling 5 year basis)
term) which is competitive with comparable
funds that have a similar allocation to growth
assets and similar risk characteristics
Level of risk Level of risk Level of risk
Low Moderate Moderate
Investment approach Investment approach Investment approach
Indexed Multi-Manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 28-32 30 Growth investments 79 Growth investments 70
Australian shares 14-18 16 Australian shares 33-37 35 Australian shares 30-34 32
Overseas shares (e) 9-11 10 Overseas shares (a) 31-39 35 Overseas shares (a) 24-32 28
Property (b) 3-5 4 Property 1-5 3 Property 2-6 4
Defensive investments 68-72 70 Alternative assets 4-8 6 Alternative assets 4-8 6
Australian fixed interest 9-13 11 Defensive investments 21 Defensive investments 30
Overseas fixed interest (d) 15-19 17 Australian fixed interest 6-15 10.3 Australian fixed interest 11-20 15.2
Cash 40-44 42 Overseas fixed interest (d) 8-13 10.7 Overseas fixed interest (d) 12-17 14.8
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers for this The trustee selects the investment managers for this The trustee selects the investment managers for this
option. option. option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
Your Mercer Super Trust investment options – In detail
(continued)…
Your Select-your-Own investment options
Non Mercer Balanced – Core Non Mercer Balanced – Non Mercer Conservative
Style Value Style
Objective Objective Objective
provide moderate to higher returns over the provide a superior return relative to the average provide returns greater than those from cash
medium to long term through a portfolio of other pooled funds over rolling three year over the medium term through a diversified
diversified across all asset types, but with an periods portfolio with a core of cash and bonds and
emphasis on shares and property some exposure to shares and property
Level of risk Level of risk Level of risk
Moderate Moderate Low
Investment approach Investment approach Investment approach
Active Active Active
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 74 Growth investments 50-85 67 Growth investments 33
Australian shares 25-47 35 Australian shares 20-60 40 Australian shares 5-25 14
Overseas shares (a) 15-40 21 Overseas shares (a) 5-25 15 Overseas shares (a) 0-20 7
Property (b) 2-30 13 Property 5-20 12 Property (b) 0-20 10
Alternative assets 0-10 5 Defensive investments 15-50 33 Alternative assets 0-5 2
Defensive investments 26 Australian fixed interest 10-50 23 Defensive investments 67
Australian fixed interest 5-30 15 Cash 0-25 5 Australian fixed interest 15-45 28
Overseas fixed interest (d) 0-15 6 Alternative assets 0-10 5 Overseas fixed interest (d) 5-25 13
Cash 0-20 5 Cash 10-50 26
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects the investment managers for this The trustee selects the investment managers for this The trustee selects the investment managers for this
option. option. option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
Performance of Mercer Super Trust investment options
The following tables show the performance of the investment options on both a single year and compound return basis.
Single year and compound returns are calculated assuming that $1 is invested at the start of the relevant period and that no
further amounts are invested over the period. They are based on exit prices and allow for the deduction of tax and investment
management fees (but not administration fees).
Compound returns are calculated as the average of annual returns. For example, if returns are 5%, 6% and 7% over three
consecutive years, the compound return is 6% per annum, as the same result could be achieved by earning a return of 6% in each
of the three years.
When considering investment decisions, please remember that investment returns over a short time frame (one or two years)
should not be considered in isolation. Time frames of five years or longer will provide a more accurate indication of the overall
long-term performance of an investment option. In addition, different investment options may have different levels of risk (see
‘Mercer Super Investment options – at a glance’ earlier in this section), which may lead to different investment returns for each
investment option. Finally, don’t forget that the value of investments can go up and down (through positive or negative
returns) and past performance should not be relied upon as an indicator of future performance.
How to get up to date returns
The performance information contained in this PDS is up to date at the time of its preparation. In future you can obtain updated
performance information by visiting our website at mercersupertrust.com (after you sign-in to your member account) or calling
the Helpline on 1800 810 558. We can send you a copy of the updated information, free of charge, on request. Performance is
also reported in the regular Mercer Super Trust newsletter.
Performance of Mercer Super Trust investment options
Single year returns – performance for 12 months ending 31 May
Commencement 2008 2007 2006 2005 2004
Investment option
Date % % % % %
Mercer Shares 5 Jun 1996 -8.7 21.8 22.1 14.9 15.8
Ready-made
Mercer High Growth 7 Aug 2002 -6.0 19.9 18.9 14.0 13.9
Mercer Growth 20 Mar 1996 -4.6 17.5 16.4 13.2 11.1
Mercer Moderate Growth 9 Oct 2002 -2.4 13.7 12.7 11.2 8.8
Mercer Conservative Growth 3 Jul 1996 -0.1 10.0 8.9 8.7 5.8
Mercer Cash 29 May 1996 5.1 5.1 4.7 4.4 3.9
Mercer Shares Plus 7 Jul 2005 -9.0 22.2 na na na
Mercer High Growth Plus 7 Jul 2005 -6.8 19.9 na na na
Mercer Plus
Mercer Growth Plus 7 Jul 2005 -4.7 18.3 na na na
Mercer Australian Shares Plus 5 Aug 2005 -5.3 27.4 na na na
Mercer Overseas Shares Plus (Unhedged) 14 Jul 2005 -15.4 11.9 na na na
Mercer Income Plus# ^ na na na na na
Mercer Australian Shares 31 Aug 1998 -5.1 27.6 24.7 22.0 18.7
Mercer Australian Core Shares 26 Apr 2007 -5.3 na na na na
Mercer Australian Growth Shares 25 Jan 2007 -5.4 na na na na
Mercer Australian Value Shares 9 Mar 2007 -4.8 na na na na
Mercer Australian Small Companies 5 Aug 2005 -18.1 38.2 na na na
Mercer Overseas Shares (Unhedged) 31 Aug 1998 -14.6 11.6 19.8 5.4 9.8
Mercer Overseas Shares (Currency Managed)* 23 Aug 2005 -12.2 16.0 na na na
Mercer Overseas Core Shares# ^ na na na na na
Mercer Sector
Mercer Overseas Growth Shares# ^ na na na na na
Mercer Overseas Value Shares# ^ na na na na na
Mercer Overseas Small Companies 28 Jul 2005 -11.6 12.9 na na na
Mercer Emerging Markets# ^ na na na na na
Mercer Property 7 Jul 2005 -11.0 22.0 na na na
Mercer Direct Property# ^ na na na na na
Select-your-Own
Mercer Australian Listed Property# ^ na na na na na
Mercer Overseas Listed Property 23 Aug 2005 -16.6 29.5 na na na
Mercer Fixed Interest 28 Jul 2005 3.2 4.2 na na na
Mercer Australian Fixed Interest# ^ na na na na na
Mercer Overseas Fixed Interest# ^ na na na na na
Mercer Diversified Alternatives 7 Jul 2005 1.6 9.0 na na na
Mercer Target 2015 21 Jun 2006 -4.0 na na na na
Mercer
Target
Mercer Target 2025 25 Jun 2007 na na na na na
Mercer Target 2035 8 Dec 2006 -7.4 na na na na
Mercer Target 2045 11 Oct 2006 -8.0 na na na na
Responsible
Mercer Socially Responsible Shares 6 Jul 2005 -9.8 24.1 na na na
Socially
Mercer
Mercer Socially Responsible Growth 6 Jul 2005 -5.3 18.3 na na na
Indexed Shares 11 Jul 2005 -8.6 21.7 na na na
Indexed Australian Shares 7 Jul 2005 -5.7 27.9 na na na
Indexed
Indexed Overseas Shares 7 Jul 2005 -14.7 11.1 na na na
Indexed Growth 7 Jul 2005 -5.9 16.9 na na na
Indexed Conservative Growth 7 Jul 2005 -0.2 8.8 na na na
Non Mercer Growth – Multi-Manager Style 11 Jul 2005 -4.1 15.2 na na na
Non Mercer
Non Mercer Balanced – Multi-Manager style 19 Jul 2005 -4.3 13.5 na na na
Non Mercer Balanced – Core Style 7 Jul 2005 -3.5 18.6 na na na
Non Mercer Balanced – Value Style 20 Mar 1996 -4.0 15.3 12.7 12.0 13.3
Non Mercer Conservative 18 Jul 2005 0.1 11.1 na na na
Notes
The ‘commencement date’ is the date the investment option received its first investment under the Mercer Super Trust.
^ indicates that the investment option has not commenced at the date of this table.
‘na’ indicates that an investment option has been operating for less than the relevant period.
# These investment options are only available from 1 September 2008.
* The name of this investment option will change to Mercer Hedged Overseas Shares on 1 September 2008.
Past performance is not a reliable indicator of future performance.
Compound annual returns – performance for periods ending 31 May 2008
Commencement 1 year 2 years 3 years 4 years 5 years
Investment option
Date % % pa % pa % pa % pa
Mercer Shares 5 Jun 1996 -8.7 5.4 10.7 11.8 12.6
Ready-made
Mercer High Growth 7 Aug 2002 -6.0 6.2 10.3 11.2 11.7
Mercer Growth 20 Mar 1996 -4.6 5.9 9.3 10.3 10.4
Mercer Moderate Growth 9 Oct 2002 -2.4 5.3 7.7 8.6 8.6
Mercer Conservative Growth 3 Jul 1996 -0.1 4.8 6.2 6.8 6.6
Mercer Cash 29 May 1996 5.1 5.1 5.0 4.8 4.6
Mercer Shares Plus 7 Jul 2005 -9.0 5.5 na na na
Mercer High Growth Plus 7 Jul 2005 -6.8 5.7 na na na
Mercer Plus
Mercer Growth Plus 7 Jul 2005 -4.7 6.2 na na na
Mercer Australian Shares Plus 5 Aug 2005 -5.3 9.8 na na na
Mercer Overseas Shares Plus (Unhedged) 14 Jul 2005 -15.4 -2.7 na na na
Mercer Income Plus# ^ na na na na na
Mercer Australian Shares 31 Aug 1998 -5.1 10.1 14.7 16.5 17.0
Mercer Australian Core Shares 26 Apr 2007 -5.3 na na na na
Mercer Australian Growth Shares 25 Jan 2007 -5.4 na na na na
Mercer Australian Value Shares 9 Mar 2007 -4.8 na na na na
Mercer Australian Small Companies 5 Aug 2005 -18.1 6.4 na na na
Mercer Overseas Shares (Unhedged) 31 Aug 1998 -14.6 -2.4 4.5 4.7 5.7
Mercer Overseas Shares (Currency Managed)* 23 Aug 2005 -12.2 0.9 na na na
Mercer Overseas Core Shares# ^ na na na na na
Mercer Sector
Mercer Overseas Growth Shares# ^ na na na na na
Mercer Overseas Value Shares# ^ na na na na na
Mercer Overseas Small Companies 28 Jul 2005 -11.6 -0.1 na na na
Mercer Emerging Markets# ^ na na na na na
Mercer Property 7 Jul 2005 -11.0 4.2 na na na
Mercer Direct Property# ^ na na na na na
Select-your-Own
Mercer Australian Listed Property# ^ na na na na na
Mercer Overseas Listed Property 23 Aug 2005 -16.6 3.9 na na na
Mercer Fixed Interest 28 Jul 2005 3.2 3.7 na na na
Mercer Australian Fixed Interest# ^ na na na na na
Mercer Overseas Fixed Interest# ^ na na na na na
Mercer Diversified Alternatives 7 Jul 2005 1.6 5.2 na na na
Mercer Target 2015 21 Jun 2006 -4.0 na na na na
Mercer
Target
Mercer Target 2025 25 Jun 2007 na na na na na
Mercer Target 2035 8 Dec 2006 -7.4 na na na na
Mercer Target 2045 11 Oct 2006 -8.0 na na na na
Responsible
Mercer Socially Responsible Shares 6 Jul 2005 -9.8 5.8 na na na
Socially
Mercer
Mercer Socially Responsible Growth 6 Jul 2005 -5.3 5.9 na na na
Indexed Shares 11 Jul 2005 -8.6 5.5 na na na
Indexed Australian Shares 7 Jul 2005 -5.7 9.8 na na na
Indexed
Indexed Overseas Shares 7 Jul 2005 -14.7 -2.6 na na na
Indexed Growth 7 Jul 2005 -5.9 4.9 na na na
Indexed Conservative Growth 7 Jul 2005 -0.2 4.2 na na na
Non Mercer Growth – Multi-Manager Style 11 Jul 2005 -4.1 5.1 na na na
Non Mercer
Non Mercer Balanced – Multi-Manager style 19 Jul 2005 -4.3 4.2 na na na
Non Mercer Balanced – Core Style 7 Jul 2005 -3.5 7.0 na na na
Non Mercer Balanced – Value Style 20 Mar 1996 -4.0 5.2 7.7 8.7 9.6
Non Mercer Conservative 18 Jul 2005 0.1 5.5 na na na
Notes
The ‘commencement date’ is the date the investment option received its first investment under the Mercer Super Trust.
^ indicates that the investment option has not commenced at the date of this table.
‘na’ indicates that an investment option has been operating for less than the relevant period.
# These investment options are only available from 1 September 2008.
* The name of this investment option will change to Mercer Hedged Overseas Shares on 1 September 2008.
Past performance is not a reliable indicator of future performance.
Performance relative to index – for comparison periods ending
31 March 2008
Where an objective of an investment option is stated in relation to a particular named index, eg CPI, (and that investment option
has been operating for the full comparison period) the performance of the investment option relative to that objective and index is
shown for the comparison period in the table below. Where an investment option has not been operating for the full comparison
period, no comparative performance has been included in the table below.
Rolling (compound) returns are calculated as the average annual returns over the comparison period.
Please remember however that past performance should not be relied upon as an indicator of future performance.
Investment option Commencement Comparison Objective over Comparison Investment Comparison
Date Index comparison period period for option rolling Index rolling
rolling (compound) (compound)
(compound) annual return annual return
annual return over over
comparison comparison
period period
% pa % pa
Exceed CPI increases
Mercer Shares 5 Jun 1996 CPI 7 years 6.3* 2.9
by at least 4% pa*
Exceed CPI increases
Mercer High Growth 7 Aug 2002 CPI 6 years na na
by at least 3.5% pa*
Ready-made
Exceed CPI increases
Mercer Growth 20 Mar 1996 CPI 5 years 10.3* 2.8
by at least 3% pa*
Mercer Moderate Exceed CPI increases
9 Oct 2002 CPI 4 years 8.1* 3.0
Growth by at least 2.5% pa*
Mercer Conservative Exceed CPI increases
3 Jul 1996 CPI 3 years 6.1* 3.2
Growth by at least 2% pa*
UBSWA Bank Bill Exceed UBSWA Bank
Mercer Cash 29 May 1996 1 year 6.3^ 7.0
Index Bill Index^
Exceed CPI increases
Mercer Shares Plus 7 Jul 2005 CPI 7 years na na
by at least 4.5% pa*
Mercer High Growth Exceed CPI increases
Mercer Plus
7 Jul 2005 CPI 6 years na na
Plus by at least 4% pa*
Exceed CPI increases
Mercer Growth Plus 7 Jul 2005 CPI 5 years na na
by at least 3.5% pa*
Exceed UBSWA Bank
UBSWA Bank Bill
Mercer Income Plus# ** Bill Index by at least 5 year na na
Index
2.5% pa^
Exceed UBSWA Bank
Mercer
Sector
Mercer Diversified UBSWA Bank Bill
Select-your-Own
7 July 2005 Bill Index by at least 5 years na na
Alternatives Index
3.5% pa^
Responsible
Mercer Socially Exceed CPI increases
6 Jul 2005 CPI 7 years na na
Socially
Mercer
Responsible Shares by at least 4% pa*
Mercer Socially Exceed CPI increases
6 Jul 2005 CPI 5 years na na
Responsible Growth by at least 3% pa*
Exceed CPI increases
Indexed Growth na na
Indexed
7 Jul 2005 CPI 5 years
by at least 3% pa*
Indexed Conservative Exceed CPI increases
7 Jul 2005 CPI 3 years na na
Growth by at least 2% pa*
Non Mercer Growth – In excess of CPI plus
11 Jul 2005 CPI 5 years na na
Mercer
Multi-Manager Style 3.5% pa*
Non
Non Mercer Balanced – In excess of CPI plus
19 Jul 2005 CPI 5 years na na
Multi-Manager Style 3% pa*
Notes
* after tax and investment management fees
^ before tax and investment management fees
# This investment option is only available from 1 September 2008.
** indicates that the investment option has not commenced at the date of this table.
‘na’ indicates that an investment option has not been operating for the full comparison period.”
20. Death and disability cover
On pages 58 to 63 of the PDS replace these pages with the following:
“You may be entitled to an insured super If you choose to apply for death only or Conditions that apply to this cover are as
payout in the event of your death or total death and TPD cover, once you’ve been follows:
accepted for cover and you remain
and permanent disablement while a • You had an insured amount for
member of the Personal Superannuation eligible for cover, you’ll be covered 24
death in the CSD of $50,000 or
Division. hours a day, 7 days a week up to age 80
more, and at least $3,000 in your
for death cover and age 65 for TPD
In these circumstances, your super super account balance to transfer to
cover, except where otherwise stated in
payout is made up of: the PSD.
this PDS. You may choose to have
• your super account balance. (See death only or both death and TPD cover. • To be eligible to apply for the option
the Getting to know your super to continue death cover in the
Personal Superannuation Division,
section for details) and Extended cover when you must be aged less than 65 and
• any insurance amount received.
transferring from the no longer be eligible for cover under
your employer’s plan in the CSD.
Corporate
What insurance This is also provided that an
insurance benefit has not been paid
Superannuation Division
cover is available If you have transferred from a plan in the
or becomes payable to you in the
CSD. Satisfactory evidence of your
Corporate Superannuation Division good health, financial details and
The insurance cover generally available (CSD), the insurance cover you had in other evidence may be required
in the Personal Superannuation Division the CSD generally extends for up to 60 before the cover is granted, and
of the Mercer Super Trust is: days after leaving your employer. This other conditions may apply.
• death, or is referred to as ‘extended cover’ and • To take advantage of this option,
will apply if you are under age 65. Refer you must apply for death cover in
• death and total and permanent to your CSD Product Disclosure
disablement (TPD) the Personal Superannuation
Statement or other member materials for Division within 60 days of leaving
If you would like to speak to a Mercer full details of this ‘extended cover’. employment. If the application is
financial adviser about what levels of The amount of any extended death or made after 60 days but before 120
death and TPD cover may be TPD cover will be reduced by the days after leaving employment you
appropriate for you, please call the amount of any death or TPD cover you may still apply for death cover only.
Helpline on 1800 810 558. take up in the Personal Superannuation However, you will be required to
Division (PSD) during the extended complete a declaration of good
Your insurance provider cover period. health. In the event that you don’t
sign the declaration, cover under
The trustee has appointed The National this option will be denied. For more
Mutual Life Association of Australasia Continuing your death details about the declaration of
Limited ABN 72 004 020 437 to provide
the insurance for the Personal
cover after you leave the good health, please contact the
Helpline on 1800 810 558.
Superannuation Division. The insurance Corporate • In the event that your employer
is provided under the policy of insurance
issued to the trustee. The trustee has Superannuation Division doesn’t notify us of your leaving
employment in time to meet the 120
the right to change the insurer from time If your insurance in the CSD was under day timeframe set out above, then
to time. the trustee’s standard insurance policy the cover described above may not
with The National Mutual Life be available.
Conditions apply to your Association of Australasia Limited and
• If you have cover in another CSD
you have left the CSD for reasons other
insurance cover than because you have requested your plan insured under the trustee’s
employer to direct your superannuation standard insurance policy currently,
Like most forms of insurance certain or in the future, you should advise
guarantee contributions to another fund,
conditions and exclusions apply to the us as this may affect your ability to
you may have the option of continuing
granting, or payout of your insurance take up or retain this cover.
the insurance cover that you had in the
cover. Details of the conditions and
CSD in the Personal Superannuation This option is not guaranteed under the
exclusions applicable to the insurance
Division (for death cover only and at Mercer Super Trust’s insurance policy
cover available through the Personal
your own expense) up to the amount of and may be subject to change by the
Superannuation Division are set out in
cover that you had while a member of insurer.
the pages that follow in this section.
your employer’s plan in the CSD.
If your insurance in the CSD was not
under the trustee’s standard insurance
policy with The National Mutual Life
Association of Australasia Limited or
your application for death cover in the TPD cover What TPD is defined as
Personal Superannuation Division is not Before becoming eligible for an
made within the required time frame, as As a member of the Personal insurance payout, you’ll need to meet
detailed above, you may still apply for Superannuation Division, if you are the insurer’s definition of TPD as set out
death insurance cover, but acceptance eligible, you may apply for TPD in the policy. The definition of TPD is
of your application will be subject to insurance cover, which will only be made up of four parts. Each of these
provision of satisfactory evidence of granted subject to provision of parts are described below. Generally,
good health, financial details and other satisfactory evidence of good health, you must meet any one of Parts (a), (b),
evidence before this cover can apply financial details and other evidence. (c) or (d) below to be classified as TPD.
(see below for further details). If you are employed on a casual basis or However, if your employment status
work less than 15 hours per week or are changes after TPD cover has been
Death cover unemployed, you are not eligible to
apply for TPD cover.
granted by the insurer and you are
working less than 15 hours a week or
You’re eligible to apply for TPD are unemployed, then you must meet
You can choose the dollar amount of
insurance cover providing: any one of parts (b), (c) or (d) of the
your death cover subject to a minimum
TPD definition to be classified as TPD.
of $50,000. The maximum amount for • you make your application and it is
death cover is unlimited. accepted prior to age 50 Part (a) Unlikely to Work
If you are • at the time you make your To be eligible for a TPD benefit under
application you’re in permanent this definition, all of the following
• a new member to the Mercer Super
employment working at least 15 conditions must apply:
Trust, or
hours per week, and • you must have been continuously
• transferred from the CSD and
• you provide satisfactory evidence of absent from work through illness or
your insurance in the CSD was
good health, financial details and injury for six months; and
not under the trustee’s
standard insurance policy with other evidence. • after consideration of all the
The National Mutual Life You can choose the dollar amount of evidence the trustee and insurer
Association of Australasia your TPD cover subject to a minimum of believe is necessary, they form the
Limited; or $50,000. This cover must not exceed opinion that you have become
your application for death the amount of your death insurance incapacitated to such an extent as
cover was not made within the cover. The maximum amount for TPD to render you unlikely ever to
required time frame, cover is $2.5 million for any one claim in engage in, or work for reward in,
the Mercer Super Trust. This means, if any occupation or work for which
then you will be required to provide
you had a condition giving rise to a TPD you’re reasonably qualified by
satisfactory evidence of good health,
claim, the maximum amount you may be education, training or experience.
financial details and other evidence
before you are provided with death paid from the Mercer Super Trust (ie as or
cover. a member of any plan or plans within the
Part (b) Specific Loss
Corporate Superannuation Division
It is also important to note that all You will be deemed to be totally and
and/or the Personal Superannuation
insurance payouts are subject to the permanently disabled if you suffer the
Division) as a result of this condition will
terms of the insurance policy between total and irrecoverable loss of:
be subject to the overall maximum of
the trustee and the insurer. If for some
$2.5 million. • the use of both hands or
reason, the trustee cannot arrange cover
for you on standard terms or if the Your TPD cover reduces uniformly to nil • the use of both feet or
insurer doesn’t pay the insured part of between ages 60 and 65.
your super, then the amount you receive • the use of one hand and one foot or
It is also important to note that all
will be reduced accordingly. insurance payouts are subject to the • the sight of both eyes or
terms of the insurance policy between • the use of one hand and the sight of
the trustee and the insurer. If for some one eye or
Death payouts may take time to be reason, the trustee cannot arrange cover
finalised for you on standard terms or if the • the use of one foot and the sight of
The trustee must comply with various insurer doesn’t pay the insured part of one eye
legal requirements in relation to the your super, then the amount you receive where loss of sight means to the extent
payment of death payouts. While every will be reduced accordingly. that your visual acuity is 6/60 or less, or
effort is made to make these payments to the extent that your visual field is
quickly, due to the legal processes reduced to 10 degrees or less of arc.
involved there may be a significant
period of time required between the or
date of death and the time a payout is
made in order to collect and analyse all
relevant information.
Part (c) Future Care Your cover will increase automatically
You suffer an injury or sickness which each year to age 65 (subject to a
Total and permanent disablement
first occurs while you are an insured minimum of 5%) by the lesser of:
payouts may take time to be finalised
member of the plan and because of that • the CPI increase, and
The assessment of a total and
injury or sickness, the trustee and
permanent disablement claim involves • 7.5%.
insurer form the opinion that you are
the collection of medical and other This does not apply for members who
permanently unable to perform at least
evidence. This may mean that a are in occupations classified as heavy
two of the five “activities of daily living”
decision is not made until some 12-18 blue collar. You will be advised if this
listed below, without assistance.
months after you last worked. In some applies to you.
• bathing / showering cases it may take even longer.
• dressing / undressing
Increase in cover
• eating / drinking Applying for cover Once you have chosen and been
• using the toilet to maintain personal accepted for death or death and TPD
hygiene If you wish to apply for insurance cover cover, you can change the amount of
then you must complete an ‘Applying for your insurance cover at any time,
• getting in and out of bed, a chair, a Insurance Cover’ form. You can obtain
wheelchair or moving from place to subject to the terms and conditions in
this form from our website located at the ‘Death cover’ and ‘TPD cover’
place by walking, a wheelchair or www.mercersupertrust.com or by calling
with a walking aid. sections above. If you increase your
the Helpline on 1800 810 558. level of insurance cover you will need to
or If you’re applying for death and TPD be assessed by the insurer and will need
Part (d) Terminal Illness cover, you’ll be required to provide to provide satisfactory evidence of good
satisfactory evidence of good health, health, financial details and other
To be eligible for a TPD benefit under
financial details and other evidence for evidence before you can receive an
this definition the following conditions
the insurer. This may not be required if increased level of insurance cover.
must apply:
you’re applying for death cover only.
• you are diagnosed by a registered You will be advised if this applies to you.
medical practitioner as being
If you are being assessed by the insurer,
When your cover
terminally ill;
• that illness stops you working; and
you will generally be covered for the
assessable insurance amount for
stops
• in the opinion of the insurer and the accidental death and accidental TPD
cover (if applicable) for the amount of You’ll no longer have insurance cover if
trustee you are not expected to live you:
more than 12 months. cover you have requested up to a
maximum of $2 million for death and • advise the trustee in writing that you
The registered medical practitioner TPD cover (if applicable) for up to 90 wish to stop paying insurance
cannot be a family member (ie spouse, days. For the purpose of this cover premiums
including legal spouse, de facto or ‘accident’ means bodily injury caused
same-sex partner, parent, parent-in-law, • have insufficient funds in your super
directly and solely by violent accidental,
child including adopted child, step-child account balance to cover the
external and visible means.
or an ex-nuptial child), business partner, insurance premiums
employee or employer of the insured For the amount of cover that is subject
to providing satisfactory evidence of • leave the Personal Superannuation
person. Division of the Mercer Super Trust
good health, financial details and other
The sum insured for terminal illness is evidence, the insurer may accept, • reach age 80 for death cover and
subject to a maximum amount of $1 decline or impose special conditions age 65 for TPD cover
million. The balance of your sum (such as an exclusion or premium
insured (if any) will be paid upon your • receive a payout in respect of a
loading) for that cover. Where the
death. TPD claim or your beneficiaries
insurer accepts your application, you will
receive a payout due to your death
You’ll need to provide all relevant be notified of the date that your cover
(death cover ceases on payment by
information to the trustee or the insurer commences.
the insurer of a TPD benefit)
to enable your claim to be processed.
• transfer your death cover from the
Illnesses and injuries not Renewing your cover CSD, death cover ceases on
Once accepted and you continue to be acceptance of a TPD claim in the
covered eligible, your cover will be renewed CSD.
The TPD benefit relating to any initial automatically each year until age 80 for Your insurance cover will also stop if the
request for TPD cover or subsequent death cover and age 65 for TPD cover Mercer Super Trust’s insurance policy is
request for increase in TPD insurance regardless of your health. cancelled in accordance with the terms
cover after joining the plan, isn’t payable of the policy.
if your disablement arises from You should be aware that if your
intentional self inflicted injury or illness employment status changes you may no
within the first 13 months from the date longer be eligible to be classified as TPD
of your initial request or the date of any under Part (a) of the definition of TPD as
increase in your level of cover in respect outlined earlier.
of the initial cover or the increased level
of cover.
If you don’t wish to continue paying your The terms and conditions of the
premium for TPD cover you should write continuation option are not guaranteed Change in costs of
to the trustee requesting that the cover and may be varied by the trustee and/or
be discontinued. the insurer. cover
If you cease your insurance cover and
The insurer may vary the cost of any
subsequently wish to reinstate your
insurance cover, you’ll need to reapply
Cover while insurance cover offered in respect of the
Personal Superannuation Division
and will need to satisfy the conditions for
this insurance including providing
working overseas without your prior approval by giving
satisfactory evidence of good health, notice to the trustee. Reasons for a
financial details and other evidence if If you work overseas, you may be able change in the premiums charged might
you want insurance cover. to continue your death and TPD cover (if include:
applicable) for up to three years subject the event of invasion or war (whether
The insurer may impose conditions or to the conditions of the plan’s insurance
decline your cover. declared or undeclared) involving
policy. Australia’s armed forces or involving
To remain eligible for overseas coverage the country of your residence
Continuing your you must satisfy all of the following
conditions:
(including temporary residence), or
significant changes in the total number
death cover after • you must remain a member of the of insured members and/or total
insurance cover and/or the information
you leave the •
Personal Superannuation Division
you must be an Australian national
used in determining the premium rates
for the Personal Superannuation
Personal • in the event of a disablement claim, Division, or
you may be required to return to
Superannuation Australia at your own expense,
a change in taxes or duties or other
legislative changes that increase the
where necessary, for medical
Division treatment or assessment and the
insurer’s costs.
trustee will not pay a TPD benefit if The trustee will advise you of any
You have the option of continuing your you do not return to Australia. change in the costs of cover and in the
death insurance cover with the insurer case of an increase in costs provide you
If your cover ceases and you then with at least 30 days prior written notice.
under a personal policy at your own subsequently return to Australia, you’ll
expense up to the same amount of need to provide satisfactory evidence of
cover you had in place providing you:
• stop being a member of the
good health, financial details and other
evidence before your cover will be
Non-residents’
Personal Superannuation Division
of the Mercer Super Trust (for any
reinstated. insurance
The above terms are in relation to cover
reason other than temporary or while working overseas. You do not If you’re based in Australia but aren’t an
permanent disablement), and need prior written approval for Australian resident, you may still be
• are under age 65. overseas travel for non-business eligible for insurance cover provided:
purposes and short term business
Satisfactory evidence of good health will • you have a current visa which
travel (less than three years).
not be required, however financial allows you to work in Australia;
details and other information may be Please be aware that your insurance
• you remain a member of the
requested. Any restrictions that applied cover while working overseas isn’t
Personal Superannuation Division;
to your insurance cover under the payable if your insurance claim arises as
Personal Superannuation Division of the a consequence of an act of war. ‘War’ in • you are employed to work in
Mercer Super Trust will continue to this context includes but is not limited to Australia; and
apply under the personal policy and declared or undeclared war or war you meet all other eligibility terms for
cover will be subject to the terms and related activities, revolution, invasion or insurance cover (including payment of
conditions of that policy. To take rebellion or civil unrest. premiums).
advantage of this option, you must apply If you don’t want cover while overseas
to the insurer and have the replacement you can suspend it but you will need to
policy in place within 60 days of leaving
the Personal Superannuation Division of
provide satisfactory evidence of good Cost of cover
health, financial details and other
the Mercer Super Trust (or stop paying evidence to resume cover on your The cost of cover depends on the rating
premiums, if earlier). The cost of return. You should discuss this with us if factors that apply to your occupation,
continuing your cover outside the Mercer any of these circumstances apply to you. smoker status, gender, health and
Super Trust will be based on the For further details call the Helpline on premium rate that applies for your age.
insurer’s prevailing individual policy, 1800 810 558.
premium levels and terms and To work out the annual premium for your
conditions and will need to be met by cover, multiply the amount of cover you
you. have chosen for death (and TPD cover if
applicable) by the relevant premium rate
according to your age next birthday and
divide by 1,000. This amount should
then be multiplied by the appropriate Annual
Annual premium
Please note that for some occupations
rating factors applicable to your premium for the risk is non-insurable.
Age next for $1,000 of death
$1,000 of death
occupation, smoking status, gender and birthday and TPD cover*
cover only*
$ Smokers rating
health rating. $
35 0.38 0.56 Non-smokers 1.0
It’s important to be aware that premiums
for a high level of cover may significantly 36 0.38 0.59 Smokers 1.67
reduce your super payout. You should 37 0.41 0.62
consider your insurance needs carefully 38 0.41 0.68 Gender rating
before making a decision about the level 39 0.44 0.73
Females 0.8
of cover you require. You may wish to 40 0.47 0.80
seek professional advice from a 41 0.53 0.89
Males 1.0
licensed, or appropriately authorised, 42 0.57 1.00 Health rating
financial adviser to determine your 43 0.62 1.11
This cannot be advised in advance. The
appropriate level of insurance cover. 44 0.68 1.23
insurer will assess your health status
Your individual premium rate can only 45 0.73 1.36
based on the information you provide.
be determined once you’ve completed 46 0.80 1.56
and returned satisfactory evidence of 47 0.89 1.74
Some examples of how to determine
good health, financial details and other 48 0.98 1.97
your premiums based on the
evidence for the insurer. premium rates above and the various
49 1.06 2.20
rating factors are as follows
The cost of cover is calculated and 50 1.15 2.48
deducted monthly from your super 51 1.28 2.80 1. Jack is age 45 (46 next birthday),
account balance. Continuance of cover 52 1.39 3.14 employed in a white collar profession
is conditional upon premiums being 53 1.52 3.53 and is a non-smoker. Jack is insured for
paid. 54 1.70 4.01 death cover only for $110,000. From the
55 1.87 4.53 death and TPD premium rate table we
The death and TPD premium rate table
can see that at age 46 next birthday the
outlines the annual insurance premium 56 2.07 5.19
annual premium for death cover only is
rates per $1,000 sum insured. The 57 2.31 5.95
$0.80 for every $1,000 of cover. This
premium rates then need to be 58 2.56 6.86
means the annual cost of Jack’s cover is
multiplied by the appropriate factors to 59 2.88 7.89
$110,000 times $0.80 divided by 1,000
determine your annual premium. 60 3.22 9.08
multiplied by 1.00 (occupational rating)
61 3.62 10.48
You will be advised of your individual multiplied by 1.0 (smoker rating)
62 4.07 12.10
premium once your application has been multiplied by 1.0 (gender rating) =
accepted. 63 4.57 13.97
$88.00.
64 5.15 16.14
When selecting your desired level of 65 5.79 18.63
The total cost of cover may vary
insurance, you should bear in mind that 66 6.39 n/a
depending on Jack’s health rating.
premiums generally increase as you get
67 7.04 n/a 2. Jim is age 45 (46 next birthday),
older.
68 7.72 n/a employed in a light blue collar profession
Death and TPD premium rate 69 8.48 n/a and is a smoker. Jim is insured for
table 70 9.30 n/a death cover only for $110,000. From the
71 10.21 n/a death and TPD premium rate table we
Annual can see that at age 46 next birthday the
Annual premium 72 11.22 n/a
premium for
Age next
$1,000 of death
for $1,000 of death
73 12.33 n/a annual premium for death cover only is
birthday and TPD cover*
cover only*
$ 74 13.58 n/a $0.80 for every $1,000 of cover. This
$ means the annual cost of Jim’s cover is
75 14.95 n/a
15 0.25 0.31
76 16.46 n/a
$110,000 times $0.80 divided by 1,000
16 0.25 0.31 multiplied by 1.95 (occupational rating)
77 18.14 n/a
17 0.29 0.38 multiplied by 1.67 (smoker status)
78 19.96 n/a
18 0.34 0.45 multiplied by 1.00 (gender rating) =
79 21.95 n/a
19 0.38 0.53 $286.57.
80 24.09 n/a
20 0.41 0.56
The total cost of cover may vary
21 0.41 0.56 *The above premiums are inclusive of stamp duty
and may be changed in the event of invasion or
depending on Jim’s health rating.
22 0.40 0.54
war. Individual premiums will apply for all
23 0.38 0.50
24 0.34 0.47
members.
* n/a indicates that this type of cover is not
Making a claim
25 0.33 0.46 available at the particular age.
26 0.33 0.44 Please contact the Helpline on 1800 810
The ratings factors are as follows:
27 0.32 0.44 558 for information on how to make a
28 0.32 0.44 Occupational rating claim.”
29 0.32 0.45 Professional/white collar 1.00
30 0.33 0.46
Light blue collar 1.95
31 0.33 0.47
32 0.34 0.49 Heavy blue collar 2.70
33 0.34 0.53
34 0.36 0.54
21. Tax & super
Replace Step 6 – Tax & super section of the PDS with the following:
“Step 6 Tax & super
The government provides tax breaks on super investment to
encourage Australians to save for their retirement.
Your tax file number is important page 70
Spouse contributions tax offset page 70
Tax on contributions page 71
Claiming a deduction for your super contributions page 72
Tax on your super payout page 72
Tax on investment income page 73
Surcharge tax page 73
Up to date information page 73
Tax & super 69
The following information is a general
description of the tax treatment of Spouse Contributions
superannuation and is based on our
The rules at a glance…. understanding of the tax laws as at 1 Tax Offset
Your TFN is important – if the trustee July 2008. It aims to give you an If your income is below $10,800 in a
has your TFN you may not have to overview only, assuming you are an financial year, your Spouse may be
pay extra tax on your contributions Australian resident. If you are not an entitled to a tax offset (or rebate) of
and your super payout, and the Australian resident for income tax 18% for Spouse contributions up to
trustee can accept your contributions. purposes different tax rules may apply. $3,000 per annum your spouse makes
Concessional contributions up to As the tax treatment of super can in respect of you.
$50,000 per annum (or up to become complex and may change at If your income is between $10,800 and
$100,000 per annum until 30 June any time we strongly recommend that $13,800 a reduced tax offset applies.
2012 for those who are age 50 or you obtain advice from a licensed, or
appropriately authorised, financial Certain conditions must be met to be
over) are taxed at 15%.
adviser, about how the tax laws affect eligible for the tax offset including that
Non-concessional contributions up to you. This particularly applies if you are you must be living with your Spouse and
$150,000 per annum are generally considering making large contributions you both must be Australian residents.
tax-free. or are considering retiring. You should
Super payouts: also consider obtaining appropriate Tax on contributions
advice as you build your super so that
are tax free when paid from age 60 The tax paid on super contributions
you can appropriately plan for your
(although tax may be payable on depends on:
eventual retirement.
some death payouts)
Superannuation is generally taxed at the type of contribution – concessional
are generally taxable when paid
three stages: or non-concessional
before age 60.
the amount of the contribution, and
contributions paid into a super fund
whether the trustee has your TFN.
Some useful definitions….. investment income of a super fund
Any tax (including surcharge tax) on
Concessional contributions include super payouts from a super fund. your contributions will be charged to
superannuation guarantee your super account according to the
contributions, salary sacrifice investment option you have selected for
contributions, any extra employer Your tax file number your future cash flows into your super
contributions and contributions for account at the time the tax assessment
which a tax deduction is claimed. is important is processed.
Concessional contributions can also
While you don’t have to provide your tax
include certain other amounts
file number (TFN) to the trustee, and it is
Concessional
including notional contributions in
respect of defined benefit members, not an offence if you don’t, if the trustee contributions
certain amounts allocated by the does not have your TFN:
The trustee deducts tax at the rate of
trustee, certain contributions made by the trustee will not be able to accept 15% on most concessional contributions
other people (except the member’s contributions made by or for you made in respect of you. The amount of
spouse or employer) for the member, including spouse contributions, after- contributions tax is levied on your net
certain transfers from an overseas tax contributions and government co- contributions after relevant fees and
fund and some parts of an contributions; insurance premiums have been
employment termination payment that you will pay higher tax on any deducted. If a taxable contribution is
you have received from an employer concessional contributions made for accepted into the Mercer Super Trust,
and rolled over. you; 15% tax will be deducted immediately
Non-concessional contributions you may pay higher tax than and will be held until it is required to be
include contributions made from your necessary on your super payout. paid to the ATO.
after-tax salary, spouse contributions Any TFN information supplied to the
made for you, certain amounts trustee will automatically be applied to
allocated by the trustee, any all future contributions to, and payouts
concessional contributions over and from, the Mercer Super Trust. For more
above the concessional contributions information on the use of TFNs call the
limit and some transfers from an ATO.
overseas fund.
70 Tax & super
account in the Mercer Super Trust. makes a non-concessional contribution
You’ll pay extra tax if the If you have already paid the tax yourself, in excess of $150,000 in a financial year.
trustee does not have you can ask the trustee to refund to you
the amount paid and this will reduce
Essentially, if a person makes non-
concessional contributions in excess of
your TFN your super account accordingly. $150,000 in a financial year, then
Note that it will only be possible for the additional tax will be payable if the total
Additional tax of 31.5% could be payable non-concessional contributions in that
if the trustee does not have your TFN, trustee to pay or refund this tax up to the
amount in your super account. and the following two financial years
i.e. a tax rate of 46.5% will apply to your exceed $450,000. See ‘You’ll pay tax if
concessional and some other Your payout from the Personal you exceed the limits’ later in this
contributions instead of 15%. If you Superannuation Division of the Mercer section for details.
provide your TFN to the trustee later, the Super Trust will be reduced to take
trustee may be able to reclaim the account of any additional tax paid from If you are age 65 or over, at the start of
additional tax paid on your behalf and your super account. the financial year, a limit of $150,000
allocate this to your super account. applies for each financial year. You
Generally only additional tax paid in the Alternatively, you can nominate another cannot bring forward contributions for
three income tax years prior to when you superannuation plan or fund to pay or future years. To make contributions
provide your TFN can be reclaimed. refund this tax. You will not be able to after age 65 you must meet certain
You should also note that it may not be nominate a plan or fund if that plan or conditions set down in legislation. See
possible for the trustee to obtain a fund only has a defined benefit interest the Contributions section of this PDS
refund from the ATO quickly. This for you. for details.
process may take in excess of 12 The annual concessional contribution The limit is a limit per person, not a limit
months. limit is a limit per person, not a limit on on the amount that can be made to each
If you leave the Personal the amount that can be made to each super fund if a person is a member of
Superannuation Division of the Mercer super fund if a person is a member of more than one fund.
Super Trust before we have received more than one fund.
The trustee can generally accept
your TFN, your super payout will be Any concessional contributions over the amounts up to these limits but where
reduced for this additional tax. If you limit will also count towards the limit on any contribution, taken by itself, exceeds
request a refund of this additional tax non-concessional contributions – see the limits, the trustee is required to
paid after you have “Non-concessional contributions” below. refuse to accept or refund the excess
left the Personal Superannuation ^ The limit is applicable for 2008/09 and amount. The trustee will continue to
Division of the Mercer Super Trust and is indexed from 1 July each year to accept contributions which, by
your super payout has been paid; and Average Weekly Ordinary Time themselves, do not exceed the limits.
subsequently provided us your TFN, Earnings (AWOTE) in steps of $5,000. This may mean that the total
*For members aged 50 or over at 1 July contributions received for you during
a fee of $830 (see the section headed a financial year will exceed the limits
‘No-TFN tax refund fee’ in the Getting to 2007, or who turn 50 in a financial year,
until 30 June 2012 the annual limit is and you may be liable for additional
know your super section for more tax. It is the member’s responsibility
details) will be charged for processing $100,000. For example, if a member
turns age 50 on 4 November 2009, the to monitor their contributions made
and making this payment from the during each financial year.
Mercer Super Trust. annual limit for them will be $100,000 for
the years ending 30 June 2010, 2011 *The non-concessional contributions
and 2012. This transitional $100,000 limit is three times the level of the
You’ll pay extra tax if amount will not be indexed. concessional contributions limit and will
you exceed the annual increase as the concessional cap moves
Non-concessional with indexation.
limit ^The “bring forward” limit is three times
An annual limit of $50,000*^ applies to
contributions the non-concessional contributions limit
the total concessional contributions that Non-concessional contributions are that applies in the first year you elect to
are taxed at 15%. Any concessional generally tax-free, however an annual bring forward contributions.
contributions over this limit will attract limit of $150,000* applies to the amount
additional tax of 31.5% on top of the of any non-concessional contributions
15% contributions tax, regardless of that can be made to super.
whether you have supplied your TFN or If you are under age 65 at any time
not. during a particular financial year, you
The ATO will determine whether you can bring forward two financial years of
have exceeded the $50,000 limit and non-concessional contributions and
whether you are liable for any additional make total non-concessional
tax. If additional tax is payable, the ATO contributions of up to $450,000^ over a
will issue a tax assessment to you. You three year period.
can either pay this additional tax The bring forward provision is
yourself, or you can ask the trustee to automatically triggered if a person
pay this additional tax from your super
Tax & super 71
At the end of each financial year, we will your super payout.
You’ll pay tax if you contact you, if you have told us that you
exceed the limits are self-employed or if you request, so Your lump sum payout
that you can advise how much you wish
If your non-concessional contributions to claim as a tax deduction in that and tax
exceed these limits in total, any excess financial year. The tax payable on lump sum super
contributions will be taxed at 46.5%. payouts (for reasons other than death)
The ATO will determine whether you Contributions may be made even if
you’re not entitled to a tax deduction. depends on your age and the different
have exceeded the limits and whether components that make up your payout.
you are required to pay any tax. Any tax Any contribution of this nature made by
payable will be levied on you and you you is treated as a non-concessional
must nominate a super fund to release contribution and will count towards your
non-concessional contributions limit.
Lump sum payouts from
money from your super account to pay
the tax liability either to the ATO or to *Income is your assessable income for age 60
you if you have already paid the tax tax purposes plus your reportable fringe You pay no tax on lump sum payouts
yourself. benefits. from age 60, while you are alive.
If you nominate the Mercer Super Trust, The trustee can only accept a notice that
your payout from the Personal
Superannuation Division will be reduced
you intend to claim a deduction if it is a
valid notice. A notice will not be valid if:
Lump sum payouts
to take account of any tax paid from your it is not provided on an approved form before age 60
super account. You will not be able to
nominate a super fund if that plan or when you give it to the trustee you are Your lump sum payout will be made up
fund only has a defined benefit interest no longer a member of the Personal of two components:
for you. Superannuation Division of the Mercer a tax-free component – this is
Super Trust generally made up of your personal
Note that it will only be possible for the
trustee to pay or refund this tax up to the the trustee no longer holds the after-tax contributions, spouse
amount in your super account. contribution in respect of you, for contributions and an amount
example, if you have elected to calculated at 1 July 2007 that
transfer your benefit to another fund represents the portion of your then
Claiming a under portability or choice of fund (see benefit built up before 1 July 1983. A
higher tax-free amount may apply if
the Getting to know your super
deduction for your section of this PDS for details) you are totally and permanently
disabled. You pay no tax on this
super contributions the trustee has started to pay an
income stream or pension to you.
component; and
a taxable component – this is your
You may be eligible to claim a tax Note that if you want to split super payout less any tax-free
deduction for your super contributions to contributions with your spouse, this can component. If you take your super
the Mercer Super Trust provided you only be done if you have already given payout while you are alive and after
meet certain conditions. the trustee a valid notice that you intend you reach your preservation age but
to claim a tax deduction for the before age 60, you pay no tax on the
Any contributions for which you claim a contributions to be split. first $145,000* of this component and
deduction will count towards your 15%^ tax on any amount over
concessional contributions limit. Call the Helpline on 1800 810 558 if you
would like more information about $145,000. If you take your super
To be eligible to claim a deduction: claiming a deduction or to obtain a copy payout before you reach your
of the approved form. preservation age, you pay tax at 20%^
less than 10% of your income* must
on your total taxable component.
come from employment as an
employee Tax on your super Higher tax rates will generally apply to
preserved or restricted non-preserved
you must be under age 75. (To make
contributions after age 65 you must payout super payouts to a temporary resident
who has permanently left Australia.
meet certain conditions set down in
legislation. See the Contributions You may have to pay tax on your super Tax at a higher rate may need to be
section of this PDS for details.) payout when it is paid from the Mercer withheld from your payout if you have
Super Trust. The actual amount of tax not provided your TFN.
you must give a valid notice to the you’ll have to pay depends on:
trustee of your intention to claim a * The limit is applicable for 2008/09 and is
your age when your payout is paid indexed from 1 July each year to Average
deduction and receive an Weekly Ordinary Time Earnings (AWOTE) in
acknowledgement from the trustee of the type of payout and steps of $5,000. The limit is a lifetime limit
receipt of the notice applicable to all payments made after you reach
certain other factors. your preservation age, including such payments
the notice must be given to the trustee made before 1 July 2007.
by the earlier of the time you lodge You should obtain advice from a
licensed, or appropriately authorised, ^ The Medicare levy (plus where applicable the
your income tax return or the end of Medicare surcharge) is also payable.
the financial year following the year financial adviser if you are unsure of
the contributions were made. what (if any) tax you may have to pay on
72 Tax & super
Your death payout and Surcharge tax
tax
For some higher income earners and
A lump sum payment made upon your members who had not supplied their
death directly to: TFN, there has been an additional tax,
a dependant (as defined for known as the surcharge, on certain
superannuation tax purposes) will be contributions and some termination
tax free payments made by your employer.
a non-dependant will be taxed at The surcharge has now been removed
special rates (ranging from 15% to on contributions and termination
30% plus Medicare) on the taxable payments made on or after 1 July 2005.
component; no tax is payable on any
Although the surcharge has been
tax-free component.
removed in respect of future
Similarly, if a lump sum payment is contributions, it will continue to apply in
made upon your death to your estate for respect of the period up to 30 June
distribution in accordance with your will 2005. This means that the ATO will
or the administration laws, the amount continue to issue surcharge
given to a dependant by the estate will assessments in respect of contributions
be tax free in the estate and to the and termination payments made before
dependant. A payment by the estate to 1 July 2005.
a non-dependant will be taxed at special
If the Mercer Super Trust is required to
rates on the taxable component, no tax
pay surcharge tax in respect of you, the
is payable on any tax-free component.
tax payable will be charged to an
account in your name in the Mercer
Tax on investment Super Trust. Your surcharge account
(including any earnings) will be deducted
income from your payout when you leave the
Mercer Super Trust. You should check
your most recent member statement to
Generally, the trustee is liable to pay tax
see if surcharge tax has applied to you.
at a maximum rate of 15% on:
all investment income
realised capital gains from assets held Up to date
for less than twelve months, and
two-thirds of realised capital gains information
from assets held for more than twelve
months. You can find up to date information on
the annual contribution limits on the
Where the Mercer Super Trust is
Mercer Super Trust website
invested in pooled super trusts and
mercersupertrust.com (after you sign-
statutory funds of life insurance
in to your member account) or call our
companies, the trustee won’t be liable to
Helpline on 1800 810 558.
pay tax on gains received from these
investments because tax would have We can also send you a copy of the
already been deducted by the pooled updated information, free of charge on
super trust or life office. request.”
The actual rate at which the trustee pays
tax may be reduced below 15% due to
the effect of various tax credits and
rebates.
Tax & super 73
Product Disclosure Statement
Personal Superannuation Division
We can help you
choose the right path.
This Product Disclosure Statement is only applicable to the Mercer Super Trust Personal Superannuation Division and is issued by Mercer Investment
Nominees Limited (MINL) ABN 79 004 717 533, Australian Financial Services Licence 235906, as trustee of the Mercer Super Trust. ‘Mercer Wealth
Solutions Super Trust’ and the petal logo are trademarks of MINL.
Product Disclosure Statement
No. 2 for the Mercer Super Trust
Personal Superannuation Division
1 April, 2006
This Product Disclosure Statement is only applicable to the Mercer Super Trust Personal Superannuation Division and is issued by Mercer Investment
Nominees Limited ABN 79 004 717 533, Australian Financial Services Licence 235906, as trustee of the Mercer Super Trust.
1
About this Mercer (the administrator to the Mercer
Super Trust), National Australia Bank
Staying up to date
Product Limited (NAB) ABN 12 004 044 937 (a
custodian of the Mercer Super Trust),
The information contained in this
PDS is up to date at its preparation.
Disclosure the named investment managers, the However, some of the information
can change from time to time. For
Statement insurer, AMP Superannuation Limited
(ASL) (the trustee of the AMP Eligible example, information about fees or the
Mercer Investment Nominees Limited Rollover Fund) and AMP Life Limited investment approach of a particular
(MINL) ABN 79 004 717 533, Australian (AMP Life) are named in this PDS and investment option. If there is a material
Financial Services Licence 235906, is have consented to being so named. change, inaccurate statement or
the trustee of the Mercer Super Trust, material omission from this PDS we will
None of Mercer, NAB, the named inform you as required by the law.
the issuer of this Product Disclosure
investment managers, the insurer, ASL
Statement (PDS) and a wholly owned For other changes and information
or AMP Life are responsible for the
subsidiary of Mercer Human Resource about the performance of an investment
preparation or issue of, or any statements
Consulting Pty Ltd (Mercer) option, you can obtain up to date
in this PDS. Nor do any of them make
ABN 32 005 315 917. information at any time by either calling
any recommendation or provide any
Mercer Human Resource Consulting is opinion regarding the Mercer Super Trust the Helpline on 1800 810 558 or by
a registered business name of Mercer, or an investment in it. visiting the Mercer Super Trust website
which is a corporate authorised at www.mercersupertrust.com
The value of investments in the
representative 260851 of MINL. Mercer We can send you a copy of the updated
investment options may rise and
Global Investments is a registered information on request free of charge.
fall from time to time. None of
business name of MINL and a division
MINL, Mercer, NAB, the insurer, ASL,
of Mercer.
AMP Life nor any of the investment If you’ve a problem…
MINL is referred to as ‘trustee’, ‘we’ or managers guarantees the investment
The Mercer Super Trust has a process
‘us’ throughout this PDS. performance, earnings or return
in place for dealing with inquiries
of capital invested in any of the
This PDS provides an outline of the main and complaints. Additional help is
investment options made available
features and benefits of the Personal available to members through the
through this PDS.
Superannuation Division of the Mercer Superannuation Complaints Tribunal.
Super Trust including the investment Mercer financial advisers are authorised For more information see ‘Inquiries and
and insurance options available to you. representatives of MINL. complaints procedures’ in the Getting
It should be read carefully. to know your super section.
The information contained in this PDS
is general information only and does
not take into account your individual
financial objectives, financial situation
or needs. We recommend that you
The trustee’s contact
speak to a licensed, or appropriately details are:
authorised, financial adviser if you need Mercer Investment Nominees Limited
help in making an investment decision, ABN 79 004 717 533
or insurance decision.
GPO Box 4303
The insurance provider is The National Melbourne VIC 3001
Mutual Life Association of Australasia Tel: 1800 810 558
Limited ABN 72 004 020 437, GPO Box
If calling from overseas,
2830, Melbourne VIC 3001 (insurer).
61 3 8687 1823
The insurance cover is provided under a
Website www.mercersupertrust.com
policy of insurance issued to the trustee
by the insurer. The trustee has the right
to change the insurer from time to time.
MINL is responsible for the contents of
this PDS.
2
Here’s what you Step 1
need to do: Read the Getting to know your super
As a new member of the Personal Superannuation Division section then fill out your details
of the Mercer Super Trust you need to make some decisions Read the Getting to know your super section to see how
about your super. your super works. Then fill out your contact details in Step
1 of the application form so we can keep you informed
Make sure you read all the information in this PDS, then
about your super.
follow the steps opposite to complete the application form
attached over the page. If you have transferred from the
Corporate Superannuation Division, we still require you to Step 2
send to us a signed application form before we can action any
super payout requests for you. Build wealth faster with contributions
To make it easy, each step of the application form is matched Read the Contributions section which outlines what
to the section of the PDS. contributions can be made to the Personal Superannuation
Division, and how you can make these contributions.
Once you’ve completed, signed and dated the application
form (and any other relevant forms), return the forms to us in
the reply paid envelope provided. Step 3
If you’re unsure of your decisions, we recommend that you see
Choose how to invest your super
a licensed, or appropriately authorised, financial adviser.
Read the Investment section which explains your investment
choices. Then, fill out Step 3 of the application form.
If you don’t fill out the
application form…
Step 4
If you don’t fill out the application form, the ‘default’ option(s)
will apply which may not be the most suitable choices for your
Protect your family’s financial wellbeing
particular circumstances. The default options are the Mercer
Growth investment option (only for members who have not Read the Death & disability cover section which explains
transferred from the Corporate Superannuation Division) and what cover you can elect to take out in the Personal
nil death and disablement insurance cover. Superannuation Division, and how you can apply for that cover.
If you have transferred into the Personal Superannuation
Division from the Corporate Superannuation Division of the Step 5
Mercer Super Trust and have not previously had the choice of
how to invest a part (or all) of your super, Who’ll get your super if you die?
If you die while a member of the Mercer Super Trust, who
■ then that part (or all) of your super will be invested in
would you like your super to go to? Read the Beneficiaries
the Mercer Cash investment option until you advise us
section for details, then fill out Step 5 of the application form.
otherwise;
■ any future contributions or rollovers will be invested in
the Mercer Growth investment option until you advise us Step 6
otherwise.
If you have transferred into the Personal Superannuation
Don’t pay more tax than you have to
Division from the Corporate Superannuation Division of the - let us know your tax file number
Mercer Super Trust and have previously had the choice of how Read the Tax & super section for more information about
to invest any part of your super, then that part of your super how tax affects your super, then fill out Step 6 of the
will be invested in the same investment options as those you application form.
chose in the Corporate Superannuation Division until you
advise us otherwise.
For more information on investment options, see the Like to roll in other super money?
Investment section for further details.
If you have other super you’d like to roll in to the Personal
Superannuation Division of the Mercer Super Trust, fill out
the Rollover form attached after the application form or
call the Helpline on 1800 810 558.
3
Staying in If you need help with
your decisions...
touch...
■ why not get advice from a licensed,
As a member of or appropriately authorised, financial
adviser. As a Personal Superannuation
the Personal Division member, you are able to
Superannuation access advice from one of Mercer’s
Division of the financial advisers. Please call the
Helpline on 1800 810 558 to access
Mercer Super Trust this service.
you’ll receive: ■ visit our website at
■ a welcome letter confirming www.mercersupertrust.com
your choices in the Personal for helpful tools and further
Superannuation Division – you’ll also information. You can:
receive confirmation of any balances ■ get up to date information on
transferred in investment options
■ an annual report to bring you up to ■ learn from our wealth education
speed on investment performance experts
and what’s happened to the ■ project your future wealth using
Personal Superannuation Division our financial planning tools
over the year
■ an annual member statement If you need help
showing changes to your super understanding your
account
super...
■ regular newsletters and investment
updates to keep you informed Call the Helpline
■ notification of all material changes 1800 810 558
or the occurrence of significant
events If calling from overseas
613 8687 1823
■ access to a wealth of information
and interactive planning tools on the Visit our website
Mercer Super Trust website www.mercersupertrust.com
Write to us
Mercer Super Trust,
GPO Box 4303,
Melbourne, VIC 3001
Let us know if your
details change
It’s very important that you always
let us know when your address
details change. We can only send you
information about the Mercer Super
Trust and your super if we have your
current address. You can update your
details via our website or by calling the
Helpline on 1800 810 558.
4
Step 1 Getting to know your super
Your super will probably be the largest amount of
savings you’ll ever have.
In this section you’ll find out:
■ About the Mercer Super Trust page 6
■ What’s super all about page 6
■ Joining the Personal Superannuation Division page 6
■ Your super page 6
■ Your super payout page 6
■ The benefits of being a member of the Mercer Super Trust page 7
■ Risks associated with being a member of the Mercer Super Trust page 8
■ Investing in your super page 8
■ Fees and other costs page 10
■ Super and preservation page 17
■ Inquiries and complaints procedures page 18
■ Other things you should know page 19
5
About the Mercer Joining the If you’re over age 65 and work less
than 240 hours in a financial year, you
Super Trust Personal must take your super payout early
in the next financial year. However
The Mercer Super Trust is a regulated Superannuation it may be possible to keep some of
superannuation fund for the purposes your benefit in super if your employer
of the Superannuation Industry Division is still required to pay mandated
(Supervision) Act 1993 (SIS). If you are under age 65, you can join employer contributions (eg. SG or
the Personal Superannuation Division of award contributions) for you. Even if
It’s run by a trustee the Mercer Super Trust provided: you are still working you will normally
be required to take your super payout
The Mercer Super Trust is run by the ■ you have an account balance of when you reach age 75.
trustee, Mercer Investment Nominees at least $1,500 and make regular
Limited (MINL). MINL is a company If you are unsure what to do with your
contributions; or
which has been granted approved super payout, give the Helpline a call
■ the minimum amount transferred into on 1800 810 558 and ask to speak
trustee status under SIS. MINL has been
the Personal Superannuation Division with one of Mercer’s financial advisers.
granted its Registrable Superannuation
to open your account is $3,000.
Entity (RSE) licence under SIS, number
L0000819, effective 1 June 2006. If you are age 65 or over you may be Transfer to the
The RSE licence replaces the current able to join the Personal Superannuation Allocated Pension
Instrument of Approval held by MINL. Division but only if you meet particular
rules set by Government legislation Division
The trustee issues this PDS and interests which depend on your age and recent When the time comes to receive
to members in the Mercer Super Trust, work history. Please call the Helpline on your super payout, you can choose
appoints the investment managers for 1800 810 558 for more details. to transfer to the Allocated Pension
each of the investment options referred
Division of the Mercer Super Trust
to in this PDS, and also appoints the
insurer for the provision of insurance Your super (if eligible). Through the Allocated
Pension Division you can receive your
cover provided within the Personal
On joining the Personal Superannuation payout in the form of a regular income,
Superannuation Division and other
Division a super account is opened while staying invested in your chosen
service providers. See later in this
for you. Your super account balance investment options.
section for more details.
at any time is related to the amounts
Before deciding to invest in the Allocated
transferred in or contributed by you,
Pension Division, you should read the
your spouse or your employer (see the
What’s super all Contributions section for more details),
current Product Disclosure Statement
(issued by MINL) for the Allocated Pension
about? the investment returns earned by the
investment options in which your super
Division and seek advice from a licensed,
or appropriately authorised, financial
Financial freedom in is invested (see the Investment section
adviser. You will also need to complete an
for more details), less deductions for
retirement fees, taxes and any insurance premiums.
application form.
Have you ever thought about what Copies of the current Allocated Pension
you’ll do when you stop working? Division Product Disclosure Statement
Pay off the house, travel or maybe Your super can be obtained by calling the Helpline
on 1800 810 558.
maintain the lifestyle you had before
retiring? Whatever your goals, your
payout
super will probably play a big part in You’ll receive a super payout: Some useful
helping you achieve them. It’s likely ■ equal to your super account definitions…
your super will make up a large part of balance – when you leave the
your savings when you finish work – in Personal Superannuation Division; or Your super payout – refers to the
fact it may be the largest amount of amount paid from the Mercer Super
■ equal to your super account
money you’ll ever have! Trust. It doesn’t necessarily mean
balance PLUS any insurance
that you’ll receive it in cash. It’s
amount received – if you die or
Security while you’re (if applicable) become totally and most likely that at least part of your
permanently disabled. super will be ‘preserved’.
still working
But remember, it’s most likely that your Preservation - to make sure that your
Super can also give you the security super will be ‘preserved’, which means super is used only for retirement, it’s
of a cash payout if you die or become you won’t be able to access it until subject to government preservation
disabled. So super is important not only you retire permanently from work and
for you but also anyone who depends rules. Generally, these rules mean you
reach your preservation age. See ‘Super
on you financially. can’t access your super in cash until
and preservation’ later in this section
you retire permanently from work and
for more details.
reach your preservation age (varies
Also see the Tax & super section for from age 55 to 60 depending on
6 details on how tax will impact on your when you were born).
super payout.
Getting to know your super. . .
The benefits of being a member of the Mercer Super Trust
Diversification It helps to be large Super payout
The Mercer Super Trust is focused The Mercer Super Trust offers you As a member of the Personal
on helping you reach your wealth the benefits associated with being Superannuation Division you can apply
goals. Your wealth goal is whatever a member of one of the largest to transfer your super to another
you want it to be, a nest egg to retire superannuation master trusts in complying superannuation vehicle, or
on, a healthier lifestyle in retirement Australia, including: access your super if you meet certain
free from the stress of working, or requirements at any time.
the ability to retire earlier because ■ competitive fees
■ on-line access to your super details Simply complete and return a
you have enough super. The Mercer
‘Receiving your payout’ form. You
Super Trust offers you a wide range ■ access to interactive planning tools
can obtain this form from our website
of investment options, each with their on the Mercer Super Trust website
at www.mercersupertrust.com or by
own investment aim and strategy, ■ regular newsletters and investment calling the Helpline on 1800 810 558.
to provide you with the flexibility to updates to keep you informed, and You and/or your dependants may
help you reach your wealth goals,
■ a telephone helpline to answer your also be entitled to an additional
whatever they might be, in a tax
day to day inquiries about your insured payout on death or total and
effective superannuation environment.
super permanent disablement if you take up
For further details see the Investment
the insurance options offered in this
section of this PDS.
International PDS. See the Death & disability cover
The Mercer Super Trust gives you the section for further details.
benefit of diversification by enabling
investments
you to invest in a range of investment The Mercer Super Trust also gives you Tax concessions
options that provide you access to access to international investments.
Australia represents less than 2% of The Federal Government actively
different asset classes, investment
global financial markets, so investing encourages Australians to save for
managers and investment styles.
in international asset classes, like their retirement, and one of the
Depending on how you diversify,
international shares and fixed interest, ways it does this is by granting tax
underperformance in one area may
gives you access to a broader range of concessions to money invested in
be offset by positive performance in
investment opportunities. International regulated superannuation funds such
another and as a result investment risk
investments can also help you diversify. as the Mercer Super Trust. To obtain
can be reduced.
the maximum taxation savings, we
recommend you speak to a licensed,
Mercer investment or appropriately authorised, financial
options adviser. More information on taxation
The Mercer Super Trust provides you can be found in the Tax & super
access to the ‘Mercer investment section of this PDS.
options’ which have been put together
by the trustee based on its multi-
manager investment approach. These
options include all of the Ready-made
Here’s how your super works...
investment options and some of the At any point in time, your super is equal to the balance
Select-your-Own investment options in your super account. This is made up of:
covering commonly chosen investment
Contributions and amounts rolled over or transferred in
strategies. For further details on the
Mercer investment options and the less taxes and surcharges, fees, expenses, insurance premiums and
trustee’s investment philosophy and amounts paid out to or for you
approach see the Investment section.
plus investment earnings on this money (these can be positive or negative
and depend on the investment earnings of your chosen investment
options)
= your super account balance
Your member statement explains how your super has grown through the previous period.
7
■ Investment manager risk – the risk
Risks associated that a particular investment manager
In addition the investment managers
appointed by the trustee to manage
with being a will underperform (this could be
for example because their view on
the Mercer investment options may
use derivatives to help manage risk (for
member of the markets is wrong or because of their
investment “style” or because they
example, to hedge part of an overseas
currency exposure).
Mercer Super lose key investment personnel).
See the Investment section of this
Trust ■ Credit risk – the risk that a debt
issuer will default on payment of
PDS for more details of the trustee’s
investment style and approach for the
As with any investment there is always interest or principal.
Mercer investment options.
a degree of risk. The significant risks ■ Liquidity risk – the risk that you
associated with your investment in the will be unable to redeem your Before making any investment
Mercer Super Trust are set out in this investment at your chosen time. decisions, you should carefully
section. consider the risks that apply to each
■ Currency risk – the risk that overseas
investments gain or lose value as a of the investment options on offer.
There is a chance that if you leave the
result of a falling or rising Australian This is important as your investment
Mercer Super Trust you may get back
dollar. in any of the investment options is
less than the amount of contributions
not guaranteed and as such you may
paid in, because of taxes, expenses See the ‘Investment option investment get back less money than you invest.
and low or negative investment returns risk table’ over the page for details You should be aware that investment
(sometimes referred to as investment as to which of the above risks apply returns can be volatile and the value
risk). To help minimise this risk you to each of the investment options of your investments may increase or
should generally regard your super as a available through this PDS. decrease over time. Also you should
long term investment.
The trustee aims to help minimise not rely on past performance as an
Generally, investment risk is the chance these investment risks by offering you indicator of the future performance
that your investment will be different a wide range of investment options of any of the investment options. We
to what you expect. Your investment in that provide you the benefit of strongly recommend that you speak
the Mercer Super Trust could rise or fall diversification by accessing different to a licensed, or appropriately
in value or produce a return which is asset classes, investment managers authorised, financial adviser before
less than you anticipate. Rises and falls and investment styles. See ‘Balancing making any investment decisions.
in value occur for a variety of reasons risk and return through diversification’
in the Investment section for more A change in the laws that govern super
and sometimes quickly. The types
details on diversification. may impact on your ability to access
of investment risks which may have
your super in the future or affect the
an impact on your investment in the The Mercer Super Trust also provides tax effectiveness of your super savings.
Mercer Super Trust include: you access to the Mercer investment We will keep you informed about any
■ Individual asset risk – the risk options which have been put together material changes of law which may
attributable to individual assets by the trustee based on its multi- affect your super through a newsletter,
manager investment approach. The the annual report or our website. You
within a particular asset class.
trustee has considered the above
■ Market risk – the risk of major should discuss any changes with a
investment risks in constructing these
movements within a particular asset licensed, or appropriately authorised,
investment options and aims to help
class. financial adviser.
manage those risks primarily through
■ Political risk – the risk that domestic diversification by: As a member of the Mercer Super Trust
and international political events can ■ investing with a number of different you’ll incur certain fees, charges and
impact on your investment. investment managers (to reduce insurance premiums depending on
■ Inflation risk – the risk that money investment manager risk); the investment options and insurance
may not maintain its purchasing ■ investing across different asset cover you select. There is a risk that
power due to increases in the price classes (to reduce market risk, these fees, charges and premiums may
of goods and services (inflation). inflation risk and liquidity risk); increase from time to time which may
affect your super account balance.
■ Timing risk – the risk that, at the ■ investing across different countries
You’ll be provided with 45 days prior
date of investment, your money (to reduce political risk, inflation risk,
written notice of any such increases.
is invested at higher market prices liquidity risk and currency risk);and
than those available soon thereafter.
■ investing in a number of individual
Alternatively, it can also mean the
risk that, at the date of redemption,
securities within each asset class (to
reduce individual asset risk, liquidity
Investing in your
your investments are redeemed at
lower market prices than those that
risk and credit risk). super
were recently available or that may Timing risk is reduced to an extent by Investments in your super are made
have been available soon thereafter. diversification, but is more effectively by contributions. Refer to the
managed by selecting an investment Contributions section for more details.
option that best suits your particular
investment time horizon (that is, the time
8
you expect to leave your funds invested).
Getting to know your super. . .
Investment options and investment risks
The table shows whether there is a low, medium or high likelihood (shown as ‘L’, ‘M’ or ‘H’) that a type of investment risk (referred
to earlier in this section) may apply, from time to time, to a particular investment option. Where a type of investment risk does not
apply the relevant column has been left blank.
Please note the information contained in this table is indicative only and the likelihood that a type of investment risk may apply to a
particular investment option may change over time.
Investment option investment risk table
Manager Risk
Currency Risk
Liquidity Risk
Inflation Risk
Political Risk
Market Risk
Timing Risk
Investment
Credit Risk
Asset Risk
Individual
Investment Option
Mercer Shares L H L L H L L L H
Ready-made
Mercer High Growth L H L L H L L L M
Mercer Growth L M L L M L L L M
Mercer Moderate Growth L M L L M L L L L
Mercer Conservative Growth L L L M L L L L L
Mercer Cash L L L H L L L L -
Mercer Shares Plus L H L L H L L L H
Mercer Plus
Mercer High Growth Plus L H L L H L L L M
Mercer Growth Plus L M L L M L L L M
Mercer Australian Shares Plus L H L L H L L L -
Mercer Overseas Shares Plus (Unhedged) L H M L H L L L H
Mercer Australian Shares L H L L H L L L -
Mercer Australian Small Companies L H L L H L L L -
Mercer Sector
Mercer Overseas Shares (Unhedged) L H M L H L L L H
Mercer Overseas Shares (Currency Managed) L H M L H L L L H
Mercer Overseas Small Companies L H M L H L L L H
Mercer Property L H L L H M L H M
Mercer Overseas Listed Property L H M L H M L L H
Mercer Fixed Interest L M L H M L M L L
Mercer Diversified Alternatives L H M L H M M M H
Mercer Socially Mercer Target
Mercer Target 2015* L M L L M L L L M/L*
Mercer Target 2025* L H/M* L L H/M* L L L M/L*
Mercer Target 2035* L H/M* L L H/M* L L L H/L*
Mercer Target 2045* L H/M* L L H/M* L L L H/L*
Select-your-Own
Responsible
Mercer Socially Responsible Shares L H L L H M L L H
Mercer Socially Responsible Growth L M L L M L L L M
Indexed Shares L H L L H L L L H
Indexed
Indexed Australian Shares L H L L H L L L -
Indexed Overseas Shares L H M L H L L L H
Indexed Growth L M L L M L L L M
Indexed Conservative Growth L L L M L L L L L
AMP Capital Balanced Direct Option L M L L M H L L M
AMP Capital Balanced Growth Option L M L L M H L L M
AMP Capital Conservative Option L L L M L H L L L
ANZ Superannuation Pool–Growth Fund L M L L M H L L M
BT Active Balanced PST L M L L M H L L M
Colonial First State PST–Diversified L M L L M H L L M
Credit Suisse Asset Management Capital Growth PST L M L L M H L L M
Others
ING Managed Growth Superannuation Fund L M L L M H L L M
INVESCO Wholesale Diversified Growth PST L M L L M H L L M
Legg Mason Growth Trust L M L L M H L L M
Maple-Brown Abbott PST L M L L M H L L M
MLC Balanced Fund L M L L M L L L M
MLC Capital Stable Fund L L L M L L L L L
MLC Growth Fund L M L L M L L L M
Schroders Superannuation Fund L M L L M H L L M
Zurich Wholesale Superannuation Managed Growth Fund L M L L M H L L M
* The level of risk reduces as these investment options approach their target year
(e.g. 2015 for the Mercer Target 2015 investment option).
9
Fees and other costs
DID YOU KNOW?
Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns.
For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20%
over a 30 year period (for example, reduce it from $100,000 to $80,000).
You should consider whether features such as superior investment performance or the provision of better member services justify
higher fees and costs.
You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the fund or your
financial adviser.
TO FIND OUT MORE
If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities
and Investments Commission (ASIC) website (www.fido.asic.gov.au) has a superannuation calculator to help you check out
different fee options.
This table shows fees and other costs that you may be charged by the Mercer Super Trust. These fees and costs may be deducted from
your account balance, from the returns on your investment or from the Mercer Super Trust as a whole. Please refer to the section headed
“GST” in the “Additional explanation of fees and costs” section of this PDS for an explanation of the impact of GST on the fees and
charges described in this PDS.
Tax details are set out in the Tax & super section of this PDS. Insurance premiums are set out in the Death & disability cover section.
You should read all information about fees and costs, as it is important to understand their impact on your investment in the Personal
Superannuation Division of the Mercer Super Trust.
Fees and costs for particular investment options are set out in the “Breakdown of management costs table” included in the “Additional
explanation of fees and costs” section of this PDS.
Fees and other costs table
Type of Fee or Cost Amount How and when paid
Fees when your money moves in or out of the Mercer Super Trust
Establishment fee
The fee to open your investment in the Personal Superannuation Division Nil. Not applicable.
of the Mercer Super Trust.
Contribution fee
The fee on each amount contributed to your investment in the Personal Nil. Not applicable.
Superannuation Division of the Mercer Super Trust – either by you or
your employer.
Withdrawal fee
The fee on each amount you take out of your investment in the Personal Nil. Not applicable.
Superannuation Division of the Mercer Super Trust.
Termination fee
The fee to close your investment in the Personal Superannuation Division Nil. Not applicable.
of the Mercer Super Trust.
10
Getting to know your super. . .
Type of Fee or Cost Amount How and when paid
1
Management Costs
The fees and costs for managing An amount is charged which depends on the investment The management costs
your investment in the Personal option and on the value of your account balance as are generally calculated
Superannuation Division of the Mercer shown below: and deducted daily,
Super Trust. (from the relevant
Value of your account balance Estimated management costs investment option)
The amount you pay for specific as at last day of each month (% pa of your account balance)
when unit prices are
investment options is shown in the First $250,000 From 1.32% to 3.65%
determined, and are
“Breakdown of management costs table” Next $250,000 From 0.87% to 3.20% reflected in the value
included in the “Additional explanation Balance over $500,000 From 0.47% to 2.50% of your super account
of fees and costs” section of this PDS.
balance. Where, the
The estimated management costs for each investment
actual fee deducted
option include investment management fees,
is greater than the
administration fees and a performance fee range (if
applicable fee, the
applicable), which are shown in the “Breakdown of
difference will be
management costs table” included in the “Additional
credited monthly to
explanation of fees and costs” section of this PDS.
your account through
additional units (see
For the Mercer Growth Investment Option the
“Additional units” in the
following management costs apply:
“Additional explanation
An amount which depends on the value of your account
of fees and costs”
balance as shown below:
section of this PDS for
further details).
Value of your account balance Estimated management costs
as at last day of each month (% pa of your account balance)
First $250,000 From 1.92% to 1.97%
Next $250,000 From 1.47% to 1.52%
Balance over $500,000 From 0.77% to 0.82%
Service Fees2
Investment switching fee
The fee for changing investment options. Nil. Not applicable.
1
This fee may include an amount payable to an adviser (see “Adviser remuneration” in the “Additional explanation of fees and costs” section of this PDS for further details)
2
An adviser service fee (which is negotiable) may also apply. (See “Adviser service fee” in the “Additional explanation of fees and costs” section of this PDS for further details)
Example of annual fees and costs for the Mercer Growth investment option
This table gives an example of how the fees and costs in the Mercer Growth investment option in the Mercer Super Trust can affect your
superannuation investment over a 1 year period. You should use this table to compare this product with other superannuation products.
Example – the Mercer Growth Investment Option Balance of $50,000 with contributions
of $5,000 during year
Contribution Fees 0% For every $5,000 you put in, you will be
charged $0.
PLUS Management Costs 1.92% to 1.97% And, for every $50,000 you have in the
fund you will be charged between $960
and $985 each year.
EQUALS Cost of fund If you put in $5,000 during a year and
your balance is $50,000, then for that
year you will be charged fees of:
Between $960 to $985
What it costs you will depend on the
investment option you choose.
11
Additional explanation of fees and costs
Breakdown of management costs table
This table shows the estimated management costs together with a breakdown of the investment management fee, administration
fee and, where applicable, a performance fee range for each investment option.
Administration fee Estimated management costs
(% pa of account balance) (% pa of account balance)
Investment
management Performance Balance Balance
fee fee range First Next over First Next over
Investment option (% pa) (% pa) $250,000 $250,000 $500,000 $250,000 $250,000 $500,000
Mercer Shares 0.87 0–0.05 1.15 0.70 0.00 2.02–2.07 1.57–1.62 0.87–0.92
Ready-made
Mercer High Growth 0.82 0–0.05 1.15 0.70 0.00 1.97–2.02 1.52–1.57 0.82–0.87
Mercer Growth 0.77 0–0.05 1.15 0.70 0.00 1.92–1.97 1.47–1.52 0.77–0.82
Mercer Moderate Growth 0.72 0–0.05 1.15 0.70 0.00 1.87–1.92 1.42–1.47 0.72–0.77
Mercer Conservative Growth 0.67 0–0.05 1.15 0.70 0.00 1.82–1.87 1.37–1.42 0.67–0.72
Mercer Cash 0.47 Nil 0.85 0.40 0.00 1.32 0.87 0.47
Mercer Shares Plus^ 1.05 0–0.25 1.15 0.70 0.00 2.20–2.45 1.75–2.00 1.05–1.30
Mercer Plus
Mercer High Growth Plus^ 1.00 0–0.25 1.15 0.70 0.00 2.15–2.40 1.70–1.95 1.00–1.25
Mercer Growth Plus^ 0.95 0–0.25 1.15 0.70 0.00 2.10–2.35 1.65–1.90 0.95–1.20
Mercer Australian Shares Plus^ 1.05 0–0.50 1.15 0.70 0.00 2.20–2.70 1.75–2.25 1.05–1.55
Mercer Overseas Shares Plus (Unhedged)^ 1.05 0–0.50 1.15 0.70 0.00 2.20–2.70 1.75–2.25 1.05–1.55
Mercer Australian Shares 0.82 0–0.05 1.15 0.70 0.00 1.97–2.02 1.52–1.57 0.82–0.87
Mercer Australian Small Companies^ 0.95 0–0.05 1.15 0.70 0.00 2.10–2.15 1.65–1.70 0.95–1.00
Mercer Sector
Mercer Overseas Shares (Unhedged) 0.90 0–0.05 1.15 0.70 0.00 2.05–2.10 1.60–1.65 0.90–0.95
Mercer Overseas Shares (Currency Managed)^ 0.91 0–0.05 1.15 0.70 0.00 2.06–2.11 1.61–1.66 0.91–0.96
Mercer Overseas Small Companies^ 1.30 0–0.05 1.15 0.70 0.00 2.45–2.50 2.00–2.05 1.30–1.35
Mercer Property^ 0.92 0–0.05 1.15 0.70 0.00 2.07–2.12 1.62–1.67 0.92–0.97
Mercer Overseas Listed Property^ 1.05 0–0.50 1.15 0.70 0.00 2.20–2.70 1.75–2.25 1.05–1.55
Mercer Fixed Interest^ 0.52 0–0.05 1.15 0.70 0.00 1.67–1.72 1.22–1.27 0.52–0.57
Mercer Diversified Alternatives^ 1.50 0–1.00 1.15 0.70 0.00 2.65–3.65 2.20–3.20 1.50–2.50
Mercer Target 2015^* 0.76 0–0.05 1.15 0.70 0.00 1.91–1.96 1.46–1.51 0.76–0.81
Mercer
Target
Mercer Target 2025^* 0.80 0–0.05 1.15 0.70 0.00 1.95–2.00 1.50–1.55 0.80–0.85
Mercer Target 2035^* 0.84 0–0.05 1.15 0.70 0.00 1.99–2.04 1.54–1.59 0.84–0.89
Mercer Target 2045^* 0.87 0–0.05 1.15 0.70 0.00 2.02–2.07 1.57–1.62 0.87–0.92
Mercer Socially
Responsible
Select-your-Own
Mercer Socially Responsible Shares^ 0.92 0–0.05 1.15 0.70 0.00 2.07–2.12 1.62–1.67 0.92–0.97
Mercer Socially Responsible Growth^ 0.82 0–0.05 1.15 0.70 0.00 1.97–2.02 1.52–1.57 0.82–0.87
Indexed Shares^ 0.57 Nil 1.15 0.70 0.00 1.72 1.27 0.57
Indexed
Indexed Australian Shares^ 0.57 Nil 1.15 0.70 0.00 1.72 1.27 0.57
Indexed Overseas Shares^ 0.57 Nil 1.15 0.70 0.00 1.72 1.27 0.57
Indexed Growth^ 0.57 Nil 1.15 0.70 0.00 1.72 1.27 0.57
Indexed Conservative Growth^ 0.57 Nil 1.15 0.70 0.00 1.72 1.27 0.57
AMP Capital Balanced Direct Option^ 0.83 Nil 1.15 0.70 0.00 1.98 1.53 0.83
AMP Capital Balanced Growth Option^ 0.82 Nil 1.15 0.70 0.00 1.97 1.52 0.82
AMP Capital Conservative Option^ 0.72 Nil 1.15 0.70 0.00 1.87 1.42 0.72
ANZ Superannuation Pool–Growth Fund^ 0.73 Nil 1.15 0.70 0.00 1.88 1.43 0.73
BT Active Balanced PST^ 1.10 Nil 1.15 0.70 0.00 2.25 1.80 1.10
Colonial First State PST–Diversified^ 0.99 Nil 1.15 0.70 0.00 2.14 1.69 0.99
Credit Suisse Asset Management Capital Growth PST^ 0.97 Nil 1.15 0.70 0.00 2.12 1.67 0.97
Others
ING Managed Growth Superannuation Fund^ 0.95 Nil 1.15 0.70 0.00 2.10 1.65 0.95
INVESCO Wholesale Diversified Growth PST^ 1.18 Nil 1.15 0.70 0.00 2.33 1.88 1.18
Legg Mason Growth Trust^ 0.93 Nil 1.15 0.70 0.00 2.08 1.63 0.93
Maple–Brown Abbott PST 0.78 Nil 1.15 0.70 0.00 1.93 1.48 0.78
MLC Balanced Fund^ 1.14 Nil 1.15 0.70 0.00 2.29 1.84 1.14
MLC Capital Stable Fund^ 1.05 Nil 1.15 0.70 0.00 2.20 1.75 1.05
MLC Growth Fund^ 1.17 Nil 1.15 0.70 0.00 2.32 1.87 1.17
Schroders Superannuation Fund^ 0.82 Nil 1.15 0.70 0.00 1.97 1.52 0.82
Zurich Wholesale Superannuation Managed Growth Fund^ 0.93 Nil 1.15 0.70 0.00 2.08 1.63 0.93
Notes:
^ The combined maximum investment management fee, performance fee and administration fee shall not
exceed 4% per annum for these investment options.
* As these investment options approach their target year (e.g. 2015 for the Mercer Target 2015 investment
12 option) the estimated management costs will trend downwards to those which apply for the Mercer Moderate
Growth investment option (MMG). Once a Mercer Target investment option has reached or passed its target
year the estimated management costs will be the same as those which apply for the MMG at that time.
Getting to know your super. . .
Additional explanation of fees and costs (continued)
Breakdown of Performance fees Additional units
management costs Where an investment manager charges A standard administration fee of 1.15%
table a performance fee, that fee will be per annum (0.85% per annum for
included in the management costs Mercer Cash) is charged by deduction
Investment management fees are of the relevant investment option (as from each investment option before
the fees payable for managing your set out in the “Fees and other costs the unit price is determined. If the
investments. The administration fee is table”) and be passed onto members administration fee applicable to part of
the fee payable for administering your by way of an adjustment to the unit your super account balance is less than
account balance and any insurance price which will reduce the investment 1.15% per annum (0.85% per annum
arrangements. Performance fees are performance of the relevant investment for Mercer Cash) of your super account
described below. option. balance, additional units will be
credited to your super account monthly
Worked example: Investment managers that charge a
at the end of each month based on
Denise is a member who has an performance fee only apply those
the difference between the standard
amount of $50,000 invested in the fees when performance is greater
administration fee of 1.15% per
Mercer Growth investment option. than an agreed target. Accordingly,
annum (0.85% per annum for Mercer
performance fees arise when higher
For simplicity we have assumed Denise Cash) deducted from the unit price and
returns, relative to a specified target for
earns zero investment return, no the administration fee applicable to
a particular manager, are achieved.
contributions were paid into Denise’s you and described in the “Breakdown
account during the year and the As the agreed performance targets may of management costs table” above.
maximum performance fee applies in vary between investment managers, The additional units credited will be
the year. it is not possible to provide a precise allocated according to your investment
figure for the performance fees which strategy for future contributions.
Denise’s estimated management costs
will be applicable to the relevant
will consist of: Such additional units, if payable, will be
investment options. However, set out in
adjusted for tax, so that only 85% of
1. An investment management fee the “Breakdown of management costs
the gross rate of additional units will be
of 0.77% per annum of her super table” is the range of performance fees
credited.
account balance, amounting to that may apply to those investment
$385 per annum, options where performance fees are
charged.
Transactional and
2. A performance fee of 0.05%
per annum of her super account
operational costs
Worked example:
balance, amounting to $25 per For some investment options the
Assume an amount of $50,000 is
annum, plus entry price of units may differ from
invested for 12 months in the Mercer
3. An administration fee of 1.15% the exit price of those units. The
Growth investment option. The
per annum of her super account difference between the entry and
performance fee will be between
balance, amounting to $575 per exit price represents an allowance for
0.00% and 0.05% per annum of the
annum. transactional and operational costs,
super account balance which will be
expenses, commissions, brokerage
Therefore, the total estimated annual between $0 and $25 per annum.
and other fees which would be
management costs for Denise is
incurred in buying or selling part or
$985 made up of an investment
all of the underlying investments of
management fee of $385, a
each investment option. This is also
performance fee of $25 and an
commonly referred to as the buy/sell
administration fee of $575.
spread. Any buy/sell spread is additional
to the cost you incur as detailed in
the “Fees and other costs table”. No
part of the buy/sell spread is paid to
the trustee or any external investment
manager.
The buy/sell spreads are not subject to
GST.
13
Additional explanation of fees and costs (continued)
The trustee does not apply a buy/sell spread to any moneys transferred from the Corporate Indexation of fees
Superannuation Division to the Personal Superannuation Division of the Mercer Super Trust,
The family law fees set out below will
unless you elect to change investment options coincident with the transfer.
be indexed annually each 1 January
Where the contributions to a particular investment option offered through the Personal to Average Weekly Ordinary Time
Superannuation Division of the Mercer Super Trust are greater than flows of money out, Earnings. The indexed fee for 1 January
the trustee may set the exit price equal to the entry price and no buy/sell spread will apply 2006 is set out in this PDS. The next
to that option. Buy/sell spreads are currently applied to some but not all of the investment indexation will occur on 1 January
options offered through the Personal Superannuation Division of the Mercer Super Trust. 2007.
Buy/sell spreads are applied only once at the time a contribution, rollover or transfer is paid
into the Personal Superannuation Division of the Mercer Super Trust (or switches effected Family Law fees
within the Personal Superannuation Division of the Mercer Super Trust) and not at the time
If your super is subject to an agreement
of making a withdrawal from the Personal Superannuation Division.
or court order which splits your super
Where the trustee doesn’t currently apply a buy/sell spread to a particular investment between you and your former spouse,
option, it reserves the right to do so (by redeeming units at the exit price) where it would a charge of $340 will apply. This is
prejudice the interest of other members to continue to use the entry price. generally split equally between you
and your former spouse. This fee is
Details of what, if any, estimated transactional and operational costs are applicable to additional to the fees shown in the
a particular investment option are set out in the table below. These transactional and “Fees and other costs table”.
operational costs (referred to as estimated buy/sell spreads in the table below) can vary
slightly from day to day.
Death and disability
insurance premiums
Estimated Estimated
buy/sell buy/sell If you have death and/or disability
Investment option spread (%) Investment option spread (%)
insurance, the cost of your insurance
Mercer Shares 0.7* Mercer Socially Responsible Shares 0.7*
cover (premiums) will be deducted
Mercer High Growth 0.7* Mercer Socially Responsible Growth 0.6*
monthly from your account. These
Mercer Growth 0.6* Indexed Shares 0.5*
Mercer Moderate Growth 0.5* Indexed Australian Shares 0.3*
premiums are additional to the fees
Mercer Conservative Growth 0.3* Indexed Overseas Shares 0.6* shown in the “Fees and other costs
Mercer Cash Nil Indexed Growth 0.4* table”. See the Death & disability
Mercer Shares Plus 0.7* Indexed Conservative Growth 0.3* cover section of this PDS for further
Mercer High Growth Plus 0.8* AMP Capital Balanced Direct Option 1.0+ details of the cost of insurance cover.
Mercer Growth Plus 0.7* AMP Capital Balanced Growth Option 0.8+
Mercer Australian Shares Plus 0.6* AMP Capital Conservative Option 0.6+ The trustee receives 11.55% inclusive
Mercer Overseas Shares Plus ANZ Superannuation Pool–Growth of GST (being 10.5% net of GST) of
0.8* 0.3+
(Unhedged) Fund the premiums charged by the insurer as
Mercer Australian Shares 0.6* BT Active Balanced PST 0.3+ a fee for administering your insurance
Mercer Australian Small Companies 0.7* Colonial First State PST–Diversified 0.4+
arrangements including underwriting
Credit Suisse Asset Management
Mercer Overseas Shares (Unhedged) 0.8*
Capital Growth PST
0.4+ and claims processing.
Mercer Overseas Shares (Currency ING Managed Growth Superannuation
0.8* 0.3+ If the trustee received none of these
Managed) Fund
Mercer Overseas Small Companies 0.8* INVESCO Wholesale Diversified Growth PST 0.5+
fees or payments from the insurer, the
Mercer Property 1.5* Legg Mason Growth Trust 0.7+ premiums charged to you would be
Mercer Overseas Listed Property 0.7* Maple–Brown Abbott PST 0.4* 7.5% lower than those set out in this
Mercer Fixed Interest 0.2* MLC Balanced Fund 0.3+ PDS and the insurer would retain the
Mercer Diversified Alternatives 0.4* MLC Capital Stable Fund 0.1+ balance.
Mercer Target 2015^ 0.5* MLC Growth Fund 0.3+
Mercer Target 2025^ 0.6* Schroders Superannuation Fund 0.5+
Zurich Wholesale Superannuation
Mercer Target 2035^ 0.7* 0.4+
Managed Growth Fund
Mercer Target 2045^ 0.7*
Notes to table:
+ The estimated buy/sell spread as shown will generally be charged for these investment options.
* The buy/sell spread for these investment options will generally be nil, however, where a buy/sell spread does apply
the amount shown gives an indication of the estimated buy/sell spread that will be applicable.
^ As these investment options approach their target year (e.g. 2025 for the Mercer Target 2025 investment option)
the estimated buy/sell spread will trend toward the estimated buy/sell spread that applies for the Mercer Moderate
Growth investment option (MMG). Once a Mercer Target investment option has reached or passed its target year
the estimated buy/sell spread will be the same as the one which applies for the MMG at that time.
14
Getting to know your super. . .
Additional explanation of fees and costs (continued)
Fee increases (other Other fees that can The costs of:
than indexation) arise ■ any transition manager (which may
be Mercer) appointed to manage the
The trustee has the right to increase The trustee may incur various costs,
transfer of assets within the Mercer
fees at any time, without your prior charges and expenses (outgoings)
Super Trust or within or between the
approval, subject to the maximum fees whilst acting as trustee of the Mercer
Mercer Investment Funds (MIFs) may
set out below. Reasons might include Super Trust. These can include the cost
be paid out of the Mercer Super
changes in economic conditions, of arranging transfers of members
Trust or the relevant MIF; or
government regulations or increases into and out of the Mercer Super Trust
charged by suppliers. You will be and the payment of various taxes and ■ any proxy voting manager appointed
provided with at least 45 days prior charges. to advise on the voting of any rights
written notice of any such increase. attached to assets within the MIFs
The trustee is entitled to seek may be paid out of the relevant MIF;
reimbursement for these outgoings at
Maximum fees the rate of 1% per annum on the value
which, in either case, will be included
in the management costs charged and
Under the governing rules the trustee of your account balance. The trustee
have the effect of reducing the value of
has the right to charge maximum fees does not currently seek reimbursement
affected investment options. However,
as follows: for these outgoings but reserves the
any such reduction is expected to be
right to do so in the future. Where
■ A contribution fee of 8% of immaterial in respect to the unit price
this occurs the management costs
contributions or rollovers. and/or performance of the investment
applicable to the relevant investment
■ A member fee of the greater of option affected. There are no other fees
option may increase. Should this occur,
$12.30 (indexed annually) per or expenses charged by MINL in its role
you will be provided with 45 days prior
month and 1% per annum of your as trustee of the MIFs.
written notice.
account balance. The trustee does not retain for its own
The trustee is also entitled to charge
■ For investment options established use any profit made on the netting
members:
before 1 July 2005, investment of units (even though the governing
management fees (including ■ A membership fee of the greater documents permit it to do so) and has
performance fees) and administration of $12.30 (indexed annually) per no present intention to do so in the
fees together not exceeding 2.5% month and 1% of the member’s future.
per annum of your super account account balance.
balance. For investment options The trustee may retain for its own use
■ A contribution fee of 8% of
established on or after 1 July 2005, any interest earned on contributions
contributions, rollovers or money
investment management fees tax in the period between deduction
transferred into the Personal
(including performance fees) and of that tax from a contribution and
Superannuation Division.
administration fees together not payment of that tax to the Australian
■ A withdrawal fee of $384.80 Taxation Office.
exceeding 4% per annum of your
(indexed annually) for each payout
super account balance. (See the
made from your account.
“Breakdown of management costs
table” for details of those investment ■ A switching fee of $384.80 (indexed
options where a combined maximum annually) for each switching request
fee of 4.0% per annum applies). received.
■ A withdrawal fee of $384.80 The trustee does not currently charge
(indexed annually) for each payout membership, contribution, switching or
made from your account. withdrawal fees, but reserves the right
to do so in future. Should this occur,
■ A switching fee of $384.80 (indexed
you will be provided with 45 days prior
annually) for each switching request
written notice.
received.
The trustee has elected to forego If at any time the amount of your
these maximums for the fees charged account balance is less than $1,000
(if any) as shown in the "Fees and and includes or has included
other costs table" and "Breakdown of Superannuation Guarantee or award
management costs table" above. Any contributions by your employer,
future fee increases will be within these Government regulations limit the
maximums. amount of charges that can be
deducted from your super account.
15
Additional explanation of fees and costs (continued)
Adviser remuneration Transfers of money from the Corporate GST
Superannuation Division of the Mercer
Your adviser may receive payment Super Trust will generally occur The GST disclosures in this PDS are of a
(remuneration) for the sale of, or any automatically on the cessation of your general nature only.
ongoing advice provided in respect to, employment. Where this happens an GST will not be payable on units
the Personal Superannuation Division of adviser service fee will generally not purchased in the Mercer Super
the Mercer Super Trust. apply. Trust. Fees payable in respect of the
Your adviser has to meet his or her Where an adviser service fee applies, an management of the Mercer Super Trust
expenses from this remuneration, and amount equal to the negotiated fee will are subject to GST, as detailed below.
also relies on it to provide him or her be deducted by the trustee, from the GST will apply to all fees charged to
with an income. amount invested, and remitted to your the Mercer Super Trust. Generally, the
The trustee may pay an annual ongoing adviser. Mercer Super Trust cannot claim full
commission to your adviser equal to input tax credits in respect of these
0.45% per annum of the value of your Worked example: fees, but will usually be entitled to
account balance. This fee is paid by the For an investment of $50,000 into the reduced input tax credits (currently
trustee out of the management costs Mercer Growth Investment Option equal to 75% of the GST paid) in
it receives from you (as set out in the an adviser service fee of between 0% respect of some of these fees. As a
“Fees and other costs table”), and is ($0) and 3% ($1500) of the amount result, the fees payable to us including
not an additional charge to you. invested may be deducted by the GST are higher than those disclosed in
trustee, from the amount invested and the PDS.
Worked example: paid to your adviser. Any fees payable to us as set out in
Assume an amount of $50,000 is this PDS approximate the net cost of
invested for 12 months in the Mercer Reduced Fees these fees (after GST) and assume that
Growth Investment Option. The reduced input tax credits are available.
If you are a transferring member
trustee may pay your adviser an annual from the Corporate Superannuation
ongoing commission of 0.45% of the Division of the Mercer Super Trust, your Tax and your super
value of your account balance which is employer may have negotiated lower Tax details are set out in the Tax &
$225 per annum. fees that will apply to your membership super section of this PDS.
of the Personal Superannuation
Adviser service fee Division. If such a fee arrangement
In addition, your adviser may charge applies to you, you will be advised of
you an adviser’s service fee each time this by the trustee separately at, or
when you make an investment in the before, the time you are provided with
Personal Superannuation Division of a copy of this PDS.
the Mercer Super Trust. The maximum
fee the adviser can receive is 3% of
the amount you invest in any of the
investment options set out in this PDS
except for Mercer Cash where no such
fee applies. The amount your adviser
receives is negotiated between you and
your adviser.
16
Getting to know your super. . .
Super and Preservation
Government legislation is designed to make sure that your super is used for Your preservation age
retirement and, consequently, restricts your accessibility to your super. There are three
Your preservation age (i.e. the age at
super payout categories:
which your preserved super can be paid
■ Unrestricted non-preserved super payouts to you in cash if you permanently leave
■ Preserved super payouts work) depends on your date of birth.
Set out below are details of the current
■ Restricted non-preserved super payouts
preservation ages.
The unrestricted non-preserved amount (if any) is the part of your super payout
that is payable in cash at any time. Preservation
Date of birth age
Preserved or Restricted non-preserved payouts must be kept in a superannuation
fund or other approved superannuation arrangement and are only accessible on Before 1 July 1960 55
satisfaction of the conditions imposed under superannuation law as shown below. Between 1 July 1960 56
and 30 June 1961
Conditions for accessibility of Preserved or Between 1 July 1961 57
Restricted Non-preserved super and 30 June 1962
Accessibility Between 1 July 1962 58
and 30 June 1963
Restricted non-
Preserved super Between 1 July 1963 59
preserved super
payout and 30 June 1964
Condition payout
You have permanently retired from work Full Full After 30 June 1964 60
on or after your ‘preservation age’ (see
below).
You are aged 60 or more and you resign Full Full Taking a partial
or retire from your current employer. payout
You are aged 65 or more. Full Full Some of your super payout may be
The trustee is reasonably satisfied that you Full Full available for payout at any time. This
are permanently incapacitated.* amount is known as the ‘unrestricted
non-preserved’ component of your
You have compassionate grounds for Partial or full Partial or full super. Your member statement will
applying.* show if you have any such ‘unrestricted
You suffer severe financial hardship.* Partial Partial non-preserved’ amounts.
You are aged less than 60 and terminate None Full If you choose to take any of this amount
employment with your current employer from your super account balance, then
(but don’t permanently retire) provided the payments must at least be $1,000
that employer has contributed to the (unless you are requesting payment
Mercer Super Trust for you. of your entire super account balance).
If you want to take advantage of this
You have reached preservation age but May be available May be available option you should call the Helpline on
have not retired. as a non- as a non- 1800 810 558 for details. Please note
commutable commutable that the trustee requires that your super
pension or pension or account balance remains above $2,400
annuity annuity at all times.
You leave Australia permanently (if you are Full Full You may also apply to have all of your
a temporary resident and satisfy certain super account balance rolled over to
conditions). another superannuation arrangement.
* as provided under superannuation law Call the Helpline on 1800 810 558 for
details.
The law requires that your preserved super must stay invested in an ‘approved
superannuation arrangement’. This could include another employer’s fund, another
personal super fund, a rollover fund or a retirement savings account.
17
Some of the more significant features The ERF does not provide insurance
of the ERF, current as at the date of this cover.
Looking for PDS, are as follows:
financial planning If you have reached age 65 and haven’t
■ The assets of the ERF are invested in told us how and where you’d like your
advice? a capital guaranteed life insurance super paid and you can’t be contacted,
As a Personal Superannuation policy (ERF Policy) issued to AMP then your payout will be considered
Division Member, you are able to Superannuation Limited (ASL) by to be unclaimed money and will be
access advice from one of Mercer’s AMP Life Limited (AMP Life). The placed with the Victorian Department
financial advisers. Please call the ERF Policy is a “participating policy” of Treasury. You can approach the
Helpline on 1800 810 558 to in AMP Life’s Number 1 Statutory Victorian Department of Treasury to
access this service. Fund (AMP No 1 Fund). There is no claim any such money directly.
choice of investment available to
members within the ERF.
■ Returns are guaranteed never to Inquiries and
Small account
balances
be negative. For larger account
balances (currently over $2,500)
complaints
If you’re a member of the Personal
the investment objective is to procedures
provide returns over the longer term
Superannuation Division and your Most queries can be sorted out over
exceeding those from cash with
account balance falls below $2,400, the telephone, but if we’re unable
security of capital.
you may be asked to tell the trustee to help you immediately, you may be
how and where you want your super ■ The investment strategy for the asked to put your question in writing to
paid. assets in the AMP No 1 Fund the Mercer Super Trust’s Inquiries and
(that are backing the ERF Policy) is Complaints Officer, Mercer Super Trust,
If you don’t respond within 90 days, centred on cash and fixed interest GPO Box 4303, Melbourne VIC 3001.
your super may be transferred to an investments, supplemented by
eligible rollover fund. This means that investments in shares to provide While you can expect a reply within 28
your future payout will come from long term growth. days, sometimes the maximum period
the eligible rollover fund and you’ll of 90 days allowed under the law is
■ AMP Life declares multi-tiered
no longer have any rights under the experienced for more complicated
crediting rates of investment
Mercer Super Trust. The Mercer Super queries or complaints.
earnings (interest) with respect to
Trust uses the following eligible rollover
the ERF Policy. The interest to be If you have a complaint and you’re
fund:
credited to a member’s account is not satisfied with the response, you
AMP Eligible Rollover Fund calculated based on a member’s can request that the Complaints
Locked Bag 5400 daily balance and credited annually Officer pass on your complaint to the
Parramatta NSW 1741 (or on withdrawal). Where a trustee’s Complaints Committee for a
member’s account balance is less formal reconsideration. While you can
Telephone: 1300 300 288 than $1,000 no interest is credited. expect a decision from the Complaints
Fax: 1300 301 267
■ There are no fees charged directly Committee within a further 28 days,
Email: info@amp.com.au
to a member’s account by ASL. again sometimes the maximum period
The trustee of the AMP Eligible Rollover Administration and investment fees of 90 days is experienced.
Fund (ERF) is AMP Superannuation as well as taxes (including earnings
tax) are deducted by AMP Life The trustee always seeks to resolve any
Limited.
before declaring any interest to be complaints to the satisfaction of all
credited under the ERF Policy. concerned and in the best interests of
all the members of the Mercer Super
■ The ERF is unable to accept
Trust. However, if you’ve followed
contributions from members or their
the steps outlined above and are not
employers, however, rollovers from
satisfied with the outcome, or you
other superannuation funds are
don’t wish to refer the matter to the
permitted.
Complaints Committee, you may take
your complaint to the Superannuation
Complaints Tribunal.
18
Getting to know your super. . .
The Tribunal is an external dispute By becoming a member of the Mercer Family law
resolution system that covers Super Trust, it’s assumed that you
Government legislation allows married
complaints by members of super consent to this handling of your
couples to make binding agreements or
funds. Any complaints must be lodged personal information. If you don’t
obtain court orders in respect of how
with the Tribunal within certain time provide the trustee with your personal
each partner’s super will be divided
limits. For more information about information, we may not be able to
upon marriage breakdown. It also
requirements and time limits, you can provide your super and choices.
gives the Family Court a say in how a
contact the Superannuation Complaints
Your personal information may also couple’s super is divided upon marriage
Tribunal at:
be used for marketing and research breakdown.
■ Locked Bag 3060 GPO purposes (unless you have requested us
Splitting super entitlements with your
Melbourne VIC 3000 not to do so by contacting the Helpline
spouse will affect the preservation
■ or phone them on 1300 780 808 on 1800 810 558).
components of your super and may
■ or visit their website at You can usually see any personal have tax consequences. You should
www.sct.gov.au information held and correct it if it’s seek professional advice as to the
inaccurate. However, there are some consequences of marriage breakdown
If the Tribunal accepts your complaint,
circumstances where this isn’t possible. on your super.
it will try and help you and the
trustee reach a mutual agreement The trustee follows the National Privacy Please note that under the Family
through conciliation. If conciliation is Principles as described in the Privacy Act Law Act the trustee is also required to
unsuccessful, the complaint is referred 1988 (Cth) and has a Privacy Policy which provide certain information about a
to the Tribunal for a determination. describes in detail the way the trustee member’s super payout in the Personal
handles members’ personal information. Super Division to ‘eligible persons’
If you’d like a copy of the Mercer Super where the information is required to
Other things you Trust Privacy Policy please call the Helpline negotiate a superannuation agreement
should know on 1800 810 558 or visit our website at
www.mercersupertrust.com.
or to assist with a court order. For the
purposes of the Family Law Act an
eligible person means a member, the
Accounts and audit
Unclaimed money spouse of a member or a person who
The financial accounts for the Personal intends to enter a superannuation
If we’ve written to you twice and agreement with the member.
Superannuation Division are prepared
both times the mail has been returned
annually by the trustee and audited by
unclaimed, we may transfer your super Your super payout may need to be
an independent auditor. You can obtain
to the ERF. See ‘Small account balances’ adjusted to reflect any agreements or
a copy of the latest audited accounts
earlier in this section for further details court orders which may be binding
free of charge by calling the Helpline
on the ERF. on the trustee. You’ll be advised of
on 1800 810 558.
any fee that applies when a request is
If you’re above age 65 and we have made for actions to be taken under the
Your privacy is written to you twice and both times Family Law Act in respect of your super
important the mail has been returned unclaimed, payout.
then your payout will be considered
The trustee of the Mercer Super Trust to be unclaimed money and will be You can also call the Helpline on
holds personal information about placed with the Victorian Department 1800 810 558 about family law matters
you. Typically this includes your of Treasury. affecting your super in the Mercer
name, address, date of birth, gender, Super Trust.
occupation, salary and tax file number. You can approach the Victorian
This information is needed to provide Department of Treasury to claim any
such money directly.
your super. Recently divorced
Your personal information is collected If your super is transferred into the ERF, or separated?
either from you or from your previous the trustee of the ERF must ensure that
all your super is subject to the ‘member Under Family Law, married couples
super provider. Your personal
protection rules’ of superannuation have the option of splitting their
information may be disclosed to the
law, irrespective of the size of your super entitlements on marriage
Mercer Super Trust’s administrator,
super payout. You will no longer be a breakdown. Call the Helpline for
professional advisers, insurers,
member of the Mercer Super Trust and more information about Family
government bodies, and other parties
any insurance cover you may have had Law matters affecting your super in
as required, including the trustee of any
will cease. the Mercer Super Trust.
other super fund you may transfer to.
19
Access to your super For contributions, rollovers or transfers Unit prices are calculated to the fourth
received, the entry price used is decimal place. A fractional unit has a
if you leave Australia generally the unit price applicable for value equal to the proportion that it
permanently the day your request was received bears to a whole unit. The net asset
(as soon as that unit price becomes value of an investment option reflects
If:
available). For super payouts, fees, the value of the underlying assets of
■ you entered Australia on an ‘eligible’ premiums, tax or expenses paid out, that option less any liabilities, provisions
temporary resident visa, and the exit price used is generally the for taxation and other expenses related
■ you will be permanently departing one prevailing at the time the relevant to that option.
Australia, and transaction is processed.
Unit prices may rise or fall depending
■ your temporary resident visa will
Please note that: on fluctuations in the underlying value
soon expire or will be cancelled,
of the investments in each investment
■ The trustee can only allocate units
then you may be eligible to access your option.
when it receives all the information
super and have it paid directly to you. necessary to invest. Unit pricing and changes to
Contact the Helpline on 1800 810 558
■ The trustee may suspend the issue investment options
to obtain a leaflet which describes what
(or redemption) of units during any
an eligible temporary resident visa is, If you request the trustee to change
period in which the trustee is of
and how to make an application to the the investment options that apply to
the opinion that the entry price (or
trustee for the release of your super for part or all of your existing super and
exit price) of those units cannot be
this reason. your switching request is received
calculated in a manner that is fair
before 4.00pm Melbourne Time on
If you make an application to the to all members holding those units.
a business day, the unit price used
trustee and it’s successful, your payout The trustee may also suspend the
for your switch will generally be the
will be immediately arranged, usually redemption of units if it is unable to
unit price applicable for the day your
within one business day although a realise sufficient of the underlying
request was received (as soon as that
longer period may apply. assets of the investment option
unit price becomes available). If your
in order to satisfy a redemption
request is received after that time, it
You can’t borrow request.
will be assumed to have been received
against your super ■ Units are not transferable. the next business day. By business day
we mean Monday to Friday excluding
As the law currently stands, you can’t How and when are unit prices national and Melbourne public
borrow against your super, use your calculated? holidays.
super as security for a loan, or sign over
The unit price of each investment
your super to anyone else. Differing returns
option is calculated on a daily basis by
the trustee although the trustee may Investment returns based on unit
Monitoring inquiries recalculate prices more frequently when prices as calculated within the Mercer
The trustee may, at its discretion, it considers it to be appropriate. Super Trust are likely to differ from the
monitor or record inquiries or underlying manager’s actual return
Where the amount ascertained by the due to the differences in fees, and
transactions made by telephone. This is allocation or redemption of units does
done for reasons of accuracy, security the timing impact of differences in
not exactly equal the amount received transactions for the Mercer investment
and service. or to be paid, then the trustee may options relative to those for the
issue or redeem a fractional unit equal underlying manager’s trust.
Units and unit pricing to the proportion of a whole unit that
is outstanding. How are assets valued?
What are units?
The assets of each investment option The entry price and exit price of a whole Unless the trustee determines
are divided into units of equal value. unit basically reflects the net asset value otherwise, the value of the underlying
of the investment option divided by the assets of the investment options will
Each time a contribution is made number of units which are referable be market values determined by an
to the Mercer Super Trust, units are to that option on issue at the relevant external custodian or investment
allocated by the trustee in the relevant time. In determining the unit prices, manager.
investment option at the entry price. a notional allowance may be made
Similarly, when payments are made The valuation methods and policies
for any applicable buy/sell spread. See used result in the calculation of a unit
for super payouts, fees, insurance ‘Transactional and operational costs’ in
premiums or tax, units are redeemed price that is independently verifiable.
the section ‘Additional explanation of
by the trustee from the relevant fees and costs’ earlier in this section for
investment option at the exit price. more details.
20
Getting to know your super. . .
Retirement of trustee Service Providers to Trust external assets and assets of the
MIFs, must act in accordance with the
The trustee must retire if it ceases to the trustee instructions of the trustee.
be qualified to act as trustee of the
The trustee appoints a number of
Mercer Super Trust in accordance
with Government regulations. The
service providers to assist it in running The governing rules
the Mercer Super Trust. The main
trustee may also retire at any time by Two legal documents make up the
service providers to the trustee are
appointing another company to act as governing rules of the Personal
the administrator, the custodian and
trustee in its place. The new trustee Superannuation Division:
must be eligible to act as trustee of the the insurer. The administrator and
Mercer Super Trust. The directors of the custodian are remunerated out of the ■ the trust deed which governs the
trustee are also subject to government trustee’s fee income and their fees are operation of the Mercer Super Trust
regulations concerning their eligibility not an additional cost to members. The ■ the designated rules covering the
to be directors. cost of any insurance cover you take general operation of the Personal
out will be deducted from your super Superannuation Division
Trustee powers and account balance on a monthly basis.
Together with the Corporations Act and
responsibilities Details about the administrator and superannuation laws, the governing
custodian are provided below. Refer to rules set out the rules and procedures
The trustee is responsible for:
the Death & disability cover section for under which the Mercer Super Trust
■ ensuring members’ rights and details about the insurer. and the Personal Superannuation
interests are protected
Administrator Division operate together with the
■ payment of correct super payouts at trustee’s duties and obligations to you.
the appropriate time The trustee has appointed Mercer Human
■ the proper investment of assets Resource Consulting Pty Ltd (Mercer) to Under the governing rules, there are
be the administrator to the Mercer Super provisions that may impact your super.
■ the general operation of the Mercer
Trust. In addition to the administration These provisions may apply if:
Super Trust in accordance with the
of investor records and unit holdings,
governing documents and applicable ■ you fail to provide the trustee with
Mercer provides the following services to
legislation. information requested. In this case
the Mercer Super Trust:
insurance cover may not be able to
The trustee has power to invest the
assets of the Mercer Super Trust in real ■ daily management of the Mercer be provided to you or tax may be
and personal property of any nature. Super Trust’s operations including deducted from your super payout at
The trustee may not borrow money accounting the highest possible rate.
except for temporary borrowing (not ■ investment advice on investment ■ you change your employment status.
exceeding 10% of the value of the manager selection, monitoring of In the case of reducing your hours, if
assets of the Mercer Super Trust) to investment option performance you are over age 65 and, depending
pay super entitlements and to settle and advice on suitable benchmarks on the circumstances, you may be
securities transactions. for investment options (through required to take your super payout.
one of its divisions, Mercer Global In the case of moving to a casual
The trustee has the right to override any
member’s investment options if required Investments) or a part-time arrangement, your
in accordance with its legal obligations. ■ preparing communications materials, insurance options may be limited.
including the Mercer Super Trust’s The trust deed requires the trustee to
The trustee pays itself a fee out of the internet site
fees charged to members. Refer to comply with all relevant superannuation
‘Fees and other costs’ earlier in this ■ call centre facilities for members. laws. This enables the Mercer Super
section for details. Custodian Trust to be taxed at concessional
rates. The trustee can also deduct
The trustee has also appointed National
Trustee’s indemnity tax as appropriate from your account
Australia Bank Limited (NAB) to act as
balance. You may request a copy of
Both the trustee and its directors are a custodian.
the governing rules by contacting the
entitled to be indemnified, out of the NAB is responsible for holding and Helpline on 1800 810 558.
Mercer Super Trust, against all liabilities accounting for the Mercer Super Trust
which may be incurred in administering external assets held by the trustee
the Mercer Super Trust unless those either in its capacity as trustee of
liabilities have arisen out of the trustee’s the Mercer Super Trust or as trustee
or the director’s fraud, dishonesty of related trusts. The trustee, under
or intentional or reckless neglect Australian Prudential Regulation
or default, or are amounts, such as Authority requirements, must monitor
penalties, for which indemnification the activities of NAB as it is required to
is not permitted under Government understand the risks and responsibilities
legislation. This may result in a in the custody arrangements. NAB,
reduction in your super payout. as the custodian of Mercer Super 21
Amendment of governing rules ■ to participate in the distribution of If you cancel your membership during
From time to time it may be necessary assets on the winding up of the the cooling off period your investment
to amend the provisions of the Personal Superannuation Division as will be refunded. The amount refunded
governing rules. permitted by the governing rules will be calculated by reference to the
■ to receive various information price at which the units would have
The trustee has the power to amend concerning their interest in the been acquired if you had acquired
all or any of the provisions of the Personal Superannuation Division them on the day the cooling off right
trust deed and designated rules. Any and Mercer Super Trust in general is exercised, adjusted for payouts or
amendment must also comply with other distributions (if any) made to
■ to receive a payout upon the
the restrictions in the trust deed, you during the period of membership,
happening of specified events and to
designated rules and any applicable tax and reasonable transaction or
transfer it to another rollover vehicle
government requirements which administration costs. Therefore, the
in accordance with the restrictions in
protect your accrued super. amount refunded may be greater or
the governing rules.
less than the amount initially invested.
If the Personal Superannuation Division
Being a member in the Mercer Super
is closed, then member payouts may be The refund will be made in accordance
Trust does not entitle a person to any
adjusted. with the following rules:
interests in the trusts in which the
assets of the Mercer Super Trust is ■ Any amount representing preserved
Closing the Mercer invested. or restricted non-preserved benefits
Super Trust will be transferred to a regulated
The Mercer Super Trust is an indefinitely Liability of members superannuation fund, approved
continuing fund with no fixed termination deposit fund or retirement savings
The governing rules limit the rights of
date. The trustee may terminate account nominated by you.
the trustee and any creditors of the
the Mercer Super Trust, or Personal Mercer Super Trust to seek indemnity ■ Any other amounts will be paid to
Superannuation Division, at any time. from a member beyond the extent of you or rolled over as directed by you.
the Mercer Super Trust property. The ■ If no nomination is received from
Upon termination, the trustee must
governing rules give the trustee powers you within one month of notifying
realise the Personal Superannuation
to recoup amounts from members in us that you want to cancel your
Division or Mercer Super Trust (as
relation to taxation liabilities in respect membership, or if the nominated
appropriate), discharge all liabilities, pay
of the member. superannuation entity does not
the expenses of termination and then,
accept the nomination, your benefit
subject to meeting the requirements of
the relevant legislation, distribute the Material changes or may be transferred to an Eligible
Rollover Fund of our choice.
balance in the following order: significant events
■ pensions and minimum requisite You’ll be provided with at least 45 days
super payouts notice of any proposed increases in fees
■ members’ super account balances or charges. All other material changes
(less the minimum requisite payout) or significant events will be advised in
accordance with the requirements of
the law.
Rights of members Regular
Members are entitled to a beneficial Cooling Off information about
interest in the Mercer Super Trust.
However, members and employers You have 14 days after investing your super
are not entitled to interfere with, or in the Mercer Super Trust during
which you can write to us to cancel To keep you up to date, you’ll
exercise, the powers of the trustee receive:
in respect of any Mercer Super Trust your membership of the Personal
property, liability or obligation or to Superannuation Division. This is called ■ an annual report with details
lodge a caveat over Mercer Super Trust the ‘cooling off’ period. The 14 day of the Mercer Super Trust’s
property. period starts from the earlier of the investments, finances and
date you receive our confirmation operations
The rights of members include: of your membership or 5 days after
■ an annual member statement
■ to have units allocated to, and you become a member. You will
showing changes in your super
redeemed from, their accounts lose your right to cooling off if you
account balance over the period
subject to any restrictions contained exercise a right under the Personal
Superannuation Division, for example ■ regular newsletters and
in the governing rules
if you make an investment switch or investment updates
withdrawal. ■ access to the Mercer Super Trust
website and Helpline
22
Step 2 Contributions
Contributing a bit extra to your super now can help
you build a bigger payout later.
In this section you’ll find out:
■ What you put in - if you want to page 24
■ Rollovers – don’t let multiple fees eat away at your super page 24
■ Spouse super page 25
■ Working past age 65 page 25
■ Further queries page 25
23
What you put in Your employer can Rollovers - don’t
also contribute
- if you want to let multiple fees
By contributing on your behalf,
Lump sum deposits your employer can satisfy their eat away at your
As a member you can make
obligations under the Government’s
Superannuation Guarantee legislation.
super
contributions at any time. Your initial You can rollover other super money
balance must be a minimum investment For further details on how your
into the Mercer Super Trust if you want
of at least $3,000 unless you participate employer can contribute, please call the
to.
in the Regular Contributions Plan (see Helpline on 1800 810 558.
below). Any lump sum contribution you If you’ve had other jobs in the past,
wish to make thereafter will need to Tax on contributions you’ll probably have super accounts
be at least $100. You must forward a with your previous employers. You have
Tax is deducted from employer the choice of rolling in all your super
‘Making contributions’ form each time
contributions and any before tax into your Mercer Super Trust account.
you contribute. To obtain a copy of the
contributions you make. It’s applied By doing this you could improve your
form you should contact the Helpline
to contributions after any relevant super investment overall. You’ll only
on 1800 810 558 or visit our website
member fees and any insurance be paying one set of fees and you’ll
on www.mercersupertrust.com.
premiums have been deducted. This tax be earning investment returns on a
You can also make contributions via is normally deducted at 15%. For more bigger sum of money. It also means
BPAY. If you wish to do so, please details refer to the Tax & super section. you have only one set of paperwork
contact the Helpline on 1800 810 558 to think about. Why not discuss the
for details. The minimum level benefits of rollovers with a licensed,
for your account or appropriately authorised, financial
Regular Contributions adviser?
balance
Plan
You may also choose to make regular
The trustee requires that your super If you’d like to roll
account balance remains above $2,400
contributions using our Regular at all times, unless you’re participating
other super into your
Contributions Plan. In this case your in the Regular Contributions Plan. Mercer Super Trust
initial contribution must be at least
$1,500 with a minimum regular If your account balance should fall
account…
monthly contribution of at least $100. below this level, your super may be Complete the rollover form included in
transferred to the ERF (the eligible this PDS and then send it to your other
Your regular contribution is rollover fund currently used by the super fund. They will then contact the
automatically taken out by direct debit Mercer Super Trust) unless you make Mercer Super Trust about rolling the
from your nominated bank, building further contributions or request to money in. There will be no charge for
society or cash management trust transfer your super to another fund receiving money rolled in from other
account. This will happen on the last (see the Getting to know your super funds (except an adviser service fee, if
day of the relevant month, or if this section). See ‘Small account balances’ applicable), although you should check
falls on a weekend or holiday, the next in the Getting to know your super with your other funds to see if there are
business day. You can change your section for further details on the ERF. any withdrawal fees.
payment details at any time.
If the money you roll in is preserved,
The Regular Contributions Plan can only it stays preserved in the Mercer Super
be used to make member or spouse Trust. See the Getting to know your
contributions. While your employer can super section for more details on
make regular contributions on your preservation.
behalf, this can’t be done through the
Regular Contributions Plan. If you wish If you require additional rollover forms,
to use our Regular Contributions Plan, please call the Helpline on
please contact the Helpline on 1800 810 558 or visit our website on
1800 810 558 or visit our website on www.mercersupertrust.com.
www.mercersupertrust.com, for the
relevant forms.
24
Contributions…
Spouse super If you’re over age 65 and work less
than 240 hours in a financial year, you
If your spouse wishes to make super must take your super payout early
contributions for you, he or she will need in the next financial year. However it
to complete and return a ‘Your spouse’s may be possible to keep some of your
contributions’ form which sets out the benefit in super if your employer is still
eligibility requirements. To obtain a copy required to pay mandated employer
of this form, you can contact our Helpline contributions for you.
on 1800 810 558 or visit our website on
Even if you are still working you will
www.mercersupertrust.com.
normally be required to take your super
payout when you reach age 75. It
Working past may be possible to keep some of your
benefit in super if your employer is still
age 65 required to pay mandated employer
contributions for you.
If you are still working after age
65, generally contributions by your Please contact the Helpline on
employer will continue to be made. 1800 810 558 if you are over age 65
However the law will not allow such and worked less than 240 hours in the
contributions in certain circumstances. previous financial year.
After age 65, mandated employer
contributions may be made in respect
of you. “Mandated” employer
Further queries?
contributions are the Superannuation If you have any queries about whether
Guarantee Contributions (SGC) and/or you should consider additional
contributions required under an award contributions for yourself or your
or certified agreement. spouse, please call the Helpline on
1800 810 558.
As there are currently no SGC
requirements beyond age 70,
mandated employer contributions
after age 70 will be those that may be
required under an award or certified
agreement.
Other employer (including salary sacrifice)
contributions, and contributions made by
your spouse, can only be made in respect
of you up to age 70 if you have worked
at least 40 hours during any period of
30 consecutive days in the financial year
to which the contributions relate. These
contributions cannot be made after
age 70.
Between ages 65 and 75, you can
make personal after tax contributions
if you have worked at least 40 hours
during any period of 30 consecutive
days in the financial year to which the
contributions relate.
Once you reach age 75, the personal
after tax contributions can no longer be
accepted.
25
26
Step 3 Investments
You choose how your super is invested.
In this section you’ll find out:
■ An overview of your choice page 28
■ Learn the investment basics page 30
■ Trustee’s investment philosophy and approach page 31
■ What choice is right for you page 34
■ Making your decision page 35
■ Your Mercer Super Trust investment options page 36
■ Performance of Mercer Super Trust investment options page 53
■ Performance relative to index page 56
27
Step 1 - An overview of
Your super your choice
We recognise that different people have different investment
– your choice! needs. That’s why the trustee of the Mercer Super Trust offers
We understand that choosing the right investment option can you different investment options. Each investment option is
be a confusing experience. designed to suit different investment objectives and strategies.
This section provides a structured path to help you make a Mercer Super Trust makes it easy!
choice that meets your investment needs and objectives.
To make it easy, the trustee of the Mercer Super Trust offers
you a choice of six Ready-made options which correspond
Step 1
to common investment strategies. All the other available
investment options make up the Select-your-Own options.
An overview of your choice
You can choose any one or more of the investment options
Look at this section to understand what you need to do
– either Ready-made or Select-your-Own or a mix of both.
and what your choices are.
It’s recommended that you seek advice from a licensed,
or appropriately authorised, financial adviser before you
Step 2 choose your options.
Learn the investment basics The ‘Ready-made’ investment
This section runs through the investment basics to help options
you understand the differences between the investment The Ready-made options are a set of investment options
options offered. This section also describes the Trustee’s where the trustee of the Mercer Super Trust has selected the
investment philosophy and approach. investment managers for you and has selected the mix of asset
classes. You can pick an investment option that you think best
suits your needs without having the hassle of choosing or
Step 3 monitoring the actual investment managers or deciding how
to allocate the different asset classes.
What choice is right for you These options take advantage of the trustee’s multi-manager
Consider the factors that will influence your choice. investment approach and correspond to commonly chosen
Remember you should speak to a licensed, or investment strategies. These strategies range from growth
appropriately authorised, financial adviser if you need help (holding mainly shares and property) to defensive strategies
with your investment choices. (holding mainly fixed interest and cash).
The Ready-made options are:
Step 4 ■ Mercer Shares
■ Mercer High Growth
■ Mercer Growth
Making your decision ■ Mercer Moderate Growth
You’re now ready to make a decision and to make this ■ Mercer Conservative Growth
easy we’ve included a summary table to compare all the ■ Mercer Cash.
options at a glance and detailed information about all the
The Ready-made options are described in more detail later in
investment options. A table of past performance is also
this section.
included.
The “Select-your-Own” investment
options
All the other available investment options make up the Select-
your-Own options.
They include investment options managed by specific investment
managers, specialist investment options invested in one particular
asset class (referred to as ‘Mercer Sector’ investment options in
this PDS), ‘Mercer Plus’ investment options (see below for further
details), ‘Mercer Target’ investment options (see below for further
details), Indexed investment options (commencing with the word
‘Indexed’) and socially responsible investment options.
28
Investments…
The Mercer Plus investment options If you don’t make a choice…. Different investment
(eg Mercer Growth Plus) are expected
to have higher risk and return
If you have joined the Personal fees apply to each
Superannuation Division without
characteristics when compared to their being transferred from the Corporate
investment option
equivalent Mercer investment options Superannuation Division, and don’t Each investment option is managed
(eg Mercer Growth). However, there is make an investment choice, your super by professional investment managers.
no guarantee that these expectations will be automatically invested in the Their fees are included in the
will be met over any particular period. default investment option. The default is investment management fees and a
These Mercer Plus investment options, the Mercer Growth investment option. performance fee range (if applicable)
when compared to their equivalent which are deducted before unit
Mercer investment options, may have If you have transferred into the
prices are worked out and allocated
different allocations to investment Personal Superannuation Division from
to your account. These investment
managers within asset classes, different the Corporate Superannuation Division
management fees and performance
benchmark weights eg greater of the Mercer Super Trust and have not
fee range (if applicable) will vary
exposure to alternative assets where previously had the choice of how to
between investment options. For
relevant and wider asset allocation invest a part (or all) of your super,
more information on fees and other
ranges. deductions see the Getting to know
■ then that part (or all) of your super
The Mercer Target investment options will be invested in the Mercer Cash your super section of this PDS.
(e.g. Mercer Target 2015) have been investment option; and
designed so that the asset allocation ■ any future contributions or rollovers Remember – there are
of each option will be progressively will be invested in the Mercer no guarantees!
adjusted to move from the current Growth investment option.
growth (e.g. shares and property)/ Investment returns, including the
If you have transferred into the capital, from any of the investment
defensive (e.g. cash and fixed interest) Personal Superannuation Division
asset mix to the growth/defensive asset options aren’t guaranteed. Your
from the Corporate Superannuation account balance will move up and
mix applicable by their target year Division of the Mercer Super Trust and
(e.g. 2015 for the Mercer Target 2015 down in value depending on the
have previously had the choice of how movements in the value of the
investment option). Over this time, the to invest any part of your super, then
exposure of each of the Mercer Target underlying investments in your
that part of your super will be invested chosen investment option(s).
investment options to growth assets in the same investment options as
will fall with a corresponding increase those you chose in the Corporate If you are unsure about your investment
to the exposure of defensive assets Superannuation Division. choice, you should see a licensed, or
and accordingly the suitability and risks appropriately authorised, financial
of each investment option will also It is strongly recommended that you adviser.
change. speak to a licensed, or appropriately
authorised, financial adviser to work If you leave the Mercer Super Trust
The Select-your-Own options are out whether your investment options within a few years of joining, the
described in more detail later in this under the Personal Superannuation payout you receive may be less than the
section. Division continue to suit your personal amount of contributions paid into your
Your investment needs and circumstances. super account if investment returns are
low or negative. The impact of tax and
choice applies to all
Changing investment any fees and charges incurred will also
your super reduce the amount you receive.
options
The investment options you first
Changes to your investment options
choose will apply to your existing
can only be made via the website or
super account balance and all future
the appropriate form. You can change
cash flows including contributions
your investment options online at the
made to your super and any amounts
Mercer Super Trust website www.
transferred in.
mercersupertrust.com or by completing
If you change your investment options and returning a ‘Changing your Note that the trustee may add
it’s important to specify whether the investment options’ form. You can new investment options, remove
change is to apply to only your existing obtain a copy of this form by calling the existing investment options or alter
super account balance, future cash Helpline on 1800 810 558. See ‘Units any investment option from time to
flows into your account balance, or and unit pricing’ in the Getting to time. You’ll be kept informed of any
both. know your super section for details on such changes.
which unit price applies for changes to
investment options.
29
Step 2 - Learn the Property
investment basics Investing directly in office buildings, shopping centres,
industrial estates and other similar property investments is
Before we get into explaining the options known as direct property investment. Investors can also buy
and how they work, here are a few units in property trusts, which invest in a variety of properties.
These trusts may be listed on an Australian or overseas
investment basics
stock exchange or they may be unlisted. Overseas property
There are lots of different types of investments, also called investments may be subject to currency movements which can
asset classes, for example, shares, property, fixed interest and add to, or take away from, returns.
cash. Here’s a brief explanation of the major asset classes that
your super can be invested in. Like shares, a property investment is suitable for long-term
investment as it has the expectation of some ups and downs
Growth investments… in the short-term.
■ Shares Fixed interest
■ Property
■ Alternative assets Fixed interest investments are issued to investors by Australian
and overseas governments, semi-government authorities and
These are types of investments that have the potential to companies in return for cash. Interest is paid to the investors
grow over the long term but are also likely to experience over the life of the investment, usually at a fixed rate. These
volatility (ups and downs) in performance from year to investments can generally be bought or sold before they
year. mature, potentially resulting in capital gains or losses.
Overseas fixed interest investments are normally hedged
Defensive investments… to remove the effect of currency movements. Hedging is a
process of protecting investments against, or reducing the risk
■ Fixed interest of a loss.
■ Cash Fixed interest investments are generally expected to be less
■ Alternative assets volatile than shares and property but with a lower expected
These are types of investments used when trying to return in the long-term.
protect the investment from the chance of a negative
return (in other words the value of the investment falls). Cash
Defensive investments tend to produce lower long term
but more stable returns than growth investments. Cash includes short-term interest bearing investments.
Generally, the likelihood of losing the initial investment in cash
is minimal. While volatility (the chance of ups and downs in
value) with cash is low, the returns are also likely to be lower
Shares than those available from fixed interest, property and shares
over the long term.
When you buy shares you are actually buying a portion, or
share, of a company. Your investment return will depend
on how the company performs over time and on economic Alternative assets
factors. Alternative assets generally comprise those investments
By investing in overseas shares you are investing in different which do not fit within the traditional broad asset classes
economies, which may assist in reducing overall volatility (ups (such as shares, property, fixed interest and cash). Examples
and downs in returns) by increased diversification. Overseas may include absolute return funds (eg. hedge funds),
share investments may be subject to currency movements infrastructure, commodities, etc.
which can add to, or take away from, the share market return.
Over the long-term, returns from shares have in the past
tended to be higher than those achieved by property, fixed
interest and cash. However, in the short-term, performance
tends to have more ups and downs.
30
Investments…
Balancing risk and Trustee’s Choosing and
return through monitoring
diversification
investment investment managers
It doesn’t matter what sort of
philosophy and Mercer Global Investments (a division
investment you choose - there is approach of Mercer) provides the trustee with
always going to be some level of risk a comprehensive investment service
involved. There is always a chance, The trustee has put together a range of including advice on the selection and
even if it’s a small one, of losing some investment options that includes all the ongoing evaluation of investment
of your money because of investment Ready-made and some of the Select- managers, management of investment
performance. your-Own investment options (those manager appointments and
that start with ‘Mercer’). These options replacements, and reviews and reports
How likely it is that you’ll lose money in (we’ll collectively call them the ‘Mercer on performance against investment
any one given year, will be influenced investment options’) are all managed objectives.
by the mix of growth and defensive on what’s called a multi-manager
investments your super is invested in. approach. In the following sections we Mercer Global Investments
describe this approach in more detail. uses sophisticated performance
By spreading your investments across
measurement and analytical tools.
asset classes, countries and investment
managers you can balance the level of
Investment These quantitative tools are designed to
complement the extensive qualitative
risk associated with investing. This is philosophy research performed into the operations
called diversification.
The trustee’s investment philosophy of investment managers. The overall
is founded on the belief that an objective of this research is to
More on growth optimal investment strategy is one that determine whether the manager has a
and defensive takes full advantage of investment sustainable competitive advantage.
opportunities appropriate to an
investments Details regarding the investment
investor’s risk profile by diversifying
Historically, growth investments have managers currently used by the trustee
across asset classes and investment
tended to give higher returns over for the Mercer investment options, and
styles, and is implemented in a manner
the long term but experience more the Indexed options can be obtained
that aims to maximise investment
‘volatility’ (ups and downs or ‘risk’) in by looking at the Mercer Super Trust
efficiency. The trustee believes that
the short term. website www.mercersupertrust.com or
appropriately constructed combinations
calling the Helpline on 1800 810 558.
of quality asset-class specialist
Historically, defensive investments have We can send you a copy of the updated
investment managers can generally be
tended to give lower returns over the information, free of charge on request.
expected to result in consistent, above-
long term but experience less volatility
average performance over time. The trustee may remove, replace,
than growth investments in the short
term. or appoint additional, investment
The Mercer investment options have
managers for the Mercer investment
been developed to be consistent
By having different ‘mixes’ of growth options and the Indexed options at its
with this philosophy and reflect
and defensive investments in an discretion.
Mercer Global Investments’ thinking
investment option, the characteristics
and research into best practice for
of that investment option change.
institutional investment strategies. Each of the
If an investment option has a high investment options
proportion of growth investments Investment approach has a set of objectives
compared to defensive investments,
Under a multi-manager approach, For each investment option, the trustee
you would generally expect higher
specialist managers are appointed to has determined a strategy which it
long term returns with more short
invest assets in each sector (or ‘asset believes is reasonably likely to enable
term volatility. In the opposite case of a
class’). Often more than one manager the option to meet its objectives. The
low proportion of growth investments
is appointed in an asset class to strategy includes the selection of a
and a high proportion of defensive
provide diversification. The underlying long-term mix of investments (asset
investments, you would generally
investment manager panels may be classes) that supports the option’s
expect lower but more stable returns.
configured to achieve exposure to a objectives. This mix is chosen after
range of investment management considering the advice of Mercer Global
styles, with the overall objective of Investments, which also provides
producing consistent performance advice on choosing and monitoring the
throughout market cycles. investment managers.
31
Mercer Global Investments uses In each case the trustee may invest Socially responsible
sophisticated financial models which through the MIFs, a series of wholesale
use historical data and economic investment trusts.
investing
forecasts to estimate each asset class’s Investment options that are
future performance. The model also The underlying investments of the
MIFs are invested at arms length subject to labour standards,
estimates the probability of each
projected return occurring. The next and are separately indentifiable. All social, environmental or ethical
step is to assess, for an option with a external investments are held by issues
given allocation to growth assets (eg National Australia Bank Limited, an The trustee offers two socially
shares and property), an appropriate independent custodian. The trustee has responsible investment options:
mix of asset classes aiming to give the not appointed a custodian to hold its
highest possible expected return, given interest in the MIFs. ■ the Mercer Socially Responsible
the intended investment approach of Shares investment option
the investment option. This becomes MINL is the trustee or responsible entity
■ the Mercer Socially Responsible
the recommended benchmark asset of each of the MIFs.
Growth investment option
allocation for that option. (collectively referred to as the SRI
Based on Mercer Global Investments’
Use of derivatives options).
experience and expertise, the trustee in the Mercer Super These are the only investment options
believes that the chosen strategies Trust where the trustee takes labour
give the Mercer investment options
Derivatives, such as futures or options, standards, social, environmental or
a reasonable probability of meeting
are investment products whose value ethical issues (SRI considerations) into
their objectives. There is no guarantee
is derived from other investments. For account in the development of the
however, that a particular objective will
example, the value of a share option investment strategy and appointment
be met over a particular period.
is linked to the value of the underlying of investment managers.
Changes are made to the objectives share.
and strategies as required in order to SRI considerations are not taken
ensure that the objectives continue Investment managers may utilise into account, for any of the other
to have a reasonable probability of derivatives in managing investment investment options made available
being attained. In addition, the trustee portfolios for the trustee and in through this PDS, by either:
monitors the options’ performance managing pooled investment vehicles ■ the trustee in the development of
against their objectives, with formal in which the trustee invests. However, its investment strategy for those
assessments and attribution analysis the trustee doesn’t undertake day- options, or
performed quarterly. to-day management of derivative
■ the investment managers,
instruments. Derivatives may be used,
appointed for those options, in their
How the Mercer Super among other things, to manage risk
investment decision making process
Trust’s assets are (eg. for currency hedging). Losses
with respect to selecting, retaining
from derivatives can occur (eg. due to
invested market movements). The trustee seeks
or realising investments
The trustee invests the Mercer Super to manage risk by placing limits on the although sometimes these matters do
Trust’s assets as follows: extent of derivative use in any relevant indirectly affect the economic factors
Investment Management Agreements upon which decisions are based.
■ in respect of the Mercer investment between the trustee and investment
options and the Indexed options by managers. The trustee also considers Decisions about the selection, retention
appointing professional investment the risks and the controls set out in or realisation of investments for
managers to manage the assets the managers’ Risk Management the other investment options made
and/or from time to time investing Statements. available through this PDS, are primarily
in a range of investment vehicles based on economic factors.
offered by professional investment The trustee has also adopted its own
managers; and Risk Management Statement in which
■ in respect of the remaining the relationship between the Mercer
investment options, by investing in Super Trust’s overall investment strategy
particular investment vehicles, the and the usage of derivatives is outlined.
names of which correspond to the This Risk Management Statement
names of the investment options states that the Mercer Super Trust is
offered. You can obtain copies of not to be geared by using derivatives or
the Product Disclosure Statements otherwise.
(if available) for these investment
options by calling the Helpline on
1800 810 558.
32
Investments…
Some asset classes are subject to SRI considerations SRI investment methodologies
SRI considerations The investment managers appointed by
Labour standards
Currently, the only asset classes of the trustee for the SRI asset classes may
Factors adopt one or more of the following
the SRI options which are subject to
SRI considerations are Australian and ■ Education and training SRI investment methodologies in their
overseas shares (SRI asset classes) investment decision making process:
■ Employee rights and benefits
however, this may be extended to other ■ Healthcare services ■ Engagement: This involves
asset classes in the future. See the seeking to influence the
■ Health and safety
‘Your Select-your-Own options in detail’ ethical, environmental or social
section for the full range of assets that ■ Employee relations
performance of a company through
these options can invest in together ■ Codes of Conduct communication with a company,
with their investment aims. ■ Performance measurement systems proxy voting or shareholder
■ Labour practices resolutions.
SRI considerations taken into
account in the SRI asset classes ■ Talent attraction and retention ■ Best of Sector: This involves
choosing the best performing
The SRI options use a multi-manager
Environmental issues companies in their sector (measured
investment approach with potentially
Factors against a range of SRI criteria).
different investment managers selected
to implement investment strategies in ■ Energy conservation ■ Screening: This is the practice of
each asset class applicable to the SRI including or excluding securities
■ Pollution control
options. based on SRI criteria involving
■ Recycling the use of positive and negative
The investment managers appointed to
■ Renewable energy screens. Positive screening assesses
manage the SRI asset classes must take
■ Water management a company’s performance according
into account:
to specified SRI criteria; companies
■ Greenhouse gases
■ at least one of the SRI considerations that engage in desirable practices
■ Mining
set out below; and are then selected for investment.
■ Nuclear power Negative screens are used to rule
■ at least three of the factors which
the trustee considers to be relevant ■ Ozone depletion out, or avoid, certain types of
for each SRI consideration utilised ■ Pesticides investments or activities.
■ Water pollution ■ Preference strategies: Involves the
in their investment decision making
■ Environmental policies adoption of a list of guidelines or SRI
process with respect to selecting,
criteria that companies should meet.
retaining or realising investments. ■ Environmental reporting
This approach may also involve a
The trustee does not, however, mixture of the other methodologies.
Social and Ethical issues
require an investment manager to
Factors ■ Index based: This involves
include or exclude an investment in a
the construction of a portfolio
company solely because that company ■ Community involvement using established indices of
has an exposure to a particular SRI ■ Alcohol environmentally and socially
consideration or to any factor within
■ Gambling responsible companies.
a particular SRI consideration. See SRI
investment methodologies for details ■ Armaments Applying socially responsible investment
of the different SRI methodologies the ■ Tobacco principles may impact on an investment
investment managers may apply in their ■ Pornography option’s risk and return. The factors
investment decision making process that may cause this include the impact
■ Animal testing
with respect to selecting, retaining or of potentially higher fees and restricting
realising investments. ■ Fur the universe of available investments
■ Corporate citizenship/philanthropy through the application of a socially
■ Human rights responsible methodology. Because of
these methodologies, the investment
■ Bribery and corruption
managers may pass up opportunities
to buy certain securities when it is
otherwise financially advantageous to
do so, or may sell certain securities due
to social responsibility concerns when it
is financially disadvantageous to do so.
33
Step 3 - What choice is Other issues you may want to
think about:
right for you?
■ Do you have other investments outside of super? Are they
The main things you need to think about when choosing mainly growth or defensive investments? You may want
investment option(s) are: to take this into account when choosing your investment
option.
How long you’re investing for ■ How much longer will you be earning an income and
Ask yourself this question - putting money into your super? Think about your
timeframe.
“When will I need my super money?”
■ Are you planning on cashing in all or part of your super
Government rules generally mean that you can’t access your when you retire for things other than ongoing income?
super until you’re at least age 55. Even once you’ve retired,
To assist you in planning your finances either now or in
you’re likely to need to invest a big proportion of your money
retirement you should see a licensed, or appropriately
to give you an adequate income in retirement.
authorised, financial adviser.
So for many people, the answer to this question will be:
As a Personal Superannuation Division member, you
“Not for a long time” are able to access advice from one of Mercer’s financial
advisers. Please call the Helpline on 1800 810 558 to
If you’ve a long time frame, time is on your side. You may
access this service.
consider focusing on investments that have a high proportion
of growth investments. With time on your side, you may feel
you can afford to ride out the inevitable ups and downs of
investment markets.
On the other hand, if you’ve got a short time frame, and if it’s
important to avoid short term falls in the value of your super, a
more conservative approach may be better.
How much risk are you
comfortable with?
Most investments involve some level of ‘risk’ – (the chance
of the investment changing in value – either up or down).
Because some investments are more volatile than others
(depending on the mix of growth and defensive investments)
having a choice of investment options means that you
can help control how much risk you want to take. Refer
to ‘Risks associated with being a member of the Mercer Super
Trust’ in the Getting to know your super section for further
details on risk.
Investing your super mainly in defensive investments over
the long term also carries a risk – the risk that your super
investment won’t keep up with inflation.
If your super money doesn’t grow as fast as inflation, your
super could lose its buying power and you may end up with a
smaller nest egg than you need.
34
Investments…
Step 4 - Making your ■ a ‘moderate’ level of risk means that a negative return is
expected, on average, approximately one year in every six
decision to seven.
To make this easy we’ve included an at a glance table to ■ a ‘moderately low’ level of risk means that a negative
give you an overview of all the investment options which return is expected, on average, approximately one year in
is followed by detailed information on each option. Tables every seven to nine.
setting out the past performance of the investment options ■ a ‘low’ level of risk means that a negative return is
on a single and compound return basis, together with a table expected on average, less than approximately one year in
of performance relative to a named index, such as CPI (refer every nine.
to “Option objectives” below for further details) are also ■ a ‘very low’ level of risk means that a positive return is
included, later in this section of the PDS. expected over rolling twelve month periods.
Please note that these statements are based on historical data
But first… some terms explained and shouldn’t be considered to be a guarantee or forecast that
To help you understand the differences between the a negative return in one year will be followed by a positive
investment options we’ve explained below some of the terms return in the next year.
used in the ‘at a glance’ table and ‘in detail’ sections that
follow.
Mix of investments
This refers to the mix of asset classes allocated to an investment
Benchmark and ranges option. Each investment option has a potentially different mix
The benchmark is the long-term mix of investments. Factors according to its investment strategy and objectives.
such as the trustee’s assessment of market valuations may
cause the actual mix to vary from this benchmark but it will
Option objectives
generally stay within the asset allocation ranges. These identify the type of return the investment option aims to
achieve for investors. These are sometimes stated in relation to
Consumer Price Index (CPI) a particular named index such as CPI. Where this occurs (and
Is used to measure the rate of inflation. In Australia it’s based the relevant option has been operating for the full comparison
on a selection of household goods and services. period) the performance of the option relative to the named
index is set out in the “Performance relative to index” table
Hedging included later in this section of the PDS.
Hedging refers to the process of protecting investments
Please note that the objectives of any particular option should not
against, or reducing the risk of, a loss. For example, in the
be treated, or relied upon as a forecast, indicator or guarantee of
context of currency hedging, the value of overseas investments
any future returns or performance for that option and the value
is affected by rises or falls in the value of the Australian dollar
of each option may rise and fall.
relative to foreign currencies (if the Australian dollar rises
in value, then overseas investments will reduce in value). Multi-manager investment approach
Investment managers can use various techniques to minimise
More than one specialist manager may be appointed to
the effect of currency movements on overseas investments
manage assets in each asset class or sector within the options.
- this is currency hedging.
Socially responsible investment approach
Investment timeframe
Socially responsible investment involves making an investment
This is the minimum time you should generally consider
decision based on principles of social responsibility in addition
holding your investment in this option. This is a guide only.
to the usual investment criteria. See ‘Socially responsible
Level of risk investing’ earlier in this section for further details.
For each investment option we’ve included the average Target Benchmark
expected likelihood of the option giving a negative return (in
The target benchmark is the proposed mix of investments
other words, falling in value). In this context:
for the Mercer Target investment options by their target year.
■ a ‘high’ level of risk means that a negative return is Factors such as the trustee’s assessment of market valuations
expected, on average, approximately one year in every may cause the actual mix to vary from the target benchmark
three to five. but it will generally stay within the asset allocation ranges.
■ a ‘moderately high’ level of risk means that a negative
return is expected, on average, approximately one year in
every five to six.
35
Your Mercer Super Trust investment options - at a glance
Investment % Growth Investment
Investment option Timeframe investments approach Level of risk
Mercer Shares At least 7 years 100 Multi-manager High
Ready-made
Mercer High Growth At least 6 years 85 Multi-manager Moderately high
Mercer Growth At least 5 years 70 Multi-manager Moderate
Mercer Moderate Growth At least 4 years 50 Multi-manager Moderately low
Mercer Conservative Growth At least 3 years 30 Multi-manager Low
Mercer Cash 1 year or less 0 Multi-manager Very low
Mercer Shares Plus At least 7 years 100 Multi-manager High
Mercer Plus
Mercer High Growth Plus At least 6 years 85 Multi-manager Moderately high
Mercer Growth Plus At least 5 years 70 Multi-manager Moderate
Mercer Australian Shares Plus At least 7 years 100 Multi-manager High
Mercer Overseas Shares Plus (Unhedged) At least 7 years 100 Multi-manager High
Mercer Australian Shares At least 7 years 100 Multi-manager High
Mercer Australian Small Companies At least 7 years 100 Multi-manager High
Mercer Sector
Mercer Overseas Shares (Unhedged) At least 7 years 100 Multi-manager High
Mercer Overseas Shares (Currency Managed) At least 7 years 100 Multi-manager High
Mercer Overseas Small Companies At least 7 years 100 Multi-manager High
Mercer Property At least 7 years 100 Multi-manager High
Mercer Overseas Listed Property At least 7 years 100 Multi-manager High
Mercer Fixed Interest At least 3 years 0 Multi-manager Moderately low
Mercer Diversified Alternatives At least 5 years 0 Multi-manager Moderately high
Moderateg
Mercer Target 2015* At least 5 years 65g50* Multi-manager
Moderately low*
Moderately highg
Mercer Target 2025* At least 6 years 80g50* Multi-manager
Mercer
Target
Moderately low*
Moderately highg
Mercer Target 2035* At least 7 years 90g50* Multi-manager
Moderately low*
Highg Moderately
Mercer Target 2045* At least 7 years 100g50* Multi-manager
low*
Select-your-Own
Mercer Socially
Multi-manager/
Responsible
Mercer Socially Responsible Shares At least 7 years 100 High
Socially responsible
Multi-manager/
Mercer Socially Responsible Growth At least 5 years 70 Moderate
Socially responsible
Indexed Shares At least 7 years 100 Indexed High
Indexed
Indexed Australian Shares At least 7 years 100 Indexed High
Indexed Overseas Shares At least 7 years 100 Indexed High
Indexed Growth At least 5 years 70 Indexed Moderate
Indexed Conservative Growth At least 3 years 30 Indexed Low
AMP Capital Balanced Direct Option At least 5 years 64 Active Moderate
AMP Capital Balanced Growth Option At least 5 years 74 Active Moderate
AMP Capital Conservative Option At least 3 years 33 Active Low
ANZ Superannuation Pool–Growth Fund At least 5 years 70 Active Moderate
BT Active Balanced PST At least 5 years 66 Active Moderate
Colonial First State PST–Diversified At least 5 years 70 Active Moderate
Credit Suisse Asset Management Capital Growth PST At least 5 years 70 Active Moderate
Others
ING Managed Growth Superannuation Fund At least 5 years 70 Active Moderate
INVESCO Wholesale Diversified Growth PST At least 5 years 73 Active Moderate
Legg Mason Growth Trust At least 5 years 80 Active Moderate
Maple–Brown Abbott PST At least 5 years 67 Active Moderate
MLC Balanced Fund At least 5 years 70 Multi-manager Moderate
MLC Capital Stable Fund At least 3 years 30 Multi-manager Low
MLC Growth Fund At least 5 years 79 Multi-manager Moderate
Schroders Superannuation Fund At least 5 years 69 Active Moderate
Zurich Wholesale Superannuation Managed Growth Fund At least 5 years 70 Active Moderate
* The exposure to growth assets (and therefore the level of risk) reduces as these investment options approach their target year (e.g. 2015 for the Mercer Target 2015
investment option).
36
Investments…
Your Mercer Super Trust investment options – In detail
Your Ready-made investment options
Mercer Shares Mercer High Growth Mercer Growth
Objective: Objectives: Objectives:
■ achieve a return (after tax and ■ achieve a return (after tax and ■ achieve a return (after tax and
investment management fees) that investment management fees) that investment management fees) that
exceeds CPI increases by at least 4% exceeds CPI increases by at least exceeds CPI increases by at least 3%
pa over rolling seven year periods 3.5% pa over rolling six year periods pa over rolling five year periods
■ achieve a return (over the medium ■ achieve a return (over the medium
to longer term) which is competitive to longer term) which is competitive
with comparable funds that have a with comparable funds that have a
similar allocation to growth assets similar allocation to growth assets
and similar risk characteristics and similar risk characteristics
Level of risk Level of risk Level of risk
High Moderately high Moderate
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 80-90 85 Growth investments 65-75 70
Australian shares 28-73 50 Australian shares 22-60 41.5 Australian shares 18-50 34
Overseas shares (a) 32-67 50 Overseas shares (a) 19-48 33.5 Overseas shares (a) 16-41 28
Defensive investments 0-10 0 Property (b) 5-15 10 Property (b) 3-13 8
Cash & fixed interest 0-10 0 Defensive investments 10-20 15 Defensive investments 25-35 30
Australian fixed interest (c) 0-12 3.75 Australian fixed interest (c) 0-18 7.5
Overseas fixed interest (d) 0-10 3.75 Overseas fixed interest (d) 0-16 7.5
Cash 0-9 2.5 Cash 2-18 10
Alternative assets (b) 0-10 5 Alternative assets (b) 0-10 5
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects investment The trustee selects investment The trustee selects investment
managers for this option. managers for this option. managers for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
37
Your Mercer Super Trust investment options - In detail
(continued)...
Your Ready-made investment options
Mercer Moderate Growth Mercer Conservative Growth Mercer Cash
Objectives: Objectives: Objective:
■ achieve a return (after tax and ■ achieve a return (after tax and ■ maintain the invested capital and
investment management fees) that investment management fees) that achieve a return (before tax and
exceeds CPI increases by at least 2.5% exceeds CPI increases by at least 2% investment management fees)
pa over rolling four year periods pa over rolling three year periods above that available on bank bills as
■ achieve a return (over the medium ■ achieve a return (over the medium measured by the UBSWA Bank Bill
to longer term) which is competitive to longer term) which is competitive Index on an annual basis
with comparable funds that have a with comparable funds that have a
similar allocation to growth assets similar allocation to growth assets
and similar risk characteristics and similar risk characteristics
Level of risk Level of risk Level of risk
Moderately low Low Very low
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 45-55 50 Growth investments 25-35 30 Growth investments 0
Australian shares 12-38 24.25 Australian shares 6-26 14.5 Defensive investments 100
Overseas shares (a) 10-30 19.75 Overseas shares (a) 4-20 11.5 Cash 100
Property (b) 1-11 6 Property (b) 0-8 4
Defensive investments 45-55 50 Defensive investments 65-75 70
Australian fixed interest (c) 0-25 12.5 Australian fixed interest (c) 2-33 17.5
Overseas fixed interest (d) 2-23 12.5 Overseas fixed interest (d) 5-30 17.5
Cash 10-30 20 Cash 18-42 30
Alternative assets (b) 0-10 5 Alternative assets (b) 0-10 5
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects investment The trustee selects investment The trustee selects investment
managers for this option. managers for this option. managers for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
38
Investments…
For further information on any of the options please call the Helpline.
Your Select-your-Own investment options
Mercer Shares Plus Mercer High Growth Plus Mercer Growth Plus
Objective: Objectives: Objectives:
■ achieve a return (after tax and ■ achieve a return (after tax and ■ achieve a return (after tax and
investment management fees) that investment management fees) that investment management fees)
exceeds CPI increases by at least exceeds CPI increases by at least 4% that exceeds CPI increases by at
4.5% pa over rolling seven year pa over rolling six year periods least 3.5% pa over rolling five year
periods ■ achieve a return (over the medium periods
to longer term) which is competitive ■ achieve a return (over the medium
with comparable funds that have a to longer term) which is competitive
similar allocation to growth assets with comparable funds that have a
and similar risk characteristics similar allocation to growth assets
and similar risk characteristics
Level of risk Level of risk Level of risk
High Moderately high Moderate
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 75-95 85 Growth investments 60-80 70
Australian shares 25-100 50 Australian shares 0-81 37.5 Australian shares 0-67 31
Overseas shares (a) 25-80 50 Overseas shares (a) 15-67 37.5 Overseas shares (a) 12-55 31
Defensive investments 0-10 0 Property (b) 0-25 10 Property (b) 0-20 8
Cash & fixed interest 0-10 0 Defensive investments 5-25 15 Defensive investments 20-40 30
Australian fixed interest (c) 0-20 0 Australian fixed interest (c) 0-30 2.5
Overseas fixed interest (d) 0-10 0 Overseas fixed interest (d) 0-22 7.5
Cash 0-10 0 Cash 0-20 5
Alternative assets (b) 0-25 15 Alternative assets (b) 0-30 15
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects investment The trustee selects investment The trustee selects investment
managers for this option. managers for this option. managers for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
39
Your Mercer Super Trust investment options - In detail
(continued)...
Your Select-your-Own investment options
Mercer Australian Mercer Overseas Mercer Australian Shares
Shares Plus Shares Plus (Unhedged)
Objectives: Objectives: Objectives:
■ achieve a return (over the medium ■ achieve a return (over the medium ■ achieve a return (over the medium
to longer term) which is competitive to longer term) which is competitive to longer term) which is competitive
with comparable funds that have with comparable funds that have with comparable funds that have
similar risk characteristics similar risk characteristics similar risk characteristics
■ outperform the notional return of ■ outperform the notional return of ■ outperform the notional return of
a benchmark portfolio of suitable a benchmark portfolio of suitable a benchmark portfolio of suitable
market indices over periods of one market indices over periods of one market indices over periods of one
year or greater year or greater year or greater
Level of risk Level of risk Level of risk
High High High
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 90-100 100 Growth investments 90-100 100
Australian shares 90-100 100 Overseas shares (e) 90-100 100 Australian shares 90-100 100
Defensive investments 0-10 0 Defensive investments 0-10 0 Defensive investments 0-10 0
Cash & fixed interest 0-10 0 Cash & fixed interest 0-10 0 Cash & fixed interest 0-10 0
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects investment The trustee selects investment The trustee selects investment
managers for this option. managers for this option. managers for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
40
Investments…
For further information on any of the options please call the Helpline.
Your Select-your-Own investment options
Mercer Australian Mercer Overseas Shares Mercer Overseas Shares
Small Companies (Unhedged) (Currency Managed)
Objectives: Objectives: Objective:
■ achieve a return (over the medium ■ achieve a return (over the medium ■ outperform the notional return of
to longer term) which is competitive to longer term) which is competitive a benchmark portfolio of suitable
with comparable funds that have with comparable funds that have market indices over periods of one
similar risk characteristics similar risk characteristics year or greater
■ outperform the notional return of ■ outperform the notional return of
a benchmark portfolio of suitable a benchmark portfolio of suitable
market indices over periods of one market indices over periods of one
year or greater year or greater
Level of risk Level of risk Level of risk
High High High
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 90-100 100 Growth investments 90-100 100
Australian small Overseas shares (e) 90-100 100 Overseas shares (a) 90-100 100
90-100 100
company shares
Defensive investments 0-10 0 Defensive investments 0-10 0
Defensive investments 0-10 0
Cash & fixed interest 0-10 0 Cash & fixed interest 0-10 0
Cash & fixed interest 0-10 0
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects investment The trustee selects investment The trustee selects investment
managers for this option. managers for this option. managers for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
41
Your Mercer Super Trust investment options - In detail
(continued)...
Your Select-your-Own investment options
Mercer Overseas Small Mercer Property Mercer Overseas Listed
Companies Property
Objective: Objective: Objective:
■ outperform the notional return of ■ outperform the notional return of ■ outperform the notional return of
a benchmark portfolio of suitable a benchmark portfolio of suitable a benchmark portfolio of suitable
market indices over periods of one market indices over periods of one market indices over periods of one
year or greater year or greater year or greater
Level of risk Level of risk Level of risk
High High High
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 80-100 100 Growth investments 90-100 100 Growth investments 90-100 100
Overseas small companies Property (b) 90-100 100 Overseas listed property (a) 90-100 100
and emerging markets 80-100 100
shares (e) Defensive investments 0-10 0 Defensive investments 0-10 0
Defensive investments 0-20 0 Cash & fixed interest 0-10 0 Cash & fixed interest 0-10 0
Cash & fixed interest 0-20 0
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects investment The trustee selects investment The trustee selects investment
managers for this option. managers for this option. managers for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
42
Investments…
For further information on any of the options please call the Helpline.
Your Select-your-Own investment options
Mercer Fixed Interest Mercer Diversified Mercer Target 2015
Alternatives
Objective: Objective: Objective:
■ outperform the notional return of ■ achieve a return (before tax and ■ to outperform the notional
a benchmark portfolio of suitable investment management fees) of benchmark of suitable market
market indices over periods of one at least 3.5% pa above the return indices (as it varies toward the target
year or greater on bank bills as measured by the date of the option) over periods of
UBSWA Bank Bill Index over rolling one year or greater
five year periods
Level of risk Level of risk Level of risk
Moderately low Moderately high Moderate moving to moderately low as
the target date approaches
Investment approach Investment approach
Multi-manager Multi-manager Investment approach
Multi-manager
Mix of investments Mix of investments
Range Benchmark
Mix of investments
Range Benchmark
% % % %
Target
Bench-
Range Bench-
Growth investments 0 Growth investments 0 %
mark
mark
%
%
Defensive investments 100 Defensive investments 100
Growth investments 45-70 65 50
Australian fixed interest (c) 30-75 50 Alternative assets (b) 70-100 100
Australian shares 12-43 29.5 22.5
Overseas fixed interest (d) 25-75 50 Cash & fixed interest 0-30 0
Australian small companies 0-5 2.25 1.75
Cash 0-30 0
Overseas shares (a) 10-34 24 18.25
Investment manager fast facts Overseas small
Investment manager fast facts companies (a)
0-5 1.75 1.5
The trustee selects investment The trustee selects investment
Property (b) 1-13 7.5 6
managers for this option. managers for this option.
Defensive investments 30-55 35 50
Australian fixed interest (c) 0-25 8.75 12.5
Overseas fixed interest (d) 0-23 8.75 12.5
Cash 4-30 12.5 20
Alternative assets (b) 0-10 5 5
At the date of this PDS, the option’s
benchmark is a 65/35 mix of growth
and defensive investments. The
benchmark allocation between growth
and defensive investments will generally
change by between 1% to 2% per
annum as the option approaches its
target year of 2015 resulting in a 50/50
target benchmark mix of growth and
defensive investment by the target year.
Investment manager fast facts
Notes
The trustee selects investment
(a) May include currency hedging to Australian dollars.
managers for this option.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally
substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
43
Your Mercer Super Trust investment options - In detail
(continued)...
Your Select-your-Own investment options
Mercer Target 2025 Mercer Target 2035 Mercer Target 2045
Objective: Objective: Objective:
■ to outperform the notional ■ to outperform the notional ■ to outperform the notional
benchmark of suitable market benchmark of suitable market benchmark of suitable market
indices (as it varies toward the target indices (as it varies toward the target indices (as it varies toward the target
date of the option) over periods of date of the option) over periods of date of the option) over periods of
one year or greater one year or greater one year or greater
Level of risk Level of risk Level of risk
Moderately high moving to moderately Moderately high moving to moderately High moving to moderately low as the
low as the target date approaches low as the target date approaches target date approaches
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Target Target Target
Bench- Bench- Bench-
Range Bench- Range Bench- Range Bench-
mark mark mark
% mark % mark % mark
% % %
% % %
Growth investments 45-85 80 50 Growth investments 45-95 90 50 Growth investments 45-100 100 50
Australian shares 12-52 36 22.5 Australian shares 12-57 40.75 22.5 Australian shares 12-65 45.5 22.5
Australian small companies 0-6 2.75 1.75 Australian small companies 0-6 3 1.75 Australian small companies 0-7 3.5 1.75
Overseas shares (a) 10-40 29.5 18.25 Overseas shares (a) 10-45 33.25 18.25 Overseas shares (a) 10-50 36.25 18.25
Overseas small Overseas small Overseas small
0-5 2.25 1.5 0-5 2.5 1.5 0-7 2.75 1.5
companies (a) companies (a) companies (a)
Property (b) 1-15 9.5 6 Property (b) 1-15 10.5 6 Property (b) 1-17 12 6
Defensive investments 15-55 20 50 Defensive investments 5-55 10 50 Defensive investments 0-55 0 50
Australian fixed interest (c) 0-25 5 12.5 Australian fixed interest (c) 0-25 2.5 12.5 Australian fixed interest (c) 0-25 0 12.5
Overseas fixed interest (d) 0-23 5 12.5 Overseas fixed interest (d) 0-23 2.5 12.5 Overseas fixed interest (d) 0-23 0 12.5
Cash 0-30 5 20 Cash 0-30 0 20 Cash 0-30 0 20
Alternative assets (b) 0-10 5 5 Alternative assets (b) 0-10 5 5 Alternative assets (b) 0-10 0 5
At the date of this PDS, the option’s At the date of this PDS, the option’s At the date of this PDS, the option’s
benchmark is a 80/20 mix of growth benchmark is a 90/10 mix of growth benchmark is a 100/0 mix of growth
and defensive investments. The and defensive investments. The and defensive investments. The
benchmark allocation between growth benchmark allocation between growth benchmark allocation between growth
and defensive investments will generally and defensive investments will generally and defensive investments will generally
change by between 1% to 2% per change by between 1% to 2% per change by between 1% to 2% per
annum as the option approaches its annum as the option approaches its annum as the option approaches its
target year of 2025 resulting in a 50/50 target year of 2035 resulting in a 50/50 target year of 2045 resulting in a 50/50
target benchmark mix of growth and target benchmark mix of growth and target benchmark mix of growth and
defensive investment by the target year. defensive investment by the target year. defensive investment by the target year.
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects investment The trustee selects investment The trustee selects investment
managers for this option. managers for this option. managers for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
44
Investments…
For further information on any of the options please call the Helpline.
Your Select-your-Own investment options
Mercer Socially Mercer Socially Indexed Shares
Responsible Shares Responsible Growth Objective:
Objective: Objective: ■ match the notional return of a
■ achieve a return (after tax and ■ achieve a return (after tax and benchmark portfolio of suitable
investment management fees) that investment management fees) that market indices over periods of one
exceeds CPI increases by at least 4% exceeds CPI increases by at least 3% year or greater
pa over rolling seven year periods pa over rolling five year periods
Level of risk Level of risk Level of risk
High Moderate High
Investment approach Investment approach Investment approach
Multi-manager and socially responsible. Multi-manager and socially responsible. Indexed
See ‘Socially responsible investing’ See ‘Socially responsible investing’
earlier in this section for details as to earlier in this section for details as to
what and how SRI considerations are what and how SRI considerations are
applied to this option applied to this option
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 65-75 70 Growth investments 90-100 100
Australian shares 40-67 50 Australian shares 20-53 34 Australian shares 40-70 50
Overseas shares (a) 40-67 50 Overseas shares (a) 14-47 28 Overseas shares (a) 40-70 50
Defensive investments 0-10 0 Property (b) 3-13 8 Defensive investments 0-10 0
Cash & fixed interest 0-10 0 Defensive investments 25-35 30 Cash & fixed interest 0-10 0
Australian fixed interest (c) 0-18 7.5
Overseas fixed interest (d) 0-16 7.5
Cash 2-18 10
Alternative assets (b) 0-10 5
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects investment The trustee selects investment The trustee selects investment
managers for this option. managers for this option. managers for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
45
Your Mercer Super Trust investment options - In detail
(continued)...
Your Select-your-Own investment options
Indexed Australian Shares Indexed Overseas Shares Indexed Growth
Objective: Objective: Objectives:
■ match the notional return of a ■ match the notional return of a ■ achieve a return (after tax and
benchmark portfolio of suitable benchmark portfolio of suitable investment management fees) that
market indices over periods of one market indices over periods of one exceeds CPI increases by at least 3%
year or greater year or greater pa over rolling five year periods
■ achieve a return (over the medium
to longer term) which is competitive
with comparable funds that have a
similar allocation to growth assets
and similar risk characteristics
Level of risk Level of risk Level of risk
High High Moderate
Investment approach Investment approach Investment approach
Indexed Indexed Indexed
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 90-100 100 Growth investments 90-100 100 Growth investments 68-72 70
Australian shares 90-100 100 Overseas shares (e) 90-100 100 Australian shares 35-39 37
Defensive investments 0-10 0 Defensive investments 0-10 0 Overseas shares (e) 22-28 25
Cash & fixed interest 0-10 0 Cash & fixed interest 0-10 0 Property (b) 7-9 8
Defensive investments 28-32 30
Australian fixed interest 9-13 11
Overseas fixed interest (d) 15-19 17
Cash 1-3 2
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The trustee selects investment The trustee selects investment The trustee selects investment
managers for this option. managers for this option. managers for this option.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
46
Investments…
For further information on any of the options please call the Helpline.
Your Select-your-Own investment options
Indexed Conservative AMP Capital Balanced AMP Capital Balanced
Growth Direct Option Growth Option
Objectives: Objective: Objective:
■ achieve a return (after tax and ■ provide moderate to higher returns ■ provide moderate to higher returns
investment management fees) that over the medium to long term, with over the medium to long term
exceeds CPI increases by at least 2% lower volatility than many other through a portfolio diversified across
pa over rolling three year periods balanced funds through higher all asset types, but with an emphasis
■ achieve a return (over the medium exposure to direct investment in on shares and property
to longer term) which is competitive property and other assets
with comparable funds that have a
similar allocation to growth assets Level of risk Level of risk
and similar risk characteristics Moderate Moderate
Level of risk Investment approach Investment approach
Low Active Active
Investment approach Mix of investments Mix of investments
Indexed
Range Benchmark Range Benchmark
% % % %
Mix of investments Growth investments 64 Growth investments 74
Range Benchmark Australian shares 15-35 23 Australian shares 25-47 35
% %
Overseas shares (a) 10-25 16 Overseas shares (a) 15-40 21
Growth investments 28-32 30
Property (b) 5-30 15 Property (b) 2-30 13
Australian shares 14-18 16
Alternative assets 5-15 10 Alternative assets 0-10 5
Overseas shares (e) 9-11 10
Defensive investments 36 Defensive investments 26
Property (b) 3-5 4
Australian fixed interest 10-35 23 Australian fixed interest 5-30 15
Defensive investments 68-72 70
Overseas fixed interest (d) 0-15 8 Overseas fixed interest (d) 0-15 6
Australian fixed interest 9-13 11
Cash 0-15 5 Cash 0-20 5
Overseas fixed interest (d) 15-19 17
Cash 40-44 42 Investment manager fast facts Investment manager fast facts
AMP Capital Investors Limited is one AMP Capital Investors Limited is one
of Australia and New Zealand’s leading of Australia and New Zealand’s leading
Investment manager fast facts specialist investment managers. specialist investment managers.
The trustee selects investment As at 30 June 2005 they managed As at 30 June 2005 they managed
managers for this option. over $84.36 billion for investors. over $84.36 billion for investors.
AMP Capital Investors offers a select AMP Capital Investors offers a select
range of investment opportunities; range of investment opportunities;
those where they have the skills, those where they have the skills,
experience and resources to deliver experience and resources to deliver
strong, consistent performance. They strong, consistent performance. They
invest in shares, bonds, property, invest in shares, bonds, property,
infrastructure and private equity. They infrastructure and private equity. They
also work in partnership with other also work in partnership with other
leading investment specialists in order leading investment specialists in order
to further enhance opportunities for to further enhance opportunities for
investors. investors.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
47
Your Mercer Super Trust investment options - In detail
(continued)...
Your Select-your-Own investment options
AMP Capital ANZ Superannuation Pool BT Active Balanced PST
Conservative Option – Growth Fund
Objective: Objective: Objective:
■ provide returns greater than those ■ out-perform CPI on average by 5% pa ■ deliver over the long term a return
from cash over the medium term over rolling 5 year periods before fees higher than that achieved by its
through a diversified portfolio with and taxes benchmark mix of investments
a core of cash and bonds and some
exposure to shares and property
Level of risk Level of risk Level of risk
Low Moderate Moderate
Investment approach Investment approach Investment approach
Active Active Active
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 33 Growth investments Maximum 90 70 Growth investments 66
Australian shares 5-25 14 Australian shares 20-50 35 Australian shares 28-48 38
Overseas shares (a) 0-20 7 Overseas shares (a) 10-40 25 Overseas shares (a) 12-32 20
Property (b) 0-20 10 Property (b) 2-28 10 Property (a) 0-20 8
Alternative assets 0-5 2 Alternative assets 0-10 0 Defensive investments 34
Defensive investments 67 Defensive investments 30 Australian fixed interest 5-32 17
Australian fixed interest 15-45 28 Australian fixed interest 0-30 15 Overseas fixed interest (d) 0-20 7
Overseas fixed interest (d) 5-25 13 Overseas fixed interest (d) 0-20 10 Cash 0-10 2
Cash 10-50 26 Cash 0-30 5 Alternative assets 0-10 8
Investment manager fast facts Investment manager fast facts Investment manager fast facts
AMP Capital Investors Limited is one ING Investment Management (INGIM) The investment manager is BT Funds
of Australia and New Zealand’s leading is the specialist global investment Management No. 2 Limited, part of
specialist investment managers. manager within the ING Group. the Westpac Banking Corporation.
As at 30 June 2005 they managed Worldwide INGIM employs around As at 30 June 2005, BT had more
over $84.36 billion for investors. 2,400 staff in 31 countries across three than A$63 billion in total assets under
AMP Capital Investors offers a select broad geographic regions: Europe, the management and administration.
range of investment opportunities; Americas and Asia Pacific. Its global
those where they have the skills, assets under management totalled
experience and resources to deliver A$592 billion as at 31 December 2005,
strong, consistent performance. They while the total assets of ING Group
invest in shares, bonds, property, were approaching A$900 billion.
infrastructure and private equity. They INGIM is one of the largest investment
also work in partnership with other managers in Australia with over A$34
leading investment specialists in order billion of assets under management as
to further enhance opportunities for at 31 December 2005.
investors.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
48
Investments…
For further information on any of the options please call the Helpline.
Your Select-your-Own investment options
Colonial First State PST - Credit Suisse Asset ING Managed Growth
Diversified Management Capital Superannuation Fund
Growth PST
Objective: Objective: Objective:
■ provide medium to long term capital ■ provide exposure to a range of ■ out-perform CPI on average by 5% pa
growth, together with some income, sectors to achieve mostly capital over rolling 5 year periods before fees
by investing in cash, fixed interest, growth over the long term with and taxes
property and shares some income potential
Level of risk Level of risk Level of risk
Moderate Moderate Moderate
Investment approach Investment approach Investment approach
Active Active Active
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 70 Growth investments 70 Growth investments Maximum90 70
Australian shares 32-38 35 Australian shares 25-50 40 Australian shares 20-50 35
Overseas shares (a) 23-33 28 Overseas shares (a) 15-40 25 Overseas shares (a) 10-40 25
Property (b) 3-11 7 Property 0-15 5 Property (b) 0-26 8
Defensive investments 30 Defensive investments 30 Alternative assets 0-10 2
Fixed interest & cash (a) 20-40 30 Australian fixed interest 0-30 15 Defensive investments 30
Overseas fixed interest (d) 0-25 10 Australian fixed interest 0-30 15
Investment manager fast facts
Cash 0-20 5 Overseas fixed interest (d) 0-20 10
The investment manager is Colonial
Cash 0-30 5
First State Investments Limited. Investment manager fast facts
Colonial First State has been managing Credit Suisse is a leading global Investment manager fast facts
investment funds since 1988. As at financial services organisation ING Investment Management (INGIM)
30 June 2005 they managed more headquatered in Zurich and established is the specialist global investment
than A$100 billion globally on behalf in 1856. The asset management manager within the ING Group.
of investors. Colonial First State actively business of Credit Suisse is comprised Worldwide INGIM employs around
manages investments across all major of the bank’s discretionary asset 2,400 staff in 31 countries across three
asset classes including Australian and management businesses and manages broad geographic regions: Europe, the
international shares, property, fixed portfolios, pooled schemes, and Americas and Asia Pacific. Its global
interest and cash. Colonial First State other investment vehicles for a assets under management totalled
is a wholly owned subsidiary of the broad spectrum of clients, ranging A$592 billion as at 31 December 2005,
Commonwealth Bank of Australia, a from governments, institutions, and while the total assets of ING Group
leading Australian financial services corporations to private individuals were approaching A$900 billion.
organisation. around the world. As at 31 December INGIM is one of the largest investment
2005, Credit Suisse Asset Management managers in Australia with over A$34
(Australia) Limited has approxiamately billion of assets under management as
A$20.6 billion in funds under at 31 December 2005.
management.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian
dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure
normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
49
Your Mercer Super Trust investment options - In detail
(continued)...
Your Select-your-Own investment options
INVESCO Wholesale Legg Mason Growth Trust Maple-Brown Abbott PST
Diversified Growth PST
Objective: Objective: Objective:
■ provide medium to long term capital ■ exceed the return, over rolling three ■ provide a superior return relative to
growth by investing in a range of assets year periods, of the benchmark mix the average of other pooled funds
with an emphasis on growth assets of investments over rolling three year periods
Level of risk Level of risk Level of risk
Moderate Moderate Moderate
Investment approach Investment approach Investment approach
Active Active Active
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 40-85 72.5 Growth investments 80 Growth investments 50-85 67
Australian shares 25-55 40 Australian shares 35-55 45 Australian shares 20-60 40
Overseas shares (a) 10-35 22.5 Overseas shares (a) 22-38 30 Overseas shares (a) 5-25 15
Property 0-20 10 Property 0-10 5 Property 5-20 12
Defensive investments 15-60 27.5 Defensive investments 20 Defensive investments 15-50 33
Australian and overseas Australian & overseas fixed Australian fixed interest 0-50 25
7.5-55 22.5 7-27 17
fixed interest (a) interest (a)
Cash 0-25 8
Cash 0-20 5 Cash 0-12 3
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The investment manager is INVESCO The investment manager is Legg Mason The investment manager is Maple-
Australia Ltd which is a wholly-owned Asset Management Australia Limited Brown Abbott Limited which was
subsidiary of AMVESCAP PLC, one of (“Legg Mason Asset Management”). formed in July 1984 to provide
the world’s largest listed independent Legg Mason Asset Management is the investment management services to
investment managers spanning the Australian asset management business both private and institutional investors.
world’s major markets, with US$373 Their services cover equity and fixed
of Legg Mason, Inc. Legg Mason Inc. is
billion in funds under management (as
listed on the New York Stock Exchange. interest markets, and property through
at 30 June 2005). INVESCO Australia
Legg Mason is a major global asset the medium of Australian-listed
Ltd had assets under management of
manager with US$830 billion in assets property trusts. As at 30 June 2005
A$7.6 billion at 30 June 2005.
under management. Australian sourced they managed over A$18.2 billion of
assets under management totalled client funds. Maple-Brown Abbott Ltd is
A$12.0 billion as at 31 December 2005. solely engaged in funds management.
The company is wholly owned by
staff and directors (including entities
controlled by directors).
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
50
Investments…
For further information on any of the options please call the Helpline.
Your Select-your-Own investment options
MLC Balanced Fund MLC Capital Stable Fund MLC Growth Fund
Objective: Objective: Objective:
■ deliver returns, net of tax and investment ■ deliver returns, net of tax and investment ■ deliver returns, net of tax and investment
management fees, in excess of CPI plus management fees, in excess of CPI plus management fees, in excess of CPI plus
3% on average per annum over the 2% on average per annum over the 3.5% on average per annum over the
longer term (eg rolling 5 year basis) longer term (eg rolling 3 year basis) longer term (eg rolling 5 year basis)
Level of risk Level of risk Level of risk
Moderate Low Moderate
Investment approach Investment approach Investment approach
Multi-manager Multi-manager Multi-manager
Mix of investments Mix of investments Mix of investments
Range Benchmark Range Benchmark Range Benchmark
% % % % % %
Growth investments 70 Growth investments 30 Growth investments 79
Australian shares 30-34 32 Australian shares 8-12 10 Australian shares 33-37 35
Overseas shares (a) 26-30 28 Overseas shares (a) 14-18 16 Overseas shares (a) 33-37 35
Property 2-6 4 Property 0-4 2 Property 1-5 3
Alternative assets 4-8 6 Alternative assets 0-4 2 Alternative assets 4-8 6
Defensive investments 30 Defensive investments 70 Defensive investments 21
Australian fixed interest 11-20 15.2 Australian fixed interest 35-43 39 Australian fixed interest 6-15 10.3
Overseas fixed interest (d) 12-17 14.8 Overseas fixed interest (d) 19-24 21.2 Overseas fixed interest (d) 8-13 10.7
Cash 7-12 9.8
Investment manager fast facts Investment manager fast facts Investment manager fast facts
The investment manager is MLC Limited, The investment manager is MLC Limited, The investment manager is MLC Limited,
a wholly owned subsidiary of National a wholly owned subsidiary of National a wholly owned subsidiary of National
Australia Bank Limited a major provider Australia Bank Limited a major provider Australia Bank Limited a major provider
of financial services in Australia. MLC of financial services in Australia. MLC of financial services in Australia. MLC
is the fourth largest “manager of is the fourth largest “manager of is the fourth largest “manager of
managers” in the world (source: Cerrulli managers” in the world (source: Cerrulli managers” in the world (source: Cerrulli
Australia) and the largest in Australia Australia) and the largest in Australia Australia) and the largest in Australia
with approximately A$62 billion of funds with approximately A$62 billion of funds with approximately A$62 billion of funds
under management as at 30 June 2005. under management as at 30 June 2005. under management as at 30 June 2005.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
51
Your Mercer Super Trust investment options - In detail
(continued). . .
Your Select-your-Own investment options
Schroders Superannuation Zurich Wholesale
Fund Superannuation Managed
Growth Fund
Objective: Objective:
■ achieve returns in the order of 4% ■ provide investors with capital growth
to 5% above inflation (as measured over the medium to long-term by
by headline CPI) over the medium to investing in a mix of Australian and
longer term (eg rolling 3 year basis) international shares, fixed interest
Level of risk securities, listed property, securities
Moderate and cash
Investment approach Level of risk
Active Moderate
Mix of investments Investment approach
Range Benchmark Active
% %
Growth investments 69 Mix of investments
Australian and New Range Benchmark
28-45 37 % %
Zealand shares
Overseas shares (a) 10-30 20 Growth investments 54-85 70
Property 0-15 6 Australian shares 25-43 33
Alternative assets 0-15 6 Overseas shares (a) 24-45 30
Defensive investments 31 Property 5-12 7
Australian and overseas Defensive investments 15-46 30
10-60 23
fixed interest (a) Australian fixed interest 13-24 18
Cash 0-20 8 Overseas fixed interest (d) 2-12 7
Cash 0-10 5
Investment manager fast facts
Schroder Investment Management
Investment manager fast facts
Australia Limited, (SIMAL), is part of
the Schroder Group which, as at 31 Zurich Financial Services Australia
December 2005, managed investment Limited is a member of the Swiss based
assets of approximately A$287 billion Zurich Group. To further enhance
worldwide. Schroders is one of the capabilities and resources Zurich
largest and most internationally diverse seek out and develop major strategic
investment managers, with over 230 partnerships with other organisations.
investment professionals, providing Zurich Financial Services Australia
investment management, research and Limited had over A$6 billion funds
marketing services from its 34 offices under management as at 30 June 2005.
located in 26 countries. In Australia,
investment management has been a core
business since 1961. As at 31 December
2005, SIMAL managed A$11 billion
across a broad range of asset classes.
Notes
(a) May include currency hedging to Australian dollars.
(b) May include exposure to overseas investments which may have currency exposure hedged to Australian dollars.
(c) May include some bonds sourced from overseas as a proxy for Australian bonds. Any currency exposure normally substantially or fully hedged to Australian dollars.
(d) Currency exposure normally substantially or fully hedged to Australian dollars.
(e) Currency exposure not normally hedged to Australian dollars.
52
Investments…
Performance of How to get up to date
returns
Mercer Super
The performance information
Trust investment contained in this PDS is up to date at
options the time of its preparation. In future
you can obtain updated performance
The following tables show the information by visiting our website at
performance of the investment options www.mercersupertrust.com or calling
on both a single year and compound the Helpline on 1800 810 558. We
return basis. can send you a copy of the updated
information, free of charge, on request.
Single year and compound returns are
Performance is also reported in the
calculated assuming that $1 is invested
regular Mercer Super Trust newsletter.
at the start of the relevant period and
that no further amounts are invested
over the period. They are based on
exit prices and allow for the deduction
of tax, investment management and
administration fees.
Compound returns are calculated as
the average of annual returns. For
example, if returns are 5%, 6% and
7% over three consecutive years, the
compound return is 6% per annum, as
the same result could be achieved by
earning a return of 6% in each of the
three years.
When considering investment
decisions, please remember that
investment returns over a short time
frame (one or two years) should not be
considered in isolation. Time frames of
five years or longer will provide a more
accurate indication of the overall long-
term performance of an investment
option. Finally, don’t forget that the
value of investments can go up and
down and past performance should
not be relied upon as an indicator
of future performance.
53
Performance of Mercer Super Trust investment options
Single year returns – performance for 12 months ending 31 March
Commencement 2006 2005 2004 2003 2002
Investment option
Date % % % % %
Mercer Shares 5 Jun 1996 26.1 14.8 18.1 -18.1 1.3
Ready-made
Mercer High Growth 7 Aug 2002 21.7 13.9 15.3 na na
Mercer Growth 20 Mar 1996 18.8 12.4 11.9 -8.3 2.9
Mercer Moderate Growth 9 Oct 2002 14.4 9.7 10.0 na na
Mercer Conservative Growth 3 Jul 1996 10.0 6.7 6.9 -0.1 2.1
Mercer Cash 29 May 1996 4.0 3.5 3.0 2.8 2.8
Mercer Shares Plus 7 Jul 2005 na na na na na
Mercer Plus
Mercer High Growth Plus 7 Jul 2005 na na na na na
Mercer Growth Plus 7 Jul 2005 na na na na na
Mercer Australian Shares Plus 5 Aug 2005 na na na na na
Mercer Overseas Shares Plus (Unhedged) 14 Jul 2005 na na na na na
Mercer Australian Shares 31 Aug 1998 25.6 22.6 19.8 -9.4 9.7
Mercer Australian Small Companies 5 Aug 2005 na na na na na
Mercer Overseas Shares (Unhedged) 31 Aug 1998 27.6 5.8 10.0 -27.9 -9.9
Mercer Overseas Shares (Currency Managed) 23 Aug 2005 na na na na na
Mercer Overseas Small Companies 28 Jul 2005 na na na na na
Mercer Sector
Mercer Property 7 Jul 2005 na na na na na
Mercer Overseas Listed Property 23 Aug 2005 na na na na na
Mercer Fixed Interest 28 Jul 2005 na na na na na
Mercer Diversified Alternatives 7 Jul 2005 na na na na na
Mercer Target 2015 ^ na na na na na
Mercer Target 2025 ^ na na na na na
Mercer
Target
Mercer Target 2035 ^ na na na na na
Mercer Target 2045 ^ na na na na na
Responsible
Mercer Socially Responsible Shares 6 Jul 2005 na na na na na
Select-your-Own
Socially
Mercer
Mercer Socially Responsible Growth 6 Jul 2005 na na na na na
Indexed Shares 11 Jul 2005 na na na na na
Indexed Australian Shares 7 Jul 2005 na na na na na
Indexed
Indexed Overseas Shares 7 Jul 2005 na na na na na
Indexed Growth 7 Jul 2005 na na na na na
Indexed Conservative Growth 7 Jul 2005 na na na na na
AMP Capital Balanced Direct Option 19 Oct 2005
AMP Capital Balanced Growth Option 7 Jul 2005 na na na na na
AMP Capital Conservative Option 18 Jul 2005 na na na na na
ANZ Superannuation Pool-Growth Fund 19 Jul 2005 na na na na na
BT Active Balanced PST 7 Jul 2005 na na na na na
Colonial First State PST-Diversified 4 Aug 2005 na na na na na
Credit Suisse Asset Management Capital Growth PST 18 Jul 2005 na na na na na
Others
ING Managed Growth Superannuation Fund 18 Jul 2005 na na na na na
INVESCO Wholesale Diversified Growth PST 3 Aug 2005 na na na na na
Legg Mason Growth Trust 12 Jul 2005 na na na na na
Maple-Brown Abbott PST 20 Mar 1996 15.5 12.4 12.3 -4.9 9.9
MLC Balanced Fund 19 Jul 2005 na na na na na
MLC Capital Stable Fund 7 Jul 2005 na na na na na
MLC Growth Fund 11 Jul 2005 na na na na na
Schroders Superannuation Fund 14 Jul 2005 na na na na na
Zurich Wholesale Superannuation Managed
6 Jul 2005 na na na na na
Growth Fund
Notes:
The ‘commencement date’ is the date the investment option received its first investment under the Mercer Super Trust.
^ Indicates that the investment option had not commenced at the date of this table.
‘na’ indicates that an investment option has been operating for less than the relevant period.
Past performance is not a reliable indicator of future performance.
54
Investments…
Compound annual returns – performance for periods ending 31 March 2006
Commencement 1 year 2 years 3 years 4 years 5 years
Investment option
Date % % pa % pa % pa % pa
Mercer Shares 5 Jun 1996 26.1 20.3 19.6 8.8 7.2
Ready-made
Mercer High Growth 7 Aug 2002 21.7 17.7 16.9 na na
Mercer Growth 20 Mar 1996 18.8 15.5 14.3 8.2 7.1
Mercer Moderate Growth 9 Oct 2002 14.4 12.0 11.4 na na
Mercer Conservative Growth 3 Jul 1996 10.0 8.4 7.9 5.8 5.1
Mercer Cash 29 May 1996 4.0 3.8 3.5 3.3 3.2
Mercer Shares Plus 7 Jul 2005 na na na na na
Mercer Plus
Mercer High Growth Plus 7 Jul 2005 na na na na na
Mercer Growth Plus 7 Jul 2005 na na na na na
Mercer Australian Shares Plus 5 Aug 2005 na na na na na
Mercer Overseas Shares Plus (Unhedged) 14 Jul 2005 na na na na na
Mercer Australian Shares 31 Aug 1998 25.6 24.1 22.6 13.7 12.9
Mercer Australian Small Companies 5 Aug 2005 na na na na na
Mercer Overseas Shares (Unhedged) 31 Aug 1998 27.6 16.1 14.0 1.7 -0.7
Mercer Overseas Shares (Currency Managed) 23 Aug 2005 na na na na na
Mercer Overseas Small Companies 28 Jul 2005 na na na na na
Mercer Sector
Mercer Property 7 Jul 2005 na na na na na
Mercer Overseas Listed Property 23 Aug 2005 na na na na na
Mercer Fixed Interest 28 Jul 2005 na na na na na
Mercer Diversified Alternatives 7 Jul 2005 na na na na na
Mercer Target 2015 ^ na na na na na
Mercer Target 2025 ^ na na na na na
Mercer
Target
Mercer Target 2035 ^ na na na na na
Mercer Target 2045 ^ na na na na na
Responsible
Mercer Socially Responsible Shares 6 Jul 2005 na na na na na
Select-your-Own
Socially
Mercer
Mercer Socially Responsible Growth 6 Jul 2005 na na na na na
Indexed Shares 11 Jul 2005 na na na na na
Indexed Australian Shares 7 Jul 2005 na na na na na
Indexed
Indexed Overseas Shares 7 Jul 2005 na na na na na
Indexed Growth 7 Jul 2005 na na na na na
Indexed Conservative Growth 7 Jul 2005 na na na na na
AMP Capital Balanced Direct Option 19 Oct 2005 na na na na na
AMP Capital Balanced Growth Option 7 Jul 2005 na na na na na
AMP Capital Conservative Option 18 Jul 2005 na na na na na
ANZ Superannuation Pool-Growth Fund 19 Jul 2005 na na na na na
BT Active Balanced PST 7 Jul 2005 na na na na na
Colonial First State PST-Diversified 4 Aug 2005 na na na na na
Credit Suisse Asset Management Capital Growth PST 18 Jul 2005 na na na na na
Others
ING Managed Growth Superannuation Fund 18 Jul 2005 na na na na na
INVESCO Wholesale Diversified Growth PST 3 Aug 2005 na na na na na
Legg Mason Growth Trust 12 Jul 2005 na na na na na
Maple-Brown Abbott PST 20 Mar 1996 15.5 14.0 13.4 8.5 8.8
MLC Balanced Fund 19 Jul 2005 na na na na na
MLC Capital Stable Fund 7 Jul 2005 na na na na na
MLC Growth Fund 11 Jul 2005 na na na na na
Schroders Superannuation Fund 14 Jul 2005 na na na na na
Zurich Wholesale Superannuation Managed
6 Jul 2005 na na na na na
Growth Fund
Notes:
The ‘commencement date’ is the date the investment option received its first investment under the Mercer Super Trust.
^ Indicates that the investment option had not commenced at the date of this table.
‘na’ indicates that an investment option has been operating for less than the relevant period. 55
Past performance is not a reliable indicator of future performance.
Performance relative to index – for comparison periods
ending 31/12/05
Where an objective of an investment option is stated in relation to a particular named index, eg CPI, (and that investment option has been
operating for the full comparison period) the performance of the investment option relative to that objective and index is shown for the
comparison period in the table below. Where an investment option has not been operating for the full comparison period, no comparative
performance has been included in the table below.
Rolling (compound) returns are calculated as the average annual returns over the comparison period.
Please remember however that past performance should not be relied upon as an indicator of future performance.
Investment Comparison
Comparison option rolling index rolling
period (compound) (compound)
Commencement Comparison Objective over
Investment option for rolling annual return annual return
Date Index comparison period
(compound) over comparison over comparison
annual return period period
% pa % pa
Exceed CPI increases by
Mercer Shares 5 Jun 1996 CPI 7 years 6.3* 3.1
at least 4% pa*
Exceed CPI increases by
Mercer High Growth 7 Aug 2002 CPI 6 years na na
at least 3.5% pa*
Ready-made
Exceed CPI increases by
Mercer Growth 20 Mar 1996 CPI 5 years 5.9* 2.8
at least 3% pa*
Exceed CPI increases by
Mercer Moderate Growth 9 Oct 2002 CPI 4 years na na
at least 2.5% pa*
Exceed CPI increases by
Mercer Conservative Growth 3 Jul 1996 CPI 3 years 6.7* 2.6
at least 2% pa*
UBSWA Bank Bill Exceed UBSWA Bank
Mercer Cash 29 May 1996 1 year 5.9^ 5.7
Index Bill Index^
Exceed CPI increases by
Mercer Shares Plus 7 Jul 2005 CPI 7 years na na
Mercer Plus
at least 4.5% pa*
Exceed CPI increases by
Mercer High Growth Plus 7 Jul 2005 CPI 6 years na na
at least 4% pa*
Exceed CPI increases by
Mercer Growth Plus 7 Jul 2005 CPI 5 years na na
at least 3.5% pa*
Mercer
Exceed UBSWA Bank
Sector
UBSWA Bank Bill
Mercer Diversified Alternatives 7 Jul 2005 Bill Index by at least 5 years na na
Index
3.5%pa^
Mercer Socially
Mercer Socially Exceed CPI increases by
Responsible
6 Jul 2005 CPI 7 years na na
Responsible Shares at least 4% pa*
Mercer Socially Exceed CPI increases by
6 Jul 2005 CPI 5 years na na
Select-your-Own
Responsible Growth at least 3% pa*
Exceed CPI increases by
Indexed
Indexed Growth 7 Jul 2005 CPI 5 years na na
at least 3% pa*
Exceed CPI increases by
Indexed Conservative Growth 7 Jul 2005 CPI 3 years na na
at least 2% pa*
ANZ Superannuation Pool Outperform CPI on
19 Jul 2005 CPI 5 years na na
- Growth Fund average by 5% pa^
ING Managed Growth Outperform CPI on
18 Jul 2005 CPI 5 years na na
Superannuation Fund average by 5% pa^
In excess of CPI plus
MLC Balanced Fund 19 Jul 2005 CPI 5 years na na
3% pa*
Others
In excess of CPI plus
MLC Capital Stable Fund 7 Jul 2005 CPI 3 years na na
2% pa*
In excess of CPI plus
MLC Growth Fund 11 Jul 2005 CPI 5 years na na
3.5% pa*
Exceed CPI increases
Schroders Superannuation Fund 14 Jul 2005 CPI by in the order of 4% 3 years na na
to 5% pa*
Notes:
* after tax and investment management fees
^ before tax and investment management fees
56 na indicates that an investment option has not been operating for the full comparison period
Step 4 Death & disability cover
As well as providing a payout on leaving the
Personal Superannuation Division, the Mercer
Super Trust helps provide you with security for
you and your family in the event of your death or
disability while you’re a member.
In this section you’ll find out:
■ What insurance cover is available page 58
■ Applying for cover page 60
■ When your cover stops page 60
■ Continuing your death cover after you leave the
Personal Superannuation Division page 61
■ Cover while working overseas page 61
■ Non-residents’ insurance page 61
■ Cost of cover page 62
■ Making a claim page 63
57
You may be entitled to an insured Conditions apply to ■ To be eligible to apply for the
super payout in the event of your death option to continue death cover
or total and permanent disablement
your insurance cover in the Personal Superannuation
while a member of the Personal Like most forms of insurance certain Division, you must be aged less
Superannuation Division. conditions and exclusions apply to the than 65 and no longer be eligible
granting, or payout of your insurance for cover under your employer’s
In these circumstances, your super
cover. Details of the conditions and plan in the CSD. Satisfactory
payout is made up of:
exclusions applicable to the insurance evidence of your good health,
■ your super account balance. (See cover available through the Personal financial details and other evidence
the Getting to know your super Superannuation Division are set out in may be required before the cover is
section for details) and the pages that follow in this section. granted, and other conditions may
apply.
■ any insurance amount received. If you choose to apply for death only
or death and total and permanent ■ To take advantage of this option,
What insurance disablement cover, once you’ve been
accepted for cover and you remain
you must apply for death cover
in the Personal Superannuation
cover is available eligible for cover , you’ll be covered Division within 60 days of leaving
24 hours a day, 7 days a week up to employment. If the application is
The insurance cover generally available
age 65, except where otherwise stated made after 60 days but before 120
in the Personal Superannuation Division
in this PDS. You may choose to have days after leaving employment you
of the Mercer Super Trust is:
death only or both death and total and may still apply for death cover only.
■ death, or permanent disablement cover. However, you will be required to
complete a declaration of good
■ death and total and permanent
disablement Continuing your health. In the event that you don’t
sign the declaration, cover under
If you would like to speak to a Mercer death cover after you this option will be denied. For more
financial adviser about what levels leave the Corporate details about the declaration of
of death and total and permanent
Superannuation good health, please contact the
disablement cover may be appropriate Helpline on 1800 810 558.
for you, please call the Helpline on Division
1800 810 558. ■ In the event that your employer
If you have transferred from a plan in
doesn’t notify us of your leaving
the Corporate Superannuation Division
employment in time to meet the
Your insurance (CSD), the cover you had in the CSD
120 day timeframe set out above,
provider generally extends for up to 60 days
then the cover described above
after leaving your employer. This is
The trustee has appointed The may not be available.
referred to as ‘extended cover’ and will
National Mutual Life Association of apply if you are under age 65. Refer ■ This option is not guaranteed under
Australasia Limited ABN 72 004 020 to your CSD member materials for full the Mercer Super Trust’s insurance
437 to provide the insurance for the details of this ‘extended cover’. policy and may be subject to
Personal Superannuation Division. The change by the insurer.
insurance is provided under the policy If your insurance in the CSD was
of insurance issued to the trustee. The under the trustee’s standard insurance If your insurance in the CSD was not
trustee has the right to change the policy with The National Mutual Life under the trustee’s standard insurance
insurer from time to time. Association of Australasia Limited and policy with The National Mutual Life
you have left the CSD for reasons other Association of Australasia Limited or
than because you have requested your your application for death cover in
employer to direct your superannuation the Personal Superannuation Division
guarantee contributions to another is not made within the required time
fund, you may have the option of frame, as detailed above, you may still
continuing the insurance cover that apply for death insurance cover, but
you had in the CSD in the Personal acceptance of your application will
Superannuation Division (for death be subject to provision of satisfactory
cover only and at your own expense) evidence of good health, financial
up to the amount of cover that you details and other evidence before this
had while a member of your employer’s cover can apply (see below for further
plan in the CSD. Conditions that apply details).
to this cover are as follows:
58
Death & disability cover…
Death cover Total and permanent What total and
You can choose the dollar amount of disablement cover permanent
your death cover subject to a minimum Any member in the Personal disablement is
of $50,000. The maximum amount for
death cover is $5 million.
Superannuation Division may apply defined as
for total and permanent disablement
insurance cover, which will only Before becoming eligible for an
If you are:
be granted subject to provision of insurance payout, you’ll need to meet
■ a new member to the Mercer Super satisfactory evidence of good health, the insurer’s definition of total and
Trust, or financial details and other evidence. permanent disablement. Generally if
you are employed for 15 hours or more
■ transferred from the CSD and
You’re eligible to apply for total and per week this is:
• your insurance in the CSD was permanent disablement insurance cover
not under the trustee’s standard providing: ■ you must have been continuously
insurance policy with The absent from work through illness or
National Mutual Life Association ■ you make your application and it is injury for six months and,
of Australasia Limited; or accepted prior to age 50 ■ the trustee and insurer must form
■ at the time you make your the opinion, based on medical
• your application for death cover
application you’re in permanent evidence, that you’re unlikely to
was not made within the required
employment working at least 15 ever engage in or work for reward
time frame,
hours per week, and in any occupation for which you’re
then you will be required to provide reasonably qualified through
■ you provide satisfactory evidence of
satisfactory evidence of good health, education, training or experience
good health, financial details and
financial details and other evidence
other evidence. In addition you will be deemed to be
before you are provided with death cover.
You can choose the dollar amount of totally and permanently disabled if you
It is also important to note that all your total and permanent disablement suffer the total and irrevocable loss of:
insurance payouts are subject to the cover subject to a minimum of ■ the use of both hands, or
terms of the insurance policy between $50,000. This cover must not exceed
the trustee and the insurer. If for some ■ the use of both feet, or
the amount of your death insurance
reason, the trustee cannot arrange cover. The maximum amount for total ■ the use of one hand and one foot, or
cover for you on standard terms or if and permanent disablement cover is $2 ■ the sight of both eyes, or
the insurer doesn’t pay the insured part million. ■ the use of one hand and the sight of
of your super, then the amount you
one eye, or
receive will be reduced accordingly. Your total and permanent disablement
cover reduces uniformly to nil between ■ the use of one foot and sight of one
ages 60 and 65. eye.
It is also important to note that all You’ll need to provide all relevant
insurance payouts are subject to the information to the trustee or the insurer
terms of the insurance policy between to enable your claim to be processed.
the trustee and the insurer. If for some
reason, the trustee cannot arrange
Death payouts cover for you on standard terms or if Total and
may take time to the insurer doesn’t pay the insured part
permanent
of your super, then the amount you
be finalised receive will be reduced accordingly. disablement
The trustee must comply with
If you are employed on a casual basis payouts may take
various legal requirements in
relation to the payment of death
or work less than 15 hours per week time to be finalised
or are unemployed, you are not eligible
payouts. While every effort is made The assessment of a total and
for total and permanent disablement
to make these payments quickly, permanent disablement claim
cover.
due to the legal processes involved involves the collection of medical
there may be a significant period and other evidence. This may mean
of time required between the date that a decision is not made until
of death and the time a payout some 12-18 months after you last
is made in order to collect and worked. In some cases it may take
analyse all relevant information. even longer.
59
Applying for Renewing your cover ■ become ineligible for total and
permanent disablement cover due to
cover Once accepted and you continue to
be eligible, your cover will be renewed
changes in your employment status
(see below)
If you wish to apply for insurance cover automatically each year until age 65
■ in the case of total and permanent
then you must complete an ‘Applying for regardless of your health. Your cover
disablement cover, continue to
Insurance Cover’ form. You can obtain will increase automatically each year
be on unpaid leave or temporary
this form from our website located at (subject to a minimum of 5%) by the
absence from employment for more
www.mercersupertrust.com or by calling lesser of:
than 6 months.
the Helpline on 1800 810 558.
■ the CPI increase, and Your insurance cover will also stop
If you’re applying for death and total ■ 7.5%. if the Mercer Super Trust’s insurance
and permanent disablement cover, policy is cancelled in accordance with
This does not apply for members who
you’ll be required to provide satisfactory the terms of the policy.
are in occupations classified as heavy
evidence of good health, financial details
blue collar. You will be advised if this As your employment status affects
and other evidence for the insurer. This
applies to you. your eligibility for total and permanent
may not be required if you’re applying
for death cover only. You will be advised disablement cover, the trustee
if this applies to you. Increase in cover recommends that you inform us in
writing should your employment
Once you have chosen and been
If you are being assessed by the insurer, status change (eg on changing jobs
accepted for death or death and total
you will generally be covered for the or employers, going on unpaid leave,
and permanent disablement cover,
assessable insurance amount for moving overseas, or changing from
you can change the amount of your
accidental death and accidental total fulltime to part-time employment) and
insurance cover at any time, subject
and permanent disablement cover (if you’ll be advised if you’re still covered
to the terms and conditions in the
applicable) for the amount of cover you for total and permanent disablement
‘Death cover’ and ‘Total and permanent
have requested up to a maximum of $5 insurance. If you don’t do this, the
disablement cover’ sections above. If
million for death cover and $2 million for trustee will not be responsible for your
you increase your level of insurance
total and permanent disablement cover total and permanent disablement cover.
cover you will need to be assessed by
(if applicable) for up to 90 days. For the
the insurer and will need to provide If your total and permanent
purpose of this cover ‘accident’ means
satisfactory evidence of good health, disablement cover stops due to
bodily injury caused directly and solely
financial details and other evidence changes in your employment status,
by violent accidental, external and visible
before you can receive an increased your insurance premiums don’t
means. Premiums will be charged for the
level of insurance cover. automatically reduce during such a
period of provisional accident cover.
period unless you advise the trustee in
For the amount of cover that is subject advance. If you don’t wish to continue
to providing satisfactory evidence of When your cover paying your premium for total and
good health, financial details and other
evidence, the insurer may accept,
stops permanent disablement cover you
should write to the trustee requesting
decline or impose special conditions You’ll no longer have insurance cover that the cover be discontinued.
(such as an exclusion or premium if you:
loading) for that cover. Where the If you subsequently wish to reinstate
insurer accepts your application, you ■ advise the trustee in writing that your insurance cover, you’ll need to
will be notified of the date that your you wish to stop paying insurance reapply and will need to satisfy the
cover commences. premiums conditions for this insurance including
■ have insufficient funds in your providing satisfactory evidence of good
super account balance to cover the health and other information if you
insurance premiums want total and permanent disablement
cover.
■ leave the Personal Superannuation
Division of the Mercer Super Trust The insurer may impose conditions or
■ reach age 65 decline your cover.
■ receive a payout in respect of a total
and permanent disablement claim or
your beneficiaries receive a payout
due to your death (death cover
ceases on payment by the insurer of
a total and permanent disablement
benefit)
60
Death & disability cover…
Continuing your Cover while If your cover ceases and you then
subsequently return to Australia, you’ll
death cover working overseas need to provide satisfactory evidence
of good health, financial details and
after you leave If you work overseas, you can generally other evidence before your cover will
continue your death and total and
the Personal permanent disablement cover for up to
be reinstated. The insurer may impose
conditions or decline your cover.
Superannuation three years.
The trustee will not be responsible
Division If you’ll be resident in Austria,
Belgium, Canada, Denmark, Finland,
for your insurance cover where it
has not received written advice
You have the option of continuing your France, Germany, Greece, Hong from you that you are leaving for,
death insurance cover with the insurer Kong, Hungary, Iceland, Italy, Japan, or returning from, overseas for
under a personal policy at your own Luxembourg, Monaco, Netherlands, business purposes.
expense up to the same amount of New Zealand, Norway, Poland,
cover you had in place providing you: Portugal, Singapore, Spain, Sweden, The above terms are in relation to cover
Switzerland, USA, UK and Ireland while working overseas. You do not
■ stop being a member of the Personal (collectively referred to as the A- need to notify us of your overseas
Superannuation Division of the listed countries), then your cover travel for non-business purposes.
Mercer Super Trust (for any reason will automatically continue to apply.
other than temporary or permanent Please be aware that in the event
Premiums will continue to be charged
disablement), and that a war or civil unrest occurs in any
at the same rate.
country, your cover may be affected.
■ are under age 65.
If you are travelling to a non A-listed
Satisfactory evidence of good health You will be advised if this applies to
country, you will still be eligible
will not be required, however financial you.
for cover but will be subject to an
details and other information may
additional premium where the duration If you don’t want cover while overseas
be requested. Any restrictions that
of your business trip exceeds eight you can suspend it but you will need to
applied to your insurance cover
weeks. provide satisfactory evidence of good
under the Personal Superannuation
health and other evidence to resume
Division of the Mercer Super Trust will Please be aware that the above A-listed
cover on your return.
continue to apply under the personal countries may be varied by the insurer
policy and cover will be subject to the from time to time. For further details call the Helpline on
terms and conditions of that policy. 1800 810 558.
To take advantage of this option, To remain eligible for overseas coverage
you must apply to the insurer and you must satisfy all of the following
have the replacement policy in place conditions:
Non-residents’
within 60 days of leaving the Personal
Superannuation Division of the Mercer
■ You must remain a member of the
Personal Superannuation Division
insurance
Super Trust (or stop paying premiums, If you’re based in Australia but aren’t
■ You must be an Australian national
if earlier). The cost of continuing your an Australian resident, you may still be
cover outside the Mercer Super Trust ■ In the event of a disablement claim,
eligible for insurance cover provided:
will be based on the insurer’s prevailing you must be aware that you may
individual policy premium levels and be required to return to Australia at ■ you have a current visa which allows
terms and conditions and will need to your own expense you to work in Australia;
be met by you. ■ You continue to advise us of ■ you remain a member of the
any changes in your overseas Personal Superannuation Division;
The terms and conditions of the arrangements.
continuation option are not guaranteed ■ you are employed to work in
You should advise us if you will be Australia; and
and may be varied by the trustee and /
staying overseas for longer than a ■ you meet all other eligibility terms
or the insurer.
three-year period. The trustee may for insurance cover (including
need to get the insurer’s prior written payment of premiums).
approval on your behalf. You should
advise the trustee of your travel plans.
If you don’t have written approval, then
you may not be covered. You should be
aware that additional premiums may
be payable and in some instances cover
may be limited. You will be advised if
this applies to you.
61
The following table outlines the annual insurance premium rates per
$1,000 sum insured. The premium rates then need to be multiplied by the
Cost of cover appropriate factors to determine your annual premium. You will be advised of
your individual premium once your application has been accepted.
The cost of cover depends on the rating
factors that apply to your occupation, When selecting your desired level of insurance, you should bear in mind that
smoker status, gender, health and premiums generally increase as you get older.
premium rate that applies for your age.
Death and total and permanent disablement premium
To work out the annual premium for
your cover, multiply the amount of
rate table*
cover you have chosen for death (and Annual premium
total and permanent disablement for $1,000 of Annual premium
death annd total for $1,000 of
cover if applicable) by the relevant Annual premium and permanent Annual premium death annd total
premium rate according to your age for $1,000 of disablement for $1,000 of and permanent
Age next death cover only cover Age next death cover only disablement cover
next birthday and divide by 1,000. birthday $ $ birthday $ $
This amount should then be multiplied 15 0.24 0.30 41 0.51 0.86
by the appropriate rating factors 16 0.24 0.30 42 0.55 0.97
applicable to your occupation, smoking 17 0.28 0.37 43 0.60 1.08
status, gender and health rating. 18 0.33 0.44 44 0.66 1.19
19 0.37 0.51 45 0.71 1.32
It’s important to be aware that
20 0.40 0.54 46 0.78 1.51
premiums for a high level of cover may 21 0.40 0.54 47 0.86 1.69
significantly reduce your super payout. 22 0.39 0.52 48 0.95 1.91
You should consider your insurance 23 0.37 0.49 49 1.03 2.14
needs carefully before making a 24 0.33 0.46 50 1.12 2.41
decision about the level of cover 25 0.32 0.45 51 1.24 2.72
you require. You may wish to seek 26 0.32 0.43 52 1.35 3.05
professional advice from a licensed, 27 0.31 0.43 53 1.48 3.43
or appropriately authorised, financial 28 0.31 0.43 54 1.65 3.89
adviser to determine your appropriate 29 0.31 0.44 55 1.82 4.40
level of insurance cover. Your individual 30 0.32 0.45 56 2.01 5.04
premium rate can only be determined 31 0.32 0.46 57 2.24 5.78
once you’ve completed and returned 32 0.33 0.48 58 2.49 6.66
33 0.33 0.51 59 2.80 7.66
satisfactory evidence of good health ,
34 0.35 0.52 60 3.13 8.82
financial details and other evidence for
35 0.37 0.54 61 3.51 10.17
the insurer.
36 0.37 0.57 62 3.95 11.75
The cost of cover is deducted monthly 37 0.40 0.60 63 4.44 13.56
from your super account balance. 38 0.40 0.66 64 5.00 15.67
Continuance of cover is conditional 39 0.43 0.71 65 5.62 18.09
40 0.46 0.78
upon premiums being paid.
* The above premiums are inclusive of stamp duty and may be changed in the event of invasion or war.
Individual premiums will apply for all members. Higher premiums may apply if you travel overseas for
business purposes.
The ratings factors are as follows:
Occupational rating Smokers rating
Professional/white collar 1.00 Non-smokers 1.0
Light blue collar 1.95 Smokers 1.67
Heavy blue collar 2.70
Please note that for some occupations the risk is
Gender rating
non-insurable.
Females 0.8
Males 1.0
Health rating
This cannot be advised in advance. The insurer will assess your health status based on
the information you provide.
62
Death & disability cover…
Some examples of how to
determine your premiums based
on the premium rates above and
the various rating factors are as
follows.
1. Jack is age 45 (46 next birthday),
employed in a white collar
profession and is a non-smoker.
Jack is insured for death cover only
for $110,000. From the death and
total and permanent disablement
premium rate table we can see
that at age 46 next birthday the
annual premium for death cover
only is $0.78 for every $1,000 of
cover. This means the annual cost of
Jack’s cover is $110,000 times $0.78
divided by 1,000 multiplied by 1.00
(occupational rating) multiplied by
1.0 (smoker rating) multiplied by 1.0
(gender rating) = $85.80
The total cost of cover may vary
depending on Jack’s health rating.
2.Jim is age 45 (46 next birthday),
employed in a light blue collar
profession and is a smoker. Jim is
insured for death cover only for
$110,000. From the death and total
and permanent disablement premium
rate table we can see that at age 46
next birthday the annual premium for
death cover only is $0.78 for every
$1,000 of cover. This means the
annual cost of Jim’s cover is $110,000
times $0.78 divided by 1,000
multiplied by 1.95 (occupational
rating) multiplied by 1.67 (smoker
status) multiplied by 1.00 (gender
rating) = $279.41
The total cost of cover may vary
depending on Jim’s health rating.
Making a claim
Please contact the Helpline on
1800 810 558 for information on
how to make a claim.
63
64
Step 5 Beneficiaries
For the sake of your family, it’s important that
Mercer Super Trust has a record of your wishes as
to who you’d like to receive your super payout if
you die while you’re a member.
In this section you’ll find out:
■ How can you make a nomination? page 66
■ Who you can nominate? page 67
65
If you die while you’re a member of the OR A binding death benefit nomination
Mercer Super Trust, your super payout will cease to have effect if:
will be paid to the person(s) you have 2. Binding Death ■ three years have passed from the
nominated in a binding death benefit day you signed the Binding Death
nomination that is valid and in effect at Benefit Nomination Benefit Nomination Form or last re-
the time of your death. You can nominate one or more persons confirmed that nomination; or
that you require the trustee of the ■ you have revoked the nomination;
If a binding death benefit nomination
Mercer Super Trust to pay your super or
has not been made or is invalid or no
payout to, according to the proportions
longer in effect at the time of your ■ the trustee is prevented from
specified by you, by making a binding
death, the trustee of the Mercer Super making payment in accordance
death benefit nomination.
Trust has the discretion to pay your with your binding death benefit
super payout to any one or more of You can make a binding death benefit nomination due to the operation of
your dependants and your estate in any nomination that the trustee will be the Family Law Act 1975; or
proportion it determines. bound to follow in the event of your ■ you are subject to a Court Order
death, unless it has become invalid or that prevents you from making a
Because of this, we would like to know
is no longer in effect, by completing a binding death benefit nomination
who you’d like to receive your super
Binding Death Benefit Nomination Form. or that requires you to revoke
payout.
an otherwise valid binding death
A binding death benefit nomination benefit nomination.
How can will be invalid if:
■ it is not made using the MST Binding
Making, changing, revoking
you make a Death Benefit Nomination Form; or
or re-confirming your binding
death benefit nomination
nomination? ■ the Binding Death Benefit Nomination
Form has not been properly If you wish to make a binding death
You may nominate who you would like completed in accordance with the benefit nomination, or amend or revoke
to receive your super payout in one of relevant legal requirements which an existing binding death benefit
two ways. are specified on the form (for nomination please contact the Helpline
example, the nominated proportions on 1800 810 558 or visit our website
www.mercersupertrust.com for the
1. Preferred are not clear or do not equal 100%,
Binding Death Benefit Nomination Form,
or the form has not been signed and
Beneficiaries witnessed correctly); or which also contains full instructions on
Nomination ■ at the time of your death, one or
how to complete it.
You can nominate who you would more of the persons nominated by If you wish to re-confirm your existing
prefer to receive your super payout you in the Binding Death Benefit binding death benefit nomination to
in the event of your death. This is an Nomination Form has died or is not continue for another three years, you
indication of your preferences only, your dependant or legal personal can do this by calling the Helpline on
and pertains to the distribution of representative; or 1800 810 558 for the necessary form
your super payout in the event you ■ you remarry after making the to complete and return.
do not make a binding death benefit nomination; or
nomination. The trustee of the
■ you were legally incapable of
Mercer Super Trust will not be
making the nomination; or
legally bound by your wishes but
will take them into account. ■ the trustee is legally restrained or
prohibited from paying your super
Making, or changing your payout to one or more of the
preferred beneficiary persons nominated by you in the
nomination Binding Death Benefit Nomination
Form.
To let the trustee of the Mercer Super
Trust know your wishes, you should
complete Step 5 of the application form.
You can also make a nomination of
preferred beneficiaries, or change your
existing preferred beneficiary nomination
at any time either through our website
www.mercersupertrust.com or by calling
the Helpline on 1800 810 558.
66
Beneficiaries…
Who can you
nominate?
When making a nomination of
preferred beneficiaries or a binding
death benefit nomination you have
the choice of nominating one or more
of your dependants and your legal
personal representative (your estate).
Your dependants can include:
■ your spouse (this includes de-facto
but not same-sex partners),
■ your children including step-children
and adopted children,
■ any other person who the trustee
considers is wholly or partially
dependent on you, and
■ any other person with whom
you have an interdependency
relationship. (This will occur
where you have a close personal
relationship with another person
(whether or not related by family)
and:
● you and that other person live
together,
● you, the other person, or both
of you provide the other with
financial support, and
● you, the other person, or both
of you provide the other with
domestic support and personal
care.
It will also occur where you have
a close personal relationship with
another person but due to a disability
the other criteria of interdependency
cannot be met.)
As mentioned above, you can
also nominate your legal personal
representative (your estate). If your
legal personal representative receives
your payout, it will be distributed
according to your will, or if you don’t
have a will, according to the laws of
the State in which you resided at the
date of your death.
If you don’t have any dependants or
a legal personal representative, the
trustee of the Mercer Super Trust has
the discretion to pay your super payout
to any person allowed by the law.
67
68
Step 6 Tax & super
The government provides tax breaks on super
investment to encourage Australians to save for
their retirement.
In this section you’ll find out:
■ How tax applies to your super page 70
■ Providing your tax file number may save you tax page 70
■ Rebate for spouse contributions page 71
■ Co-contributions page 71
■ Tax on investment income page 71
■ Tax on your super payout page 72
■ Up to date information page 73
69
This general taxation information
Providing your Surcharge tax
guide is based on our
interpretation of existing laws
tax file number For some higher income earners there
has been an additional tax, known
and proposed legislation as at may save you tax as the surcharge, on all employer
the date of preparation of this contributions (which includes any salary
Where you provide your tax file number sacrifice contributions you made) and
PDS. Discussion of these taxation
to us, you acknowledge that we may tax deductible member contributions.
matters aims to give you an
supply your tax file number to Mercer The surcharge tax may also have
overview of what may apply to
and other relevant parties. If you don’t applied to an eligible termination
your super, assuming you are an
supply your tax file number we may be payment made by your employer.
Australian resident. If you’re not an
required to deduct tax at the highest
Australian resident for income tax The surcharge tax could also have
marginal rate plus the Medicare levy
purposes, different tax rules may applied automatically if you had
from any super payout made to you.
apply. As personal circumstances not provided your tax file number,
Your contributions may also be subject
differ, we strongly recommend that irrespective of what you earned.
to the highest rate of surcharge. It is
specific tax advice is sought from
not an offence not to provide your tax
a suitably qualified professional. The surcharge has now been removed
file number.
Taxation laws may change at any on superannuation contributions made
time. Any tax file number information on or after 1 July 2005 and eligible
supplied will automatically be applied termination payments made by an
to all future investments in the Mercer employer on or after 1 July 2005.
How tax applies Super Trust. For more information
about the use of tax file numbers ring
Although the surcharge has been
to your super your local branch of the tax office.
removed in respect of future
contributions, it will continue to apply
In most cases, you have to pay tax on in respect of the period up to 30
your super payout when it’s paid from
Tax on contributions June 2005. This means that the tax
the Mercer Super Trust. The trustee pays tax at the rate of office will continue to issue surcharge
15% on contributions made by your assessments in respect of contributions
The actual amount of tax you’ll have to and eligible termination payments
employer (which includes any salary
pay depends on: made by employers before 1 July 2005.
sacrifice contributions you make)
■ the size of your payout and on contributions on which you
If you rollover super into the Mercer Super
claim a tax deduction. The amount
■ the type of payout Trust from another super fund or from an
of contribution tax is levied on your
■ the date you started employment employer, any liability to pay the surcharge
net contributions after relevant fees
■ your level of taxable income tax for contributions to that fund which
and insurance premiums have been
has not been paid, or in respect of the
■ when your payout is taken as cash. deducted. If a taxable contribution is
employer payout, may be transferred to
accepted into the Mercer Super Trust,
You can legally defer and, in some the Mercer Super Trust.
tax will be deducted immediately and it
cases, reduce the amount of tax to be
will be held until it’s required to be paid If the Mercer Super Trust is required
paid by rolling your payout into another
to the tax office. to pay surcharge tax in respect of
super arrangement. Tax generally needs
contributions made for you, the
to be paid when you withdraw money Tax at 15% is also deducted from
tax payable will be charged to your
from that rollover fund. amounts paid by some Government
account in the Mercer Super Trust. You
funds and certain payments from
should check your most recent member
employers which are rolled into the
statement to see if surcharge tax has
Mercer Super Trust. These amounts
applied to you.
are considered to be from an untaxed
source and therefore tax must be Your surcharge assessment will generally
deducted when they are received. The be charged according to the investment
part that is subject to tax is normally option you have selected for your future
called the “untaxed post June 1983” cash flows into your account at the time
component. the assessment is processed.
If we receive a surcharge assessment in
respect of your membership after you
have left the Personal Superannuation
Division we will return it to the tax
office. The tax office will then forward
it to the fund to which your benefit
70 was paid, or to you if your benefit was
paid directly to you.
Tax & super…
Contribution limits Rebate for your income is $40,000, and you make a
contribution of at least $600 you will be
Your contributions will generally only
be tax deductible to you if you’re
spouse eligible for a co-contribution of $900.
self-employed or receive no employer contributions The co-contribution will only be
available to people who earn at
super support. If that is the case then
Your spouse may be entitled to a tax least 10% of their income from
you may claim tax deductions for
rebate of 18% for super contributions employment as an employee and will
contributions of $5,000 and 75% of
of up to $3,000 made on your behalf not be available to those self-employed
contributions in excess of $5,000 up to
providing you’re a: persons who are able to claim a tax
your maximum deductible contributions
deduction for their contributions.
limit. Your maximum deductible ■ non-income earner, or
contributions limit depends upon your ■ earn assessable income and You must also be under age 71 at the
age as follows for the 2005/2006 end of the year. The co-contribution
reportable fringe benefits below
financial year: is not available to most temporary
$10,800 per year.
residents.
Under Age 35 $14,603 Lower rebates may apply if your
assessable income and reportable The trustee must give the tax office
Age 35-49 $40,560 fringe benefits are between $10,800 information about your contributions
and $13,800 per year. and those made by your employer.
Age 50 and over $100,587 Using this information and information
in your tax return, the tax office will
These amounts are indexed from 1 July
each year. Co-contributions work out if you are entitled to receive
a co-contribution. Any co-contribution
If you receive less than 10% of your - the Government payable will then be sent directly to the
Mercer Super Trust or another fund to
income* from employment where
your employer provides super support
may provide which you belong.
then you’re entitled to the same tax additional We recommend that you speak to a
deductions for super contributions licensed, or appropriately authorised,
as self-employed and unsupported contributions financial adviser to work out how this
persons.
for you if you might apply to you.
* Income is your assessable income plus your
At the end of each financial year,
we will contact you, if you have told
make after tax reportable fringe benefits.
us that you are self-employed or if contributions to Tax on
you request, so that you can advise
how much you wish to claim as a tax super investment
deduction in that financial year. The co-contribution is a contribution, income
Contributions may be made even if by the Government, of up to $1.50
for each $1.00 of personal after- Generally, the trustee is liable to pay tax
you’re not entitled to a tax deduction.
tax member contributions paid to a at a maximum rate of 15% on:
Any contribution of this nature made
superannuation fund.
by you is treated as an undeducted ■ all investment income
contribution, which is not subject to The amount of the co-contribution ■ realised capital gains from assets
contributions tax and is not taxed when you will get depends on your income* held for less than twelve months,
paid as a benefit. However, earnings on and the personal after tax contribution and
undeducted contributions are subject you have made during the financial
■ two-thirds of realised capital gains
to the tax on investment earnings. year. The maximum amount of co-
from assets held for more than
contribution for a financial year is
Employer super contributions are twelve months.
$1,500 and is available to people
generally tax deductible for the whose income is $28,000 or less. This Where the Mercer Super Trust is
employer up to the age based limits set maximum or cap then phases down invested in pooled super trusts and
out above. by 5 cents for each dollar of additional statutory funds of life insurance
* Income is your assessable income plus your income and cuts out completely for companies, the trustee won’t be liable
reportable fringe benefits. incomes of $58,000 or more. You also to pay tax on gains received from these
need to meet other conditions to be investments.
eligible for the co-contribution – these
are set out below. The actual rate at which the trustee
pays tax may be reduced below 15%
For example, if your income is $28,000 due to the effect of various tax credits
or less and you make a personal after-tax and rebates.
contribution of $1,000 (and you meet the
other conditions set out below) you will be
eligible for a co-contribution of $1,500. If 71
Tax on your Your death payout and tax
super payout A lump sum payment made upon your death directly to:
■ a dependant (as defined for tax purposes) will be tax free up to your pension RBL
Reasonable benefit ■ a non-dependant will be taxed as an ETP at special rates.
limits (RBLs)
Similarly, if a lump sum payment is made upon your death to your estate for
Your RBL is the maximum amount of distribution in accordance with your Will or the administration laws, the amount
super and similar entitlements that you’re given to a dependant by the estate will be tax free in the estate and to the
entitled to receive during your lifetime dependant up to your available pension RBL. A payment to the estate in respect of a
on a concessionally taxed basis from the non dependant will be treated as an ETP in the hands of the trustee of the estate and
following sources: taxed at special rates.
■ super funds, including pensions If lump sum payments exceed the pension RBL, the excess amount will be taxed at
■ approved deposit funds 38% to 47%, plus the Medicare levy.
■ certain annuities
■ other Eligible Termination Payments Your lump sum payments and tax
(ETPs). Lump sum payouts (otherwise referred to as ETPs) are made up of different
Your RBL amount depends on whether components each of which may be subject to tax.
you receive your super in the form of The most common components of a payout are:
a lump sum, a non-complying pension
or annuity, or a complying pension or Tax Tratment
Components
annuity.
Undeducted contributions - your own Tax free
If you receive a super payout this will personal contributions after 30 June 1983
be taken into account in determining for which you have not claimed a tax
whether you have exceeded your RBL. deduction.
Where at least 50% of the total amount
received from all sources is taken as a Pre 1 July 1983 - related to your period of 5% is included in your taxable
complying pension or annuity the pension service up to 30 June 1983 income and taxed at your marginal
RBL will generally apply. Where this is not rate*
the case the lump sum RBL will generally Post 30 June 1983 - related to your period If under age 55 - taxed at 20%*. If
apply. of service since 1 July 1983 over age 55 - first $129,751† is tax
The table below outlines the relevant free, the balance is taxed at 15%*
RBLs: * The Medicare levy (plus where applicable, the Medicare surcharge) is also payable.
† The limit is applicable for 2005/2006 and is indexed from 1 July each year.
Reasonable Benefit Limits
Type of Benefit RBL 2005/2006*
Lump sum $648,946
Pension (complying $1,297,886
pension and
annuities only)**
* These amounts are applicable for 2005/2006 and
are indexed from 1 July each year. If you receive
your super payout prior to your 55th birthday, your
lump sum RBL will be reduced by 2.5% for every
year by which you’re younger than age 55.
** Generally applies if at least 50% of your super
payout is taken as a complying pension or annuity,
otherwise the lump sum RBL will apply.
Note you may be eligible for transitional
Lump Sum and Pension RBLs which
are higher than the above figures. We
recommend you discuss your RBLs with
a licensed, or appropriately authorised,
financial adviser.
72
Tax & super…
Other components that are less common include:
Components Tax Tratment
Post June 1994 invalidity component – may Tax free
apply if you leave service due to invalidity
Concessional component – only applicable 5% is included in your taxable
up to 1 July 1994, applied on leaving income and taxed at your marginal
service due to invalidity or redundancy rate*
Capital Gains Tax exempt component Tax free up to RBL
– applies to capital proceeds from the sale
of a small business
Excessive component – that part of your From 38% to 47%*
benefit that exceeds your RBL. (This
component is determined by the tax
office).
* The Medicare levy (plus where applicable, the Medicare surcharge) is also payable.
Higher tax rates will generally apply to preserved and restricted non-preserved super
payouts when a temporary resident has permanently left Australia.
Up to date information
You can find up to date information on age based contribution limits and reasonable
benefits limits on the Mercer Super Trust website at
www.mercersupertrust.com or call our Helpline on 1800 810 558.
We can also send you a copy of the updated information, free of charge on request.
73
74
Step 1 continued
Are you self-employed? Yes No Date joined Employer / /
Employer’s name
Application form to
join the Mercer Super Trust
Personal Superannuation Division Step 2
This application form is for applying for participation in the Mercer Super Trust Personal Superannuation Division
under the Product Disclosure Statement (PDS) dated 1 April 2006. It is also for members who have transferred from the
Contributions - to help you build your wealth faster
Corporate Superannuation Division of the Mercer Super Trust. Please see the Contributions section of the PDS for further details on how to remit contributions to the Personal
Superannuation Division.
Step 3
Take control of how your super is invested
About this form To make it easy, each step is matched to the section of the PDS. You can choose one or more of the Ready-made or Select-your-Own investment options or a mix of both. Please
If a step isn’t relevant to you – just move on to the next one. ensure the total adds to 100% otherwise the default investment option will apply until it’s corrected. If you don’t
We need you to fill out this form to let us know:
Once you’ve finished the form, don’t forget to sign it and make a selection, you’ll automatically be invested in the default investment option (please see the Investment
■ your details
return it to us. section of the PDS to find out which default investment option is relevant to you).
■ which investment option you’d like your money invested in
■ who you’d prefer to receive your super if you die while If you’re unsure of your decisions, we recommend that you I’d like to invest in the following investment option(s) (maximum of 10):
you’re a member of the Mercer Super Trust see a licensed, or appropriately authorised, financial adviser. Ready-made investment options Percentage to be invested
■ your tax file number
Mercer Shares %
Mercer High Growth %
Step 1
St er
Mercer Growth %
h
ar e
t
Mercer Moderate Growth %
To keep you informed we need to know your contact details Mercer Conservative Growth %
Please print in black or blue pen, in uppercase, one character per box. A ✓
Mercer Cash %
Title Mr Mrs Ms Miss Date of birth / /
Select-your-Own investment options (list any chosen Select-your-Own option in the space below)
Given names
1. %
Surname
2. %
Home address
3. %
Suburb State Postcode
4. %
Telephone Mobile - see note below
-
Email - see note below 5. %
Providing your email address and mobile phone 6. %
The trustee currently provides information such as annual reports, member statements and exit statements, notices of any
material changes or occurrences of significant events and member publications (such as “Your Wealth”) in a written form.
In the future, the trustee may provide this type of information, together with any marketing or research material by electronic 7. %
means. If you wish to receive this type of information electronically (when applicable in that form) by email or (where
applicable) by mobile phone you will need to complete the email and/or mobile phone section above.
8. %
Are you an employee of Mercer Human Resource Consulting Pty Ltd
or Marsh & McLennan Companies Inc or a related company? Tick one. Yes No
If you are a family member of such an employee, provide: 9. %
Name of Employee
10. %
Your relationship to this employee
Total (must equal 100%) 1 0 0 %
continued over
20060401
Mercer Super Trust trustee: Mercer Investment Nominees Limited (MINL) ABN 79 004 717 533
AFSL 235906. Address: GPO Box 4303, Melbourne Vic 3001. Tel: 1800 810 558. Mercer Human
Resource Consulting is a registered business name of Mercer Human Resource Consulting Pty Ltd
ABN 32 005 315 917 which is a corporate authorised representative 260851 of MINL. ‘Mercer
*MSTCF.Y01BHI1* *MSTCF.Y01HI2*
Wealth Solutions Super Trust’ and the petal logo are trademarks of MINL.
Step 4 Step 6
Protect your family’s financial wellbeing – think about death & disability cover… Don’t pay more tax than you have to - let us know your tax file number
Please see the Death & disability cover section of the PDS for further details. Your tax file number is confidential and you don’t have to give it to the Mercer Super Trust. It is not an offence
to not provide your tax file number. However, you may pay more tax than you have to if you don’t supply it.
My tax file number is – –
Special note: Mercer Super Trust is required by law to ask for your tax file number. By providing your tax file
Step 5 number, you’re allowing the Mercer Super Trust to use it to:
■ find or identify your super when there’s no other way
■ work out any tax payable
Who’ll get your super if you die while you’re in the Mercer Super Trust? ■
■
pass your tax file number to the tax office when you receive your super payout or have unclaimed super money after reaching pension age
pass your tax file number to any other super fund or account to which your super is transferred in the future, unless you tell the trustee
You can nominate who you prefer your death payout to be paid to if you die while in the Mercer Super Trust by not to do so, and
completing this section of the application form. This is an indication of your preferences only, as to the ■ report details of contributions to the tax office for working out surcharge tax
distribution of your super payout in the event you do not make a binding death benefit nomination. The trustee If you don’t provide your tax file number, now or later:
of the Mercer Super Trust will not be legally bound by your wishes but will take them into account. ■ you may pay more tax on your super than you would otherwise (although you can claim this back)
■ it may be more difficult to find your super in the future or combine any other super accounts you have, and
If you wish to make a nomination for payment of your death payout that will be binding on the trustee, you must
■ the tax office could incorrectly work out any surcharge tax.
complete a separate Binding Death Benefit Nomination Form available from the website www.mercersupertrust.com
The legal purposes for which the trustee can use your tax file number and the consequences of you not quoting
or by calling the Helpline on 1800 810 558. In the meantime, before your binding death benefit nomination is
your tax file number may change in the future.
received by the trustee, you may still wish to complete this section of the application form in order to advise the
trustee of your preferences. Date of birth / /
Your name
Please see the Beneficiaries section of this PDS for further details.
Name
Don’t forget to sign and return this form in the reply paid envelope
Step 7 – Sign the form provided. You should also keep a copy for your records.
Relationship to you* Proportion of payout %
Name By signing this form, I: 1800 810 558). I understand I can access my information by
■ acknowledge that I have received all information I require in contacting the Privacy Officer of the Mercer Super Trust.
order to exercise the choices I have made. ■ acknowledge that if I provided my email address and/or
■ apply (except where I have transferred from the Corporate mobile phone number in this application form, the trustee
Superannuation Division) to be a member of the Mercer Super may, at its discretion, use that email address or mobile phone
Relationship to you* Proportion of payout % Trust. number (as amended and notified to the trustee from time to
■ accept that I will be bound by the provisions of the trust time):
deed, and designated rules which govern the operation of the ■ to send me information concerning my super, including
Name
Personal Superannuation Division and Mercer Super Trust. any annual reports, member and exit statements, notices
■ understand that my personal information will be handled of material changes or occurence of signifi cant events,
by the Mercer Super Trust to provide and manage my super. member publications (such as “Your Wealth”), and
Without this information it may not be able to provide my ■ for marketing and research purposes (unless I have
super and choices. For this purpose, my personal information requested you not to do so by contacting the Helpline on
Relationship to you* Proportion of payout %
may pass between the trustee of the Mercer Super Trust and 1800 810 558).
its administrator, professional advisers, insurers, government ■ consent to the trustee paying commission to the adviser who
Name bodies, my employer and other parties as required, including has stamped this application form, and unless you instruct
the trustee of any other super fund that my super is the trustee otherwise, to the trustee providing relevant
transferred to. account information to that adviser.
I consent to the handling of my personal information in this ■ acknowledge that I have read and understood the attached
manner. I also agree that my personal information can be PDS and agree to be bound by it.
Relationship to you* Proportion of payout % used for marketing and research purposes (unless I have
requested you not do so by calling the Helpline on
Total 1 0 0 %
Signature
* must be a dependant or be your legal personal representative (or the executor of your will). A dependant is defined as:
■ your spouse (including de-facto but not same-sex partner), ✗ Date / /
■ your children including step-children and adopted children,
■ any other person who the trustee considers is wholly or partially dependent on you at the time of death, and
any person with whom you have an interdependency relationship. (Refer to the Beneficiaries section of this
Adviser use only section
■
PDS for a description of an interdependency relationship).
Please indicate what (if any) Adviser service fee is to be deducted from the following:
This application % Please note that if you do not indicate a percentage no
Advisor service fee will be deducted from the amount
Regular contributions plan % invested by the member.
Future additional contributions %
Signature / /
Date
Name Advisor number
Phone Advisor Stamp
*MSTCF.Y01HI3* *MSTCF.Y01HI4*
Rollover into the
Mercer Super Trust
Roll other super money into the Mercer Super Trust
Personal Superannuation Division
To rollover other super money you have, complete this form and send it to your previous
If you need help
super provider.
For assistance or to access the
If you have super money with more than one previous super provider, you’ll need to Privacy Policy and your personal
complete a separate Rollover form for each amount. Once your previous super money has information call the Helpline on
been received and credited to your super account balance, you’ll receive confirmation from 1800 810 558.
the Mercer Super Trust.
Please print in black or
Step 1 Complete your personal details
St er
blue pen, in uppercase, A ✓
h
ar e
one character per box.
t
Title Mr Mrs Ms Miss Date of birth / /
Given names
Surname
Street address
Suburb State
Postcode Telephone Fax
- -
E-mail
Membership number
Continued over
*MTPSD.901NO1*
Step 2 Provide details of your previous super fund
Name of previous fund or policy
Address of previous fund
Suburb
State Postcode
Membership or policy number Approximate value
$ , ,
Step 3 Instructions to previous super provider & sign the form
I request that you transfer the total value held in respect of me for the above super fund or policy to the Mercer Super Trust:
I understand that on payment by my previous super fund, I discharge that super fund from any further liability in
respect of the amount transferred.
I approve the deduction of any appropriate exit fees from the amount transferred subject to legislative restrictions.
I request that any further contributions received by my previous super fund after my payment, be redirected to my
membership with the Mercer Super Trust.
I understand that information contained in this form will be handled by the trustee of the Mercer Super Trust to process
my rollover and that any personal information may be disclosed to the administrator, government agencies or any other
party as necessary. By signing this form I consent to the handling of my personal information in this way.
I understand that I will receive confirmation once my money has been received in the Mercer Super Trust.
Signature
✗ Date
/ /
Don’t forget to send this form to your previous super provider.
Notes for previous superannuation provider
Name of Fund: Mercer Super Trust – Personal Superannuation Division (PSD)
SFN: 3297 429 55 ABN: 19 905 422 981 SPIN: MRT0101AU
When transferring money in to Mercer Super Trust please note:
Mercer Super Trust is a regulated super fund under the Superannuation Industry (Supervision) Act 1993. Accordingly
the Mercer Super Trust can accept the rollover of both preserved and non-preserved benefits in accordance with the
Superannuation Industry (Supervision) Act.
Cheques should be made payable to Mercer Super Trust (PSD) – Account of [member’s name]
Please forward:
- this authority
- the cheque
- an ETP rollover statement
- other associated documentation
to
Mercer Super Trust
GPO Box 4303
Melbourne VIC 3001
Issued by Mercer Investment Nominees Limited (MINL) ABN 79 004 717 533, AFSL 235906
as trustee of the Mercer Super Trust. Address: GPO Box 4303, Melbourne Vic 3001.
Tel: 1800 810 558. Mercer Human Resource Consulting is a registered business name
of Mercer Human Resource Consulting Pty Ltd ABN 32 005 315 917, which is a corporate
authorised representative 260851 of MINL. Mercer Wealth Solutions Super Trust and the
petal logo are trademarks of MINL. *MTPSD.901NO2*
20051207
®
Applying for insurance cover in the Please print in black or
Mercer Super Trust
blue pen, in uppercase,
one character per box. n✓
A
You can use this form to apply for insurance cover or to request
a change to existing cover Personal Superannuation Division
Duty of disclosure Privacy – Use and disclosure of personal
information
Insurance Contracts Act 1984 The privacy of your personal information is important to you
Before you enter into a contract of life insurance with an and also to AXA Australia. AXA Australia will collect only
insurer, you have a duty, under the Insurance Contracts Act information about you and your immediate family background,
1984, to disclose to the insurer every matter that you know, or that is necessary for the purposes of assessing your application
could reasonably be expected to know which is relevant to the for insurance, any claim you may make under the policy, and
insurer’s decision whether to accept the risk of insurance and for managing the policy (including Group Insurance plans).
if so, on what terms. Necessary information includes details about health, financial
situation, occupation and lifestyle. If the information you
You have the same duty to disclose those matters to the provide is not complete or accurate AXA Australia may not be
insurer before you renew or extend, vary or reinstate a contract able to provide you with the insurances you have applied for.
of life insurance. In assessing your cover or any claim you may make (including
Your duty, however, does not require disclosure of a matter: Group insurance plans), AXA Australia may need to disclose your
that diminishes the risk to be undertaken by the insurer; personal information to other parties, such as re-insurers, claims
that is of common knowledge; assessors, medical professional, policy intermediaries/advisers,
that your insurer knows of, in the ordinary course of its the Policy Owner, judicial or dispute resolution bodies, and AXA
business, ought to know; Australia Group companies.
as to which compliance with your duty is waived by the You are entitled to request reasonable access to information
insurer. AXA Australia has about you. AXA Australia reserves the
right to charge an administration charge for collating the
Non disclosure information you request. For AXA’s policy on Privacy refer to
www.axa.com.au.
If you fail to comply with your duty of disclosure and the
insurer would not have entered into the contract on any
terms if the failure had not occurred, the insurer may avoid If you need help
the contract within three years of entering into it. If your non For assistance or to access the Mercer Super Trust Privacy
disclosure is fraudulent, the insurer may avoid the liability for Policy and your personal information call the Helpline on 1800
a particular member or avoid the contract, depending on the 810 558.
source of the non disclosure, at any time.
An insurer who is entitled to avoid a contract of life insurance
may, by notice given in writing to you, within three years of
entering into it, elect not to avoid it but to reduce the sum that
er t
ov tar
you have been insured for in accordance with a formula that
S
takes into account the premium that would have been payable
if you had disclosed all relevant matters
to the insurer.
Applying for insurance cover in the Mercer Super Trust 10/2007
*MTPSD.902Z11*
Issued by Mercer Investment Nominees Limited (MINL) ABN 79 004 717 533, AFSL 235906, Registrable Superannuation Entity (RSE) Licence number L0000819,
as trustee of the Mercer Super Trust, RSE Registration number R1067088. Address: GPO Box 4303, Melbourne Vic 3001.Tel: 1800 682 525.
Mercer Wealth Solutions Super Trust and the petal logo are registered trademarks of MINL.
Please print in black or
Step 1 – Complete your personal details
St er
blue pen, in uppercase, A ✓
h
ar e
one character per box.
t
Title Mr Mrs Ms Miss Date of birth
/ /
Given names
Surname
Street address
Suburb State
Postcode Telephone Fax
- -
E-mail
Membership number in the Personal Superannuation Division (if available)
Step 2 – Transfer details
Select one option only ✓
I have transferred from the Corporate Superannuation Division of the Mercer Super Trust
No
Yes, date ceased employment
/ /
If yes, name of plan in the Corporate Superannuation Division
Step 3 – Choose level of cover
I wish to have variable premium insurance cover of $ , , . (minimum $50,000)
I wish my insurance cover to apply
On Death only
On Death and Total and Permanent Disablement (TPD)
If you’re applying for death and total and permanent disablement cover, you will be required to provide satisfactory
evidence of good health, financial and other evidence for the insurer before cover is provided. This may not be required
if you’re applying for death cover only and have recently transferred from the Corporate Superannuation Division.
The administrator will forward details of any health evidence requirements on receipt of this form. Please refer to the
Personal Superannuation Division’s Product Disclosure Statement for further details on insurance cover.
Continued over
Applying for insurance cover in the Mercer Super Trust 10/2007
*MTPSD.902Z12*
Step 4 Additional details
Occupation details
1. Please give details of your current occupation or job
Current From To
principal p r e s e n t
occupation / /
Occupation
Employer
Select an option ✓
Employed by own company Self employed Partnership Employee
2. How many hours per week do you spend at your principal occupation? hours
3. How many weeks per year do you spend at your principal occupation? weeks per year
4. In your principal occupation, what percentage of time do you spend performing the following types of duties?
Sedentary / Administrative %
Supervising manual work %
Light manual %
Heavy manual %
Other (including hazardous %
duties eg. handling
dangerous substances,
working at heights)
ToTal DuTieS 1 0 0 %
Residence details Select one option only ✓
5. Are you an Australian citizen currently residing outside Australia? No Yes
If yes, please provide details of the country and city that you reside in:
From what date have you lived there? When is your intended date of return?
/ / / /
Habits Select one option only ✓
6. Do you smoke or have you ever been a smoker? No Yes
Month Year
If you have stopped, when?
/
Continued over
Applying for insurance cover in the Mercer Super Trust 10/2007
*MTPSD.902Z13*
Step 5 – Declaration and consent and sign the form
If my request is agreed to, I understand that:
any reduction from my existing insurance payout will take effect from the date the trustee receives my request
provision of any higher insurance cover will be subject to the provision of evidence of satisfactory good health,
financial and other evidence to the insurer and will not be provided until the insurer has advised me in writing of its
acceptance of the increased insurance cover
my choice is binding on my dependants and my legal personal representative
this request replaces any previous instruction by me
the information on this form will be handled by the trustee to process my insurance choice
to provide me with an insurance payout the trustee may disclose or make accessible my personal information to the
administrator, insurer, my employer or any other party necessary
by signing this form I consent to this handling of my personal information.
Declaration and consent
Duty of Disclosure – I acknowledge that I have read the Duty of Disclosure Notice above. (Warning: You have a duty to
disclose all relevant information).
Truth and accuracy – I have checked the truth, accuracy and completeness of the answers in this Insurance
Application and all statements in writing given in support of this application which shall, subject to law, form the
basis of my membership in the Personal Superannuation Division of the Mercer Super Trust.
Changes make contract void – I agree that any change of material circumstances between the time of this Insurance
Application and its acceptance shall allow the Insurer to cancel my insurance cover under the group insurance
contract of the Personal Super Division of Mercer Super Trust.
✗ / /
Signature Date
Please return your completed form to Mercer Super Trust, GPO Box 4303, Melbourne, VIC 3001.
Applying for insurance cover in the Mercer Super Trust 10/2007
*MTPSD.902Z14*
