e
c
i
o
h
C
t
n
e
m
t
s
e
v
In
e
r
i
a
n
n
o
i
Quest
n
io
t
p
o
t
n
e
m
t
s
e
v
in
Find the
u
o
y
r
o
f
t
h
ig
r
is
t
a
h
t
At LUCRF Super, we understand that people have different wants and
needs. That’s why we offer a range of investment options with varying
levels of risk. Simply choose the option that suits you best.
You can choose one investment option or combine as
many as you like. This means you can have the right mix of
investments for each stage of your life.
Regardless of your choice, rest assured we invest and
manage your money with a strategy of providing long-term
growth over your working life and retirement.
Why use this questionnaire?
This questionnaire is designed to help you decide which
investment option is best for you.
Once you complete it, you should have a better
understanding about the kind of investor you are.
It takes into account a number of factors, including your
expected investment time horizon, your opinion on the
security and stability of your super, and your investment
return needs.
Please note that this questionnaire should be used as a
guide only and does not replace professional financial advice.
If you need help completing it, or would like to discuss
your personal needs in more detail, please call us on
1300 130 780.
Follow these easy steps to find
the investment option that’s right
for you.
Step 1
> Circle your answers to all the investment
profile questions.
Step 2
> Tally up your score at the end of each
section.
Step 3
> Match your score against the investment
options in the results box and circle the
corresponding investment option.
Step 4
> Review your investment options based on
your results and consider calling us on
1300 130 780 to discuss whether they’re
right for you.
> To lock in your choice, go to Members Online
at lucrf.com.au or complete the attached
Member Investment Choice Form and send
it to us.
2
Investment Choice Questionnaire
Step 1
Answer the following investment
profile questions
Circle the number in the score column that corresponds with
your answer.
Question 3
Different investment options carry varying levels of risk, as
well as possible returns – the higher the expected return, the
higher the risk. On the scale below, mark on the curved line
where you are likely to invest given the trade-off between risk
and return.
When do you plan to begin withdrawing money from
your investment?
INCREASING RETURN
Question 1
Answers
Score
In less than 1 year
0
In 1 – 2 years
1
In 3 – 6 years
2
In 7 – 10 years
3
In more than 10 years
4
Question 4
LOW
MEDIUM
How long have you been making investment decisions
(excluding the purchase of your home)?
HIGH
Answers
INCREASING RISK/VOLATILITY
Score
This is my first investment
0
Score
1 – 3 years
1
Lower risk, lower possible return
1
3 – 5 years
2
Moderate risk, moderate possible return
3
5 years or longer
3
Higher risk, higher possible return
5
Answers
Question 5
Question 2
You would prefer to avoid losses rather than maximise gains.
How strongly do you agree or disagree with this statement?
Answers
Score
If the value of your investment were to drop in a given year,
at what level would you start to feel uncomfortable?
Answers
Score
Less than a 5% drop in value
0
Strongly agree
0
A 5 – 15% drop in value
1
Agree
1
A 15 – 25% drop in value
2
Neutral
2
A 25% or more drop in value
4
Disagree
3
Strongly disagree
4
Investment Choice Questionnaire
3
Question 6
Question 8
What level of risk are you willing to take when investing?
Outlined below are four hypothetical investments showing the
best and worst returns possible in a particular year.
Answers
Score
Very low
0
Low
1
Medium
2
High
3
Very High
4
For example, while the highest possible return for Investment
C is $20,000, there’s a risk that it could have a negative
return of –$14,000.
If you had $100,000 to invest, which investment
(A, B, C or D) would you choose?
Investment
A
Highest return $2,500
Question 7
Lowest return
Some investments can have a negative return. How often are
you willing to accept a negative return?
Answer
Answers
0
Once every 10 years
1
Once every 7 years
2
Once every 4 years
4
0
Tally your score
Scores are next to or below the answers
Total score
(The lowest possible score is 1 and the
highest possible score is 34)
4
Investment Choice Questionnaire
C
D
$6,000
$20,000
$40,000
$2,000 –$1,500
Score
Never
Step 2
Score
B
2
–$14,000 –$30,000
4
6
Step 3
Find your investment profile
Match your score in Step 2 to the corresponding investment profile below.
For example, if your score was 13, your investor risk profile is ‘Moderate’.
Investor Risk Profile
Profile
Score
Growth assets
Defensive assets
Possible investment
Cash only
4 or less
0%
100%
100% Cash
Conservative
5 – 11
30%
70%
100% Conservative
Moderate
12 – 21
50%
50%
100% Moderate
Balanced
22 – 30
70%
30%
100% MySuper Balanced*
Aggressive
31 plus
100%
0%
100% High Growth
Write your investor risk profile here
Based on your risk profile score, you are a
Step 4
investor
Consider your investment options
Based on your results above, consider our investment options outlined
on the next few pages. When you’ve decided how you’d like your money
invested, simply go to Members Online at lucrf.com.au or complete the
Member Investment Choice Form at the back of this guide.
Investment options available
We offer 10 different investment options. You can choose one or a combination of these options to invest your super or
pension balance in. Our investment options are split into two categories: pre-mixed and asset class.
Pre-mixed investment options
Asset class investment options
These are diversified options that already have a mix of
different types of assets (e.g. growth and defensive).
They’re designed to suit a range of investment profiles.
These options invest in a single asset class.
•• MySuper Balanced*
•• High Growth
•• Targeted Return
•• Moderate
•• Conservative.
•• Australian Shares
•• International Shares
•• Indexed Shares
•• Property
•• Cash.
Note: for LUCRF Pensions, the MySuper Balanced investment option is
called Balanced.
*
Investment Choice Questionnaire
5
Pre-mixed options
MySuper Balanced**
High Growth
2
10
27.5
21
%
11
28.5
Strategic asset Range
allocation % %
Australian shares
27.5 15–40
International shares
28.5
15–40
Targeted Return
6
11
37
11
%
35
Strategic asset Range
allocation %%
Australian shares
37
22–52
International shares
35
23–47
Property
11
6–16
Property
11
6–16
Alternatives
21
5–40
Alternatives
11
0–29
Fixed interest
10
0–25
Fixed interest
6
0–12
Cash
2
Suggested minimum
investment time frame
6 years
Expected frequency of
negative annual returns
in any 20-year period
Expected frequency of
negative annual returns
in any 20-year period
5.3
Risk label
4.7
6
High
Risk band (1–7)
High
Balanced
Type of investor
Investment fee 0.81%
(0.69% net of tax)
Investment fee Moderate
6
Risk label
Type of investor
*
*
55.5
Strategic asset Range
allocation %%
Australian shares
11.1
0–33
Liquid alternatives
55.5
11–78
Infrastructure
11.2
0–33
Fixed interest
22.2
10–60
Suggested minimum
investment time frame
4 years
Expected frequency of
negative annual returns
in any 20-year period
3.3
Risk band (1–7)
Risk label
5
Medium to high
High Growth
Type of investor
Targeted Return
0.88%
(0.75% net of tax)
Investment fee 0.91%
(0.77% net of tax)
*
12
18
30
%
24
6
11
27.5
8
Strategic asset Range
allocation %%
Australian shares
18
International shares
19 10–27.5
Property
13.5
%
19
17
10–28
Strategic asset Range
2
allocation %%
Australian shares
International shares
8
4–12
Property
Alternatives
17
4–31
Alternatives
Fixed interest
24
15–40
Fixed interest
Cash
14
5–25
Cash
12
8–16
13.5
9–18
6
3–10
11
2–23
27.5 15–40
30 20–40
Suggested minimum
investment time frame
4 years
Suggested minimum
investment time frame
3 years
Expected frequency of
negative annual returns
in any 20-year period
3.7
Expected frequency of
negative annual returns
in any 20-year period
2.7
Risk band (1–7)
6
%
11.2
Conservative
14
Risk label
11.1
22.2
0–25
Suggested minimum 5 years
investment time frame
Risk band (1–7)
5
Medium to high
Risk band (1–7)
Risk label
4
Medium
Type of investor
Moderate
Type of investor
Conservative
Investment fee*
0.68%
(0.58% net of tax)
Investment fee*
0.56%
(0.48% net of tax)
Investment Choice Questionnaire
**
The MySuper Balanced option is the
same as the Balanced option available to
pension members.
The investment fee is a measure of the
fees deducted from investments. These
fees include the cost of the Fund’s
investment managers, custodian and
investment advisor and certain other costs
of the Fund. The investment fee is the total
of these costs, divided by the net asset
value of the Fund. These fees (net of tax)
are deducted directly from the investment
earnings before they are allocated to
member accounts. They are therefore not
deducted from your super account directly.
*
Strategic asset allocations are valid as at
1 February 2017. Visit lucrf.com.au for the
latest asset allocations.
Asset class options
International Shares
Australian Shares
%
%
100
100
Strategic asset
allocation %
Australian shares
100^
Indexed Shares
50
Strategic asset
allocation %
International shares
100^
Suggested minimum investment time frame
8 years
Suggested minimum investment time frame
7 years
Expected frequency of negative annual returns
in any 20-year period
7.0
Expected frequency of negative annual returns
in any 20-year period
5.8
Risk band (1 to 7)
7
Risk label
Very high
Type of investor
Aggressive
Risk band (1 to 7)
6
Risk label
High
Type of investor
Aggressive
Investment fee*0.79%
(0.67% net of tax)
Investment fee*1.00%
(0.85% net of tax)
Property
Cash
%
%
100
100
Australian listed
property trusts
Strategic asset
allocation %
100^
International shares
50^48–52
Suggested minimum investment time frame 7 years
Expected frequency of negative annual returns
in any 20-year period 6.3
Risk band (1 to 7)
Risk label
7
Very high
Type of investor
Investment fee* Cash#100
Aggressive
0.33%
(0.28% net of tax)
The money invested in your cash option is
invested in Members Equity Bank Limited
deposits, up to the limit as specified in the
Financial Claims Scheme (which, as at 1
February 2017, is $250,000). The amount
above this level is invested in highly rated
cash management trusts.
The investment fee is a measure of the
fees deducted from investments. These
fees include the cost of the Fund’s
investment managers, custodian and
investment advisor and certain other
costs of the Fund. The investment fee is
the total of these costs, divided by the
net asset value of the Fund. These fees
(net of tax) are deducted directly from
the investment earnings before they are
allocated to member accounts. They are
therefore not deducted from your super
account directly.
*
Suggested minimum
investment time frame
N/A
Expected frequency of
negative annual returns
in any 20-year period
6.8
Expected frequency of negative annual returns
in any 20-year period
Never
Type of investor
50^48–52
Strategic asset
allocation %
8 years
Risk label
Strategic asset Range
allocation %
%
Australian shares
#
Suggested minimum investment time frame
Risk band (1 to 7)
50
%
7
Very High
Aggressive
Investment fee* 0.33%
(0.28% net of tax)
Risk band (1 to 7)
Risk label
1
Very low
Type of investor
Investment fee *
Short-term
0.33%
(0.28% net of tax)
From time to time the investment
managers may hold cash.
^
Strategic asset allocations are valid as at
1 February 2017. Visit lucrf.com.au for the
latest asset allocations.
Investment Choice Questionnaire
7
Definitions
Risk
This means different things to different people. In relation to investing, risk generally means the volatility (fluctuation) of
investment returns. For example, how often and how much they go up and down in value. The more volatile an investment’s returns
are, the more risky they are. Shares are considered to be the most risky investment while cash is considered the least risky.
Return
This refers to the profit or loss of an investment. It’s often measured as the percentage gain or loss each year.
Our returns history is available at lucrf.com.au or you can call us on 1300 130 780.
Investment time horizon
This is the length of time you intend to invest your money, before you need to sell down and start withdrawing on the funds.
There’s no ‘right’ time frame, as everyone has different needs and requirements.
Growth assets
These are assets such as shares or property. They generally have the highest risk but also a greater chance of higher returns
over the long term. They usually have a greater chance of a negative return in the short-to-medium term and are more susceptible
to market fluctuations and volatility.
Defensive assets
These are assets such as cash or fixed interest (bonds). The returns are generally in the form of income rather than capital
growth and are considered lower risk and more stable.
Alternatives
In addition to the traditional asset classes of shares, property, fixed interest and cash, a variety of alternative assets such as
infrastructure, private equity, high-yield debt and hedge fund strategies are increasingly becoming accepted investments. These
investments are non-traditional and generally include both defensive and growth characteristics.
They provide excellent diversification. They also tend to have low correlations with traditional asset classes, thereby providing
healthy long-term returns which aren’t as sensitive to listed market fluctuations.
8
Investment Choice Questionnaire
Super/Pension
Member Investment Choice Form
Complete this form if you want to choose how you invest
your existing super balance, any future contributions, and/or
your LUCRF Pension account.
Did you know? You can also make changes to your investment choices at Members Online, where you have convenient
24/7 access to your account. Visit lucrf.com.au for details.
To help you make an investment choice that meets your financial needs, read our Investments Guide and complete our Investment
Choice Questionnaire available at lucrf.com.au.
Step 1 Your details
Please read our Personal Information Collection Statement at lucrf.com.au/privacy
LUCRF Super member number (please contact us if you do not know your member number)
Date of birth (dd/mm/yyyy)
/
Mr
Mrs
Miss
Ms
/
Other (please specify)
First name(s)
Last name
Residential/Street address
Unit/Street number
Street name
Suburb/City/Town
State/Territory Postcode
Postal address – if different to residential
Unit/Street/PO Box number
Street name
Suburb/City/Town
State/Territory Postcode
Contact details
Email address
Mobile phone
Work phone
Issued 1 February 2017 by L.U.C.R.F Pty Ltd ABN 18 005 502 090 AFSL 258481 as Trustee for Labour Union
Co-operative Retirement Fund ABN 26 382 680 883 (LUCRF Super).
020.9
Super/Pension Member Investment Choice Form
Page 1 of 4
LUCRF0539_2017
Home phone
Important information on how to make an investment choice for your super
Frequently used terms
Existing super balance:
The money currently in your super account.
Future contributions:
Any money paid into your super account after we’ve processed your investment choice(s).
Investment choice:
How you invest your existing super balance and/or any future contributions. You have 10 investment options with LUCRF Super to choose from.
You should choose your investment options depending on how much investment risk you’re willing to take on. You can find out about the
different options at lucrf.com.au or by speaking with one of our qualified financial advisers on 1300 130 780.
If you don’t make an investment choice, your existing super balance and future contributions will be automatically invested in our default option
(MySuper Balanced).
No fee is applied when you request a change to your investment choice.
If you’d like help in making an investment choice that meets your financial needs, read our Investments Guide and complete our
Investment Choice Questionnaire at lucrf.com.au.
Step 2 Change your super investment choice
Please indicate your investment choices (in percentages) in both column A and column B below. Each column must total 100%.
Your investment choices for your existing super balance (column A) and your future contributions (column B) may be the same or different.
Change my existing super balance
Investment options
Change my future contributions
Column A
%
Investment options
Column B
%
MySuper Balanced (default)
%
MySuper Balanced (default)
%
High Growth
%
High Growth
%
Targeted Return
%
Targeted Return
%
Moderate
%
Moderate
%
Conservative
%
Conservative
%
Australian Shares
%
Australian Shares
%
International Shares
%
International Shares
%
Indexed Shares
%
Indexed Shares
%
Property
%
Property
%
Cash
%
Cash
%
MUST TOTAL 100%
MUST TOTAL 100%
020.9
Super/Pension Member Investment Choice Form
Page 2 of 4
Important information on how to make an investment choice for your pension
Frequently used terms
Pro-rata (default) method (mirrors your investment choices):
The money from your LUCRF Pension account is drawn down in the same percentages that you chose for your investment options.
Example
If your LUCRF Pension is drawn and you had 50% of your balance invested in the Cash option and 50% in the Targeted Return option,
50% of your drawdown payment would come from the Cash option and 50% from the Targeted Return option.
Defined-proportion method (you choose):
The money from your LUCRF Pension account is drawn out of your selected investment options in the order and percentage that you choose.
Example
1. Your LUCRF Pension payment is drawn from the first investment option that you’ve selected until the money in that option runs out.
2. Next, your LUCRF Pension payment is drawn from the second investment option that you’ve selected until the money in that option runs out, and so on.
Once the money in the investment options you’ve selected has all run out, your LUCRF Pension payments automatically default to the pro-rata
method (described above).
If you decide to use the defined-proportion method, please regularly assess your choices to make sure that the drawdown directions you
provide still suit your situation. If they don’t, you may want to choose a different set of investment options to draw down from.
Investment choice:
This refers to how you invest your LUCRF Pension account using our 10 investment options. The difference between investment options is mainly
how much investment risk you’re willing to take on. You can find out about the different options at lucrf.com.au or by speaking with one of our
qualified financial advisers on 1300 130 780.
If you don’t make a change to your investment options, the money in your LUCRF Pension is automatically invested in our default option (Balanced).
No fee is applied when you request a change to your investment choice.
If you’d like help in making an investment choice that meets your financial needs, read our Investments Guide and complete our
Investment Choice questionnaire at lucrf.com.au.
Step 3 Change your pension investment choice
What do you want to do? (please cross [✗] one only)
Change the investment options for my LUCRF Pension account and have it drawn using the pro-rata (default) method.
(Enter your percentages into Column A only. Leave Column B blank)
Change the investment options for my LUCRF Pension account and have it drawn using the defined-proportion method.
(Enter your percentages in both Column A and Column B)
Change my existing LUCRF Pension
account
Investment options
Draw my LUCRF Pension account using
these defined proportions
Column A
%
Investment options
Column B
%
Balanced (default)
%
Balanced (default)
%
High Growth
%
High Growth
%
Targeted Return
%
Targeted Return
%
Moderate
%
Moderate
%
Conservative
%
Conservative
%
Australian Shares
%
Australian Shares
%
International Shares
%
International Shares
%
Indexed Shares
%
Indexed Shares
%
Property
%
Property
%
Cash
%
Cash
%
MUST TOTAL 100%
MUST TOTAL 100%
020.9
Super/Pension Member Investment Choice Form
Page 3 of 4
Investment choice procedure
Super account investment choices received for existing balance and future contributions take effect as follows:
Existing super balances: an application to change investment option for an existing balance is effective the day after the valuation of assets
for those requests received by 5pm EST on the day of valuation. Assets are typically valued on a Monday and declared on the next Thursday,
except at month-end.
Future contributions: these receive the net cash rate from the date of receipt to the next valuation date, and the investment return for the
selected investment option after valuation date.
Pension account investment choices received take effect as follows:
An application to change investment option for an existing balance is effective the day after the valuation of assets for those requests received
by 5pm EST on the day of valuation. Assets are typically valued on a Monday and declared on the next Thursday, except at month-end.
Crediting rates
Crediting rates represent the investment earnings for each investment option. They represent the earnings (expressed as a percentage) after
investment costs and taxes are deducted. This deduction does not include the $1.50 weekly administration fee you pay us to manage your
account – this is withdrawn directly from your account balance. Crediting rates go up and down during the year, reflecting movements in
investment markets.
How your investment returns are calculated
We calculate a final crediting rate each week (based on the information available at the time) to allocate net investment earnings to members.
Valuations typically occur each Monday during the month and at the end of each month. However, these valuations may not occur on a
Monday when:
• the first Monday of the month falls in the first three business days of the month. The valuation then typically occurs the next Monday.
• the last Monday of the month falls in the last three business days of the month. The valuation then typically occurs at the end of the month.
• Monday is a public holiday. When this happens, investments are valued on the next business day.
The valuation process uses the closing prices in the investments that we have in Australian and overseas markets.
Unlisted investments and real estate assets are valued less frequently. We use the most recent valuation available.
These rates allocate net investment earnings to members based on daily account balances.
Investment returns are effective on the 30th of June each year.
For more information on crediting rates, including both the financial year to date and historical rates, as well as the process for the final and
interim crediting rates at 30th June each year, please see our website.
Step 4 Sign and date this form
• I understand that my investment choice will be processed in accordance with my instructions and LUCRF Super’s investment
choice procedure.
• I have read and understood the relevant Member Guide (Product Disclosure Statement) and the associated reference material as currently
available at lucrf.com.au. I recognise that these do not amount to investment advice materials and they act as general guides only.
• I acknowledge that if I send this form unsigned or incomplete, my request may not be processed.
• I consent to the collection, use and disclosure of my personal information in accordance with the LUCRF Super Personal Information
Collection Statement and the Privacy Policy available at lucrf.com.au.
Signature
✗
Date (dd/mm/yyyy)
/
/
Checklist
Send this form to:
Before you send this form to us, make sure:
LUCRF Super
PO Box 211
North Melbourne VIC 3051
3
your investment choice percentages total 100%
3
you have signed and dated the form.
[email protected]
If you need any help completing this form, please call us on 1300 130 780 or email [email protected].
020.9
Super/Pension Member Investment Choice Form
Page 4 of 4
Contact us
1300 130 780
Issued February 2017 by L.U.C.R.F Pty Ltd ABN 18 005 502 090 AFSL 258481 as Trustee for Labour Union Co-Operative Retirement Fund (LUCRF Super) ABN 26 382 680 883. This is general information only
and has been prepared without taking into account your personal financial situation, objectives or needs. General information is not advice. You should assess your personal financial situation before making
a decision about LUCRF Super. To help you decide we recommend you read our current Product Disclosure Statement (PDS), our Super Member Guide – Additional Information, our Insurance Guide and our
Investments Guide, all available at lucrf.com.au or by calling 1300 130 780.
LUCRF0307_0217
lucrf.com.au
[email protected]
PO Box 211 North Melbourne VIC 3051