What’s your
risk profile?
DERATE
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Find the investment option that is right for you
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Questionnaire
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Investment Choice
E CASH
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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 is 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 are
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.
page 2
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 12 months
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,
what level would you feel uncomfortable with?
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
page 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)
page 4
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 option below.
For example, if your score was 13, your investor risk profile is ‘Moderate’.
Investor Risk Profile
Profile
Score
Growth assets
Income 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 have decided how you want 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 (eg growth and defensive).
They are designed to suit a range of investment profiles.
These options invest in a single asset class.
•• MySuper Balanced*
•• Conservative
•• Moderate
•• High Growth
•• Targeted Return.
•• Cash
•• Indexed Shares
•• Australian Shares
•• International Shares
•• Property.
Note: For LUCRF Pensions, the MySuper Balanced investment option is
called Balanced.
*
page 5
Pre-mixed options
MySuper Balanced
Conservative
2
10
27.5
21
%
11
28.5
Strategic asset Range
allocation %# %
Australian Shares
27.5 15–40
International Shares
28.5
15–40
12
30
17
Australian Shares
6–16
Property
6–37
Alternatives
Fixed Interest
10
0–20
Fixed Interest
0–6
11
International Shares
21
Cash
Expected frequency of
negative annual returns
in any 20-year period
4.7
Expected frequency of
negative annual returns
in any 20-year period
Risk band (1–7)
6
High
Balanced
Australian Shares
18
9–18
International Shares
19 10–27.5
6
3–10
Property
11
2–23
Alternatives
17
4–31
Fixed Interest
24
15–40
Cash
14
5–25
4 years
2.7
Expected frequency of
negative annual returns
in any 20-year period
3.7
Medium
Conservative
Targeted Return
High Growth
Australian Shares
11.1
0–33
Liquid Alternatives
55.5
11–78
Infrastructure
11.2
0–33
Fixed Interest
22.2
10–60
Expected frequency of
negative annual returns
in any 20-year period
Risk band (1–7)
Risk label
Type of investor
page 6
Medium to High
Moderate
Investment fee*0.58%
%
Strategic asset Range
allocation %#%
Australian Shares
37
22–52
International Shares
35
23–47
Property
11
6–16
Alternatives
11
0–29
Fixed Interest
6
0–12
4 years
Suggested minimum
investment timeframe
6 years
3.3
Expected frequency of
negative annual returns
in any 20-year period
5.3
5
Risk band (1–7)
Medium to High
Risk label
Targeted Return
Type of investor
Investment fee 0.77%
*
Type of investor
35
Strategic asset Range
allocation %#%
Suggested minimum
investment timeframe
Risk label
5
37
11
55.5
Risk band (1–7)
6
11
%
4–12
Suggested minimum
investment timeframe
Investment fee*0.48%
11.2
8
10–28
3 years
4
Risk label
11.1
Strategic asset Range
allocation %#%
8–16
Investment fee*0.69%
22.2
8
12
Risk band (1–7)
Type of investor
19
13.5
30 20–40
Suggested minimum
investment timeframe
Type of investor
27.5 15–40
Suggested minimum 5 years
investment timeframe
Risk label
%
24
6
Strategic asset Range
allocation
%#%
2
11
2
13.5
27.5
Alternatives
18
14
%
Property
Cash
Moderate
6
High
High Growth
Investment fee*0.75%
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 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 December 2015. Visit lucrf.com.au for the
latest asset allocations.
#
Asset class options
Each option invests in a single asset class.
Indexed Shares
Cash
50
%
%
Australian Shares
50
%
100
100
Strategic asset
allocation %#
Cash
100
Suggested minimum
investment timeframe
Expected frequency of negative annual returns
in any 20-year period
Risk band (1 to 7)
International Shares
50^48–52
7 years
Never
Expected frequency of negative annual returns
in any 20-year period 6.3
Short-term
Investment fee* 50^48–52
Suggested minimum investment timeframe Very Low
Type of investor
Australian Shares
N/A
1
Risk label
Strategic asset Range
allocation %#%
0.28%
International Shares
Risk band (1 to 7)
7
Risk label
Very High
Type of investor
Aggressive
Investment fee* 0.28%
%
100
100
Strategic asset
allocation %#
International Shares
Australian Shares
Suggested minimum investment timeframe
Expected frequency of negative annual returns
in any 20-year period
Risk band (1 to 7)
Risk label
Type of investor
Strategic asset
allocation %#
100^
8 years
7.0
7
Very high
Aggressive
Investment fee*0.67%
Property
%
100^
Strategic asset
allocation %#
Australian Listed
Property Trusts
100^
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 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 timeframe
Expected frequency of negative annual returns
in any 20-year period
Risk band (1 to 7)
Risk label
7 years
5.8
6
High
Type of investor
Aggressive
Investment fee 0.85%
*
Suggested minimum investment timeframe
Expected frequency of
negative annual returns
in any 20-year period
Risk band (1 to 7)
Risk label
8 years
6.8
7
Very High
Type of investor
Investment fee *
Aggressive
0.28%
Strategic asset allocations are valid as at
1 December 2015. Visit lucrf.com.au for
the latest asset allocations.
#
From time to time the investment managers
may hold cash.
^
page 7
Definitions
Risk
This mean 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 and cash, the least risky.
Return
This refers to the profit or loss of an investment. It is 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
is no “right” timeframe, 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 as well as providing strong negative correlations with traditional asset classes, thereby
providing strong long-term returns which are not as sensitive to market fluctuations.
page 8
Super
Member Investment Choice Form
Complete this form if you want to choose how you invest
your existing super balance and/or any future contributions.
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.
Step 1 Your details
Please read our Personal Information Collection Statement at lucrf.com.au/privacy
LUCRF Super membership number (please contact us if you do not know your membership 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
Email address
By providing a valid email address, you will be automatically registered for Members Online, giving you
convenient online access to your account. If you do not wish to receive access, please tick this box
Mobile phone
Work phone
Home phone
Issued 1 December 2015 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).
020.8
Super Member Investment Choice Form
Page 1 of 3
LUCRF0535_1215
From time to time we send marketing material. If you do not wish to receive this, please tick this box
Important information on how to make an investment choice
Frequently used terms
Existing super balance:
The money currently in your super account.
Future contributions:
Any money paid into your super account after we have 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. You should
choose your investment options depending on how much investment risk you are willing to take on. You can find out about the different options
at lucrf.com.au or by speaking with one of our qualified consultants on 1300 130 780.
If you do not make an investment choice, your existing super balance and future contributions will be automatically invested in our default option
(MySuper Balanced).
There is no fee 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, complete our Investment Choice Questionnaire at
lucrf.com.au, or read our Super Member Essentials document to find out about the strategy behind each investment option, the investment
returns it aims for and the risks involved.
Step 2 Change your 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)
%
Conservative
%
Conservative
%
Moderate
%
Moderate
%
Targeted Return
%
Targeted Return
%
High Growth
%
High Growth
%
Cash
%
Cash
%
Indexed Shares
%
Indexed Shares
%
Australian Shares
%
Australian Shares
%
International Shares
%
International Shares
%
Property
%
Property
%
MUST TOTAL 100%
MUST TOTAL 100%
020.8
Super Member Investment Choice Form
Page 2 of 3
Member investment choice procedure
Member investment choices received for existing super 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: 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.
Calculating investment returns
1. We value assets weekly and use weekly rates to allocate net investment earnings to members.
2. Valuations typically occur each Monday during the month and at month end.
3. Valuations may not occur on a Monday for the following reasons:
• When the first Monday of the month is within the first three business days of the month, the valuation is typically deferred to the following Monday
• When the last Monday of the month is within the last three business days of the month, the valuation is typically deferred to month end, or
• Where Monday is a public holiday, investments will be valued on the next business day
• End of financial year processing.
4. The valuation process uses the closing prices in the Australian and overseas markets in which we have investments. Unlisted investments
and real estate assets are valued less frequently. We use the most recent valuation available.
5. These rates allocate net investment earnings to members based on daily account balances. Investment returns are applied to members’ accounts
when (the earliest of):
• When a benefit is paid
• When an accumulation balance is transferred to a pension account
• When a change to investment options is processed
• Effective 30 June each year.
6. Contributions and transfers-in 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.
7. Financial year-to-date and historical rates are shown on lucrf.com.au.
For more details, refer to Super Member Essentials and Super Member Guide (Product Disclosure Statement).
Step 3 Sign and date this form
• I understand that my investment choice will be processed in accordance with my instructions and LUCRF Super’s member investment
choice procedure
• I have read and understood the Super 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
7
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
E [email protected]
If you need any help completing this form, please call us on 1300 130 780 or email [email protected]
020.8
Super Member Investment Choice Form
Page 3 of 3
Contact us
1300 130 780
This Investment Choice Questionnaire is issued February 2016 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. It is general in nature only
and has been prepared without taking into account your personal financial situation, objectives or needs. Ratings (awards) are only one factor to be taken into account when deciding whether to join LUCRF Super. These ratings were current at the
time of publication and may change. Visit our website for more information on our awards. 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), available from our website or by calling us.
LUCRF0307_1215
lucrf.com.au
[email protected]