Important notice: Investment option changes
11 Apr 2022 10 min readOn 31 May 2022, our Moderate Growth, Shares Plus and Socially Responsible Diversified (SRD) investment options will be terminated.
What’s happening?
We’re terminating our Moderate Growth, Shares Plus and Socially Responsible Diversified (SRD) investment options. If you have funds invested in any of these options, your account will be affected. This will happen in 2 phases:
20 April 2022 — these investment options will be closed to new applicants.
31 May 2022 — these investments options will be terminated (no longer exist).
All members will receive a Significant Event Notice (dated 1 April 2022) relating to these changes.
My account includes investments in a terminating option — what will happen?
Your current investments in SRD, Moderate Growth and Shares Plus will need to be moved to different options. We encourage you to look at the other investment options currently available and make an investment choice.
Unless you make your own investment choice before 4pm (AEST) 18 May 2022, we will automatically move the account balance in your terminating investment options on 31 May per the following table.
| Current investment option | New investment option | |
|---|---|---|
| Accumulation and TTR accounts | Income account | |
| Moderate Growth | N/A | 100% Diversified |
| Shares Plus | 46% Australian Shares and 54% International Shares |
46% Australian Shares and 54% International Shares |
| Socially Responsible Diversified | 100% Diversified (MySuper) | 100% Diversified |
Accumulation account and Defined Benefit members — Future contributions
If you currently have any future contributions directed to any of the terminating options, these will be replaced by the new options in the appropriate proportions.
Transition to retirement and Income account members — Drawdown strategy
You may need to review your drawdown strategy, as your income payments may currently be drawn from a terminating investment option. Your drawdown strategy percentage will be updated so any terminating options will be replaced with the above options percentages.
The impact on your drawdown strategy depends on your current set-up:
| Drawdown strategy | How it works | How you’re impacted |
|---|---|---|
| Equal percentage drawdown | Your payments are drawn in the same proportions as your investment allocations. | Your drawdown strategy percentage will be updated so any terminating options will be replaced with the above options percentages. |
| Nominated percentage drawdown | Your payments are made from one or more of the investment options you have for your account balance, as nominated by you. | Your drawdown strategy percentage will be updated so any terminating options will be replaced with the above options percentages. |
| Priority drawdown | Your payments are drawn down in priority order, starting from priority 1. | Any terminating option will be replaced with the same priority for the automatic option, noting for Shares Plus, the Australian Shares option will have a higher priority than the International Shares option. |
Do I need to do anything?
If you’re happy to be moved to the automatic options with the above future contribution/drawdown strategy changes, you don’t need to do anything.
You will only need to do something if the options we’re automatically switching you to don’t suit you. You can submit an investment switch through Member Online or using a paper Investment switch form at no cost. If we don’t receive instructions from you by 4pm (AEST) 18 May 2022, your investments will be switched automatically on 31 May per the table above.
How do I choose a new investment option?
To change your investment options online, you can:
- log in to Member Online
- click on 'My investments' in the Current Investments column
- select ‘Edit’ and choose your new investment allocations for your account balance.
Why is the Moderate Growth option closing?
NGS has decided to terminate the Moderate Growth investment option because there are other options within our investment menu that provide similar exposure to growth assets as the Moderate Growth option.
Why is the Shares Plus option closing?
NGS has decided to terminate the Shares Plus investment option to simplify the choices available to members, as there are other options within the portfolio that offer exposure to the same assets.
Why is the Socially Responsible Diversified option closing?
Since first offering the standalone SRD investment option in 2013, NGS Super has greatly expanded its environmental, social and governance (ESG) commitment, with our first ESG and responsible investment strategy being approved at the beginning of 2021.
You are probably aware of our ambitious target of 2030 for a carbon-neutral investment portfolio, towards which we are making excellent progress. But this is not the only work we are doing in the ESG space — we are also updating our exclusions and mapping our investments to the United Nations Sustainable Development goals, as well as seeking out impact investment opportunities.
We understand that your investment in our SRD option was probably motivated by a commitment to responsible investing, a commitment we fully share. We believe that the ongoing deep integration of ESG into our investments means that all our investment options now meet a responsible investment standard.
Responsible and ethical investing is important to me — can I still achieve this without the Socially Responsible Diversified option?
Yes. We believe that the ongoing deep integration of environmental, social and governance (ESG) considerations within our portfolio means that all our investment options meet a responsible investment standard.
It’s important to understand the difference between responsible and ethical investing. Ethical investing generally relies on ethical principles as a primary filter for determining your investments. For example, a common practice in ethical investing is restricting investment in tobacco production and manufacturing. An ethical investment strategy would screen out any investment that breaches the stated ethical screens.
In contrast, responsible investing takes a broader approach; it focuses on incorporating ESG considerations into investment decision making. While the Socially Responsible Diversified investment option employed more negative screens, our main investment portfolio takes a hybrid approach, using both responsible investment principles and selected negative screens (tobacco, thermal coal, armaments and controversial weapons).
You can read more about what we’re doing in the ESG space — including our target of 2030 to create a carbon neutral investment portfolio — on our fund sustainability page and in our responsible investment policy.
My future contributions are currently being invested in one of the closing options — do I need to do anything?
You should review your future contributions plan and update it through Member Online or by paper Investment switching form (Accumulation account) if you do not want your future contributions invested in the default allocations stated above. To change your future contributions strategy online:
- log in to Member Online
- click on ‘My investments’ in the Current Investments column
- select ‘Edit’ for your Future contributions.
My income stream payments are currently being drawn from one of the closing options — do I need to do anything?
You should review your drawdown strategy and update it through Member Online or paper Investment switching form (Income account or by Transition to retirement account) if you do not want your income payments taken from the default allocations stated above. To change your income payment drawdown allocation online:
- log in to Member Online
- click on ‘My investments’ in the Current Investments column
- select ‘Edit’ to choose your new investment allocations for your Current Investments and you can then choose to update your drawdown strategy.
Will my account balance be affected?
The dollar value of your account balance will not be affected by these investment changes. If you’re currently invested in one of our closing options, the dollar amount in that option will be used to buy units in your new investment option(s). Unit prices vary between investment options, so the amount of units you hold may change. There are no switch fees or unit price spreads applied to changes in investment options. You can view the latest unit prices for each investment option.
What unit price will be applied for my switch?
A request to switch investment options that is received by 4pm (AEST/AEDT) on a business day will receive the unit price effective for that business day. The price effective for that business day is generally available the next business day after which your request to switch will be processed. Details of your switch will generally show on your account the day after it has been processed.
Will my investment performance be affected?
Each of our investment options has unique performance. The automatic alternative investment options we’ve selected are of similar asset types and risk exposure to those that are closing. You can view historical performance returns and investment risk for each investment option.
How do I know which investment options are right for me?
We encourage you to explore our investment options on our website or in our Investment guide. If you’d like to speak with someone about choosing the right investment options for you, you can book a time to chat with one of our NGS Super Specialists.
Alternatively, you may like to get advice through our self-service e-Advice tool. Simply go to ‘Advice Tools’ after you log in to Member Online. This option is currently not available if you have any investments in the NGS Self-Managed Direct Investment Option.
Can I get help picking investment options?
Yes — if you’d like to speak with someone about choosing the right investment options for you, you can book a time to chat with one of our NGS Super Specialists.
Alternatively, you may like to speak with someone from our Financial Advice Helpline. This service is provided to you at no cost. Call us on 1300 133 177, Monday to Friday, 8am–8pm (AEST/AEDT), and we’ll set up a time for you to speak with them.
What’s the last date I can move my investment?
You’ll be able to move your investment until 4pm (AEST) on 18 May 2022. If you have not moved it by that date, we’ll switch your investments per the table above.
Can I move it elsewhere after 31 May?
Yes. Although you won’t be able to change your investments in the closing options from 4pm 18 May until 31 May, once the automatic transfer has taken place, you can choose to move your investment to another option at any time.
Do you charge fees for investment switches?
No — we don’t charge fees for investment switches.
