Enhanced Cash option termination FAQs
After careful consideration and evaluation, legalsuper’s Enhanced Cash investment option will be terminating on 31 August 2023. This guide details the change and how the change will impact members.
What's happening?
The Enhanced Cash investment option is terminating. If you have funds invested in this option, your account will be affected. This will happen in 2 phases:
- 15 August 2023 - the option will be closed to new members.
- 31 August 2023 - the option will be terminated for existing members.
What will happen?
Your current investment in Enhanced Cash will need to be switched to a different option/s. We encourage you to look at the other investment options available and make an investment choice.
Unless you make your own investment choice before 4pm (AEST/AEDT) on 25 August 2023, we will automatically move the account balance invested in the Enhanced Cash option to the legalsuper Cash option on 31 August 2023 (using the unit price of that day). The switch from the Enhanced Cash option to Cash option will not incur a buy/sell spread fee. Please note, if you choose to move to a different investment option, you will be charged a buy spread fee.
Why is the option closing?
We regularly review all our investment options to ensure members have access to market-leading products and that all these options best serve members' needs.
With this in mind, we believe that closing the Enhanced Cash option is in the best interests of members, because, while it has generally performed in line its investment objectives, this option has not achieved the necessary scale required to deliver long-term cost and performance benefits to members.
By simplifying our investment menu, we can focus on the options that more than 99% of our members are invested in.
legalsuper will continue to offer a diverse range of investment options, including pre-mixed and single asset class options, as well as the Direct Investment option.
What you need to do
You will need to update your investment choice before the option closes. All investment choice switch requests must be received by Friday 25 August 2023.
If you don't make an investment switch by this date, your investment in the Enhanced Cash option will automatically be transferred into the legalsuper Cash option.
Please note, the Cash option has a different risk and return objective to that of the Enhanced Cash option, which you should take into consideration. The switch from the Enhanced Cash option to Cash option will not incur a buy/sell spread fee. Please note, if you choose to move to a different investment option, you will be charged a buy spread fee.
Accumulation members
You can update your investment choice for your current balance and/or future contributions. If you don’t update your investment strategy by 25 August 2023, any money invested in Enhanced Cash, will be automatically moved to the Cash option on 31 August 2023.
Pension and TTR members
You will need to update your investment choice for your current balance and your pension draw down selection. If you don’t update your investment choice and/or drawdown strategy by 25 August 2023, any money invested in Enhanced Cash, will be automatically moved to the Cash option on 31 August 2023.
How to change your investment option
There are a number of ways you can update your investment strategy:
- Login to your secure MemberAccess account and navigate to Investments > Change my investments. If you haven’t registered for a MemberAccess account, you can do on our website.
- Call us on 1800 060 312 to make a switch over the phone. Our Customer Service Team is available Monday to Friday, between 8am and 8pm (AEST/AEDT). International members can call +61 2 8571 6444.
Please remember that you must make your switch by 4pm (AEST/AEDT) on 25 August 2023.
Choosing a new investment option
Everyone's investment needs are different, and you need to carefully consider your options and choose the one that suits your needs.
You can find further information about our investment options on our website.
What happens if I don't make another choice?
As the investment option will be closing permanently, all members are required to be moved out of the option. If we don't receive a direction from you by 25 August 2023, we are required to transfer you into the legalsuper Cash option.
It should be noted that the Cash option has a different risk and return objective to that of the Enhanced Cash option, which you should take into consideration.
What other options can I choose?
You should carefully consider the investment options available to you and select one that best suits your needs.
You can choose from the following range of diverse investment options:
- Pre-mixed options
- Conservative
- Conservative Balanced
- Balanced Index
- Balanced
- Balanced Socially Responsible
- Growth
- High Growth
- Single asset class options
- Australian Shares
- Overseas Shares
- Cash
- Direct Investment option
You can find further information about our investment options on our website and in our PDS.
Why are you transferring me into the Cash option if I don't make a choice?
As the Enhanced Cash option will be closing permanently, all members are required to be moved out of the option. If we don't receive a direction from you, we are required to transfer you into the most similar investment option on our menu in terms of risk/return profile and underlying asset exposure. In this instance, that option is our Cash option.
Will my account balance be affected?
The dollar value of your account balance will not be affected by this change. The dollar amount in the Enhanced Cash option will be used to buy units in your new investment option. Unit prices vary between investment options, so the amount of units you hold may change. There are no switch fees or unit price sell spreads applied to transferring out of the Enhanced Cash option. However if you choose to transfer to an option other than Cash, you may be charged buy sell spreads.
Will management of the option change before it closes?
No. The Enhanced Cash option will continue to be managed in line with its investment strategy to meet its objectives until it is formally closed.
Can I move it elsewhere after 31 August?
Yes. Once your balance in Enhanced Cash has been transferred to another investment option and the Enhanced Cash option has closed, you can choose to change your investment strategy at any time by completing an investment switch.
We’re here to help
We have a team of Client Service Managers who can help you choose an investment strategy. You can make an appointment directly with a CSM or by calling our Customer Service Centre on 1800 060 312 between 8am and 8pm (AEST/AEDT) Monday to Friday.
Date of preparation: 26 June 2023. The information on this page is specific to legalsuper and is of a general nature. It does not take into account your objectives, financial situation or needs. You should consider your own financial position, objectives and requirements, and obtain and read the relevant legalsuper Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making any decision based on anything included in this document. The relevant PDS and TMD issued by legalsuper can be obtained at legalsuper.com.au or by contacting us. Past performance is not a guide to future performance. Legal Super Pty Ltd, Level 9, 627 Chapel Street, South Yarra, VIC, 3141 ABN 37 004 455 789 AFSL 246315 as the Trustee for legalsuper ABN 60 346 078 879.
