The approved investment menu is not a recommendation.
All responsibility for the investment decisions in the DIO rests with the member. The inclusion of a share, ETF, LIC or term deposit as an allowable investment within the DIO is not an endorsement or recommendation by the Trustee as to the quality or suitability of that investment. The rules for investing in the DIO should not be considered as a recommendation by the Trustee as to the manner in which members should approach their investments in the DIO. Investment decisions regarding the diversification of assets rest with the member.
The Trustee does not review any trades that members make in the DIO, and members should consider obtaining investment advice from a licensed financial adviser before investing in the DIO.
Menu – Securities
The following companies and Trusts were included in the S&P/ASX300 as at July 2019:
There is a $20 per month ‘Portfolio Administration Fee’ (PAF) (also known as the ‘DIO account fee’) legalsuper charges administration fees of $1.30 per week plus 0.29% of total asset value. The amounts invested through the DIO are counted for the calculation of administration fees.
Brokerage fees will apply if you purchase or sell shares in your DIO account. Please note, the $20 per month fee is payable regardless of whether or not you transact. This is calculated daily and deducted from your cash account on the first business day each month.
In addition, a ‘DIO Cash account fee’ of 0.40% is charged by the DIO platform provider (UBS). This fee only applies to funds held in the DIO Cash account, is calculated daily and is deducted monthly from your DIO Cash account. Further details of the ‘Fees and costs’ associated with the DIO are contained in the Employer Sponsored Super & Personal Super Additional Information document, or the Pension Product Disclosure Statement.
|SUPER DIO LIMITS||PENSION DIO LIMITS*|
|Minimum legalsuper balance||$10,000||$10,000|
|Minimum non–DIO holding requirement||$3,000||$3,000**|
|Maximum single S&P/ASX300 security||25% of total legalsuper balance||25% of total legalsuper balance|
|DIO Cash account minimum balance||$250||$250|
* Excludes Transition to Retirement (TTR) pensions.
** In addition to the $3,000 shown above, existing or new Pension members who instruct legalsuper to transfer funds into their DIO must be aware of the Minimum Pension Payment Requirement (Requirement). This Requirement is to ensure that Pension members maintain sufficient
money in their non-DIO investment option(s) to meet the legislated annual minimum pension payment. Therefore, the minimum non-DIO holding requirement for Pension members will be the greater of $3,000 or the equivalent of 13 months of the required annual minimum pension payment.
ILLIQUID INVESTMENT DECLARATION
- The DIO has been declared an illiquid investment option in accordance with Superannuation Industry (Supervision) Regulations.
- Ordinarily, the Superannuation Industry (Supervision) Regulations require the Trustee to transfer or roll over amounts within 3 days of receiving a request or obtaining additional information if required.
- The 3-day requirement does not apply to amounts invested in the DIO plus the minimum legalsuper holding.
- Requests to transfer or roll over amounts invested in the DIO plus the minimum legalsuper holding are unable to be transferred until all DIO assets have been sold, the DIO account has been closed and all monies have been transferred to another legalsuper option.
ILLIQUID INVESTMENT CONSENT
- By requesting a transfer of monies to your DIO Cash account and by issuing investment instructions for the DIO, you are consenting that you understand and accept that all amounts invested in the DIO plus the minimum legalsuper holding amounts are illiquid.
INVESTMENT REDEMPTION INSTRUCTIONS
- Members must issue their own investment instructions using the online system.
- legalsuper is unable to pay pensions from the DIO.
- Members must ensure that the balance held in their other legalsuper investment option(s) is sufficient to meet any required pension payments and, at all times, maintain the minimum holding requirement.
- The Trustee of legalsuper will only issue investment instructions on behalf of members in the Exceptional Circumstances listed in this Approved Investment Menu.
- The Trustee of legalsuper will only issue investment instructions on behalf of you in the following circumstances:
- to maintain the minimum non-DIO holding requirements;
- to replenish the DIO Cash account to at least $250;
- under a court order;
- if you open a new legalsuper account and then exercise your right to cool-off, and fail to sell down your DIO investments;
- if you have a Pension account and have insufficient funds in your non-DIO investment option(s) to meet your Minimum Pension Payment Requirement; or
- following the death of a member (where no reversionary pensioner has been nominated) at the same time that the Trustee approves payment to beneficiaries.
- The Trustee reserves the right to issue redemption instructions on behalf of legalsuper members in respect of one or more of the underlying assets held by that member in the DIO in each of the above circumstances.
- The Trustee will use reasonable endeavours to contact a member prior to taking such action in respect of investments in the DIO. The assets to be redeemed will be determined by the Trustee in its absolute discretion.