Significant Event Notice - September 2020
From 1 November 2020, we’re making some important changes to your legalsuper account.
Since 1989, legalsuper has been committed to supporting Australia’s legal community. Our core focus is to optimise outcomes for our members and continue providing competitive fees, insurance and investment performance.
Changes to investments and the administration fee rebate threshold
Significant Event Notice (SEN) - issued 15 September 2020
This SEN is also available in your MemberAccess account. login to view at any time.
Changes to Investments
The changes to investments are changes in risk profile and risk level for the Balanced index investment option, changes in return objectives for the Balanced Socially responsible and Balanced index investment options, change of investment manager for the Balanced Socially responsible option and asset allocation changes for some investment options. Read more detail below.
Administration fee rebate threshold increase
Administration fees for balances which exceed an average of $350,000 and higher in a financial year are capped. The $350,000 threshold has not been indexed since 2009 and will increase to $450,000. Read more below.
Changes to Investments
Risk Profile Changes
The ASFA Standard Risk Measure for the Balanced index investment option has been adjusted
| Risk Profile (likelihood of producing a negative return every 20 years) | Risk Profile (likelihood of producing a negative return every 20 years) | Risk level | Risk level | |
| Investment option | Until 31/10/20 (years) | From 1/11/20 (years) | Until 31/10/20 | From 1/11/20 |
| Balanced index (accumulation) | 3 - 4 in every 20 years | 4-6 in every 20 years | 5: Medium to High | 6: High |
| Balanced index (pension) | 3 - 4 in every 20 years | 4-6 in every 20 years | 5: Medium to High | 6: High |
Change of manager for the Balanced Socially responsible investment option
The investment manager for the Balanced Socially responsible option has changed from AMP Capital to Pendal Group.
The Balanced Socially responsible option was until recently invested in AMP Capital's AMP Capital Ethical Leaders Balanced Fund. Due to concerns with investment performance and recent reports about culture at AMP, legalsuper has terminated AMP Capital and transferred the investment into the Pendal Group's Sustainable Balanced Fund.
As a result of this change, there has been a corresponding change in both the return objective and the strategic asset allocation for this option.
Return objective changes
Effective 1 November 2020, the return objectives of the following investment options have been updated.
Return objective (pa, over rolling 10-year periods) net of all fees and taxes except the weekly $1.30 administration fee.
| Investment Option | Until 31/10/20 | From 1/11/20 |
| Balanced Socially responsible (accumulation) | CPI + 3.5% | CPI + 3.0% |
| Balanced index (accumulation) | CPI + 2.8% | CPI + 3.0% |
| Balanced index (pension) | CPI + 3.3% | CPI + 3.5% |
Asset allocation changes
Effective 1 November 2020
Asset allocation is the combination of different asset categories or classes, such as Australian shares, overseas shares, fixed interest and cash. The investment return and risk of an investment option are largely determined by its asset allocation. The following changes will be made to each option:
- Strategic asset allocation changes in line with current portfolio strategy;
- The permitted ranges for some asset classes have also been adjusted.
Details for each investment option are below:
MySuper balanced & balanced
| Asset Class | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 |
| Australian Shares | 27% | 27% | 20% - 50% | 10% - 40% |
| International Shares | 27% | 27% | 10% - 40% | 10% - 40% |
| Alternatives | 20% | 20% | 10% - 30% | 10% - 30% |
| Property | 12% | 12% | 0% - 25% | 0% - 25% |
| Fixed Interest | 12% | 11% | 0% - 20% | 0% - 20% |
| Enhanced Cash | 2% | 0% | 0% - 30% | 0% |
| Cash | 0% | 3% | 0% | 0% - 20% |
Growth
| Asset Class | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 |
| Australian Shares | 34% | 34% | 20% - 50% | 10% - 50% |
| International Shares | 34% | 34% | 20% - 50% | 20% - 50% |
| Alternatives | 12% | 12% | 0% - 20% | 0% - 20% |
| Property | 10% | 10% | 0% - 20% | 0% - 20% |
| Fixed Interest | 7% | 7% | 0% - 20% | 0% - 20% |
| Enhanced Cash | 3% | 0% | 0% - 20% | 0% |
| Cash | 0% | 3% | 0% | 0% - 20% |
High growth
| Asset Class | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 |
| Australian Shares | 42% | 40.5% | 30% - 60% | 20% - 50% |
| International Shares | 42% | 40.5% | 20% - 50% | 20% - 50% |
| Alternatives | 10% | 10% | 0% - 20% | 0% - 20% |
| Property | 6% | 6% | 0% - 20% | 0% - 20% |
| Cash | 0% | 3% | 0% | 0% - 20% |
Balanced Socially responsible
| Asset Class | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 |
| Australian Shares | 25% | 29.1% | 15% - 40% | 10% - 40% |
| International Shares | 33% | 29.1% | 15% - 40% | 10% - 40% |
| Alternatives | 6% | 14.5% | 0%-13% | 0% - 20% |
| Property | 9% | 3.9% | 0% - 20% | 0% - 20% |
| Fixed Interest | 25% | 12.6% | 0 % - 45% | 0% – 50% |
| Cash | 2% | 10.8% | 0% - 20% | 0% - 20% |
Balanced index
| Asset Class | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 |
| Australian Shares | 35% | 34% | 20% - 45% | 10% - 45% |
| International Shares | 25% | 24% | 10% - 45% | 10% - 45% |
| Property | 10% | 10% | 0% - 20% | 0% - 20% |
| Fixed Interest | 25% | 24% | 0% – 50% | 0% – 50% |
| Enhanced Cash | 5% | 0% | 10% - 50% | 0% |
| Cash | 0% | 8% | 0% | 0% - 20% |
Enhanced cash
| Asset Class | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 |
| Enhanced Cash | 100% | 97% | 0% - 100% | 0% - 100% |
| Cash | 0% | 3% | 0% | 0% - 20% |
Australian shares
| Asset Class | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 |
| Australian Shares | 100% | 97% | 0% - 100% | 0% - 100% |
| Cash | 0% | 3% | 0% | 0% - 20% |
Overseas shares
| Asset Class | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 | Asset allocation up to 31/10/20 | Asset allocation from 1/11/20 |
| International Shares | 100% | 97% | 0% - 100% | 0% - 100% |
| Cash | 0% | 3% | 0% | 0% - 20% |
Frequently Asked Questions
Find answers to some of the more commonly asked questions on our FAQ's page
Changes to the Administration fee rebate threshold
Increase to the Administration fee rebate threshold
In July 2009, legalsuper introduced an 'Administration fee rebate' such that administration fees charged by legalsuper were capped for average account balances in excess of $350,000.
The threshold from which the rebate applied has not changed since its introduction in 2009.
If your average account balance* at the end of a financial year exceeds $350,000 during the entire financial year, legalsuper caps the total combined amount of administration fees (including the DIO Asset fee, if applicable) and DIO account fee (if applicable) so that you are only charged administration fees up to that $350,000 average.
Where the fee cap applies, any excess fees will be rebated effective 1 July of the next financial year and the rebate will be shown on your next annual statement.
If you exit legalsuper after 30 June, but before the fee cap is applied, you will receive the fee cap rebate as an additional payment.
Changes effective 1 November 2020
- The 'Administration fee rebate threshold' will increase to $450,000.
This means that, for the 2020/21 financial year, the 'Administration fee rebate threshold' will be $350,000 up to 31 October 2020 and then $450,000 from 1 November 2020. 2. - The 'Administration fee rebate threshold' will be indexed annually
From 1 July 2021 in accordance with the 'All Groups Consumer Price Index (CPI)'. The table below shows the treatment for the 2020/21 and 2021/22 financial years:
| Financial Year | Administration fee rebate threshold |
| 1 July 2020 to 30 June 2021 | $350,000 to 31 October 2020 (123 days) and then $450,000 to 30 June 2021 (242 days) i.e. = ($350,000 x 123/365) + ($450,000 x 242/365) = $416,301.37 |
| 1 July 2021 to 30 June 2022 | $450,000 indexed in accordance with the annual movement of the All Groups CPI between 30 June 2020 to 30 June 2021. |
*The fee cap does not apply if your account with legalsuper is closed on or before 30 June during that financial year.
Frequently Asked Questions
Find answers to some of the more commonly asked questions on our FAQ's page
Meet with us to discuss these changes
Get personal support from a Client Service Manager
As a legalsuper member, you have access to a highly experienced and qualified Client Service Manager who you can speak with in person (via Zoom) or over the phone, at no additional cost.
Your Client Service Manager can help with matters that relate to:
- Your super and retirement savings
- Your insurance options
- Retirement planning strategies
To arrange an appointment online with a Client Service Manager near you, send us a message and we'll contact you.
Send us a messageSend us a message...
A customer representative will be in touch regarding your message within two business days.
If you are making an enquiry about your legalsuper member account, the more information you provide when you complete this form, the more quickly we can verify your identity and respond to your request.
This information is of a general nature and does not take into account your specific needs. You should consider your own financial position, objectives and requirements before making any decision. You should also obtain and read the legalsuper Product Disclosure Statement (PDS) before making any decision in relation to legalsuper. Past performance is not necessarily an indicator of future performance. Issued by Legal Super Pty Ltd, Level 37, 140 William Street, Melbourne, 3000 ABN 37 004 455 789 AFSL 246315 as the Trustee for legalsuper ABN 60 346 078 879.
