WealthFocus – changed transaction processes for four funds
15 January 2010
Changed transaction processes for four funds/options
Quarterly withdrawal process
WealthFocus Pension Plan - payments
Hardship claims
How will we keep you informed?
Changed transaction processes for four funds/options
WealthFocus Investment Funds, Super Plan, Pension Plan - four funds/options have suspended applications and withdrawals. Distributions are unaffected. Quarterly withdrawal processes have been established based on the level of money we have been able to withdraw through the underlying manager’s withdrawal process during that quarter.
Affected funds/options:
- APN Property for Income
- Australian Unity Mortgage Income
- Challenger Howard Mortgage
- Perpetual Mortgage
Transaction processes for suspended funds/options
| Transaction request | WealthFocus Investment Funds – Perpetual and other managers’ funds | WealthFocus Super Plan – Perpetual and other managers’ funds | WealthFocus Pension Plan – Perpetual and other managers’ funds |
| Applications –new | suspended –money returned | suspended –money returned | suspended –money returned |
| Applications –current clients | invested in Perpetual's Cash Fund/Option* | invested in Perpetual's Cash/Fund Option* | invested in Perpetual's Cash Fund/Option* |
| Savings plans or regular contributions | invested in Perpetual's Cash/Fund Option* | invested in Perpetual's Cash/Fund Option* | not applicable |
| Withdrawals including regular withdrawals | quarterly (based on money available) | quarterly (based on money available) | quarterly (based on money available) |
| Switches in | invested in Perpetual's Cash/Fund Option* | invested in Perpetual's Cash/Fund Option* | invested in Perpetual's Cash/Fund Option* |
| Switches out | suspended - included in quarterly withdrawal process | suspended - included in quarterly withdrawal process | suspended - included in quarterly withdrawal process |
| Distribution reinvestments |
being paid to Perpetual's Cash Fund/Option unless investor requests reinvestment |
not applicable | not applicable |
| Dollar Cost averaging plan | invested pro-rata into investor’s open options, OR suspended if only invested in affected options | invested pro-rata into investor’s open options, OR suspended if only invested in affected options | invested pro-rata into investor’s open options, OR suspended if only invested in affected options |
| Super to pension or pension to super transfers | not applicable | Super to pension transfers considered case by case, based on the amount invested in affected investment options | will be processed on a monthly basis |
| Auto-rebalancing | suspended - not available | suspended - not available | suspended - not available |
| Pension payments | not applicable | not applicable | Arrangements have been made to allow pension payments to continue. Affected members were notified of these arrangements in May 2009 |
| Adviser Service Fee (ASF) | Where the client also holds non-suspended options, the total ASF will be proportionally allocated across the non-suspended options. Where the client only holds suspended options, the ASF will be cancelled | Where the client also holds non-suspended options, the total ASF will be proportionally allocated across the non-suspended options. Where the client only holds suspended options, the ASF will be cancelled | Where the client also holds non-suspended options, the total ASF will be proportionally allocated across the non-suspended options. Where the client only holds suspended options, the ASF will be cancelled |
| Trail rebates | Will continue to be paid into affected options | Will continue to be paid into affected options | Will continue to be paid into affected options |
*New investments that have been invested in Perpetual’s Cash Fund/Option may be switched to other available options at any time by notifying us in writing.
Please note – this table does not cover all types of transactions. It will be updated with any changes.
The usual superannuation rules and pension rules on access to benefits apply. For example preserved benefits must satisfy a condition of release such as reaching age 65.
Where a request is made to rollover to another superannuation fund we will complete the rollover for unaffected investment options and include the request for any affected investment options in the quarterly withdrawal process.
WealthFocus – quarterly withdrawal process for affected funds/options
Withdrawal payments are based on the level of cash available from each affected Fund/Option at the end of each quarter and are paid the following month.
Any withdrawal requests received before 3pm on the last business day of the quarter will be eligible to participate in that quarter’s withdrawal process, subject to eligibility. You may make one withdrawal request each quarter and if we receive more than one in a quarter we will only accept the most recent one received.
A withdrawal request will only be eligible for the quarter in which it is received unless no withdrawals are paid for that quarter, in which case it will be carried forward to the following quarter.
Please notify us in writing if you wish to cancel a withdrawal request before quarter end.
If there is not enough cash available in the Funds/Options to fully meet withdrawal requests then you will receive a pro-rata amount. For example, if a Fund had $50 million available cash and we received requests totalling $100 million then you would be paid 50% of your withdrawal request.
Investors' withdrawal requests are pooled and treated equally (unless hardship grounds apply). The payout ratio is calculated by dividing a fund's available cash as follows:
| % of withdrawal requests paid (payout ratio) |
= | total cash available from fund |
| total investor withdrawal requests |
Withdrawals for the external Investment Options will depend on the level of money we have been able to withdraw through a fund manager’s withdrawal process for that quarter as well as the level of withdrawal requests we receive. The timing and process for us to request withdrawals differs by manager. For some quarters we may not receive any money from a manager, in which case no withdrawals can be paid.
Payout ratios for quarter ended 31 December 2009
WealthFocus
Investment Funds
Super Plan
Pension Plan
APN Property for Income
54.0%
54.0%
54.0%
Australian Unity Mortgage Income
21.9%
21.9%
21.9%
Challenger Howard Mortgage
14.3%
14.3%
14.3%
Perpetual's Mortgage
60.0%
94.4%
100%
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WealthFocus Pension Plan - pension payments
We have made arrangements to continue to make regular pension payments for people invested in affected options.
For investors invested in other unaffected options we will continue to pay regular income in proportion to their investments in those options. For investors only invested in suspended investment options we have made other arrangements to continue regular payments.
How will we keep you informed?
We will continue to update this website with further information and detail about transaction arrangements for the affected funds. We have written directly to all investors in the funds, as well as advisers. Return to top