What is the Australian Eligible Rollover Fund (AERF)?
The AERF (ABN 81 932 639 940, RSE R1067750, SPIN CML0825AU) is an eligible rollover fund, which is a registered superannuation fund that receives transferring members’ benefits from other superannuation funds, retirement savings accounts or approved deposit funds.
The main purpose of an eligible rollover fund is to act as a temporary repository for transferred superannuation benefits.
Who is the Trustee?
The Trustee of the AERF is Perpetual Superannuation Limited, a wholly owned subsidiary of Perpetual Limited and part of the Perpetual Group.
What is the purpose of the AERF?
The purpose of the AERF is to hold your superannuation benefit until you either transfer it to your current superannuation account or withdraw it (where eligible).
Why was my superannuation benefit transferred to the AERF?
A superannuation fund may have transferred your benefit to the AERF for any of the following reasons:
- You became a ‘lost’ member under superannuation legislation or
- The balance of your account in your previous fund was less than $1,000 or
- You didn’t nominate a complying superannuation fund that would accept your benefit within a specified timeframe of leaving your previous fund or
- You are a non-member spouse, in circumstances connected with the division of superannuation following a marriage breakdown.
Superannuation funds can transfer a member’s benefit to an eligible rollover fund without the member’s consent under superannuation legislation.
What is a lost member?
If you change your address, your name or your job, and you forget to let your superannuation fund know, they may lose track of you. You then become what is known as a ‘lost member’.
An eligible rollover fund, such as the AERF, is set up specifically to look after lost members and help reunite them with their lost super.
What are the main features of the AERF?
- A temporary repository for member benefits with a program of activities designed to facilitate the consolidation of these benefits into the member’s main superannuation account
- A conservative diversified investment portfolio comprising Australian shares, international shares, alternative assets, Australian fixed interest, international fixed interest and cash
- Underlying investments managed by specialist investment managers in each asset class
- Reporting on benefit entitlements, AERF performance and significant matters.
What is my benefit in the AERF comprised of?
- The amount originally transferred to the AERF from other funds
- The earning rate allocated to your account each year
- Less fees and taxes.
What fees and charges does the AERF deduct from my benefit?
Fees and costs can be found in the relevant PDS for your Sub-plan. The following PDSs comply with ASIC Class Order [14/1252] (as amended).
- Sub-plan A (where the original transfer value of your benefit was less than $1,000)
- Sub-plan B (where the original transfer value of your benefit was $1,000 or more)
- Sub-plan M (where your benefit was transferred from a fund administered or provided trustee services by the National Australia Bank / MLC group of companies)
- Sub-plan REST (where your benefit was transferred from the Retail Employees Superannuation Trust (REST))
Fee definitions are available here.
Do I have insurance?
The AERF does not offer insurance benefits to members. Any insurance benefits from your previous superannuation fund will not be transferred to the AERF.
How do I take my benefit out of the AERF?
To rollover or withdraw your benefit from the AERF, please download, print and complete the benefit payment request form.
To ensure it all happens as quickly and smoothly as possible, please complete all relevant sections and sign the form. Under Australian law we are required to verify your identity before paying a benefit to you. Further information can be found in the benefit payment request form.
How is my benefit invested while held in the AERF?
Your benefit is invested in a conservative diversified investment portfolio comprising Australian shares, international shares, alternative assets, Australian fixed interest, international fixed interest and cash. The Trustee invests the AERF’s assets across a range of investments products offered by the following investment managers:
- JANA Investment Advisers Pty Limited
- Perpetual Investment Management Limited
The Trustee may add, remove or replace investment managers at its discretion at any time without notice to members.
What is the AERF’s investment objective?
The investment objective for the AERF is to be a temporary repository for member benefits by investing in a single conservative investment strategy designed to achieve a return that outperforms CPI by 2% per annum, after fees, over rolling 2 year periods.
The Trustee aims to achieve this by:
- investing with the investment managers, referred to above, to gain exposure to approved asset sectors
- adhering to guidelines, or benchmarks, for the amount of the AERF’s assets that will be invested in each approved asset sector
- regularly reviewing the combined asset allocation of the AERF to ensure it falls within the investment guidelines.
What is the AERF’s investment approach?
The underlying assets of each investment product ensure that the AERF gains exposure to various approved asset classes. This diversity can provide a degree of protection against poor returns.
The Trustee also retains some cash in a bank account, to meet day-to-day administrative requirements, including payment of benefits.
The Trustee regularly monitors investment performance and receives reports from the investment managers at agreed intervals.
What are the investment returns?
Investment returns can be positive or negative and the Trustee does not guarantee that your benefit will gain in value or retain its value. The value of your benefit can fall due to a negative earning rate. The Trustee determines the annual earning rate to apply to all member accounts after each financial year ending 30 June.
Historical annual earning rates are detailed in the latest AERF Annual Report for your Sub-plan.
- Annual Report - Sub-plan A (where the original transfer value of your benefit was less than $1,000)
- Annual Report - Sub-plan B (where the original transfer value of your benefit was $1,000 or more)
- Annual Report - Sub-plan M (where your benefit was transferred from a fund administered or provided trustee services by the National Australia Bank / MLC group of companies)
- Annual Report - Sub-plan REST (where your benefit was transferred from the Retail Employees Superannuation Trust (REST))
If you leave the AERF between 30 June and the date that the annual earning rate is applied to member accounts you will receive the interim earning rate applicable at the time of your departure. The interim earning rate is generally reviewed on a weekly basis or as otherwise required due to market conditions.
Does my AERF accept contributions?
The AERF does not accept any contributions from members, their spouse or employers, including Superannuation Guarantee shortfall components and transfers of superannuation holding account (SHA) special account balances from the Australian Taxation Office.