Perpetual Select Pension Updates

Protecting Your Super

The ‘Protecting Your Super’ legislation comes into effect from 1 July 2019. It introduces the following new laws designed to protect members from paying unnecessary fees and insurance premiums:

• Insurance cover ceases on inactive accounts unless an election to keep insurance is made;
• Inactive accounts with a balance of less than $6,000 will be transferred to the ATO;
• Removal of exit fees;
• 3% fee cap on accounts with a balance of less than $6,000.

Please refer to the flyer for more information.

From 1 July 2019, the basis for calculating the base fee rebate will be changed from month-end balance to average daily balance over the financial year.

For the period 1 July 2008 to 30 June 2019, we have calculated the base management fee rebate based on the average daily balance instead of the month end balance. Members that were negatively impacted by this error will be notified separately and will receive a compensation payment.

You can download the ‘Changes to calculation of the base fee rebate” letter that was sent to all members here.

Effective from 1 May 2019, the buy spreads of the following funds will be reduced:

• International Share Fund
• Real Estate Fund

From 31 January 2019, the underlying investment manager that manages assets for the Perpetual Select Pension investment options set out below are restricted from investing in shares of Australian and international companies that are manufacturers of cigarettes and other tobacco products as defined under Global Industry Classification Standard 302030 as a Tobacco company.

The investment options impacted by this change are:

Multi-asset class

• Balanced
• Conservative
• Diversified
• Growth
• High Growth



Single-asset class

• Australian Share
• International Share

Reduction in investment fee for the Cash investment option and PDS update.

From 1 January 2019, we are reducing the investment fee for the Cash investment option from 1.59% to 0.54% per annum. For more information, download the ‘Investment fee reduction for Cash investment option’ letter here

The ‘Additional information about fees and costs’ document, which forms part of the PDS, has been reissued. For a copy of this updated document, click here

The flyer that you can access here shows the result of this website update to section ‘6. Fees and costs’ in the PDS.

Change to external dispute resolution (EDR) scheme.

From 1 November 2018 there will be a change to the EDR scheme which unresolved complaints can be referred to.

Please refer to this transitional disclosure for more information.

Reduction of Buy spreads

Effective from 1 February 2018, the buy spreads of the following options will be reduced:

• Australian Share
• Real Estate 

Find out more here

No performance fee cap applicable for any specialist investment managers 

Effective on and from 16 December 2017, no performance-related fee cap will be applicable for any specialist investment managers of Single and Multi-sector funds (unless otherwise agreed to in the agreement between the specialist investment manager and Perpetual).

Performance-related fees are payable when a specialist investment manager outperforms a defined performance hurdle (benchmark), for a defined period of time. The maximum performance-related fee rate up to 25% of outperformance for specialist investment managers (other than for alternative assets) still remains.  

For more details, refer to the Performance-related fees section in PDS. 

PDS Update:
Investment Options updated 

Effective 1 November 2017, some investment options will have: 

• Revised investment guidelines
• Updated investment return objective
• Benchmark changes.

The investment options with changes are:

• Multi-asset class

  Conservative, Diversified, Balanced, Growth, High Growth, Geared High Growth

   

• Single-asset class

Fixed Income, Real Estate

This follows our strategic asset allocation review.  Read the attached flyer for details about these changes.

PDS update 

The replacement Select Super Plan and Pension Plan PDS has been issued.  It contains updated information in relation to your investment in the Select Super Plan and Pension Plan, including:

• Fees and costs information following changes to ASIC Class Order [CO 14/1252].  The information on indirect costs and other costs have been updated in line with those changes
• Information on recent superannuation changes
• The benchmark used for the global component of the Real Estate Fund has changed from hedged to AUD to unhedged.

Superannuation Reforms 

Significant changes to superannuation are coming into effect generally from 1 July 2017 that may or may not impact you.

Refer to the flyer for further information

The relevant changes will be reflected in the updated Product Disclosure Statement which will be available online from 1 June 2017.

Investment changes to the single-asset class investment options of Select Pension

Effective from 22 December 2016, we are making changes to the following single-asset class investment options:

•       Australian Share
•       International Share
•       Fixed Income
• Real Estate.

The changes will impact investment guidelines by:

• Increasing maximum cash limits from 10% to 20%
• Decreasing respective minimum asset class limits from 90% to 80%.

Investment changes to the single-asset class investment options of Select Pension

Effective 22 December 2016, we are making changes to the following single-asset class investment options:

•       Australian Share

•       International Share

•       Fixed Income

• Real Estate.

• Increasing maximum cash limits from 10% to 20%
• Decreasing respective minimum asset class limits from 90% to 80%.

Maximum Performance-related fees of specialist investment managers

The maximum performance fee payable to specialist investment managers of the underlying funds and when they are payable is described in the ‘Additional Explanation of Fees and Costs’ section of the 'Additional information about fees and costs'  document that forms part of the PDS. For specialist investment managers other than for alternative assets, the maximum performance-related fee rate will change from a maximum of 15.4% of that outperformance, to up to 25% of outperformance.

This change will be effective from the issue date of the next PDS, expected to be issued in April 2017. 

Investment Manager Review

Perpetual has conducted a review of its specialist investment managers in the Australian and international share sectors and following the review will implement the following:

Changes to Australian Share Specialist Investment Manager Allocations

From 6 July 2016, a number of changes were made to the Australian Share Asset Class specialist investment managers portfolio allocations. Changes are summarised as follows:

- Removal of the Australian Share Asset classes full allocation to Perpetual Investments Economic Diversification Dividend Yield (EDDY) strategy; and

- Resulting from the removal of Perpetual Investments EDDY strategy, an increase in allocations to Perpetual Investments Concentrated Equity strategy and increases in allocations to specialist investment managers Cooper Investors, Kaplan Funds Management and Renaissance Asset Management.

The changes to portfolio allocations will  result in some differences to specialist investment manager performance fee arrangements.

The specialist investment managers may be entitled to performance fee arrangements that differ, and in some cases may be higher. Any increases to performance fee arrangements will take effect no sooner than 30 days after the date of this update. 

The ranges of specialist investment manager performance fees align with those disclosed in the PDS.

The above changes will flow on to any multi sector funds that invest in Australian shares.

Changes to International Share Specialist Investment Managers

In August 2016, a number of changes will be made to specialist investment managers for the International Share Asset Class. Changes are summarised as follows:

- The following specialist investment managers have had their portfolio allocations terminated effective 2 August 2016:

  - Perpetual Investments Economic Diversification Global Equities strategy

  - Aberdeen Asset Management

- The following specialist investment managers will be appointed and received portfolio allocations no later than 22 August 2016:

- Sustainable Growth Advisers

- RWC

- Barrow, Hanley, Mewhinney & Strauss

Those specialist investment managers who will be appointed may be entitled to performance fee arrangements that differ from those specialist investment managers who have been terminated. In some cases the performance fee arrangements may be higher.  Any increases to performance fee arrangements will take effect no sooner than 30 days after the date of this update. 

The ranges of specialist investment manager performance fees align with those disclosed in the PDS.

The above changes will flow on to any multi sector funds that invest in International Shares.

Details of the new specialist investment managers will be included here, once those managers have commenced management of the portfolios: Specialist investment managers information.

Investment changes to certain Select Super and Pension investment options

Effective 1 October 2015, the target allocations and ranges, as well as the target objectives for some investment options have changed for the following investment options:

• Conservative
• Diversified
• Balanced
• Growth

The risk level of the following investment options have also been updated:

• Conservative
• Diversified
• Fixed Income
• Real Estate

View further information 

Effective 1 October 2015, the investment strategy for the Diversified investment option in Select Super and Pension will change and be reflected in an updated PDS. Members invested in the Diversified investment option as at 30 September will have received a Significant Event Notice (SEN) with details of the change.

Download the Select Super and Pension - Diversified investment option Letter

From 25 October 2012, unit pricing will be available for each business day. Enables members to transact each business day and will reduce processing times when members invest, switch or withdraw from their investment.