Investment options


Returns to each of the above investment strategies will be linked to the performance of the share market and will be measured against universal benchmarks. Returns are vulnerable and will be subject to the usual market fluctuations. This portfolio allows investors to build wealth over the long-term and somewhat limits investment risk through diversification within asset classes.

*Note: You can choose to take an active role in your investment decisions. Our ‘Investor Choice’ options allow you to choose your investments from a range of options. You can switch between options at any time.

  • Defensive
  • Balanced
  • Growth
Defensive

1. Australian Islamic Super Defensive


Fund Description

Australian Islamic Super is about offering members with the opportunity to invest in a Halal, ethical manner by avoiding business involved in (banking/riba, alcoholic beverages, tobacco products, gambling/casino, adult entertainment, and weaponry/defence contractors). Australian Islamic Super Defensive Model adheres to Sharia compliance and to the Principle of Responsible Investment (PRI), In accordance with the United Nation’s PRI initiative.

Australian Islamic Super Defensive Model is a diversified portfolio of predominantly defensive assets, such as cash, gold and income producing securities, along with assets such as Australian shares, property and international securities.

Investment Objective

To provide exposure to an actively managed portfolio of defensive assets with the potential for some capital growth over the investment timeframe, whilst abiding by ethical investment principles. The strategy aims to deliver significantly lower volatility than the Australian share market.

Performance Objective

To outperform the average annual rate of Australia’s Consumer Price Index (CPI) by at least 3% p.a. over the suggested minimum investment timeframe. The suggested minimum timeframe is over a 4 year period.

Fees

Investment Fee: 0.88% p.a. of the total assets of each investment option.

Administration Fee: $1.98 per week per member calculated and deducted from the Member’s assets monthly arrears.

Plan Management Fee: 0.336% of the total assets in each investment option.

Exit Fee: $55.00

Inception Date: 1 March 2018

Total Fees: Approx. 1.5% pa

Minimum Investment Timeframe: 4 years

Number of holdings: 25 to 60

Indicative Asset Allocation

Investor Suitability

Investors who:

  1. 1. Require a diversified portfolio of assets in normal market conditions but require capital to be preserved where market conditions warrant
  2. 2. Are focused on capital preservation and are prepared to forego the potential of higher returns for lower volatility and the preservation of capital
  3. 3. Seek relatively stable, regular income from low volatility assets, but with some exposure to the share market growth
  4. 4. Are prepared to invest for the minimum investment timeframe
  5. 5. Accept the risk of price fluctuations particularly over periods less than the minimum investment timeframe and that capital preservation is not guaranteed but is an objective of the portfolio
  6. 6. Understand that in some circumstances, some defensive assets may fall in value due to changes in the prevailing economic climate
  7. 7. Understand that international assets are invested in foreign currencies which may increase the extent of fluctuations in the value of certain investments held in the portfolio
Range and indicative allocation of Growth/Defensive assets Asset Class Asset Class Range Indicative Allocation
Defensive 30 to 70% 50%
Growth 30 to 70% 50%
Range of indicative allocation of each asset class Investment Range Indicative Allocation
Australian Equities 0 to 35% 20%
Property & Infrastructure 0 to 30% 10%
International Equities 0 to 35% 20%
Defensive Property (listed) 0 to 30% 15%
Gold & Commodities 10 to 50% 30%
Cash 0 to 25% 5%
Authorised Investments Exchange Traded Funds (ETFs); Managed Investment Schemes; Australian Real Estate Investment Trusts (A-­‐REITs) and Property Related Securities; Australian Shares; Initial Public Offerings (IPOs); Cash.
Indicative number of holdings 25 to 60
Risk Profile Low to Medium (Risk Band 4)
Growth
Balanced

FEES AND COSTS


Type of Fee Amount How and when paid
Investment Fees* 0.88% p.a of the total assets of each investment option. Taken into account in the investment option unit price (when unit prices are calculated)
Administration Fees A member fee of $1.98 per week per member Calculated and deducted from the Member’s assets monthly in arrears.
PLUS
Plan Management Fee
0.336% of the total assets in each investment option.
Taken into account in the investment option unit price (when unit prices are calculated)
PLUS
Expense recovery estimated at 0.05%. Taken into account in the investment option unit price (when unit prices are calculated)
Buy/sell Spreads Nil N/A
Switching fee Nil N/A
Exit fee $55.00 Deducted from member assets at time of exiting the Fund.
Advice fees relating to all members investing in a particular option Nil
There are no advice fees applicable to all members in an investment option.
N/A
Other fees and costs**
Indirect cost ratio Defensive   0.21% Taken into account in the underlying managed fund’s unit price (when unit prices are calculated).
Management Expense Ratio (MER)

The MER is a measure of the ongoing fees and expenses of investing in the Fund. It is expressed as a percentage of the size of the Fund and includes the investment management fees, general expenses (including custodian and administraton fees) and GST in relation to the operation of a fund over a given period. The MER does not include any transaction costs or government charges, with the excepton of GST.

The MER is capped at 1.50% per annum, plus GST and input tax credits received by the Fund. The MER is calculated on the Gross Asset Value of the fund and is accrued weekly. Expenses or costs properly incurred by First Guardian in respect of the Fund above this amount will be recoverable out of the Fund.

Expenses

The Fund’s Trust Deed entitles First Guardian Capital to be reimbursed out of the Fund’s assets for expenses properly incurred in operating the Fund (together with any GST on such expenses). Such expenses include audit expenses, costs associated with the preparation of this Member’s Guide, legal expenses, stationery, postage and compliance costs.

Transaction Costs (such as brokerage,government taxes, duties and levies, custody fees, bank charges and account transaction charges) will also be paid out of the Fund.

Occasionally, abnormal costs may be paid out of the Fund. Such costs may include the costs of holding unit holders’ meetings or electing changes to the Trust Deed of the Fund. First Guardian Capital will not be reimbursed from the Fund for any expenses that it incurs which are directly attributable to First Guardian Capital’s business, such as overheads or internal salary expenses.

This Guide shows fees and other costs that you may be charged in relation to an account in the Fund. These fees and costs may be deducted from your account balance, from the returns on your investment or from the assets as a whole. The fees deducted from an accumulaton account may be less because of the impact of any tax deductions that are passed on to relevant members.

Things You Should Know
  • The Trustee can change the amount of fees without your consent, however notification of any increases in fees or costs (other than government charges) will generally be provided to you at least 30 days in advance (where required under the law).
  • Dollar based fees are subject to indexation in line with movements in the Average Weekly Ordinary Time Earnings (AWOTE).
  • Increases in fees will generally be notified at least 30 days in advance. Estimated fees may vary from year to year depending on the value of your account balance and your investment option.
  • If you would like to calculate the effect of fees and costs on your account balance, the Australian Securities & Investment Commission’s website www.moneysmart.gov.au has a superannuation fee calculator.

* You should read the important information about the fees and costs including fees and costs applicable to investments before making a decision. Go to Section 6 of the Member Guide which is available by going to www.australianchoicesuper.com.au or on request by phoning +61 3 9999 1570. The information relating to fees and costs may change between the time when you read this PDS and the day when you acquire this product.

* Fees and costs for investments are explained in this Guide. All fees quoted are inclusive of GST.

** Important: Other fees and costs may apply depending on how you invest the costs of any underlying investments (indirect costs) that form your investment portfolio, buy-sell spreads for underlying managed funds, activity fees, and insurance fees. For information about other fees and costs please contact First Guardian Capital.

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