What’s changing?

On 16 March 2019, we’re updating our age based investment option, known as the ‘Lifestage option’, to be more tailored to your age.

For example, our current ‘1990s Lifestage’ option will be split into two new options: ‘Lifestage 1990-1994’ and ‘Lifestage 1995-1999’. 

Why are we making the changes?

We are continuously making changes to help improve the product and the future financial wellbeing of our members.

Overall, the changes we’ve made are designed to improve investment outcomes and retirement savings.

When is the change occurring?

16 March, 2019.1

Will there be any changes to Australian Shares, Balance or Cash Deposit options?

There will be no changes to the Australian Shares, Balanced or Cash Deposit options.

Will there be changes to my Future Investment Selection?

There will only be changes to the Lifestage option.

If your Future Investment Selection includes a Lifestage option, you will be impacted by these changes. See below a list of all the Lifestage options, including their investment objective and asset allocation.

Again, there will be no changes to the Australian Share, Balanced and/or Cash Deposit option.

What impact does this have on fees and costs?

There are no changes to the fees and costs of Essential Super as a result of these changes. To see what fees are applicable to your Essential Super account, please refer to our PDS and/or Reference Guide.

What do I need to do?

You don’t have to do anything. Don’t forget you can track the performance of your fund and new investment option when you receive your 6 monthly statement, available in NetBank and via the CommBank app.

What are the new investment options and asset allocations?

Lifestage 1945-49 option

To achieve a return of CPI plus 1.0% per annum over rolling three-year periods after fees and taxes.

Cash - 30%, Fixed interest - 30%, Global property and infrastructure securities - 8%, Australian shares - 16%, Global shares - 16%

Current asset allocation

Cash & defensive alternatives - 30%, Fixed interest - 27%, Property, Infrastructure and , Multi-Asset - 12%, Australian shares - 15%, Global shares - 16%

Asset allocation from 16 March 20192

Lifestage 1950-54 option

To achieve a return of CPI plus 1.0% per annum over rolling three-year periods after fees and taxes.

Cash - 30%, Fixed interest - 30%, Global property and infrastructure securities - 8%, Australian shares - 16%, Global shares - 16%

Current asset allocation

Cash & defensive alternatives - 30%, Fixed interest - 27%, Property, Infrastructure and , Multi-Asset - 12%, Australian shares - 15%, Global shares - 16%

Asset allocation from 16 March 20192

Lifestage 1955-59 option

To achieve a return of CPI plus 1.0% per annum over rolling three-year periods after fees and taxes.

Cash - 30%, Fixed interest - 30%, Global property and infrastructure securities - 8%, Australian shares - 16%, Global shares - 16%

Current asset allocation

Cash & defensive alternatives - 30%, Fixed interest - 27%, Property, Infrastructure and , Multi-Asset - 12%, Australian shares - 15%, Global shares - 16%

Asset allocation from 16 March 20192

Lifestage 1960-64 option

To achieve a return of CPI plus 2.0% per annum over rolling six-year periods after fees and taxes.

Cash - 17.4%, Fixed interest - 23.1%, Global property and infrastructure securities - 10.7%, Australian shares - 24.2%, Global shares - 24.6%

Current asset allocation

Cash & defensive alternatives - 17%, Fixed interest - 24.3%, Property, Infrastructure and Multi-Asset - 12.6%, Australian shares - 22.8%, Global shares - 23.3%

Asset allocation from 16 March 20192

Lifestage 1965-69 option

To achieve a return of CPI plus 2.5% per annum over rolling seven-year periods after fees and taxes.

Cash - 17.4%, Fixed interest - 23.1%, Global property and infrastructure securities - 10.7%, Australian shares - 24.2%, Global shares - 24.6%

Current asset allocation

Cash & defensive alternatives - 6.9%, Fixed interest - 9.6%, Property, Infrastructure and , Multi-Asset - 18.6%, Australian shares - 32.4%, Global shares - 32.5%

Asset allocation from 16 March 20192

Lifestage 1970-74 option

To achieve a return of CPI plus 3.0% per annum over rolling seven-year periods after fees and taxes.

Cash - 5%, Fixed interest - 15%, Global property and infrastructure securities - 14%, Australian shares - 33%, Global shares - 33%

Current asset allocation

Cash - 2%, Fixed interest - 6%, Property, Infrastructure and Multi-Asset - 20%, Australian shares - 36%, Global shares - 36%

Asset allocation from 16 March 20192

Lifestage 1975-79 option

To achieve a return of CPI plus 3.0% per annum over rolling seven-year periods after fees and taxes.

Cash - 5%, Fixed interest - 15%, Global property and infrastructure securities - 14%, Australian shares - 33%, Global shares - 33%

Current asset allocation

Cash - 2%, Fixed interest - 6%, Property, Infrastructure and Multi-Asset - 20%, Australian shares - 36%, Global shares - 36%

Asset allocation from 16 March 20192

Lifestage 1980-84 option

To achieve a return of CPI plus 3.0% per annum over rolling seven-year periods after fees and taxes.

Cash - 5%, Fixed interest - 15%, Global property and infrastructure securities - 14%, Australian shares - 33%, Global shares - 33%

Current asset allocation

Cash - 2%, Fixed interest - 6%, Property, Infrastructure and Multi-Asset - 20%, Australian shares - 36%, Global shares - 36%

Asset allocation from 16 March 20192

Lifestage 1985-89 option

To achieve a return of CPI plus 3.0% per annum over rolling seven-year periods after fees and taxes.

Cash - 5%, Fixed interest - 15%, Global property and infrastructure securities - 14%, Australian shares - 33%, Global shares - 33%

Current asset allocation

Cash - 2%, Fixed interest - 6%, Property, Infrastructure and Multi-Asset - 20%, Australian shares - 36%, Global shares - 36%

Asset allocation from 16 March 20192

Lifestage 1990-94 option

To achieve a return of CPI plus 3.0% per annum over rolling seven-year periods after fees and taxes.

Cash - 5%, Fixed interest - 15%, Global property and infrastructure securities - 14%, Australian shares - 33%, Global shares - 33%

Current asset allocation

Cash - 2%, Fixed interest - 6%, Property, Infrastructure and Multi-Asset - 20%, Australian shares - 36%, Global shares - 36%

Asset allocation from 16 March 20192

Lifestage 1995-99 option

To achieve a return of CPI plus 3.0% per annum over rolling seven-year periods after fees and taxes.

Cash - 5%, Fixed interest - 15%, Global property and infrastructure securities - 14%, Australian shares - 33% Global shares - 33%

Current asset allocation

Cash - 2%, Fixed interest - 6%, Property, Infrastructure and Multi-Asset - 20%, Australian shares - 36% Global shares - 36%

Asset allocation from 16 March 20192

Lifestage 2000-04 option

To achieve a return of CPI plus 3.0% per annum over rolling seven-year periods after fees and taxes.

Cash - 5%, Fixed interest - 15%, Global property and infrastructure securities - 14%, Australian shares - 33% Global shares - 33%

Current asset allocation

Cash - 2%, Fixed interest - 6%, Property, Infrastructure and Multi-Asset - 20%, Australian shares - 36% Global shares - 36%

Asset allocation from 16 March 20192

The Lifestage option allocates its assets across the following investments:

Investment
Description
Cash
Cash generally refers to investments in cash, bank deposits, annuities and similar securities which have a short investment timeframe. Cash investments generally provide a stable return, with low potential for capital loss.
Defensive Alternatives
Defensive Alternatives refers to exposure predominantly in cash, fixed interest and shares. The fixed interest exposure includes global fixed interest across rates, convertible bonds, investment grade and high yield credit and currency markets. The share returns are delivered from a long/short strategy. Defensive Alternatives generally have low correlation to fixed income markets and historically provide a more consistent but lower returns than shares.
Fixed interest
Fixed interest refers to investments such as bonds which generally operate in the same way as loans. You pay cash for the bond, and in return you receive a regular interest payment from the bond issuer for an agreed period of time. The value of the bond can fluctuate based on interest rate movements. When the bond matures, the loan is repaid in cash. Historically, bonds have provided a more consistent but lower return than shares.
Multi-Assets
A multi-asset investment dynamically manages investments across a range of asset classes in response to changes in an investment managers’ investment market outlook. The mix of asset classes could include shares, fixed interest, high yield credit, listed infrastructure, absolute return strategies and cash.
Property
Property generally involves buying a property directly or investing in property securities. Property assets include managing or developing property in sectors such as office, industrial and retail. Property securities do not involve buying a property directly. Instead, they can provide an indirect exposure to property and generally represent a part ownership of a company or an entitlement to the assets of a trust. Property securities are listed on a stock exchange and predominantly own property assets. Generally unlisted assets have a longer investment horizon.
Infrastructure
Infrastructure generally refers to the physical assets required for a business or country to operate, including transportation, communication and utilities (eg water, sewage and electricity). It may also include ‘social infrastructure’ such as prisons, hospitals and public housing. Infrastructure investments typically have: high upfront capital requirements, low ongoing operating costs and relatively predictable cash flows and operational risks. Infrastructure securities are generally listed on a stock exchange that predominantly own infrastructure assets. Generally unlisted assets have a longer investment horizon.
Shares (Australian and Global) 
Shares represent a part ownership of a company and are generally bought and sold on a stock exchange. Shares are generally considered to be more risky than the other asset classes because their value tends to fluctuate more than that of other asset classes. However, over the longer term they have tended to outperform the other asset classes.

How do I find my statement on NetBank or on the CommBank app?

NetBank 

  1. Log on to NetBank 
  2. Select your Essential Super account 
  3. Click the Statements icon
  4. View your statement 

CommBank app

  1. Log on to the CommBank app
  2. Go to your Essential Super account
  3. Tap the sun icon
  4. View your statement

How do I know what my current investment option is?

You can view your current investment option in your latest statement online in NetBank and/or the CommBank app.

How do I change my investment option?

It’s easy,

  1. Log on to NetBank
  2. Select Essential Super product > Investment Options > Transaction History >Future investment selection/bpay/direct credit
  3. Update your option

Don’t have access to NetBank? Register online, visit your nearest Commonwealth Bank branch or call us on 13 4074, 8am - 7pm Monday to Friday (Sydney time).

Things you should know

1 Your entire balance as at 15 March 2019 will be transferred on the 16 March 2019.

2 As we actively manage the asset allocation, the asset allocation of an individual Lifestage option may vary over time.

Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFS) is the issuer of interests in Commonwealth Essential Super ABN 56 601 925 435 (Essential Super) and is a wholly owned subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 (Bank). This document may include general financial product advice but does not consider your individual objectives, financial circumstances or needs. You should read the Product Disclosure Statement (PDS) and the Reference Guide for Essential Super carefully and consider whether the information is appropriate for you before making any decision regarding this product. Download the PDS and Reference Guide, or call us on 13 4074 for a copy. The Bank and its subsidiaries do not guarantee the performance of Essential Super and an investment in this product is subject to risk, loss of income and capital invested. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with or other liability of the Bank or its subsidiaries. Where we mention ‘we’, ‘us’ or ‘our’, we mean CFS.