Member Information Booklet - REI Super

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following are some forms of risk you may want to consider market risk The Trusts invest into investment markets, and the performance of these markets will have an impact on returns. These markets are affected by a range of conditions (e.g. economic, technological or political) that impact returns. As the risk relates to the market as a whole, it cannot be diversified away simply by holding a greater variety of securities within that market. Currency risk Movements in exchange rates between the Australian dollar and foreign currencies can affect performance. Where foreign currencies fall in value relative to the Australian dollar, this can have an adverse impact on investment returns. Some managers may use currency hedging to reduce the magnitude of currency risk. Contractual risk In the interests of efficient investment, we may act on an investment application before confirmation of receiving the application monies. If an investor were to fail to meet its contractual obligations to pay the application monies, this could result in a loss of capital to the relevant Trust. Changes in laws The value of investments may be affected by changes in laws, such as taxation. Before investing, it is important that you understand the risk created by legislative change involved in the investment you are making. Country risk Some of the Trusts invest in overseas securities. There is a risk that a country in which the Trusts invest may become politically or economically unstable, which may prevent assets (such as shares) being sold or the proceeds being repatriated to Australia. This risk is generally higher in countries classified as emerging markets. derivatives risk Some of the investment managers that Ibbotson chooses for REI Super may use derivatives (such as options, futures, swaps, forward rate agreements and forward foreign exchange contracts) in managing the assets of the Trusts. Risks associated with using derivatives might include the value of the derivative failing to move in line with the underlying asset, potential illiquidity of the derivative, the relevant Trust not being able to meet payment obligations as they arise, and counterparty risk (this is where the counterparty to the derivative contract cannot meet its obligations under the contract). page 12 inflation risk Increasing inflation reduces the purchasing power of assets or income. Changes in inflation may impact on the value of your investments in the Trusts. interest rate risk When interest rates change, the value of fixed income securities will fluctuate. When interest rates rise, the market value of fixed income securities declines and vice versa. Changes in interest rates may also affect the valuation of other products such as shares. Liquidity risk Is the risk that a security may not be easily converted into cash with little or no loss of capital and minimum delay. Liquidity will be affected by market conditions in countries where the securities are held. Liquidity risk may also be magnified by exposure to alternative investment strategies, due to the nature of the underlying investments and the instruments used to gain access to them. manager risk The investment managers that Ibbotson chooses may fail to meet their investment objectives from time to time, resulting in sub-standard returns for some or all of the Trusts. For example, this may be brought about by a change of employees at a particular investment manager or a change of investment manager that may affect the future performance of the Trusts. Counterparty or default risk There is a risk that a party that Ibbotson or IIML (the Responsible Entity – see page 14) contracts with in relation to the Trust fails to meet its contractual obligations, resulting in a loss of capital for the Trust. Counterparties include clearing brokers for exchange traded futures and options, foreign exchange counterparties, and borrowers under any stock-lending agreements.
5 How we invest your money 5 How we invest your money REI Super Elite offers you nine diversified investment options (combinations of cash, shares, property, bonds and alternatives) to cater for your particular preferences for return and risk. You have the choice to invest in a single option or a combination of all nine if you wish, depending on your investment needs. page 13
Page 1 and 2: ei Super elite member information b
Page 3 and 4: 1 About REI Super & REI Super Elite
Page 5 and 6: 2 How super works 2 How super works
Page 7 and 8: merge your super accounts with rei
Page 9 and 10: estrictions on cash payments Genera
Page 11 and 12: what are the benefits of being a me
Page 13: investment options REI Super Elite
Page 17 and 18: investment managers The investment
Page 19 and 20: ei Super elite diversified investme
Page 21 and 22: 6 Fees and costs 6 fees and costs I
Page 23 and 24: example of annual fees and costs fo
Page 25 and 26: 7 How super is taxed 7 How super is
Page 27 and 28: tax on contributions From 1 July 20
Page 29 and 30: 8 Insurance in your super Automatic
Page 31 and 32: Additional cover The maximum amount
Page 33 and 34: ‘dependant’ means a spouse and
Page 35 and 36: elite members fixed Cover rate of P
Page 37 and 38: when does cover end? Your insurance

Member Information Booklet - REI Super

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