Allocated Pension and Term Allocated Pension

80 Pages·2006·1.38 MB·English

S Y N E R G Y R E T I R E M E N T S E R V I C E
Allocated Pension and
Term Allocated Pension
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ABN19 062 264 108
Dated: 15 August 2006 AFSL222173
RSE Licence Number L0002417
Fund Registration Number R1055481
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Important Notice
In the May 2006 Budget the Australian Federal Government foreshadowed several significant changes to the way in which
superannuation contributions and entitlements may be treated for tax purposes.Depending on your circumstances,some of
theseproposed changes could have a significant impact on your retirement planning strategy,particularly if you are approaching
retirementage.
As at the date of this PDS,these proposed changes have not been enacted,although the impact of the changes could be significant
interms of the taxation and social security treatment of both allocated pensions and term allocated pensions.
We strongly recommend that if you are approaching retirement age,you seek professional financial advice about the impact the
proposed changes may have on your circumstances.
1
Contents
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An important thing for you to remember e 2
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Corporate directory u 2
c
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Welcome to the Synergy Retirement Service 3
d.
About this fund e 3
s
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Before you start s cl 3
Why invest in the Synergy Retiremenn it Service? 4
o
si
At a glance… n 5
e
P
The Synergy advantaged 6
e
at
Investing with Sycnergy 8
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About allocaAltled pensions and term allocated pensions 13
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Operearting your account 15
T
s W- hat are the significant risks? 19
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vic Important information you should know 21
r
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S How much does the Synergy Retirement Service cost? 23
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e What about tax? 30
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r Other information 32
eti
R Glossary 33
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r Member declaration conditions and acknowledgements 34
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Sy Forms 37
2
Corporate directory
Synergy Capital Management Limited
(approved trustee) (Synergy)
ABN 19 062 264 108
Australian Financial Services
Licence Number:222173
RSE Licence Number:L0002417
Registration Number:R1055481
Level 1
27 Elizabeth Street
Hobart TAS 7000
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Telephone:[phone] at
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Facsimile: 1300 309 4o2 2
www.scml.com.aup t
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Before making any decisions about the An important thing for you ot
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Synergy Retirement Service Allocated to remember Custodiannt
Pension or Term Allocated Pension The approved trustee of the Synergy Austramliean and New Zealand Banking
youshould have received and read
Retirement Service is Synergy Capital Grouup Limited
allrelevant parts of this Product c
Management Limited (ABN 19 062 264 108), Loevel 6
Disclosure Statement (PDS). D
a subsidiary of Challenger Financial Services d. 100 Queen Street
Note: For the remainder of this PDS, Group Limited (ABN 85 106 842 371). e Melbourne VIC 3000
s
Synergy Retirement Service means o
Synergy Retirement Service Allocated SFiynnaenrcgiya li sS eurltviimceaste Glyr oouwpn Leidm bitye dC.hHaosll ewncelgveerr, ISnevrevsictme eanrets hinel dth bey S Ayunsetrrgayli aR eatnirdement
Pension and Synergy Retirement Service neither Synergy nor any other sunb isidiary of NewZealand Banking Group Limited
Term Allocated Pension. o
the Challenger Financial Sersviices Group (ABN11 005 357 522) (ANZ) as Custodian.
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Limited promises that youe will earn any The Custodian is appointed to hold such
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return on your invesdtm ent or that your assets and title documents of the Synergy
investment will agtaien or retain its value. Retirement Service as Synergy may direct.
Neither Challecnger Financial Services Group Synergy and ANZ have entered into a
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Limited nAollr any of its subsidiaries (group) custody agreement that sets out the
other tmh an Synergy makes any statement or Custodian’s role in detail including its rights
reperresentation in this PDS nor do they issue, and obligations and a clause limiting its
- sTell or guarantee these products. liability.It is not the role of the Custodian to
s Your investment does not represent deposits protect the rights and interests of the
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vic or other liabilities of the group.Your members of the Synergy Retirement Service,
er investment can be subject to risk,including neither does the Custodian guarantee the
S possible delays in repayment and loss of return of any investment,any tax deduction
nt income and principal invested and the group availability or the performance of the Synergy
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Retir vSaylnueer gayn dR/eotri rienmveesnttm Seenrtv ipceer.formance of the AfoNr Zth hea tsr urtehli eadn du paocnc uSryanceyr ogfy tahned c iotsn taednvtsis eorfs
gy If you transfer from the Synergy this document and is not to be taken to have
er Retirement Service,you may receive authorised or caused the issue of this
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y less than the amount of contributions document.ANZ has given and,before the
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paid in,due to the level of investment date of this PDS has not withdrawn,its
returns earned by the Synergy written consent to be named as Custodian.
Retirement Service and charges levied
by the Synergy Retirement Service.
3
Welcome to the
Synergy Retirement
Service
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This PDS sets out the main features of the management and administration of the This PDS should beo rt ead prior to making
Synergy Retirement Service.Together with Synergy Retirement Service for the benefit of any decision to jonin the Synergy
professional advice from your financial all members in accordance with the Retirement Sernvt ice.
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adviser,this will assist you to manage your governing rules and relevant legislation. m
The informuation contained in this PDS
income investments in your retirement. Synergy also carries indemnity insurance isgenoercal in nature and does not take
TheSynergy Retirement Service has been which,amongst other things,provides cover into Daccount your individual objectives,
designed for people wishing to: against damages as a result of any fdin. ancial situation or needs.You should
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• rollover their retirement,redundancy or administrative or regulatory proceeding or s seek assistance from a licensed
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other eligible termination payments to official investigation regarding any specifiedcl financial adviser prior to making an
preserve the taxation benefits; wrongful act of Synergy.Synergy’s indemns ity investment decision.
insurance does not provide cover for ann yi
• receive a pension whilst continuing in the o Australian Securities and Investments
guarantee of an investor’s capital asind/or
workforce; and/or n Commission (ASIC) can help you check if
investment performance in the eSynergy
• enjoy the benefits of a private pension in P your financial adviser is licensed.ASIC has
retirement. Retirement Service.Synergd y does not in awebsite as well as help lines you can find
anyway guarantee the ceapital value and/or
If you have permanently retired from the investment performacnacte of the Synergy in the phonebook.
workforce,you are able to select between Retirement SerAvlilceo. Iuf sy oaun dd owne’ tc haanv ep uat fyionua ninci atol uacdhv isweitr,hcontact
receiving an allocated pension or a term The Synergym Retirement Service is a fund someone who can help.
allocated pension.
constituterd under a trust deed.The Synergy
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If you have reached preservation age (see RetiremTent Service is a complying Please refer to the glossary on page 33 for
page 14) and are still working then you are susp -e rannuation fund. definitions of certain terms used throughout
e this PDS.
able to elect a non commutable allocated cConfirmation of fund compliance may be
pension,allowing you to supplement your rvi obtained by accessing the Australian Taxation You may only use the application forms
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income whilst reducing the hours you workS. Office website at www.ato.gov.au or by provided in this PDS if you intend to join and
If you decide to receive both types of nt telephoning APRA. invest in the Synergy Retirement Service.
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pensions,each pension will be treamted
The superannuation product identification
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aRsetairesmepeanrta Stee rinvivcees tamnden wt iilnl hetthaievre S iytsn eorwgyn number is SGY0003AU.This may be relevant Changes to the PDS
R if you roll over benefits into the fund (as
member account.Furthye r information about explained on page 16). From time to time Synergy will amend the
the significant benefitgs,risks and features of PDS to keep it up to date.
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both these producnts are contained in this PDS. Information that is not materially adverse
y Before you start
S issubject to change from time to time and
About this fund The product issuer,Synergy,has prepared maybe changed by making the updated
this PDS.Synergy,as the approved trustee,is information available as soon as practicable
The Synergy Retirement Service (the fund) responsible for ensuring that the Synergy on Synergy’s website at www.scml.com.au
isa superannuation service that provides Retirement Service is operated in (available 24 hours,seven days per week
aflexible and convenient way for people who accordance with the trust deed and subject to technical restrictions) or by
join (members) to manage their retirement applicable legislation. callingSynergy’s Client Service Centre on
ina tax-effective manner. 1800245 636.A paper copy of any updated
This PDS describes the main features of the
information will be given to you without
Synergy is an approved trustee under the
Synergy Retirement Service and will help you
charge on request.
Superannuation Industry (Supervision) Act
to:
1993,which means it has been approved Synergy will withdraw this PDS from
• decide whether the products available
byAustralian Prudential Regulation Authority circulation in the event of any change in
through the Synergy Retirement Service
(APRA) to act as trustee of the fund.Synergy information that is materially adverse and
will meet your needs; and
is headed by a board of directors who are you will be notified as required by law
collectively responsible for monitoring the • compare these products against other (please refer to page 29 for information
similar products. regarding changes to fees).
4
Why invest in the
Synergy Retirement
Service?
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The Synergy Retirement Service offers you: Choice Please note: Inovt estment options may
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• simplicity; The Synergy Retirement Service offers you have buy/nst ell spreads.Please refer to
page 26e for further information.
• choice; arange of investment options to allow you to m
diversify across cash,fixed interest,property, A maujor attraction of allocated pensions and
• flexibility; and c
a selection of listed securities or any teorm allocated pensions are their flexibility.
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• confidence. combination of these. d. Ifyou receive an allocated pension,you can
e set the payment level to suit your needs,and
Prior to selection by Synergy all investmenst
o you can also choose when the payments are
Simplicity options undergo extensive research bycl made.Your capital can be accessed at any
Synergy and expert external investmse nt
Smart investors know that one of the best researchers. n i time (subject to the pension limits described
wdiaveysrs oiffy rtehdeuirc ipnogr tifnovlieos,twmiethn ti nrviseks tims etonts Investments can be chosenn fsrioom Synergy’s oton rpeacgeeivse 1a6 t etorm 1 7a)l.loAclateternda ptievenlsyi,oinf ,yyoouu e alerect
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indifferent types of assets and different extensive list of managPed investments and able to select the term of your pension
investment managers. selection of listed seedc urities to tailor an (within aspecified range) and when your
individual portfoalito to your exact needs. payments are made.The payments made
However,a diversified portfolio often means c
You can alsoo invest in a range of ready made toyou through a term allocated pension are
alarge amount of administration and portfoliosA lolf fund managers,an option known calculated in accordance with the method
paperwork that increases with the number as Synme rgy’s ‘manage-the-manager’ funds. setout on page 16.
ofyour investments.Investing in the Synergy r
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Retirement Service simplifies your retirement BTy blending the different manage-the-
- manager funds available,you and your
savings,giving you and your financial adviser s Confidence
e financial adviser can compose a portfolio
the tools to easily and quickly manage an c
extensive,diversified portfolio of retiremrevnit tomeet your requirements. The Synergy Retirement Service also
e provides your financial adviser with the
investments. S Different investment styles will be suitable
All reports on the investments eyonut enter todifferent market conditions,so Synergy rtoe sroeugrucleasrl ya nredv sietwat ey-ooufr- tfhinea-anrcti arel sneeaerdcsh atnoodls
intovia the Synergy Retirememnt Service makes sure its manage-the-manager funds provide you with timely investment advice.
e consist of several highly rated fund
willbe consolidated into ra single,
easy-to-understand steattiement that includes managers with varying investment styles. Synergy has been operating since 1994,
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Anup-to-date investment list can be offering a full range of public offer,member
aportfolio valuatiyo n,a market exposure
g obtained free of charge from your financial discretionary master fund services that
report and a brenefit statement.
ne adviser. provide a comprehensive package of efficient
You can aylso register for Synergy Online administrative and investment services to
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which will allow you to monitor your investors and their financial advisers.
memberaccount at any time by visiting Flexibility
Synergy has had continued strong growth
www.scml.com.au.Synergy gives you the
A retirement portfolio that’s tailored to your since the establishment of its first master
tools to control your investments through
individual needs is vital.With the Synergy fund service with funds under administration
asingle point of contact.
Retirement Service,you can invest in some for which Synergy is responsible totalling
or all of the different types of assets approximately $1.91 billion as at
(e.g.property,industrials,resources) either 30June2006.
through listed securities or managed funds.
In addition,you and your financial adviser
can adjust your investments at any time
quickly,easily,and without being charged
bySynergy.
5
At a glance…
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Choices (see investment list) Managed funds Listed securities n
A wide selection of funds offered A selection of secnut rities in leading
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byAustralia’s leading investment companieslismted on the Australian Stock
managers,normally only available Exchange (uASX) in the industrials,
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toinstitutional investors. resourcoesand property trusts.
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Flexibility You can switch between investment options Ydo.u can easily switch between listed security
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without incurring switching,entry or exit s investments however,buy/sell spreads
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fees,however,buy/sell spreads may apply. cl (brokerage charges) may apply.Refer to
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Refer to page 26 for further informationn i. page 26 for further information.
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You will only need to complete onesi Synergy invests on your behalf through a
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Simplicity application form rather than a eseparate form ‘pool’ for each listed security.Performance
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for each pooled investmendt option selected. ofthe pool will be clearly detailed in your
You will receive regular,econsolidated,easy Synergy half-yearly reports.
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to-follow reports,noc matter how diversified
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your portfolio. All
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Initial contribution (see page 15) $20,000r
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Income payments (see page 16) In a-c cordance with government limits.
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Member reports (see page 7) cSix-monthly,as at 30 June and 31 December.
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Binding nominations (see page 21) S Make a binding nomination and have peace of mind about who would receive your benefit
nt should you die.
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Security plan (see page 17) e Reduce the risk of rising and falling investment values through our security plan,alsoknown
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eti as ‘dollar cost averaging’.
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Switches (see page 1y5 ) No charge,unlimited.
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Withdrawals (snee pages 16 to 17) $500 minimum (except full withdrawals less than $500).
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Non-commutable pension(see page 14) Available for allocated pensions
Information and transaction services Telephone:[phone]
(see page 7) Internet:Synergy Online,www.scml.com.au
6
The Synergy
advantage
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Administering a diversified portfolio takes InvInesvetisntgin dgi rdeicretlcytly ot
I want to change my strategy. How are my assets performing?n What is my investment mix?
time.Because your financial adviser has to I want to Achrea nmgye mmayi lsintrga tdeegtya.i lHs ocwo rarerec tm? yIs amssye btsin pdeinrfgo rnnmto mingin?a tWiohna ct uisr rmenyt ?investment mix?
deal with multiple fund managers,a share Are my mailing details correct? Is my bindeing nomination current?
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broker,insurance providers,and others,
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evensomething as simple as changing c
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youraddress becomes a paper nightmare. M 3A N MD A3AGN ENUDD FAGNEUD F closedY. OYDUO U L1I SY T L1TIE DSIY SRTEUTCEDI SREUC
M a2At N MeD A2AGdN E NUDD FAPGNEUDe FnsioM An1 Ni M A DAsG1R ENN DU AFDGREENDU FEP POOR RT 3 L ITYSST 3 TL IEI YSDSR TS TUECEI DR S UEC L2I SYT L2TIE DSIY SRTEUTCEDI SREUC
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andyour financial adviserr,time that can be
dmeeveott ewdSi tthyo ynmoeuarrk giinnygd ivsRiudreuetai yl ooubrj einctvievestsm.ents YOYUO U FIANDFYAIVONNIUYSACROENIAU RCLR I A L EC Y IEGVRENRCE SYI TNEGVRERES TN STRPO STROETDS ISLETE DS CI USL3R E IYT C U3R IYT
SSiinnSgSginllieenSg ,gpli encloe goip,nln eoctsA ionpfoDontloi rsdVio noiafIntl Sti csdeoEotadfrRn ut certc oeadtnpci ortto eanrpcst to rt RE TSYIRREEMTSYINREME RE REP NAGAEMNADGA F EMU DN1 D F U N1 D
Single point for instructions
Switching at any time
Switching at any time
Single application point
Single application point AGEDG FEUDND FU
NAMNAA M 2 N2 D
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AG GEUDND FU
NAMNAA M 3 N3 D
7
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Consolidated reports Monitor your account online PAYG Payment Sumomt ary
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Receiving comprehensive,easy-to understand Up-to-date information on your allocated At the end of eacnth financial year you will
pension or term allocated pension is available receive a PAYGe Payment Summary detailing
information is important for you and for m
online 24 hours per day,seven days per week the amount of income you have received for
yourfinancial adviser.It means your adviser u
using Synergy Online,our secure internet lodgemecnt with your tax return.You will also
can dedicate their time to issues more o
service,at www.scml.com.au (subject to receivDe:
important than simple (but time consuming) normal technical restrictions,suchas d.
administrative tasks.You also always know e• a Section 159SS notice for the previous
unplanned outages or required technical s
where your funds are invested and how o financial year which will assist you to
theyare performing.This makes it easier maintenance). s cl complete your income tax return; and
toswitch your investments as your If you hold a number of accounts,all acnc oiunts • a Centrelink Income Stream Product
circumstances change. can be accessed using a single logsiin ocode. Assessment form for the current financial
We aim to provide you with the mnost up-to-
e year which you will need if you are in receipt
date information possible.AccPordingly,
of Commonwealth income support.
Half-yearly reports account information providde d on Synergy
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The Synergy Retirement Service provides a Online will include not aotnly those transactions
consolidated report every six months,with that have been proocecssed or partially Our responsibilities to you
additional copies of the last available report processed but mAllay include transactions
The trust deed,this PDS and law govern our
free of charge on request.This report brings thatare not my et confirmed.
relationship with you.We can change the
together information from all of your er
T trust deed.We will tell you of any changes
investments,including: Ans n-u al reports tothe trust deed which we think are
• income received from assets and eIn addition to the half-yearly reports on your important to you at least 30 days before
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investments; vi investments,you will also receive an annual theyare made.
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e report providing information about the
• lump sum withdrawals; S Superannuation law limits our need to
• pension payments; nt SynergyRetirement Service as a whole. compensate you if things go wrong-generally,
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m if we comply with our duties,we do not need
• nominated beneficiary instructeions;
r to compensate for any loss you may suffer.
• fee information; and eti
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• performance data ony your selected
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investment optionr(s).
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The report provyides both a consolidation of
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your position and information about each
individual investment (including managed
Member information
funds and listed securities).
Tax information/position
Consolidated
report six-monthly
Report direction Details of income received and on request
All reports generated by Synergy are sent
Nominated beneficiary
directly to you.More regular reports than Single point of
half-yearly may be available from your Transaction summary information
financial adviser,although your financial
adviser may charge you a fee for this service. Investor sector allocation
Synergy Online
Synergy also provides written confirmation of Pension payments updated daily
certain transactions that you have requested
(such as initial applications and switches) Lump sum withdrawals
toboth you and your financial adviser.
8
Investing with
Synergy
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Your risk profile oits determined by factors
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1 such as: nt
• your aettitude to risk;
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• youur investment period;
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D• your circumstances (married or single,
Choose your risk profile d. children or no dependants);
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Prior to making any investment,it is s
o • how much you have to invest; and
important that you and your financial acdlviser
ascertain y2ou r investment risk profilse . • your financial goals.
Everyone has their own level ofo cno imfort Generally speaking,the greater the expected
withrisk and their own timefsriame for return,the greater the investment risk that
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investing,soan investmeent strategy must be accepted.Conversely,investments
Choose your stratePgy
needstobe chosen dc arefully. that carry less risk may have lower returns.
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All3
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etir tenRead the relevant disclosure docFuixmeedn ti(ns)t erest
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Potential risk
Apply to Synergy Retirement Service