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Closure of the Capital Guaranteed option

Sunsuper has decided to close the Capital Guaranteed option from 31 December 2020.

We believe the option no longer provides the benefit of its objective in offering a ‘capital guarantee’. This is as a result of the low interest rate environment.

With current market conditions, specifically very low interest rates, there is a risk that the option may experience negative returns which will result in capital erosion.

This is through a combination of rising costs and record low level of returns.

This is not the outcome we want for our members who seek to protect their capital and we have taken steps to act in the best interests of our members.

Any member who is still invested in the option on 31 December 2020, will have their existing balance and any future contributions automatically transferred to the Cash option.

You may wish to select a different investment option for your balance and/or any future contributions between now and 31 December 2020. To make an investment choice simply login to Member Online or call us on 13 11 84. Please note that if you do make an investment switch and/or make changes to your future contributions, this must be received by 3pm on 31 December 2020.

If you are drawing an income payment from the Capital Guaranteed option, these payments will be reapportioned from the Cash option and paid to you accordingly.

Do I need to do anything now?

You do not need to act immediately. You may remain in the option until 31 December 2020, however we recommend that you consider your investment strategy and/or seek financial advice.

Call 13 11 84 if you want to speak to one of our qualified financial advisers1 who can give you simple advice about your Sunsuper account at no additional cost quickly over the phone. For more comprehensive advice on all aspects of your super and retirement, financial products and services we may refer you to an accredited external financial adviser.2 Advice of this nature may incur a fee.

Disclaimer

1 Sunsuper employees provide advice as representatives of Sunsuper Financial Services Pty Ltd (ABN 50 087 154 818 AFSL No. 227867) (SFS), wholly owned by the Sunsuper Superannuation Fund.

2 Sunsuper has established a panel of accredited external financial advisers who are not employees of Sunsuper. Sunsuper is not responsible for the advice provided by these advisers and does not receive or pay any referral fees. These advisers will explain to you how their advice fees are determined.