Aon Master Trust Adviser Directions | May 2010 |
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EOFY opportunities for New: Personal Super New: Pension consolidation account |
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Also in this issue: Lifestyle is usually the first casualty
Product and service EOFY opportunities for your clients Investment markets started to recover in March last year, but there is still some way to go before investor confidence makes a comeback. This environment, coupled with the Government's financial system reviews and possible recommendations for change, makes for uncertain times in the industry. However, super continues to be one of the most tax-effective savings vehicles. It also offers a number of 'quick wins' each financial year. So, with 30 June around the corner, there's every reason for you to talk to your clients about appropriate end of financial year strategies. Knowing it's a busy time of year, we've prepared a sample email and letter you can use to get in touch with your clients. While all the strategies may not be appropriate in every case, your clients will appreciate the EOFY reminder and your invitation to re-engage. If you'd like the sample email and letter, contact: Head of Business Development
Northern and Western region
Southern region
Central region
Personal Super minimum insurance cover From 1 July 2010, new members of Personal Super will receive automatic minimum level insurance cover for death and TPD on joining - no health evidence required. The minimum level of cover will be $231,525 up to and including age 42, reducing to nil at age 65. Opting out is an option but any future applications for insurance cover will be subject to underwriting and the insurer's approval. For the first two years of membership, the minimum level of insurance cover is for new events only. Full cover is available on application (with full health evidence required) and is subject to the insurer's approval. Details of this new cover will be available on our website shortly. Our pension consolidation account (from 1 July 2010) will allow members to consolidate a range of super investments for a short period of time before starting an Aon Master Trust pension. This account will allow:
Details of this new account will be available on our website shortly. The trustee has approved an increase in the standard annual member fee (in line with Average Weekly Ordinary Time Earnings) from 1 July 2010. The fee will increase from $66.50 to $70.32. Details of all fees will be set out in the 1 July 2010 Product Disclosure Statements. Please note that the May issue of Member Directions notifies members of this increase. Exceptions The 1 July 2010 increase will not apply to employer plans with a current non-standard member fee agreement with the Aon Master Trust. Industry news Lifestyle is usually the first casualty A recent report commissioned by the life insurance industry has highlighted that the lifestyle we create relies on our income and that it is usually the first casualty when the worst happens. The research behind the report reveals some startling results, including:
According to the report, when the worst happens, the financial hardship that results from loss of income over an extended period of time could have been avoided with adequate levels of insurance. We've shared the findings of this report in Member Directions, so it's a great opportunity for you to talk to your clients about the adequacy of their insurance cover. Source: http://www.ifsa.com.au/Lifewise/IF1424_LifewisePDF_FINAL.pdf 4-day processing hold from 1 July Please note that transaction processing will be put on hold between Thursday 1 July 2010 and Tuesday 6 July 2010 (inclusive), allowing us to test, check and audit final unit prices. This hold applies to all transaction requests, including contributions, rollovers, investment switches, benefit quotations and payments and online services. Transaction requests received after Wednesday 30 June will be processed as quickly as possible, in order of date received, once processing resumes. See Member Directions for more information. Contributions in by 25 June please As you know, the end of financial year is a very busy time and so we encourage you and your clients to submit contributions (and supporting documents) to us by Friday 25 June. This will help us ensure that members' accounts are up to date for 30 June 2010 benefit statement purposes. It's not really that new, but some mail is still being addressed to our old one. So, here's a reminder of our correct PO Box address: Aon Master Trust Russell Global Opportunities Fund Russell has appointed Tradewinds Global Investors to the above fund. Tradewinds is a boutique investment firm that emphasises a long-term, value-oriented approach to investing in international shares. Tradewinds looks for companies that have become severely undervalued due to market misperceptions, overreactions or investors' fixation on short-term results. This change is relevant to the following Aon Master Trust options: Market update: quarter ended 31 March 2010 Uncertain prospects for the rest of 2010 The market started to recover in March 2009 but there are still a number of uncertainties around the outlook for the rest of this year. These uncertainties, which include the sustainability of the global recovery, the robustness of China's economic strength, and the ongoing concerns about the risk of national governments defaulting on loan payments, are all interlinked. When governments begin to remove emergency economic stimuli, it could jeopardise economic recovery from the global recession. China's economic growth benefited Australia last year but a slowdown in that growth could mean reduced demand for Australian resources. While Greece's challenges in managing its sovereign debt (government borrowing) will not harm the global economy, it's a reminder that other nations - including the US and UK - have their own debt problems that could influence global capital markets for years to come. For a full report, including market sector updates, see our Market update - quarter ended 31 March 2010. Source: Russell Investments The Aon Master Trust has produced a summary of the key budget decisions. To understand how the budget may affect your clients, please contact: Head of Business Development
Northern and Western region
Southern region
Central region
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Call 1300 880 588 or |
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Disclaimer The information in this document is general in nature and should not be relied on as advice (personal or otherwise) as your personal needs, objectives and financial situation have not been considered. Before deciding whether a particular Aon Master Trust product is right for you, please consider the relevant Product Disclosure Statement. This document has been prepared by Aon Consulting Pty Limited (ABN 48 002 288 646, AFSL 236667) a related body corporate of the trustee of the Aon Master Trust (ABN 68 964 712 340), Aon Superannuation Pty Limited (ABN 83 057 982 822, AFSL 237465). This is a relationship that might reasonably be expected to be capable of influencing Aon Consulting Pty Limited when the company provides financial product advice to clients in respect of the Aon Master Trust. While every care has been taken in the production of this document and the information contained in it has been obtained from sources that Aon Consulting Pty Limited believes to be reliable, Aon Consulting Pty Limited does not make any representation as to the accuracy of this document and accepts no liability for any loss incurred by any person who may rely on it. In any event the recipient of this document shall be entirely responsible for their use of this document. © 2010 Aon Consulting Pty Limited. |
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