The information below summarises the overall class of consumers that fall within the target market for the Income Stream, based on the product key attributes and the objectives, financial situation and needs that it has been designed to meet.
The Income Stream has been designed for consumers whose likely objectives, financial situation and needs (as listed below) are aligned with the product (including the key attributes). The Income Stream is for those who:
- are looking to invest to receive an income during retirement, taking a regular payment, and can make an active investment choice by selection in one or more of the offered investment options.
- have an opening amount to invest of at least $30,000.
Product description and key attributes
The key eligibility requirements and product attributes of the Income Stream are:
- access to 4 investment options
- online member portal
- online education
- face-to-face meetings with Member Services staff
- over-the-phone financial advice (limited topics)
Objectives, financial situation and needs
The table below sets out the class of customers that each investment option within the Income Stream has been designed for.
Investment option 1:
High Growth
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The member in the High Growth investment option would be expecting investment returns, after taxes and fees, of more than 4% above CPI per year over rolling 10 year periods.
They would understand that this option is fully invested in growth investment with a very aggressive investment risk profile.
The member in this option would have an investment time horizon of 10 years or more and be comfortable with a negative return in 4-5 years in every 20 years. |
Investment option 2:
Balanced Growth (default)
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The member in the Balanced Growth investment option would be expecting investment returns, after taxes and fees, of more than 3% above CPI over rolling 10 year periods and above the median return in the SuperRatings Survey of balanced options over rolling 10 year periods.
They would understand that this option is around 70% invested in growth assets with a moderately aggressive investment risk profile.
The member in this option would have an investment time horizon of 10 years or more and be comfortable with a negative return in 3-4 years in every 20 years. |
Investment option 3:
Conservative Growth
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The member in the Conservative Growth investment option would be expecting returns, after taxes and fees, of more than 1.5% above CPI over rolling 10 year periods.
They would understand that this option is around 30% investment in growth assets with a moderately conservative investment risk profile.
The member in this option would have an investment time horizon of 3 years and be comfortable with a negative return in 1 year in every 20 years. |
Investment option 4:
Cash
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The member in the Cash investment option would expect investment returns, after taxes and fees, matching the Bloomberg AusBond Bank Bill index, over rolling annual periods.
They would understand that this option is fully invested in short-term fixed interest investments with a very conservative investment risk profile.
The member in this option has no minimum investment time horizon and is not comfortable with any negative return. |
Included class of consumers
In addition to the suitability of the product criteria above for an individual, the Income Stream is only open to those who have an active or retained ElectricSuper account in Division 2, 3, 4 or 5 and their spouses (spouse as defined under Commonwealth law).
The Income Stream is available to members who have reached at least age 60. To open a Retirement Income Stream, they must also have retired (unless aged over 65). To open a Transition to Retirement Income Stream, they cannot have retired.
Consistency between target market and the product
The product is likely to be consistent with the objectives, financial situation and needs of the class of consumer in the target market based on an assessment of the terms, features and attributes in the Income Stream.
