1. About this document

This target market determination (TMD) seeks to offer consumers, distributors and staff with an understanding of the class of consumers for which this product has been designed, having regard to the objectives, financial situation and needs of the target market.

This document is not to be treated as a full summary of the product’s terms and conditions and is not intended to provide financial advice. Consumers must refer to the Income Stream member booklet and the ElectricSuper website before making a decision about this product.

Income Stream Member booklet to which this target market determination applies

This TMD applies to the Income Stream referred to in the Income Stream Member Booklet.

Date from which this target market determination is effective

30 September 2022, reviewed and published 20 September 2024

2. Class of consumers that fall within this target market

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
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)
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
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
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.

3. How this product is to be distributed

Distribution channels

This product is designed to be distributed through the following means:

  • online
  • Helpline
Distribution conditions

This product should only be distributed under the following circumstances:

  • to individuals who meet eligibility criteria (see Included Class of Customer above)
  • to individuals who have at least $30,000 in superannuation to invest
Adequacy of distribution conditions and restrictions

This is based on an assessment that the distribution channels, conditions and restrictions are appropriate and will assist distribution in being directed towards the target market for whom the product has been designed.

4. Reviewing this target market determination

We will review this target market determination in accordance with the below:

Initial review
12 months from the effective date
Periodic reviews
Every 12 months
Review triggers or events
Any event or circumstance indicating that the TMD may no longer be appropriate. This may include (but is not limited to):

  • a material change to the design or distribution of the product, including related documentation
  • occurrence of a significant dealing
  • distribution conditions found to be inadequate
  • external events such as adverse media coverage or regulatory attention
  • significant changes in metrics, including, but not limited to, complaints
  • material changes to the investment options
  • changes to Division 5 Rules

5. Reporting and monitoring this target market determination

We may collect the following information from our distributors in relation to this TMD:

Complaints
Distributors will report all complaints in relation to the product(s) covered by this TMD on a quarterly basis, or as otherwise agreed with the distributors. This will include written details of the complaints.
Significant dealings
Distributors will report if they become aware of a significant dealing in relation to this TMD within 30 business days

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