Direct Investment option
At a glance
Members can select their own mix from Cash (including term deposits) and Australian shares.
The minimum suggested timeframe will depend on the investments selected by individual members.
- For term deposits: very short term (1 year or less)
- For S&P/ASX 300 Index-listed securities: very long term (7 to 10 years)
- For ETFs and LICs: very long term (7 to 10 years)
$25 per month, plus brokerage which will either be added to the cost on purchase, or deducted from the sale proceeds, of any listed security transactions.
Brokerage and other service fees which may apply to this option are outlined below. Direct Investment option fees are charged in addition to CareSuper’s general member fees.
Likelihood of negative return
Variable - depending on each member’s allocation to listed securities and term deposits and the performance of the investments selected by individual members.
This depends on the mix of investments selected by individual members.
- Term deposits: very low risk – risk band 1#
- The securities that form part of the S&P/ASX 300 Index: very high risk – risk band 7
- ETFs and LICs: very high risk – risk band 7
About the option
CareSuper’s Direct Investment option allows members to invest a proportion of their pension in their choice of:
- a range of term deposits
- the securities that form part of the S&P/ASX 300 Index
- a range of exchange-traded funds (ETFs)
- a range of listed investment companies (LICs).
With a wide variety of available investments, sophisticated online access and up to date market information, the Direct Investment option gives you the flexibility to become more actively involved in managing your pension.
When you select the Direct Investment option, a cash account will be created, where transactions will be settled, brokerage charged and any interest, the relevant dividends, distributions, franking credits, capital gains or losses and tax liability paid.
Most suitable for
The Direct Investment option is suitable for members who are comfortable taking an active role managing their pension investment.
This option aims to provide members with the choice and flexibility to manage part of their pension.
To be eligible to invest in the Direct Investment option, you must have a minimum of $10,000 in your CareSuper account and observe certain rules relating to minimum and maximum investment levels. You should read the Pension Guide for details and decide whether this investment option is right for you before investing in this option.
How to open an account in the Direct Investment option
- Log in to PensionOnline. If you don’t have an account yet, register here. You will need your member number to register.
- Click on the link to the ‘Investments’ page. Follow the instructions on how to register for the Direct Investment option.
Once you have successfully registered, you will be provided with instructions on how to access your account. You can transact in the Direct Investment option once you have transferred enough money to your cash account (minimum $500). If your request to transfer funds into your cash account is received before midnight Friday (AEST), it will usually be processed on the following Wednesday.
Here’s the full list of investments available through the Direct Investment option:
|1 month||3 months||6 months||12 months|
^ Interest rates current at 24 April 2017. These rates are subject to change - please log into Direct Investment Online to view the latest rates. Past performance is not a reliable indicator of future performance and you should consider other factors before choosing a fund or changing your investments.
To view a current list of the securities listed on the S&P/ASX 300 Index, visit the official S&P/ASX 300 Index page where you can find the full constituents list.
To buy and sell listed securities in Direct Investment Online, simply search for the company name or ASX code of the security you want to trade.
|ETF name||ASX code|
|SPDR S&P/ASX 200 Fund||STW|
|SPDR S&P/ASX 200 Listed Property Fund||SLF|
|SPDR S&P/ASX Small Ordinaries Fund||SSO|
|iShares MSCI Emerging Markets||IEM|
|iShares S&P Global 100||IOO|
|iShares Core S&P 500 ETF||IVV|
|iShares UBS Composite Bond Index Fund||IAF|
|BetaShares Gold Bullion ETF – Currency Hedged||QAU|
|SPDR S&P/ASX 200 Financials ex AREITs Fund||OZF|
|SPDR S&P/ASX 200 Resource Fund||OZR|
|SPDR MSCI Australia Select High Dividend Yield Fund||SYI|
|iShares MSCI Japan ETF||IJP|
|iShares S&P Small Cap ETF||IJR|
|iShares EAFE (Europe, Australasia and Far East) ETF||IVE|
|iShares MSCI BRIC (Brazil, India, Russia and China) Index Fund||IBK|
|iShares FTSE China Large Cap Fund||IZZ|
|iShares UBS Government Inflation Fund||ILB|
|Betashares Australian Dividend Harvester Fund||HVST|
|Betashares Australian Strong Bear Hedge Fund||BBOZ|
|Betashares Australian High Interest Cash ETF||AAA|
|Betashares FTSE RAFI Australia 200 ETF||QOZ|
|Gold Bullion Securities Limited||GOLD|
|iShares Asia 50 ETF||IAA|
|iShares Europe ETF||IEU|
|Vaneck Vectors Australian Equal Weight ETF||MVW|
|Vanguard All-World Ex-US Shares Index ETF||VEU|
|Vanguard Australian Property Securities Index ETF||VAP|
|Vanguard Austtralian Fixed Interest Index ETF||VAF|
|Vanguard Australian Shares High Yield ETF||VHY|
|Vanguard Australian Shares Index ETF||VAS|
|Vanguard MSCI Index International Shares ETF||VGS|
|Vanguard Us Total Market Shares Index ETF||VTS|
|Listed Investment Company||Asset class||ASX code|
|Australian Foundation Investment Corporation||Australian shares||AFI|
|Milton Corporation||Australian shares||MLT|
|Mirrabooka Investments Limited||Australian shares (small caps)||MIR|
|Hunter Hall Global Value||
(with an ethical overlay)
|Magellan Flagship Fund||International shares||MFF|
|Platinum Capital||International shares||PMC|
|Future Generation Global Investment Company Ltd||International shares||FGG|
|Future Generation Investment Company Ltd||Australian shares||FGX|
|WAM Capital Limited||Australian shares||WAM|
To buy and sell ETFs and LICs in Direct Investment Online, simply search for the company name or ASX code of the security you want to trade.
Before you invest - register for Pension MemberOnline and provide us with your email address
Transactions in the Direct Investment option are made through Direct Investment Online - a sophisticated online portal that connects from Pension MemberOnline, allowing you to manage your investment in this option at the click of a button.
$25 per month. The fee is calculated and deducted from your account monthly on the last Friday of every month for members registered in the Direct Investment option. Please note that this fee will be applicable as soon as you register for the Direct Investment option and not once you commence investing in this option. It is payable monthly as long as your cash account is open, even if your cash account balance is zero.
Brokerage will either be added to the cost on purchase, or deducted from the sale proceeds, of each transaction.
|Trade amount||Brokerage fees^ (including GST)|
|$0 – $4,167||$13.75|
|$4,168 – $10,000||0.33%|
|$10,001 – $30,000||0.22%|
|$30,001 – $50,000||0.20%|
|$50,001 – $100,000||0.17%|
|$100,001 – $10,000,000||0.11%|
^ Brokerage fees in the above table have been rounded up to 2 decimal places.
Other service fees
|Type of fee or cost||Amount and frequency|
|Direct Investment option tax calculation fee||$150 one-off fee applies if you request that CareSuper calculates any tax adjustments you are owed when you sell your investments and leave CareSuper before the end of financial year tax adjustment.|
|Fee for breaking a term deposit prior to maturity||
If you hold a term deposit in the Direct Investment option and you request to break it before it matures, the term deposit provider may charge a fee or reduce the interest you receive.
Contact CareSuper to find out more about the specific fee or interest reduction that may be charged by a particular term deposit provider.
A request to break a term deposit prior to maturity is subject to the approval of the term deposit provider and the Term Deposit Terms and Conditions (available online through Direct Investment Online). Any request to break a term deposit before the agreed maturity date must be made directly to CareSuper in writing 45 days in advance.
|Investment fees applicable to ETFs and LICs||0.07% - 1.77%. The fees paid will depend on the ETF(s) or LIC(s) selected by individual members. These fees are not deducted directly from your account and are reflected in the value of the ETF or LIC investment or the ETF's or LIC's returns.|
Find out more
Before deciding to invest in this option, read the CareSuper Pension Guide available here.
As with any investment decision, you should consult a financial planner before investing in this option. The financial planners can give you advice about your overall risk profile, however they cannot give you advice about individual securities or term deposits available via the Direct Investment option. Before investing in an ETF you should obtain and consider the product disclosure statement or other disclosure document available from the website of the ETF issuer.
*Financial planning is offered through CareSuper's relationship with Industry Fund Financial Planning, a division of Industry Fund services Pty Ltd (IFS), ABN 54 007 016 195, IFS's AFSL 232514. Advice is provided under the authority of IFS's AFS Licence. Please note: an Industry Fund Financial Planner cannot give you advice about individual stocks.
#It can take up to 45 days to break a term deposit before its pre-determined maturity date, which has the potential to increase the liquidity risk of this type of investment.