If you're facing financial hardship due to Coronavirus, you may be able to apply for early release of your super. Click here for more information.

The coronavirus has upended the lives of most Australians.

We asked our clients and the community what’s concerning you the most. You told us the financial and economic implications of this pandemic are creating greater unease than health and wellbeing, or access to goods and services.1

With deep experience investing through market cycles, MLC is here to help and guide you through this extraordinary time.

This dedicated space will be updated regularly to help you, whether you’re new to investing and haven’t experienced a market downturn, interested in Government packages for financial hardship, or want to stay up to date with the latest views of our professional investors.

In all market conditions, including times like now, we encourage you to speak to your financial adviser.

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Differences between current environment and 2008/09 Global Financial Crisis

Current market volatility is distinctly different to the GFC. For one, banks will be part of the solution this time, not the problem. Portfolio Manager, Myooran Mahalingam discusses.

Learn more

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Wealth Warning: Things to consider about the Government's $10K early release of super measure

The Federal Gov't has announced people facing significant financial hardship as a result of the Coronavirus may be able to access a portion of their super early. We look at some of the key points to consider.

Learn more

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Accessing your income stream in retirement, including minimum withdrawal changes

In response to the coronavirus, the government has introduced changes to the minimum amount you’re required to withdraw from your income stream when you retire. In this article, we’ll address what these changes are and provide things you might consider when investing your money.

Learn more

At MLC, we’ve long believed in the importance of diversification across many dimensions, including diversification across mainstream as well as alternative assets, as Gareth Abley discusses.

There is both high uncertainty, as well as rising opportunity across investment markets. This means balancing intensive risk-management with carefully selected additions to portfolios as MLC’s CIO, Jonathan Armitage, explains.

  • Once you have applied, here are the next steps for successful applications:

    1. The ATO assesses and approves the request
    2. The ATO provides MLC/Plum with a determination, optimally the next business day
    3. MLC receives the information from the ATO and processes it
    4. MLC makes the payment into your nominated bank account, targeting within five business days
    5. If we have your mobile number, we’ll let you know via SMS once we’ve completed your payment
  • If you’re a defined benefit member with an accumulation account, you can apply for a COVID-19 Early Release payment from the funds in your accumulation account. If there’s not enough in your accumulation account to cover the payment, or you’re a defined benefit member without an accumulation account, it will generally not be possible to make a payment from your defined benefits.

  • As part of our commitment to supporting our members at this extraordinary time, we’ve extended access to MyCoach to Plum members until September. Through MyCoach, members can access three independent, professional counselling sessions to help manage challenging issues and enhance emotional wellbeing. Please call 1300 574 759 to speak with a Benestar Clinican.

  • 5 April 2020

    Plum Super is a part of the MLC Super Fund.

    The impact of Coronavirus on our everyday lives continues to evolve and intensify. We appreciate this is an anxious and uncertain time for so many of MLC’s clients – businesses, institutions and individuals – as well as our strategic partners.

    We’ve been talking to our clients throughout this crisis. Understandably, people are worried about the general economic outlook, the impact to businesses large and small, and their own personal finances. As part of our MLC Wealth community, I want to update you on how MLC is continuing to prudently manage clients’ and members’ investments, while taking special care to look after all our people.

    Our clients and their investments

    Our investment team is still in place and not impacted. Given the breadth and depth of our senior investment team, multiple portfolio managers can take control of portfolios should any single professional be impacted. We have also made sure that our Chief Investment Officer and Portfolio Managers remain accessible to clients by providing frequent market and portfolio updates through our dedicated market insights page.

    We are putting the experience and expertise gained from managing multi-asset and multi-manager portfolios since 1985, to manage the current market event. Our knowledge and skill is focused on cushioning our clients’ portfolios from the full impact of market turbulence, and to also position them for the eventual market recovery. For instance, MLC Asset Management’s ‘Investment Futures Framework’ for Horizon, Inflation Plus and Index Plus portfolios permanently incorporates pandemic risk in scenario analysis, and all portfolios were defensively positioned coming into this period.

    Additionally, MLC portfolios’ liquidity and asset valuations are being very closely monitored. At present, our funds are liquid and we continue to meet client transaction requests.

    We have expressed our support of the Government’s relief packages for people facing significant financial hardship including temporary early access to superannuation and reduced minimum drawdown rates for retirees, announced on 22 March. We are implementing required change and proactively communicating with all clients, advisers and other stakeholders to ensure they are aware of these measures and how to access them.

    Continuity of critical functions and support for our people

    We continue to adapt our processes in response to the situation every day, and at the end of March, MLC announced an Adviser Support Package which provides aligned advisers with five additional areas of support: licensee fee changes, new timelines for transformation deliverables, small business support, client communications and professional wellbeing services. As we all come to terms with the growing challenges of the Coronavirus pandemic, we are supporting advisers to help their clients, in line with our enduring belief in professional financial advice.

    We have also successfully moved almost all our people to remote working arrangements. For those needing to visit an office for specific tasks, we have activated strict ‘social distancing’ procedures. Employee communications have been uplifted through multiple channels, with regularly updated information and guidance to ensure our teams remain connected and supported.

    Service continuity is essential and our client contact centres as well as operations, technology and digital teams are all operational across multiple locations.

    Given the important role of key business partners, we are constantly assessing operational resilience of critical outsourced providers, including but not limited to Investment Managers, Custodians and Administrators and the services they provide, for example, unit pricing, to ensure they can continue to partner with us through contingencies.

    Importance of communications

    Timely and relevant communications are important at all times but even more so when our communities are dealing with uncertainty. We have been regularly communicating with clients regarding investment market conditions and our approach to managing their portfolios.

    We are working hard to help our clients as fast as we can, particularly those who are most vulnerable. We continue to regularly update our dedicated microsite to provide round the clock access to up-to-date information and the views of our most senior investment professionals. Our aligned advisers have access to a comprehensive toolkit with resources to support them in their client conversations.

    An evolving situation

    The pandemic situation continues to evolve with government, business and community responses changing accordingly. We are taking sensible actions to ensure we remain fully operational and available to our clients. While the current challenge is unprecedented, MLC is absolutely committed to helping manage our clients’ investments and ensuring eligible clients can take advantage of government support.

    We acknowledge these uncertain times can create concern and we encourage you to be in touch if you have any questions.

    Warm regards at this time.

    Geoff Lloyd

  • 6 May 2020

    Dear Investors,

    As I was preparing to write this note to you, my mind went back to a June 2009 letter to the Queen — “The Global Financial Crisis – Why Didn’t Anybody Notice?”1— from a group of eminent British economists attempting to explain the causes, timing and severity of what occurred.

    Blame was summarised as being due to “a failure of the collective imagination of many bright people.”2

    A crisis in the US sub-prime mortgage market sparked the GFC. The packaging of those high-risk mortgages with lower-risk debt securities made them popular with many global financial institutions. It created an illusion of low risk investments, when the truth was that those packages were a house of cards.

    Incidentally, sub-prime mortgages, post the GFC, became known as NINJA loans (as in, loans made to people with no income and no jobs). Given all this, why did so many investors and ratings agencies miss the warning signs?

    The unfortunate fact is that “many bright people” massively underestimated risks or failed to imagine what could go wrong.

    Failing to imagine what can go wrong, especially when markets seem calm, as was the case in the lead-up to the COVID-19 crisis, is something all investors have to constantly guard against.

    There is a natural human inclination to want to predict the future, but behavioural biases are a barrier to understanding how the future could unfold. These biases tend to ground us in what’s currently happening, making it difficult to imagine a future that’s different from today.

    It’s common practice in many investment organisations to try and land on a scenario of what the future might look like and then position portfolios accordingly. However, a single base case scenario, or even instances where an upside case and downside case are also developed, runs up against the world’s complexity.

    Arguably, the coronavirus and the severe societal and economic disruptions caused by it, is an example of another failure of imagination.  This might seem harsh, but the truth is that while the pandemic is a shock, it should not be a surprise.

    There have already been other diseases that have crossed borders and threatened countries, in the past two decades. Severe Acute Respiratory Syndrome (SARS 2002-2004), Swine Flu (2009), Middle East Respiratory Syndrome (MERS 2012), Zika Virus (2015-16), and Ebola 2018 have already inflicted suffering.

    Of course, none of those menaces were truly global like COVID-19, but we can’t say we weren’t warned. This is the backdrop for a ‘global pandemic’ scenario always featuring in our Investment Futures Framework, which is the architecture for our investment approach.

    The Investment Futures Framework recognises a vast number of possibilities, including remote possibilities (maybe not so unlikely, after all) like global pandemics. It imagines what can happen, rather than narrow down by trying to guess what will happen. It accepts the complexity of the world rather than trying to boil things down to just one or two future outcomes.

    In this context, focusing on the pandemic specifically as a flash point for risk is perhaps misleading – for the mayhem across societies and economies need not necessarily have come by way of COVID-19.

    Other triggers could have been a major war, a major cyber-attack, a global catastrophe (perhaps a natural disaster), or a sudden rise in inflation, for instance. Instead, the learnings ought to be that risk can ignite from the non-obvious, and that low probability, high impact events should at least be considered when setting investment strategy.

    How investors react to shocks is equally important. The world is not short of disease modelling expertise. Yet, investors caught out by the pandemic too often scramble to build expertise in an area that requires years of education and training.

    This expertise ordinarily resides in academic institutes, think tanks and consultancies, not amongst investment teams.  At times like this, true investors, true managers of risk, need to focus on identifying uncertainty and hammering out solutions to deal with the unknown, all the while preserving as much client wealth as possible.

    How the pandemic could play out 

    In managing MLC’s multi-asset portfolios using our Investment Futures Framework, the following are the short-term scenarios that we have assessed as currently providing the highest potential future risks and opportunities.

    While at most points in time the outlook relies on multiple sources of uncertainty, the next 12 to 18 months pivot around COVID-19. Consequently, our thoughts on short-term scenarios are all sub-versions of the main global pandemic scenario:

    • Short disruption: No second wave
      o   The northern hemisphere summer helps rid the community of COVID-19. No substantial second wave of infections arises and seasonality does not emerge.
      o   Lockdowns end with only mild earnings implications for this year and next.
    • Drawn-out lockdown with mild second wave of infections
      o   A mild second wave of infections arises across the globe. Partial lockdowns are re-established.
      o   Earnings suffer in both FY20 and FY21.
      o   Hospitality and other impacted sectors are severely disrupted.
    • Drawn-out lockdown with severe second wave
      o   A severe second wave of COVID-19 emerges. Full lockdowns are re-established.
      o   Fiscal and monetary stimulus near the point of exhaustion.
      o   Populism gains more strength.
      o   High risk of global depression.

    Balancing intensive risk-management with careful opportunity seeking

    The Investment Futures Framework lens we are looking though underscores the high degree of uncertainty we see across markets and economies. It’s for this reason that we continue to remain cautious and were not drawn in by the ‘bear market rallies’ of April.

    Such rallies are common during market corrections and prematurely create the impression that things are heading back towards normal. Usually, bear market rallies unwind as investors process uncomfortable realities.

    Currently, those realities include company and economic data that continues to point in a pessimistic direction, at least for this year. With many industries in lockdown, a wide range of companies have stopped offering earnings guidance. Many companies are also scaling back their dividends, as their earnings have been hit hard.

    There are also many competing views on when economic recovery will eventuate, and the speed of recovery. All of this leads us to believe that this is not time for ‘swinging for the fences’ portfolio positioning.

    Instead, an intensive risk-management focus must be maintained and balanced with carefully selected additions to portfolios.

    Our derivative strategies — which are a form of investment insurance against falling markets —  have succeeded in providing some cushioning from the full impact of market volatility on client investments in MLC’s multi-asset portfolios.  We’ve continued to retain much of this investment insurance against the risk of further falls.

    We’ve also taken profit from our foreign currency holdings and slightly increased our Australian dollar exposure as the local currency recovered from previous lows.

    In terms of opportunity seeking; we’ve slightly increased our allocations of both global and Australian defensive shares.

    Not all companies are the same. Some will perform better in volatile markets than others, and those are the shares we’ve been carefully leaning into.

    A number of our active investment managers have commented that they are seeing ‘once in a lifetime’ opportunities because of the market sell-off. However, even in those instances, they are only buying assets after intensive analysis of the risk-reward trade-offs.

    MLC has been a careful steward of our clients’ savings since 1985, and we know how privileged we are to be responsible for the financial wellbeing of so many Australians.

    We are applying all our knowledge, experience and skill to both preserve the value of our clients’ investments, and to also position them for the recovery that will eventuate. Of course, nobody knows when economies will recover so we recognise the need for patience and being prepared for more fluctuations in the foreseeable future.

    Warm regards,

    Jonathon Armitage
    Chief Investment Officer, MLC Asset Management

    1 The Global Financial Crisis – Why Didn’t Anybody Notice? British Academy Forum, 17 June 2009. https://wwwf.imperial.ac.uk/~bin06/M3A22/queen-lse.pdf. Accessed 30 April 2020
    2 Ibid

    Important information

    This information is provided by MLC Investments Limited, ABN 30 002 641 661 AFSL 230705, as responsible entity of a series of managed investment schemes collectively known as the “MLC Investment Trusts” including but not limited to: MLC Wholesale Inflation Plus – Conservative Portfolio, MLC Wholesale Inflation Plus – Moderate Portfolio,  MLC Wholesale Inflation Plus – Assertive Portfolio, MLC Wholesale Index Plus Conservative Growth Portfolio, MLC Wholesale Index Plus Balanced Portfolio, MLC Index Plus Growth Balanced Portfolio, MLC Wholesale Horizon 1 Bond Portfolio, MLC Wholesale Horizon 2 Income Portfolio, MLC Wholesale Horizon 3 Conservative Growth Portfolio, MLC Wholesale Horizon 4 Balanced Portfolio, MLC Wholesale Horizon 5 Growth Portfolio, MLC Wholesale Horizon 6 Share Portfolio, MLC Wholesale Horizon 7 Accelerated Growth Portfolio; and NULIS Nominees (Australia) Limited (ABN 80 008 515 633, AFSL 236465) as trustee of the MLC Super Fund (ABN 70 732 426 024), together “MLC” or “we”.. We are members of the group of companies comprised National Australia Bank Limited , its related companies, associated entities and any officer, employee, agent, adviser or contractor (“NAB Group”).  An investment in any product or service offered by a member company of the NAB Group does not represent a deposit with or a liability of the NAB or any NAB Group member. NAB does not guarantee or otherwise accept any liability in respect of any financial product referred to in this communication.

    This information included in this communication is general in nature. It has been prepared without taking account of an investor’s objectives, financial situation or needs and because of that an investor should, before acting on the advice, consider the appropriateness of the advice having regard to their personal objectives, financial situation and needs.

    Investors should obtain the relevant Product Disclosure Statement or other disclosure document relating to any financial product which is issued by MLC, and consider it before making any decision about whether to acquire or continue to hold the product. A copy of the Product Disclosure Statement or other disclosure document is available on mlcam.com.au, mlc.com.au and plum.com.au.

    Any opinions expressed in this presentation constitute our judgement at the time of issue and are subject to change. We believe that the information contained in this presentation is correct and that any estimates, opinions, conclusions or recommendations are reasonably held or made at the time of compilation. However, no warranty is made as to their accuracy or reliability (which may change without notice) or other information contained in this presentation.

    Any projection or forward-looking statement (‘Projection’) in this communication is provided for information purpose only. Whilst reasonably formed, no representation is made as to the accuracy of any such Projection or that it will be met. Actual events may vary materially.

  • When news first broke late last year of COVID-19, investment markets initially adopted a ‘wait and see’ attitude. However, that changed when markets came to realise that a global pandemic would have severe health, social and economic ramifications.

    Stay-at-home directives from governments around the world to try and bring down the rate of coronavirus (COVID-19) infections have effectively shut down many industries, and dragged down economic activity.

    Nation-wide social and economic shut-downs in Australia and many other countries are also contributing to great uncertainty over the earnings outlook for many companies, and this continues to impact share markets.

    Industries like hospitality, entertainment, education, and travel and tourism, for example, have been hit especially hard.

    There is also uncertainty as to when the worst point of the pandemic will pass, when improved treatments to better manage COVID-19 will emerge, and when a vaccine will be available for widespread use.

    Until the worst of the pandemic passes, markets are likely to remain volatile, with large swings both down and up. We expect uncertainty about economic activity and company earnings to keep investors on edge.

  • More market swings are likely as market participants react, and over-react, to new pieces of information.

    Over the past few weeks, there have been days when markets have gone up significantly, as well as down, all in the same day. This kind of see-saw pattern is what you’d expect in what’s known as a ‘bear market’, which is what we’re currently in.

    Big swings in emotions are a feature of bear markets, and big swings are understandable as people are constantly being hit by new pieces of information in a 24/7 world.

    Seeing the value of investments, including superannuation accounts, go down is distressing. People’s long-term goals and dreams are often tied up with their investments that in many cases have been built up over years.

    What we know from past severe market falls, is that they do eventually end, and recoveries follow. But it does take time.

    The 2008/09 Global Financial Crisis (GFC) is the most severe investment downturn in recent memory.

    The GFC did end and was followed by 10 years of strong share market returns as the following statistics show:

    • The Australian share market, as measured by the S&P/ASX 300 Accumulation Index, returned 111% for the 10 years to 31 December 2019.
    • The global share market, as measured by the MSCI ACWI Index (Net dividends invested, in Australian dollars), returned 197% for the 10 years to 31 December 2019.

    Every market event is different. This one is because of a dangerous global virus, and so we can’t say that it will follow the pattern of the GFC or other market downturns and recoveries.

    But history does provide some encouragement that bad investment periods end, and better times eventually arrive.

  • MLC is doing everything we sensibly can to preserve Plum clients’ portfolios from the worst effects of market falls.

    We’re also looking for opportunities to buy good assets that have been over-sold as people have ‘thrown the baby out with the bathwater’ over the past few weeks.

    On the defensive side of the equation — we’ve, amongst other things, been using ‘derivatives strategies’.

    Derivatives provide very cost and time efficient ways of acting on our investment views.

    Derivatives can be thought of as investment insurance. For a small premium — a bit like the premium most people pay for car insurance or house and contents insurance — we can buy protection for clients’ portfolios so that even when markets go down, the portfolios get a return for the derivatives they bought.

    Having a good amount of exposure to foreign currency has been another cushion. The Australian dollar usually weakens when global share markets sell-off, and this period is no different.

    At the same time, foreign currencies like the US dollar and Japanese yen, for example, generally strengthen when share markets fall. This too has happened, and that’s helped to take some of the edge off the negative impact of share market falls on clients’ portfolios.

    We’re starting to see better value in a number of assets that have been sold off and so we’re getting prepared to add some of those assets to clients’ portfolios.

  • Everyone’s risk-tolerance, the time frame they have for judging investment performance, and investment goals is unique. There is no such thing as a ‘one-size fits all’ answer on how to manage a market downturn.

    Seeing the value of investments, including superannuation accounts, go down is distressing. People’s long-term goals and dreams are often tied up with their investments that in many cases have been built up over years.

    What we know from past severe market falls, is that they do eventually end, and recoveries follow. But it does take time.

    The 2008/09 Global Financial Crisis (GFC) is the most severe investment downturn in recent memory. It was upsetting for people to see the value of their investments go down. However, the GFC did end and was followed by 10 years of strong share market returns.

    That’s why people who change their investments immediately after a correction, are taking losses, which reduces their chance of making their money back when markets eventually recover.

    That said, every severe market episode is different, and the time it takes for markets to recover can vary.

    There is more uncertainty this time because this market downturn was set off by a dangerous global virus. Progress in combatting COVID-19 is key to shifting investor moods.

    Investors will likely remain edgy until the worst point of the pandemic is passed, and until improved treatments to better manage COVID-19 emerge. The appearance of a vaccine available for widespread use would be especially welcome by everyone, including investors.

    Above everything else, we recommend you discuss your circumstances and investments, including super, with your financial adviser. If you do not have an adviser, please call us.

  • There is no such things as a ‘one-size fits all’ answer on what the best thing to do is.

    As a generalisation, people close to retirement or in retirement often have many years ahead of them. In those situations, having some exposure to ‘growth assets,’ like shares, is important as their higher return potential (for higher risk), can help to maintain people’s spending power.

    The low interest rates payable on term deposits over the past decade have certainly made it harder for people nearing retirement or in retirement to rely on term deposits to keep pace with the cost of living.

    Equally, being told to simply maintain a long-term view and wait for a market recovery can be grating, particularly if you’re already drawing a pension from your superannuation.

    You need to keep in mind if you change your investment strategy immediately after a correction, you’re taking losses, which reduces your chance of making your money back when markets eventually recover.

    In saying that, it’s understandable if people close to retirement or in retirement want to have more protection through ‘defensive assets’ in portfolios. Being a little more risk averse than someone that’s still earning an income from paid employment or a business, is understandable. That’s why Plum offers a range of portfolios with varying risk and return characteristics to suit different client needs.

    Good financial advice is invaluable. We recommend you discuss your situation with your financial adviser. If you do not have a financial adviser, please call us.

  • Over the past weeks, the Federal Government has announced three economic packages to cushion the economic impact of the Coronavirus. A total of $213.7 billion in support measures aim to help keep Australians in work and support those in need. This includes $17.6 billion from the Government’s first economic package; $66.1 billion in the second economic support package announced on the 22 March; and finally, on 30 March, the Government announced the $130 billion JobKeeper Payment package. 

    There is also a $90 billion facility by the Reserve Bank of Australia to support business lending. The Federal Government also has pledged $20 billion to deliver easier access to finance for small to medium businesses

    Altogether, these budget and financing measures amount to circa 15% of Australia’s national income as measured by GDP. This is a welcome combination of measures for an extraordinary challenge. 

    The Government’s economic support package includes:

    • Support for households including casuals, sole-traders, retirees and those on income support
    • Assistance for businesses to keep people in a job
    • Regulatory protection and financial support for businesses to stay in business

    Under the JobKeeper payment, businesses that meet certain criteria and are significantly impacted by the Coronavirus outbreak will be able to access a subsidy from the Government to help continue paying their employees. This assistance will help businesses to keep people in their jobs and re-start when the crisis is over. For employees, this means they can keep their job and earn an income—even if their hours have been cut. The JobKeeper payment is a temporary scheme open to businesses impacted by the Coronavirus. The JobKeeper payment will also be available to the self-employed.  The Government will provide $1,500 each fortnight per eligible employee for up to 6 months.  

    Additionally, temporary measures for people facing significant financial hardship as a result of the coronavirus include early release of up to $10,000 of their superannuation balance in 2019-20 and a further $10,000 in 2020-21. This measure is estimated to cost $1.2 billion over the forward estimates period.

    For retirees, there will be a temporary reduction in the minimum annual amount required to withdraw from a super income stream. This will apply for this financial year and for the 2020/21 financial year.

    Find out more about temporary changes to superannuation for people facing significant financial hardship as a result of the Coronavirus.

    You can click here to access the Government’s Coronavirus support packages for individuals and households, or by typing treasury.gov.au/coronavirus/households in to your browser.

  • We can only process transaction requests when we receive all required information.
    If accepted, generally transaction requests received by us before 3:00 pm (Sydney time) on any Business Day will receive that day’s unit price. Requests received after 3:00 pm will generally receive the next Business Day’s unit price.

    Generally, withdrawal requests will be actioned by us promptly to enable us to make payments within 10 Business Days. Actioning of withdrawal requests and payments may be delayed, for example, if underlying assets need to be sold. In certain circumstances, such as when there are adverse market conditions, we may suspend withdrawals. We may also process requests in instalments over a period of time and may also suspend processing of requests we have already accepted. In certain circumstances we may refuse a withdrawal request. Where withdrawals are delayed, suspended or being paid in instalments, the unit prices used for a withdrawal will be those available on the day the withdrawal takes effect, rather than the day of the withdrawal request.

  • Yes, the buy-sell spreads of some managed investments are fluctuating daily due to current market conditions. If there are any other changes to fees and costs, we’ll update this on our secure website – you can log in at plum.com.au

  • The buy-sell spread is a type of transaction cost incurred when buying and selling the underlying assets of the investment option. The buy-sell spread ensures that only those transacting investors incur the costs associated with buying and selling the assets. The investment options’ fund manager and MLC don’t profit from these spreads and buy-sell spreads are adjusted over time in line with changes in transactions costs experienced by the fund manager.

    The current market conditions are extremely volatile. This has been the case particularly in fixed income markets, where trading costs have risen significantly. This means the buy-sell spread on any investment option may vary day-to-day and could fluctuate significantly.

  • An increase in the buy-sell spread will increase the cost associated with selling or switching an investment and may also be reflected in a lower valuation of the investment.

  • Buy-sell spreads are located within the investment menu of the product’s PDS (Product Disclosure Statement). However, given that buy/sell spreads are changing on a frequent basis we’re putting this information online to provide you with the most up-to-date information available.

    For the latest available information on investment option buy-sell spreads, log in to your account at plum.com.au

  • If you’re invested in a Plum product, then you’re likely to be invested in either MySuper or one of Plum’s many diversified investment options. If you’re in MySuper or a diversified investment option, you may have some exposure to unlisted assets. Private equity, real estate and infrastructure are the unlisted assets Plum investment options may hold.

    Rather than paying any price to own such assets, our investment experts at MLC Asset Management, have been patient and disciplined on members’ behalf. They’ve only bought assets when confident that the prices they’re prepared to pay can be justified by the prospect of superior long-term risk-adjusted returns.

    Unlisted assets make up a relatively small component of Plum diversified investment options, with the rest invested in assets that are listed on a public market like the share market or bond market.

    Listed asset classes are valued on a market and their values incorporated into unit prices each day. That’s one of the reasons your account value changes from day-to-day. Unlisted assets are valued a lot less frequently because they’re invested in private companies and externally managed unlisted funds with adjustments to their values flowing through from the managers of those funds over time.

  • All asset classes have been affected by the coronavirus, including unlisted assets such as private equity.

    MLC Asset Management, who are responsible for managing Plum investment options, recently conducted an out-of-cycle revaluation of private equity assets which resulted in a reduction to private equity values. This has had a flow-on effect to certain diversified Plum investment options with decreases in investment option unit prices reflected in account balances.

    For our MySuper portfolios, the impact on the unit price is shown below:

    MySuper portfolio 

    % change in the unit price due to private equity revaluation

    % of the Portfolio invested in private equity (post revaluation)

    MySuper Growth Portfolio

    -0.6%

    5.9%

    MySuper Conservative Growth Portfolio

    -0.6%

    5.3%


    The lower the allocation to private equity, the less the impact on the unit price.

    The private equity revaluation ensures that asset values are fairly reflected in unit prices for any members choosing to switch, add to, or redeem monies in affected funds, and thereby protects the interests of members.

    We will continue to monitor investment markets closely to ensure the pricing of unlisted assets remains appropriate for the circumstances as they evolve and to ensure all fund values reflect fair value across all member account balances.

  • Plum is aware of COVID-19 themed emails and text messages circulating which contain malicious software, lead to phishing sites or asking you to donate money to a bank account.

    The emails and text messages may purport to be from legitimate organisations, including government agencies, and request you to click on links, open attachments or donate money to a bank account. Please see two examples below.

    If you have clicked on links or attachments in a suspicious email or SMS, or sent funds based on a request received from a suspicious email please call Plum on 132 652.

    If you receive a suspicious message, do not click on any links or attachments. Please forward it to phish@nab.com.au and then delete it.

    You can also visit the Federal Government's Australian Cyber Security Centre website for more information about COVID-19 related scams.

  • Plum is aware of current scam phone calls targeting Australians. The caller may claim to be from an organisation that can assist you to get early access to your superannuation. The caller may ask for your personal and superannuation details.

    If you ever have any concerns as to the legitimacy of a call, hang up and call the company back on a publicly listed number.

    If you have received this type of call and have provided information about your superannuation, please contact Plum immediately on 1300 55 7586.

    If you receive a text message saying your superannuation fund is going to release your super, and you did not request this, contact us.

    If you have provided personal or banking details, please also contact your financial institution.

    You can also visit the Scamwatch website for more information about this scam.

New temporary super measures and market volatility

Webinar recorded April 6th

Watch now

1References to client and community attitudes are drawn from research commissioned by MLC: “MLC community and client research. Coronavirus pandemic March 2020. Detailed report.”

IMPORTANT INFORMATION
This information is accurate as at 16/04/2020. This communication has been prepared by NULIS Nominees Australia Limited (‘NULIS’) ABN 80 008 515 633 AFSL 236465, in its capacity as trustee of the MLC Super Fund. NULIS is a member of the National Australia Bank group of companies (‘NAB Group’). An investment with NULIS does not represent a deposit with or liability of, and is not guaranteed by NAB. This information may constitute general advice. The information contained in this communication is general in nature and does not take into account personal objectives, financial situation or needs and because of that you should, before acting on the advice, consider the appropriateness of the advice having regard to your personal objectives, financial situation and needs, plus consider the relevant Product Disclosure Statement. Opinions constitute our judgement at the time of issue and are subject to change. Neither NULIS nor any member of the NAB Group, nor their employees or directors give any warranty of accuracy or reliability, nor accept any responsibility for errors or omissions in this communication. Past performance is not a reliable indicator of future performance. The value of an investment may rise or fall with the changes in the market.