DIY investment option Fact sheet

The choice is in your hands
As a Local Government Super (LGS) member, you now have the option
to get more hands-on with how your retirement savings are invested.
Whether you’d rather have your money in a term deposit or you’re looking
for higher returns that a share portfolio may produce, the DIY investment
option gives you the flexibility and choice to do it yourself.
Is the DIY investment
option suitable for you?
zz understand that your investment risk
profile may change over time, and that your
investment portfolio should change accordingly.
Superannuation is a long-term investment to help
you lead a comfortable lifestyle in retirement.
Your options
The very nature of share markets and even term
deposits mean that they may not always be the
best choice to help achieve this lifestyle.
Depending on your situation and appetite for
risk the DIY investment option may be suitable
for you if you wish to invest some of your super
in a term deposit(s).
It may also be suitable for you if you are looking
to take a more active role in the investment of
your retirement savings and you are comfortable
that you have the skills and knowledge to invest
directly in listed securities and construct and
manage your own investment portfolio.
Term deposits
In recent years, some super members have
sought the security of more low risk investment
options such as term deposits.
The DIY investment option gives you the choice
of term deposits from a selection of providers
including ANZ, NAB, Macquarie and ME Bank.
You can also choose from a range of terms;
namely, one, three, six or 12 months. You can
invest in as many term deposits as you wish;
new rates are posted online regularly.
A minimum investment of $5,000 applies to each
term deposit and other conditions also apply.
As an investor in listed securities via the DIY
investment option you would be taking on a
role similar to that of a professional investment
manager. It is therefore important that you:
Shares
zz have a thorough knowledge of investing and
investment markets
Whether you want to build an investment
portfolio around specific industries, companies,
services or on your own ideals and ethics, the
choice is now in your hands.
zz understand the concept of diversification
and the importance of having a diversified
investment portfolio
zz establish clear long-term investment
objectives and have the discipline to follow
them through
With the DIY investment option you can invest
in the 300 largest Australian shares listed on the
S&P/ASX300 Index.
Fact sheet
An ETF is a collection of shares which usually
attempts to reflect the performance of a
particular market index or benchmark.
Eligibility requirements
An up-to-date list of the ETFs included in
the LGS DIY investment option is available at
lgsuper.com.au/DIY
As well as feeling comfortable taking control of
your super investment, you’ll also need to meet
the following eligibility criteria:
The DIY Cash Account
zz Be an existing LGS Accumulation Scheme or
LGS Account-Based Pension Plan member
with at least $10,000 in your account.
The DIY Cash Account is your operating
account for the DIY investment option.
All movements of funds in or out of the DIY
investment option are carried out via your DIY
Cash Account. These include:
zz funds you transfer into the DIY investment
option to buy and sell shares or ETFs, or to
invest in term deposits
zz income produced by your investment in
shares, such as dividends or the proceeds of
a sale of shares
zz the maturity amounts from investments in
term deposits
zz taxes or fees applicable to your investments.
When you first register for the DIY investment
option you will need to transfer money from
your other LGS investment options to the
DIY Cash Account before you can commence
trading. A minimum of $500 must be kept in
your DIY Cash Account at all times.
The interest rate for the DIY Cash Account is
set by Macquarie Bank and may vary on a daily
basis. Consequently, there is no guarantee of
any particular interest rate on funds held in the
DIY Cash Account.
This paper is Australian made and PEFC certified.
video company investment profiles and webcasts
on economic, financial and investment news.
Research, tools and
personal reports
As well as trading, the DIY investment option
gives you access to information and tools to
assist with your decision making.
You can view real-time stock quotes through
the DIY investment option portal as well as have
access to BRR Media which provides audio and
zz Have access to the internet and are
registered for LGS Member Online.
zz Have a current email address that you’re
happy to provide.
zz Have a Tax File Number (TFN) that you are
happy to provide for tax purposes.
zz Have read and accepted the terms and
conditions for the DIY investment option.
How much does it cost?
If you wish to invest only in term deposits it
will cost $5.00 per month plus 0.37% of funds
invested in the DIY investment option for
Accumulation Scheme members and 0.39% for
Account-Based Pension Plan members.
To trade in listed securities only or in
combination with term deposits it will cost
$17.00 per month plus 0.37% of funds invested
in the DIY investment option for Accumulation
Scheme members and 0.39% for Account-Based
Pension Plan members.
Other fees also apply so please read the
DIY investment option Product Guide for a
full break down of the fees involved.
Need more details?
Before deciding to invest in this option, please
read the relevant LGS DIY investment option
Product Guide available at lgsuper.com.au/DIY
If you have any questions or if you would like
more information about the DIY investment
option, please contact your LGS financial
planner or Member Services on 1300 LGSUPER
(1300 547 873) between 8.30am and 5.00pm,
Monday to Friday.
L0358-08/14-PARA
Exchange-traded funds (ETFs)
Issued by LGSS Pty Limited (ABN 68 078 003 497) (AFSL 383558), as Trustee for Local Government Superannuation Scheme – Pool A (ABN 74 925 979 278) and Pool B
(ABN 28 901 371 321) – collectively known as LGS. This document contains general information only and is not intended to be a substitute for advice. It does not take into
account any individual’s or organisation’s investment objectives, financial situation or particular needs. Accordingly any individual or organisation should seek professional
advice that takes account of investment objectives, financial situation, and particular needs before making a decision in relation to any of the matters covered in this
document. Issued 8 September 2014.

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