#RetirementPlanning #InvestmentTips #FinancialAwareness
PSA: Australian Retirement Trust users 🇦🇺
Hey everyone! Just wanted to give a quick heads up about some changes happening in the Australian Retirement Trust for those of you with indexed fund mix holdings 📈💼:
– As of 1 July 2024, certain investment options are being updated, particularly the emerging markets option 🌏
– Make sure to check out the new product updates and PDS to stay informed about these changes
– Haven’t seen much discussion about this yet, so wanted to make sure you all are in the loop!
If you’re unsure about how these changes might affect your investments, don’t hesitate to reach out to the Australian Retirement Trust customer service team for more information and guidance. Stay informed and keep your retirement savings on track! 💰🔍
I went to a webinar on this, from ART. The changes to the lifecycle product is a step in the right direction, in my opinion.
Shout out to Rest who is keeping 0% investment/transaction fees on index options*
*Standard account fee $1.5 per week plus 0.1% AUM per annum is required still but capped at $300 annually.
Any chance I can get a TLDR;?
Emerging markets is covered under the MSCI All World Index so unless you’re overweighting it deliberately for reasons passing understanding, it shouldn’t be a problem.
I’m not with them, but the changes overall look very positive.
TLDR:
They are closing the non-indexed shares options and the emerging market index option
-If you were in Australian shares you will now be in Australian shares (indexed)
-If you were in International Shares you will now be in International shares (indexed)
-If you were in Shares (which was previously a mix of international/Australian shares) they will put you into 50% Aus index, 25% international index and 25% international index (hedged)
-If you had a % in emerging markets it will be transferred to international shares index (which now contains emerging markets within it)
Australian shares (index), International shares (index) and International shares (index – hedged) remain unchanged.
Similar changes have happened with their bonds and property options but this doesn’t impact me so I haven’t looked into it much. The lifecycle option will also now default into high growth rather than balanced, but this also doesn’t impact me so I don’t know the specifics. Because of the above changes the high growth and balanced funds will now also hold index funds which is pretty cool – hopefully the costs come down in line with this.
Overall good changes in my eyes.