Information for AFS Licensees and advisers

If a member is invested in one of the closing investment options, they are not required to do anything. They will be automatically switched to the new option effective 31 May 2024.

Members can switch some or all of their balance out of a closing investment option by logging in to Member Online and completing an online switch, or submitting a Change your investment options form (which we would need to receive prior to 3.00 pm on Thursday 30 May 2024).

Advisers can also arrange a switch via Adviser Online if they have a ‘Transact’ authority on their client’s account.

Completing an online switch is preferred as it ensures the switch will be effective the same business day. When switching investments using the investment switch form, the switch will not be effective until the form is received by Brighter Super.

Of course, members can also switch investment options at any time after 31 May 2024, using the new set of investment options.

Any contributions received on or after 31 May 2024 that would have been allocated to the closing investment options will be invested in the replacement options, unless the member changes their future investment strategy.

From June 2024, any proportion of pension payments that were funded from the closing options will be funded from the replacement options, unless the member changes their pension payment strategy.

No, there will be no transaction freeze. However, switches processed between 31 May and 2 June 2024 may take 4-5 days to display on the member’s account.

By realising the benefits of our mergers and bringing our products together, from 31 May 2024 we will be retiring the Optimiser product name. Over the coming months, you will start to see the Optimiser name removed from our documents and communications.

For the current 2023/24 financial year, the admin fee cap will be prorated based on the current $2,950 cap until 31 May 2024 and $900 for the remainder of the financial year. This equates to:

• $2,950 @ 11 months = $2,704.17
• Plus $900 @ 1 month = $75.00

Therefore, Optimiser members will pay a maximum administration fee cap $2,779.17 for 2023/24.

From the 2024/25 financial year, if the total of a member’s account balances at the end of the financial year exceeds $500,000, net admin fees above $900 will be rebated if the member retains an active account when the fee cap is rebated.

From the 2024/25 financial year, the administration fee is capped at $900 per financial year for eligible accounts.

If the member exits prior to the rebate being applied, they will not be eligible for the rebate.

The fee cap rebate will be paid in the following financial year. A specific date has not yet been determined for the 2023/24 rebate, but it is usually paid in early July each year.

The cap will apply at member level, across all accounts a member holds.

No. The Suncorp Employee Super Plan (SESP) will retain its current administration fee of 0.06% and $7.65 per month.

No. From 31 May 2024, all members will pay the standard administration fee of 0.18% if invested in the Cash option, with the exception of SESP members invested in Cash, who will pay 0.06%. 

It is important to note that the current Optimiser Cash option has an investment fee of 0.47% and this will reduce to 0.02% when the member is switched to the Brighter Super Cash option. So even though the administration fee is increasing for funds invested in Cash, the overall fees and costs will reduce.

No. There will be no one-off fees deducted for any members.

No, the fee will not be rebated. This is because Optimiser MySuper members have enjoyed our low 0.18% fee since the SFT.

Yes, the 0.03% will still apply at 31 May 2024. We review this fee annually, and any changes will be communicated when required.

Yes. From 31 May 2024, all Brighter Super members will be able to invest in any Brighter Super option available on our new investment menu.

On 31 May 2024, we streamlined our investment options by reducing the number of available choices from 32 to 11, creating a single set of options. We also renamed some of our continuing options, for example, the Brighter Super Growth option was switched to the Multi-Manager High Growth Fund which was renamed as Growth in line with the Brighter Super option names.

We communicated to members about these important changes in April 2024. A copy of the notice can be found at brightersuper.com.au/sen or by logging in to Member Online at brightersuper.com.au under Statements and Letters.

On 31 May 2024, the investment options were switched using the unit prices of 30 May 2024, for the current option and the new option to which the option was being switched to.

Differences in unit prices between options will result in a difference in units. For example, a member with $50,000 invested in the Growth option had 20,116.0778 units at the unit price of $2.485574 on 30 May 2024.

The Growth option was switched to the Multi-Manager High Growth Fund (renamed Growth) using the 30 May 2024 unit price of $3.607856 resulting in 13,858.6462 units valued at $50,000.

To view daily unit prices visit our website.

The unit prices that were used for the switch can be found in the following table.

Accumulation Options

Pension Options

Brighter Super strategically incorporates unlisted assets, including property, infrastructure and private equity, into its portfolio construction process. These assets bring several advantages:

• Higher returns and illiquidity premium: Unlisted assets have the potential for higher returns compared to traditional listed assets. Additionally, investors may receive an illiquidity premium as compensation for the reduced liquidity associated with these assets. However, unlisted assets are more likely to be impacted by liquidity risk and suffer negative valuation impacts or incur increased transaction costs when being sold during market downturns.
• Diversification opportunities: Unlisted assets introduce unique investment opportunities not readily available in listed markets. This diversification enhances the overall portfolio by reducing dependence on specific market movements.
• Reduced portfolio volatility: Unlisted assets typically exhibit a low correlation with traditional listed asset classes. This means their price movements are not strongly tied to the ups and downs of the stock or bond markets, and instead their value is based more on their underlying fundamentals. This low correlation can contribute to the dampening and smoothening of portfolio volatility through pricing of these assets, which is less susceptible to short term volatility and listed market sentiment which can increase resilience during downturns in listed markets.
• Inflation hedge: Real assets like real estate and infrastructure can serve as effective hedges against inflation. The ability to link revenue to inflation and economic growth helps counter the erosive effects of inflation on the real value of assets.

Brighter Super adheres to a robust governance framework to effectively manage asset valuation risk, which is operationalised through its Asset Valuation Policy to ensure the Fund’s listed and unlisted assets are fairly and accurately valued.

The valuation of unlisted assets within the portfolio typically occurs on a monthly or quarterly basis. The Fund may also undertake out-of-cycle valuations in response to specific trigger events or circumstances.

Brighter Super requires its external investment managers to have unlisted assets valued by third-party valuation experts with significant experience in their respective asset classes. These valuations are conducted at least annually. Furthermore, the fund requires third-party control reports, such as GS007, SSAE16, ISAE3402, SOC1, from both its managers and Custodian, which is accompanied by an external audit opinion.

Brighter Super has recently made the decision to increase our consideration of environmental, social and governance (ESG) factors, and in particular governance of carbon emissions, across all our investment options. More generally we are increasing our advocacy with companies regarding their own contributions in this space. This is a positive step forward for Brighter Super.

As part of that focus, in recent months we have reviewed our two socially responsible options and determined to close them. Our review considered factors such as costs, investment performance and risk, socially responsible investing capabilities and the declining number of members investing in these two options. Ultimately, it was not in members’ best interests to continue to offer these options.

We can now ensure that the resources previously focused on these two declining socially responsible options are turned towards managing ESG factors across all our investment options.

From 31 May, we will continue with the current Brighter Super default approach, which is:

• Pension members < 75 years old = Balanced option (formerly Multi-Manager Growth Fund)
• Pension members > 75 years old = Conservative Balanced (formerly Multi-Manager Balanced Fund)

All new members joining Brighter Super Pension who do not make an investment choice will be invested as per the above.

We will be grandfathering the default arrangements for current Optimiser Pension members who are already invested in a default option (prior to 31 May 2024). This means that members will remain invested as follows:

• Pension members < 75 years old = Conservative Balanced (formerly Multi-Manager Balanced Fund)
• Pension members > 75 years old = Stable (formerly Multi-Manager Conservative Fund)

No, there are no changes to this option and it will remain closed.