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Friday, 17 July 2020
As you know, interest rates in Australia are at an unprecedented low which means that returns to members (after fees) from traditional cash investment options are also very low. We have reduced ongoing fees several times over the past 12 months in these traditional cash investment options to improve returns. We’re committed to achieving positive outcomes for our members and after assessing alternatives, we have decided to terminate the OnePath Cash and OptiMix Enhanced Cash investment options offered through OneAnswer and OneAnswer Frontier. We will switch members where possible, into ANZ Cash Advantage which is currently providing a return of 0.45% p.a.
If you have impacted clients, we’ll be writing to you shortly with a listing of your clients currently invested in the OnePath Cash and OptiMix Enhanced Cash investment options (Cash Options).
What does this mean for your clients?
OneAnswer Super and Pension clients
Fortunately, we can provide your OneAnswer clients with an alternative cash investment option in ANZ Cash Advantage which we believe is better positioned to meet member expectations. We intend to move the members of the Cash Options into ANZ Cash Advantage via a switch. The Trustee Board has made this decision as they believe this is in the best interests of members.
We’ll switch the value of your client’s investment in the Cash Options to ANZ Cash Advantage on or around 22 August 2020. Click here to see a copy of the letter to your super and pension clients.
Please see the Additional information which provides a comparison of the Cash Options and ANZ Cash Advantage.
OneAnswer Investment Portfolio clients
For investment clients we can’t automatically move them into ANZ Cash Advantage. We will give clients notice of the termination and the choice of switching to ANZ Cash Advantage or an alternate option prior to the termination date. Click here to see a copy of the letter to your investment clients.
Where clients don’t take any action, we will return their money to them shortly after the Termination Date. We expect the Termination Date to be 10 September 2020.
From 10 September 2020 we’ll commence selling down the Cash Options’ investments. Soon after we’ll return the proceeds from the sale to OneAnswer investment clients’ nominated bank accounts or by cheque if we do not have account details on record.
What options are available to your clients?
If your client would prefer to provide alternative instructions for their investment before the termination activities commence:
Switches can be completed online or by completing a Switch Request Form available at onepath.com.au > Forms & brochures or> from Customer Services. You can also do this on behalf of your clients if you hold an Adviser Transaction Authority.
What else should you and your clients be aware of?
If your clients have an auto-rebalance plan in place and would like to retain it, we recommend that they make a switch prior to the cut-off date and re-apply the Auto rebalance to that new portfolio allocation. If they don’t do this, the Auto-rebalance will cancel after the Cash Option switch/ termination. If you hold an Adviser Transaction Authority, you can do this on behalf of your clients.
What else do you need to know?
OneAnswer Super and Pension clients
After processing the switch we will automatically redirect any regular payments going into or coming out of the Cash Options to ANZ Cash Advantage.
This will include the following:
OneAnswer Investment Portfolio clients
After the Cash Options are terminated:
Any questions?
If you have any questions or would like further information, please call Adviser Services on 1800 804 768, weekdays between 8.30am and 6.30pm (AEST) or email us at adviser@onepath.com.au