Buying and selling investments

Managed investments

Your adviser will buy, sell or switch managed investments online. Product issuers have different rules relating to when applications and withdrawals will be accepted and processed. Details of these rules and turnaround times can be found in the PDS and other disclosure documents for each managed investment.

Application

An application is the term used to describe the purchase of units in a managed investment when the investment is being funded from your Cash Account.

Payment for your managed investment purchases will be deducted from your Cash Account on the day that we apply for units in the managed investments. We will process instructions from your adviser as quickly as possible, depending on the application process of each product issuer.

The unit price that you receive for managed investments is determined by the product issuer. Where transaction requests are placed online by your adviser prior to 12:00 noon Sydney time on a Business Day, we will generally send instructions to the product issuer on the same day. Where transaction requests are placed after 12:00 noon Sydney time, we may send instructions on the same day, however generally these will be sent the following Business Day. Where managed investments have minimum investment requirements, or the product issuer does not calculate a unit price daily, it may take longer to process your instructions.

Redemption

Redemption is the term used to describe the sale of units in a managed investment and the proceeds are credited to your Cash Account.

The proceeds from a sale cannot be used to process a withdrawal from your Cash Account until settlement occurs and the money is cleared in your Cash Account.

Switching between managed investments

A switch is the term used to describe the redemption of a managed investment (or multiple managed investments) and, instead of the proceeds being directed to the Cash Account, the funds are directed straight to another managed investment (or multiple managed investments).

The minimum amount that can be switched between managed investments is $1,000. If you give us an instruction to switch (or redeem) an amount that will result in less than $5,000 remaining invested in a particular managed investment (except your Cash Account), we may process that instruction as a full redemption from that managed investment.

Where your adviser places an order for a full redemption from one managed investment with the proceeds being switched into more than one managed investment, we may split the redemption order into a partial and then a full redemption in order to complete the application orders. In these circumstances, the full redemption will not be placed on market until the partial redemption has been completed.

Please refer to your adviser for further details.

Switching pension investments (Pension Division only)

Switching between managed investment options within your pension account can occur at any time, unless there are insufficient investments in your account to cover the next pension payment. When a switch is requested, your adviser may be required to amend the amount being switched or change the pension payment options.

Managed investments that do not transact daily

Some managed investments do not process applications or redemptions on a daily basis. If you instruct us to apply for or redeem a non-daily transacting investment or another illiquid investment, we will process this transaction in accordance with the product issuer’s timetable. In some cases this could be three months or more after we receive your instructions and extended delays may be experienced. Please refer to the relevant PDS and other disclosure documents or your adviser for further information.

Buying and selling approved ASX listed securities

Your adviser may buy and sell approved ASX listed securities online via Macquarie Equities Limited (MEL). We will use the available cash in your Cash Account to settle any purchases of approved ASX listed securities. We will withdraw cash to pay for the purchase on the same day, or within one day of being notified by your broker of the trade. You may be charged a failed trade fee if you do not have sufficient available cash in your Cash Account to perform a trade.

All online orders placed to buy or sell approved ASX listed securities ‘at market’ may only be partially filled at the prevailing market price at the time the order is placed. MEL will use its best endeavours to complete partially filled orders.

If you would like your order to be fully executed ‘at market’ in accordance with available price/volumes, your adviser will be responsible for amending your initial ‘at market’ order. In the event that the whole, or part, of your order is filled prior to its amendment or cancellation, you will be liable to settle the whole or partially filled order.

Offline trading is available through a nominated broker from our authorised broker list, which is available from your adviser.

If you wish to choose an authorised broker, the broker must be nominated on the application form or subsequent notification to us. If you wish to change or nominate a new broker, you should contact your adviser.

Contract notes are not provided for approved ASX listed securities transactions.

Term deposits

Your adviser can make applications for term deposits online.

The minimum term deposit application is $10,000 per deposit. We will only purchase term deposits periodically and we will draw the funds from your Cash Account on the day our application is made to the issuer of the term deposit. The details of these dates are available from your adviser.

On maturity of the term deposit, the amount invested (your principal) and interest earned will be credited into your Cash Account. The time it will take for these funds to be available in your Cash Account will depend on when we receive the funds from the term deposit issuer and the time it takes for the proceeds to be cleared in your Cash Account. For further details please refer to the offer document for the particular term deposit.

The interest rate applicable will be the advertised rate on the day the term deposit closes to applications. The advertised rate is available from your adviser. Interest on term deposits can be:

paid into your Cash Account upon maturity, or
reinvested, along with the principal, into another term deposit through your adviser.

Rolling over a term deposit

Through your adviser, you may elect to roll over a term deposit to a new term deposit for the same term from the same issuer. You can roll over either the principal or the principal plus any interest earned on the maturing term deposit.

Importantly, where you wish to roll over the term deposit, the proceeds from the maturing term deposit are first credited to your Cash Account and then invested in the next available term deposit. We recommend you or your adviser check your Cash Account balance prior to maturity of the term deposit to ensure that you do not fall below an available cash balance of $2,500 (which could occur, for example, if any fees were deducted from the Cash Account at the point the term deposit proceeds were credited to the Cash Account, prior to the term deposit rolling).

If your Cash Account balance falls below this balance, or if processing the roll over will bring the available Cash Account balance below the minimum, the roll over will not proceed and the funds will remain in the Cash Account

. In these circumstances, a transaction fee for the redemption of the term deposit will apply if you have exceeded your 30 free transactions for the financial year. For further information on transaction fees, refer to Part A of The Avenue Retirement Service PDS.

Your adviser is able to update your rollover instructions one Business Day prior to maturity (up until 5:00pm Sydney time).