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Tasplan changes asset allocation

Tasplan is changing its asset allocation for its Tasplan OnTrack - Maintain stage to increase the percentage invested in growth assets.

For those invested, their asset allocation will automatically change to 60% growth and 40% defensive allocation from 30 September 2020.

"We're making this change because we believe it will lead to better retirement outcomes for our members over the long term," Tasplan said.

"Tasplan OnTrack is designed to automatically adjust your investment mix based on your age. There are four age-based investment stages within Tasplan OnTrack. Each stage has a different investment strategy and asset allocation.

"We regularly review the investment strategy and asset allocation of each stage to ensure that it's meeting the objectives in the current environment."

Tasplan said since OnTrack was introduced three years ago, there has been a significant increase in the average super balance of members closer to retirement.

"Many members are choosing to receive a regular income from their super in retirement rather than withdrawing their balance as a lump sum payment," it said.

"As part of the review, we identified that changes to the asset allocation for the Tasplan OnTrack - Maintain stage should be made."

Tasplan said by increasing the exposure to growth assets in the Tasplan OnTrack - Maintain stage, members can transition from the accumulation phase to the retirement phase with minimal change to their overall asset allocation.

"This may help achieve a higher balance at retirement without significantly increasing the impact of market downturns in the years leading up to retirement," it said.

In addition, Tasplan provided an update on its proposed merger with MTAA Super, set to occur on 1 April 2021.

"The merger aims to secure better retirement outcomes for members of both funds. The combined fund's scale will provide efficiencies that can be passed on to members through improvements to products and services, low fees and strong returns," Tasplan said.

"As a result of the merger there may be further changes to investment options and associated asset allocations. Further information will be provided as these details are finalised."

Read more: TasplanOnTrackMTAA Super
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