Closure of the DIY Investment Option

We will be closing the DIY Investment Option on 30 April 2019. Unfortunately our provider for the DIY will no longer be offering this service. We will not be replacing this option due to the excessive costs charged by alternative providers and the low number of members currently invested. 

We will be shutting down the one and three month term deposits in December 2018 in preparation for this closure.

What do I have to do?

Members currently invested in DIY will need to sell all of their equities in the DIY prior to the closure on 30 April 2019 and transfer the balance from their DIY Cash Account into one of the LGS investment options. 

Any term deposits will automatically go into the DIY Cash Account at maturity and cannot be reinvested in a term deposit.

How do I close my DIY account?

1. Log in to your Member Online account using your member number/username and password.                                                                                                                  
2. Select ‘Investments’, scroll down and click on the ‘Trade Now’ button. This will open up a new window showing the Dashboard for your DIY account. If the window does not appear, make sure you have enabled pop-ups.

3. To sell your existing shares and ETFs, click on ‘Shares’ in the top toolbar.

4. Click the ‘Sell’ button for the relevant equity and enter the quantity you would like to sell. Ensure you select to sell the entire ‘Quantity’ and not the Value – as you know the value changes daily and you may end up with a residual or not being able to sell within the timeframe.                                 

5. Enter your order details such as order type and expiration then click ‘Submit’.

6. It will take a few days for settlement and for the balance to appear in your DIY Cash Account.           

7. To completely close your DIY account, you will need to transfer the balance in your DIY Cash Account into your LGS investment option/s through Member Online by selecting ‘Close DIY Cash Account’.                                                                            

8. The balance will then be transferred into your LGS investment option/s the following business day.

      We will refund any brokerage fees that are charged when you sell all of your equities to close your DIY account.  We will reimburse you after the closing date of 30 April 2018. Please note that brokerage fees will not be refunded for normal trading.

What replacement investment options are available?

The existing LGS investment options provide a range of asset mixes to suit your needs. For example, our High Growth and Sustainable Australian Shares options provide a high allocation to growth assets while our Conservative and Cash options provide a high allocation to defensive assets. There are also Balanced Growth and Balanced options for a mix of growth and defensive assets.

What happens to members that don't close their DIY account?

Super members

If you are still invested in the DIY on the closure date, we will close your account for you and transfer your balance to your LGS account where it will be invested as you have indicated you would like your future contributions to be invested.

You can switch your investment preferences at any time.

Pension members

If you are still invested in the DIY on the closure date, we will close your account for you and transfer your balance to your LGS pension where it will be invested as you have indicated in your pension drawdown choices.

What are the tax implications?

For applicable members, there will be an annual tax adjustment to their DIY account in December 2018.

A final tax calculation and any necessary adjustments may be processed in December 2019 and deducted or credited to applicable accounts. Any credits at this time will be paid into the LGS investment option/s. Any Capital Gains Tax will be charged at this time and deducted from the LGS investment option/s.

If there are any corporate actions at the time of closure, the relevant equities will be sold at a later date after the corporate action is finalised. The balance will be paid into the LGS investment option/s automatically.

Any other subsequent events such as outstanding dividends or franking credits that occur after the closure will be paid into the LGS investment option/s. If a member exits the fund prior to these being paid, these credits are forfeited.

What happens when DIY closes on 30 April 2019?

The DIY website will no longer be available from 5pm on this date. Any members still invested in DIY will have their equities sold the following day on 1 May 2019. It may take some time to sell all equities and close the account.

Members still invested in the DIY Cash Account will have the balance transferred to their LGS investment option on 1 May 2019 with an effective date of 2 May 2019.

All brokerage fees for members who have closed their DIY account will also be refunded after this date.

Need more information?

If you have any questions or would like to make an appointment with a financial planner, please call us on 1300 LGSUPER (1300 547 873) between 8.30am and 5.00pm, Monday to Friday.