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Raiz Super - Target Market Determination
For Raiz Invest Super – Superannuation Fund (the Fund)
This TMD is issued by Diversa Trustees Limited (ABN 49 006 421 638, AFSL 235153, RSEL L0000635) as the Trustee of the DIY Master Plan.

Raiz Invest Super is designed to help members build wealth for retirement in a simple and transparent manner by offering a choice in different investment options.
1. About this document
This TMD is required under section 994B of the Corporations Act 2001 (Cth) and Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019 (Cth). It sets out the target market for the product, triggers to review the target market and certain other information. It forms part of Diversa Trustees Limited’s design and distribution framework for the product.

This document is not a product disclosure statement and is not a summary of the product features or terms of the product. This document does not take into account any person’s individual objectives, financial situation, goals or needs. Consumers must carefully read the Product Disclosure Statement (PDS) and Member Guide which outline the relevant terms and conditions under the product when making a decision about this product.

Product Disclosure Statement to which this target market determination applies

This TMD applies to the following Product Disclosure Statement:
2. Important dates
Date from which this target market determination is effective: 5/10/2021
Date when this target market determination was last reviewed: 5/10/2021
Date when this target market determination will be next reviewed: 1/1/2023
3. Class of consumers that fall within this target market
The information below summarises the overall class of consumers that fall within the target market for Raiz Invest Super.

The Fund is designed for consumers who:
  • want a super account to receive superannuation guarantee contributions from their employment or to make personal superannuation contributions;
  • have a diversified investment approach;
  • are in their accumulation or pre-retirement life stage;
  • are looking for an investment product that provides options for low, medium, high and potentially very high risk and return trade-offs; and
  • are looking to purchase an investment product through a direct online channel and did not receive personal financial advice.

The Fund is not designed for consumers who:
  • are retired;
  • have a concentrated investment approach; and
  • are looking for an investment product offered through personal financial advice.

Investment product description and key attributes

The Fund allows members access to a range of investment options via its investment in the Raiz Invest Australia Fund, which is a registered managed investment scheme. The Raiz Invest Australia Fund has six options offered to members of the Fund.

The members benefit by receiving a transparent investment experience online via a mobile phone where members can see the specific underlying securities in which the superannuation is invested; their transaction history; and up to date balance of their Fund option.

Member’s superannuation is invested into a multi-asset Portfolio selected by the member (Selected Portfolio). The Portfolios comprise a mix of different exchange traded funds quoted on the ASX (ETFs) which are a pre-selected asset allocation.

The Raiz Invest Australia Fund does not pay distributions. Any distributions received by the Fund in respect of any ETF Units allocated will be automatically re-invested into the member’s Raiz Investment Account.

The significant features of Raiz Invest Super are:
  1. Information about member’s account can be accessed online through the Raiz app, 24/7 online via a mobile phone;
  2. The Fund offers six investment options to suit a variety of personal circumstances and risk profiles;
  3. The Fund offers members access to automatic insurance cover on an opt-out basis;
  4. The Fund does not charge switching fees if they change their Selected Portfolio; and
  5. The Fund does not charge any brokerage, trading or transaction fees for purchasing the ETF Units.

Objectives, financial situation, and needs

The Fund may suit consumers who:
  • have capital growth as an investment objective;
  • have capital accumulation as an investment objective;
  • do not have capital preservation as an investment objective;
  • do not have capital guarantee as an investment objective;
  • do not have regular income as an investment objective;
  • are potentially looking for an investment product that provides exposure to specialist themed ESG investment option; and
  • are looking for an investment product as a satellite investment solution (< 25%), core component (25-75%) solution or a standalone solution (75%-100% of total investible assets).

The table below sets out the class of consumers that each investment option within the Fund has been designed for.

Conservative portfolio
Key Features: This portfolio has a high portfolio weighting to fixed income bond and cash ETFs and may suit a consumer who does not like risk and needs access to their money in the near future.

Investment Objective: To provide a low level of risk which corresponds to low expected returns over the long term.

Minimum Suggested Investment Time Horizon: 3 months
Moderately conservative portfolio
Key Features: This portfolio has a moderately high portfolio weighting to fixed income bond and cash ETFs and may suit a consumer who is looking for some capital growth but is mostly concerned about protecting their money.

Investment Objective: To provide a lower level of risk which corresponds to low to moderate expected returns over the long term

Minimum Suggested Investment Time Horizon: 1 year
Moderate portfolio
Key Features: This portfolio has a balanced portfolio weighting to Australian Equities; International equities; fixed income and cash and may suit a consumer who is looking for good medium to long term results with moderate capital growth, without large up-and-downs in the short term.

Investment Objective: To provide balanced level risk which corresponds to moderate expected returns over the long term.

Minimum Suggested Investment Time Horizon: 2 years
Moderately aggressive portfolio
Key Features: This portfolio has a moderately high portfolio weighting to Australian and international equities and may suit a consumer who is prepared to take more risk in exchange for potentially higher returns over the medium to long term, and is comfortable with volatility and the possibility of negative returns.

Investment Objective: To provide a moderate to high level of risk which corresponds to moderate to high expected returns with capital appreciation over the long term.

Minimum Suggested Investment Time Horizon: 3-5 years
Aggressive portfolio
Key Features: This portfolio has a high portfolio weighting to Australian and international equities and may suit a consumer who is willing to take more risk in exchange for greater returns over the long term and is comfortable with volatility and the possibility of negative returns.

Investment Objective: To provide a high level of risk which corresponds to high expected returns with capital appreciation over the long term.

Minimum Suggested Investment Time Horizon: 5-7 years
Emerald portfolio
Key Features: This portfolio has a socially responsible Investment theme with a moderately high portfolio weighting allocated to socially responsible Australian and international equities and may suit a consumer who is prepared to take more risk in exchange for potentially higher returns over the medium to long term, and is comfortable with volatility and the possibility of negative returns.

Investment Objective: To provide a moderate to high level of risk, which corresponds to moderate to high expected returns with capital appreciation over the long term.

Minimum Suggested Investment Time Horizon: 3-5 years

Insurance cover through Raiz Invest Super

Automatic insurance cover is provided to Raiz Invest Super members on an opt-out basis, where members are provided with pre-approved insurance cover on Death (including Terminal Illness) and Total & Permanent Disablement (TPD), subject to a ‘pre-existing medical condition’ exclusion.

Insurance cover is provided by OnePath Life Limited ABN 33 009 657, AFSL 238341.

For more information refer to the Insurance section of Raiz Invest Super PDS.

Automatic Insurance Cover
Automatic insurance cover provides both death cover and TPD cover.

Death cover (including Terminal Illness cover), where your dependants receive a lump sum payment upon your death or where you may receive a lump sum payment if you become Terminally Ill.

TPD cover, where you will receive a lump sum payment if you suffer TPD.

To be eligible for default Automatic Insurance Cover, you must be:
  1. a Member of Raiz Invest Super;
  2. is an Australian Resident or a non-Australian Resident residing in Australia who hold a visa;
  3. is aged between 20 and 64;
  4. is not entitled to claim, nor in the process of claiming a TPD or terminal illness benefit; and
  5. have never been paid a terminal illness or TPD benefit.

Consistency between target market and the product

This product is likely to be consistent with the likely objectives, financial situation and needs of the class of consumers in the target market. This is based on an analysis of the key terms, features and attributes of the product and a finding that these are consistent with the identified class of consumers.
4. How this product is to be distributed
Distribution channels
This product is designed to be distributed through the following means:
  • Online – Raiz website
  • Mobile app

Distribution conditions
This product should only be distributed under the following circumstances:
  • Individuals that meet eligibility requirements; and
  • Individuals who through the Raiz website or mobile app have created an account in their own name.

Adequacy of distribution conditions and restrictions

It has been determined that the distribution conditions and restrictions will make it likely that consumers who purchase the product are in the class of consumers for which it has been designed.

The promoter and distributor has reviewed all regulatory documentation (Product Disclosure Statement, application forms, disclaimers, onboarding information collected) as well as the data collected during the application process to ensure that consumers who are outside the target market are filtered out to the extent practicable. The promoter and distributor is comfortable that the disclosure in documentation, together with the questions and data collected during application, enable it to ensure that distribution of the product occurs to a class of consumers who are within the target market.

As a result, we consider that the distribution conditions are appropriate and will assist distribution in being directed towards the target market for whom the product has been designed. We will review on a quarterly basis the outcomes the product is providing to consumers and determine if changes to the product or the distribution strategy are required.
5. Reviewing this target market determination
We will review this target market determination in accordance with the below:

Initial review
1/1/2023
Periodic reviews
1/1/2026

Every 3 years from the initial review
Review triggers or events
Any event or circumstances arise that would suggest the TMD is no longer appropriate. This may include (but not limited):
  • Material change to key product features, fund investment objective and/or fees;
  • Material deviation from benchmark / objective over sustained period;
  • Significant dealing outside TMD;
  • Material or unexpectedly high number of complaints (as defined in section 994A(1) of the Act) about the product or distribution of the product; and
  • The use of Product Intervention Powers, regulator orders or directions that affects the product.

When a review trigger has occurred, this target market determination will be reviewed within 10 business days.
6. Reporting and monitoring this target market determination
We will collect the following information from our distributors in relation to this TMD.

Complaints
Distributors will be required to report to issuers, complaints and other requested information that they receive, assisting issuers to assess whether their product governance arrangements are appropriate and their products are meeting the needs of consumers.

This will include the substance of complaints and general feedback relating to the product and its performance.
Significant dealings
Distributors will report if they become aware of a significant dealing in relation to this TMD within 10 business days.

A significant dealing includes:
  • Inconsistency of distribution conditions with the TMD;
  • More than 5% of consumers who have acquired the product but are not in the target market, including the proportion of consumers who are part of a class of consumers that have been specifically excluded from the target market; and
  • Potential/actual harm to consumers if consumers outside the target market acquire the product.