Change to International shares (hedged) option and update to PSSap product disclosure statement

ARIA has decided to introduce more flexibility in how it manages currency hedging.  This will help it better manage potential risk in the portfolio. Where such changes are made in relation to currency hedging, they will also be made to the level of hedging in the International Shares (hedged) option.

As a consequence, the name and description of the PSSap International shares (hedged) option have been amended to more accurately reflect the new policy. 

The option’s new description is:

International shares

Investing in international shares is like investing in Australian shares except that the companies selected are from those listed on international stock markets rather than the Australian stock market. The level of foreign currency exposure is determined by the Trustee and may vary from time to time. This option will usually be less exposed to currency fluctuations than the international shares (unhedged) option, although a portion of your investment will still be subject to currency risk.

Although the word ‘hedged’ has been removed from the option’s description, there has been no change to the current level of currency hedging in this option. However, in the future, the level of hedging may change from time to time if it is prudent and reasonable to do so in order to better manage potential risks.

The description above amends the existing description in the PSSap product disclosure statement by:

deleting the words in Table 7 on page 36.

International shares (hedged)

Investing in international shares (hedged) is like investing in Australian shares except that the companies are selected from those listed on international stock markets rather than the Australian stock market. Foreign currency exposure is generally hedged to Australian dollars where it is cost-effective and practical to do so. The percentage of this investment option’s assets that are hedged to Australian dollars will range between 70% and 100%. Therefore, while this option is less exposed to currency fluctuations than the International shares (unhedged) option, a portion of your investment will still be subject to currency risk’;

and replacing it with the new description provided above.