If I have a fee to pay, which assets will be sold to settle the liability?
The Trustee will typically redeem the most ‘liquid’ asset(s) in your accumulated account / sub-fund, in the following order of liquidity:
- Cash;
- Cash and currency funds;
- Bonds and bond funds;
- Listed equities / unit trusts / OEICs (dependent on liquidity);
- Fixed deposits (depending on maturity date);
- “Balanced” funds (funds containing mix of equity and cash);
- Equity funds and exchange traded funds;
- Hedge funds;
- Private Equity; or
- Alternative assets
Assets within advisory or discretionary managed accounts would be liquidated in the same order as above.