I've been considering ING Living Super for when I get to a point in life where I want to reduce risk. In particular, rolling Term Deposits appear reasonable for someone who cannot justify the expense of a SMSF, without the direct risk of bond price falls in a pooled fund as interest rates rise.
But I noticed that the although the general FAQs on their website note the government guarantee: http://ingdirect.com.au/about_us/faq/general_faqs.htm
The PDS notes:
"An investment in ING DIRECT Living Super is neither a deposit nor liability of ING Bank (Australia) Limited or any of its related corporations and none of them stands behind or guarantees the Fund."
So I'm wondering if Cash+Term Deposits are invested in ING Australia (my assumption, since that would be easiest to manage at their end in terms of match assets - Australian Mortgages - and liabilities)? And how ring-fenced that investment would be to trouble within the European Parent (keep in mind ING is still A-rated so relatively safe compared to parts of Europe)?
Would it be safer to focus on Australian banks and/or diversify? e.g. Colonial have a fee-free product if you invest in CBA term-deposits, AustralianSuper let you invest in term deposits with mebank and NAB through their MemberDirect subscription, etc.
Appreciate any thoughts and discussion.