Integral Superannuation Fund

Transcription

1 2012 Annual Report to Members For the financial year ended 30 June SFN RSE Registration No R ABN

2 Important information The Trustee of the is Plan B Trustees Limited. It is a member of the IOOF Group of Companies. This Annual Report has been prepared without taking into account the personal objectives, financial situation or needs of any person. You should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and obtain professional financial advice prior to making any decision. Before making any decision in regards to the, you should obtain and consider the information contained in the Product Disclosure Statement (PDS). Investment performance shown within this Annual Report are past performance figures only. Past performance is not an indicator of future performance. The annual fund information for members of the includes this Annual Report and your Member Benefit Statement.

3 Table of contents Message from the Chairman 02 A review of the 2011/2012 financial year 03 Investment overview 06 Your Board Members 11 Abridged financial information 13 Auditor's report 15

4 Message from the Chairman 2 I am pleased to present the Integral Superannuation Fund annual report for the financial year ended 30 June Within the report you will find general information about the Fund, including abridged financial statements and changes to the Fund that have occurred during the 2011/2012 financial year. In November 2012, Plan B Group Holdings Limited (Plan B) was acquired by IOOF Holdings Limited (IOOF) in a friendly off-market takeover. Plan B is now a member of the IOOF Group, joining leading companies and brands such as Lonsdale Financial Group, Bridges Financial Services, Australian Executor Trustees and Perennial Investment Partners. For over 160 years, IOOF has been helping Australians secure their financial future. Having grown to become a leading provider of financial services and a trusted partner for financial advisers and their clients, Plan B represents a good strategic fit within the IOOF group. For more information visit the IOOF website ( On behalf of the board of Trustee directors, thank you for your ongoing support. Yours sincerely Dr Roger Sexton Chairman Plan B Trustees Limited

5 A review of the 2011/2012 financial year Changes that took effect from 1 July 2011 Eligible Rollover Fund Closure Effective 22 June 2012, the Eligible Rollover Fund (ERF) was closed to new business. This means that once an employee leaves their employer, they are no longer transferred to the ERF; rather, they are transferred over to the personal division of the fund that they were in being either the Lifetime Super Fund or Plan B Super Fund. Likewise, members who are classified as lost members, will remain in their current fund until transferred to the Australian Taxation Office Changes that took effect from 1 July 2012 Pension payment amounts 2012/2013 The Government announced that the 25% pension drawdown relief will be extended into the 2012/2013 financial year. This means that for the 2012/2013 financial year, the minimum payment amount required to be made is as follows: Your age (years) Normal requirements 2012/2013 financial year Up to % 3.0% % 3.75% % 4.5% % 5.25% % 6.75% % 8.25% % 10.5% 3

6 A review of the 2011/2012 financial year (cont'd) Government Co-contributions The Government has announced reductions to the co-contribution scheme for personal after-tax contributions made from 1 July This means that from 1 July 2012, the super co-contribution matching rate will be 50% (or 50 cents for every $1 contributed after tax). The maximum co-contribution will be $500 which will apply if you're earning less than $31,920 pa and the income cut off will be $46, Contributions tax rebate for low income earners (Low Income Super Contribution) From 1 July 2012, if you earn less than $37,000 in a year, then you will automatically receive a rebate from the Government on the 15% contributions tax paid on Superannuation Guarantee and salary sacrifice contributions. The payment will be made into your superannuation account by the government and is up to a limit of $500. The minimum refund is $20. Change to concessional contribution cap From 1 July 2012, the $25,000 pa concessional contribution cap will apply to everyone, regardless of age or account balance. Concessional contributions are before-tax contributions including Superannuation Guarantee (SG) payments (made by your employer on your behalf), salary sacrifice contributions and contributions by the self-employed. The government sets limits, or caps, to the amount of concessional contributions a member can receive in each financial year.

7 Increase in contribution tax for high-income earners The Government has proposed that those on incomes greater than $300,000 will have the tax on their concessional super contributions increased from 15% to 30%. The definition of income will include taxable income, concessional contributions, adjusted fringe benefits, total net investment loss, target foreign income, tax-free government pensions and benefits, less child support. The measure will not apply to excess concessional contributions. These will remain subject to the excess contributions tax and are taxed at the top marginal tax rate. This measure does not affect the 15% tax on super earnings. APRA levy The Australian Prudential Regulation Authority (APRA) imposes an annual levy on APRA-registered superannuation funds. Plan B Trustees Limited has determined that this levy will be allocated to fund members as an additional charge on a pro rata basis calculated on the member account balance. The APRA levy to be deducted from your account for the year 2011/2012 is 0.04%. This amount is not fixed and the amount of the levy may fluctuate from year to year. These costs and charges will be paid from the Fund s assets prior to valuation. 5

8 Investment overview Diversified investment strategies These strategies are built to capture varying amounts of return and volatility. They carry different proportions of cash, fixed interest and shares to meet the growth and income needs of most members. The strategy options have been carefully designed to provide broad diversification, low cost and reliable asset class exposure. Profile 45 Investment objective To generate consistent returns from a diversified portfolio with a slight bias towards defensive or income assets Strategic asset allocation Profile 55 Investment objective To generate long term capital growth accompanied by a reasonable level of income from a diversified portfolio with a slight bias towards income and growth assets Strategic asset allocation 6 Cash 30% Diversified Fixed Interest 25% Australian Shares 28% (includes Australian property) International Shares 17% Cash 20% Diversified Fixed Interest 25% Australian Shares 35% (includes Australian property) International Shares 20% Investment performance Inception date 29 August / % 2010/ % 2011/ % Since inception 1.38% Investment performance Inception date 19 June / % 2010/ % 2011/ % Since inception 0.74% The manager of the Profile 45 strategy is Plan B Trustees Limited as Responsible Entity of the Profile 45 managed investment scheme. The manager of the Profile 55 strategy is Plan B Trustees Limited as Responsible Entity of the Profile 55 managed investment scheme.

9 Diversified investment strategies Profile 65 Investment objective To generate long term capital growth accompanied by a moderate level of income from a diversified portfolio with a moderate bias towards growth assets Strategic asset allocation Cash 10% Diversified Fixed Interest 25% Australian Shares 40% (includes Australian property) International Shares 25% Profile 75 Investment objective To provide investors with good prospects for maximising capital growth over the long term with little emphasis on the level of income from a diversified portfolio with a significant bias to growth asset classes such as Australian and international shares and property Strategic asset allocation Cash 6% Diversified Fixed Interest 19% Australian Shares 42% (includes Australian property) International Shares 33% Investment performance Inception date 20 September / % 2010/ % 2011/ % Since inception -0.86% Investment performance Inception date 25 June / % 2010/ % 2011/ % Since inception -0.78% 7 The manager of the Profile 65 strategy is Plan B Trustees Limited as Responsible Entity of the Profile 65 managed investment scheme. The manager of the Profile 75 strategy is Plan B Trustees Limited as Responsible Entity of the Profile 75 managed investment scheme.

10 Investment overview (cont'd) Diversified investment strategies Profile 85 Investment objective Profile 95 Investment objective To provide investors with good prospects for maximising capital growth over the long term with a low emphasis on the level of income from a diversified portfolio with a strong bias to growth asset classes such as Australian and international shares and property Strategic asset allocation Cash 1% Diversified Fixed Interest 14% Australian Shares 41% (includes Australian property) International Shares 44% To provide investors with good prospects for maximising capital growth over the long term with no emphasis on the level of income from a diversified portfolio with a very strong bias to growth assets Strategic asset allocation Cash 0.3% Diversified Fixed Interest 4.7% Australian Shares 40% (includes Australian property) International Shares 55% 8 Investment performance Inception date 29 August / % 2010/ % 2011/ % Since inception -2.46% Investment performance Inception date 28 September / % 2010/ % 2011/ % Since inception -4.08% The manager of the Profile 85 strategy is Plan B Trustees Limited as Responsible Entity of the Profile 85 managed investment scheme. The manager of the Profile 95 strategy is Plan B Trustees Limited as Responsible Entity of the Profile 95 managed investment scheme.

11 Asset class investment strategies If our diversified strategies are not entirely appropriate to help you achieve your objectives you can construct your own portfolio to suit your individual requirements. A range of asset class strategies has been introduced to give you the flexibility to invest in individual asset sector funds. The objective of these strategies is to deliver you the market return in a low cost manner by adopting a passive investment approach. Investment Strategy manager Profile Diversified Fixed Interest To provide a gross Plan B Trustees return similar to that Limited as achieved by investing Responsible Entity of in domestic and the Profile Diversified global money market Fixed Interest and fixed income managed investment securities generally scheme with maturities of five years or less Profile Australian Shares To achieve long term capital growth through structured exposure to listed Australian equities Plan B Trustees Limited as Responsible Entity of the Profile Australian Shares managed investment scheme Profile International Shares To achieve long Plan B Trustees term capital growth Limited as through structured Responsible Entity exposure to listed of the Profile global equities International Shares managed investment scheme Profile International Shares Hedged To achieve long term capital growth through structured exposure to listed global equities with reduced exposure to foreign currency risk Plan B Trustees Limited as Responsible Entity of the Profile International Shares (Hedged) managed investment scheme Date of inception 2009/ / / 2012 Since inception 30/9/ % 5.79% 8.51% 7.98% 1/7/ % 10.78% -7.18% -0.91% 1/7/ % 4.26% -2.30% -1.16% 14/4/ % 27.01% -3.66% 13.49% 9

12 Investment overview (cont'd) Use of derivatives It is the Trustee's policy to only use derivative financial instruments to hedge or partially hedge specific exposures. The Fund's instrument strategy is to not enter, hold or issue derivative financial instruments for trading purposes. Some of the Fund's underlying investments are in externally managed funds which, as part of that fund manager's investment strategy, use derivative financial instruments. 10 Allocation of earnings Each investment strategy is divided into units with each unit constituting an equal interest in the net market value of the strategy. Earnings increase the net market value of the strategy, thereby increasing the strategy s unit price. The Trustee may also distribute a strategy s earnings to members up to twice a year. These distributions are based on the number of units held and are credited directly to each member s superannuation account. Disclosure of significant investments The Trustee has not acquired any assets from members, their relatives or associates. The Fund has investments in the Profile 45, Profile 55, Profile 65, Profile 75, Profile 85, Profile 95, Profile Fixed Interest, Profile Australian Shares and Profile International Shares managed investment schemes that constitute more than 5% of the Fund's assets as at 30 June 2012.

13 Your Board Members The Board Members of the Trustee are: Dr Roger Sexton (Chairman) (appointed 9 November 2012) Dr Sexton has over 25 years experience in senior management in finance and the investment banking industry and is a specialist in the areas of corporate reconstruction, mergers and acquisitions, and asset management. Dr Sexton is a member of the Australian Accounting Standards Board. Mr Christopher Kelaher (appointed 8 October 2012) Mr Kelaher has been Managing Director of IOOF Holdings Ltd and antecedent companies Australian Wealth Management Ltd and Select managed Fund Ltd since He has more than 25 years experience in investment management and business development. Mr Kelaher was responsible for business management, strategic marketing and sales growth in Australia at Citicorp. He also performed an important role in the establishment of Citicorp investment management/global Asset Management in Australia and establishing its New Zealand business. Mr David Coulter (appointed 8 October 2012) David was appointed Chief Financial Officer at IOOF in September He has held other finance positions within IOOF, including Head of Management Reporting prior to the merger between IOOF and Australian Wealth Management Limited in With extensive financial services experience and listed entity experience, he has worked at ANZ Bank and Colonial as well as in the agribusiness sector in a twenty year professional career. David is a chartered accountant and holds a Bachelor of Commerce from Melbourne University. 11

14 Your Board Members (cont'd) Mr K White (appointed 9 November 2012) Mr White has been a Non-Executive Director of IOOF Holdings Ltd since October Mr White graduated as a professional engineer in 1973 and has spent the majority of his working life in the finance industry, including 15 years as Managing Director of WHK Group Limited, a financial services company listed on the Australian Securities Exchange. Mr White is a Non-Executive Director of Royal Automobile Club of Victoria (RACV) Limited and a number of its associated companies, including Insurance Manufacturers of Australia Pty Limited. The Board Members of the Trustee as at 30 June 2012 were: Mr D C de Burgh (Chairman) (retired as at 12 November 2012) Mr B J Honey (Retired as at 12 November 2012) Mr D K Pearce (Retired as at 8 October 2012) Ms B Chandler (Retired as at 8 October 2012) 12 The Trustee, Plan B Trustees Limited, maintains an indemnity insurance policy to cover it against any claims made against it as Trustee of the Fund.

15 Abridged financial information Statement of financial position as at 30 June $ $ Assets Cash and cash equivalents 9,254,547 4,301,615 Investments Units in related unlisted managed funds 146,126, ,277,529 Units in other unlisted managed funds 350, ,290 Receivables Distributions receivable: - related unlisted managed funds 3,087,518 7,027,176 - other unlisted managed funds 5,674 5,061 RITC receivable 36,818 29,566 Other receivables 25, ,093 Other assets Current tax assets 92,414 - Deferred tax assets 629, , Total assets 159,609, ,297,510 Liabilities Current tax liabilities - 668,495 Distribution payable to non-controlling interests - - Assets attributable to non-controlling interests - - Other payables 219, ,461 Total liabilities (excluding net assets available to pay benefits) 219, ,956 Net assets available to pay benefits 159,389, ,426,554 Represented by: Liability for accrued benefits 159,389, ,426,554

16 Abridged financial information (cont'd) Operating statement for the year ended 30 June 2012 Investment income $ $ Interest income 285, ,109 Distributions related unlisted managed funds 4,713,932 7,474,569 Distributions - other unlisted managed funds 12,159 11,508 Movement in net market value of investments (7,604,261) (429,087) (2,593,115) 7,212, Contributions revenue Employer contributions 4,501,405 2,974,421 Member contributions 8,628,791 8,318,190 Transfers from other funds 56,429,880 62,043,855 69,560,076 73,336,466 Other income Other income 34,857 9,906 34,857 9,906 Total revenue 67,001,818 80,558,471 Expenses Advisers' fees (1,170,533) (840,695) Trustee s remuneration (694,692) (477,178) General administration expenses (509,556) (234,299) (2,374,781) (1,552,172) Benefits accrued as a result of operations before income tax Income tax credit / (expense) attributable to benefits accrued as a result of operations 64,627,037 79,006, ,215 (812,208) Benefits accrued as a result of operations after income tax 64,809,252 78,194,091 Attributable to non-controlling interests - - Attributable to members of the Fund 64,809,252 78,194,091

17 Auditor's report The and its accounts for the 2011/2012 year have been audited by KPMG. Copies of the 2011/2012 financial statements and the audit report stating that the financial statements are presented fairly, and that the Fund had complied with the relevant requirements of the Superannuation Industry (Supervision) Act 1993 and Regulations, is available to members upon request. If you need any further assistance or if you are unsure about any of the information in this report, please contact the Client Services Team at Plan B on (08) or or your Adviser. 15

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19 /integral:/ adjective. necessary to the completeness of the whole.

20 Plan B Trustees Limited ABN AFSL No RSE Licence No L A member of the IOOF Group of Companies Postal Address PO Box 7008 Cloisters Square Perth WA 6850 Client Enquiries Telephone info@integralonline.com.au