Integral Superannuation Fund

Transcription

1 Integral Superannuation Fund 2013 Annual Report to Members For the financial year ended 30 June 2013 SFN RSE No R ABN Contents Message from the Trustee 2 Government reforms in superannuation 3 Changes to the Integral Superannuation Fund during 2012/13 6 Change in Trustee 6 Changes to the product range 6 Investment overview 7 Diversified investment strategies 7 Asset class investment strategies 10 General investment information 11 Your Board Members 11 Abridged financial information 12 Important information The Trustee of the Integral Superannuation Fund (the Fund) is IOOF Investment Management Limited (IIML). It is a member of the IOOF Group of Companies. This Annual Report does not and is not intended to contain any recommendations, statements of opinion or advice. In any event, the information contained in this document is general in nature and 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. Plan B Wealth Management Ltd (AFSL ) is licensed to provide personal financial product advice and can assist you in this regard. Before making any decision in regards to the Integral Superannuation Fund, you should obtain and consider the information contained in the Product Disclosure Statement (PDS). This report has been prepared in good faith, based on information believed to be accurate and reliable at the time of publication. IIML provides no assurance that the Fund will continue to be available in the future. 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 Integral Superannuation Fund includes this Annual Report and your Member Benefit Statement.

2 Message from the Trustee 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 2012/13 financial year. In November 2012, Plan B Group Holdings Limited (Plan B) was acquired by IOOF Holdings Limited (IOOF). 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 Christopher Kelaher Managing Director IOOF Investment Management Limited as Trustee of the Integral Superannuation Fund 2

3 Government reforms in superannuation Minimum annual payments for account based pensions In recent years, the former Government has provided relief from the minimum drawdown percentages for account based pensions, in recognition of the impact of the Global Financial Crisis. For the 2013/14 year and later years, the minimum percentages revert to the standard rates as follows: Age Minimum annual pension payment as a percentage of account balance (%) Under and over Standard payment factors are also used for term allocated pensions, instead of the reduced amounts which applied from the 2008/09 year until the 2012/13 year. SuperStream SuperStream is a package of reforms which will make the superannuation system easier to use and ultimately reduce costs benefiting funds, members and employers. Broadly, SuperStream involves moving the superannuation industry from paper-based processing to mandatory electronic transactions. Transferring superannuation savings between funds, for example, will be completed by transferring data and money electronically. In addition, the Australian Taxation Office (ATO) will verify fund data and member identity, thus eliminating the need for members to provide certified copies of documents to the fund as proof of identity. Individuals can also use the ATO online portal SuperSeeker to request a full rollover of benefits from one fund to another, either by using the paper forms or the electronic portability form. All Australian Prudential Regulation Authority (APRA) regulated funds will be required to comply with these requirements by 1 January All large and medium employers are expected to start sending contributions in a standard electronic format by 1 July 2014, and all small employers are expected to implement this standard by 1 July This new standard will remove the need to submit this information to separate funds in different paper formats. Contributions will be allocated to member accounts more quickly using this electronic process. APRA Levy Commonwealth costs associated with the implementation of the SuperStream measures will be paid for by an increase to the existing APRA levy imposed on APRA regulated superannuation entities. The levy will collect a total of $467 million from funds between 2012/13 and 2017/18. The APRA levy will be adjusted each year based on the applicable rate determined by the Government, the number of members in the Fund and the total assets of the Fund. The Trustee has determined to recoup the cost of the levy from members of the Fund, each year until 2017/18. The APRA levy amount payable by members for the 2012/13 financial year and deducted from your account on 21 November 2013 was 0.03 per cent. This fee was deducted from all members accounts in the Fund. MySuper MySuper is a low-cost, default superannuation investment option that is made up of a single, diversified strategy and a basic default insurance benefit. From 1 January 2014, members who have not selected an investment option, or have selected a default investment option will have their future contributions paid into MySuper. Any existing investments in the trustee or employer default investment option will transition into MySuper prior to 1 July Fees Since 1 July 2013, general fee rules have applied to all APRA regulated superannuation funds. These new rules are: a prohibition on entry fees the cost of financial product advice (other than intra-fund advice) being charged to the member as an advice fee all fees (other than administration fees and investment fees) being charged on a cost recovery basis. 3

4 Website information Legislative and regulatory changes mean that certain information must be made publicly available on each fund s website. This may include information relating to the investment performance of each investment option (including the MySuper option) and the fees and costs relating to each option. It may also include information about the trustees or directors of the trustee board and various documents relating to the fund, such as the trust deed. Member benefit protection The member benefit protection rules required funds to protect account balances under $1,000 by reducing or waiving fees in certain circumstances. These rules were repealed on 1 July 2013 so that all fees will be applied in full for 2013/14 and later years. Increased tax on concessional contributions for very high income earners In broad terms, individuals with income above $300,000 per annum will pay an additional 15 per cent on concessional contributions made on or after 1 July The ATO will calculate the liability and issue a notice of assessment and a release authority so that the amount of the assessment can be released from the individual s super fund to make the payment to the ATO. There is a specific definition of income for these purposes and the calculations to determine an individual s tax liability are very complex. For these reasons it is recommended that members with very high incomes seek professional advice on their particular circumstances. Concessional contributions cap The concessional contributions cap is the limit on the amount of concessional contributions you can make each year before you pay extra tax. The concessional contributions cap for most individuals for the 2013/14 year is $25,000. However, from 1 July 2013, if you are 59 years old or over on 30 June 2013, the cap increases from $25,000 to $35,000. Exceeding the concessional contributions cap If your contributions in the 2012/13 year exceeded the cap by no more than $10,000, you may be able to have your excess contributions refunded and assessed at your marginal tax rate, instead of being taxed at a total of 46.5 per cent. Contributions which exceed the relevant cap in 2013/14 and later years will be included in your assessable income and taxed at your marginal tax rate. You will also be liable for an excess concessional contributions charge. To take into account the 15 per cent tax paid by your fund on the excess contributions, you will receive a non-refundable tax offset equal to the amount of tax paid. You can also elect to have your excess concessional contributions released from your superannuation fund which will result in those amounts not being counted towards your non-concessional contributions cap. The taxation rules relating to concessional and non-concessional contributions caps are complex and change from time to time. For this reason it is strongly recommended that you seek professional advice from a suitably qualified person. Increase in Superannuation Guarantee rate The rate of Superannuation Guarantee (SG) contributions will increase gradually between 1 July 2013 and 1 July The following table shows the rate for each year from the 2013/14 year. Year Rate (%) 2013/ / / / / / / From 1 July 2014, the higher $35,000 cap will also apply to individuals who are 49 years or older on 30 June

5 Trans-Tasman retirement savings portability From 1 July 2013 it is possible to transfer superannuation benefits between Australian APRA-regulated funds and New Zealand KiwiSaver schemes. The Trustee is now able to transfer member benefits to a KiwiSaver scheme if a member has left Australia and permanently emigrated to New Zealand. It is not compulsory for members to move their benefits. A form is available from the relevant client services team for members wishing to use this facility. The Trustee is unable at this stage to accept benefits from a KiwiSaver scheme in respect of individuals who have migrated to Australia from New Zealand. Intra-fund consolidation The intra-fund consolidation measures were deferred for the 2012/13 year and will now apply from 1 July Trustees are required to identify members with multiple superannuation accounts within the fund and consolidate those accounts where it is in the best interests of the members to do so. This consolidation is required on an annual basis, with the first consolidation occurring before 1 July Unclaimed superannuation money From 31 December 2012, small lost accounts with balances of less than $2,000 (previously $200) and accounts of unidentifiable members that have been inactive for 12 months were required to be paid to the ATO as unclaimed money. From 1 July 2013, interest calculated in accordance with the consumer price index, will be paid at the time the money is claimed. Superannuation co-contributions Reductions apply to the co-contributions scheme, for personal contributions made from 1 July The reductions in the matching rate and upper threshold are shown in the following table: Year in which contributions made Maximum entitlement Matching rate (%) Lower income threshold Upper income threshold 2011/12 $1, $31,920 $61, /13 $ $31,920 $46, /14 $ $33,516 $48,516 Removal of upper age limit for superannuation guarantee contributions From 1 July 2013, the upper age limit (previously age 70) for superannuation guarantee (SG) contributions is removed. This means that if you are still working, your employer will continue to be required to make SG contributions, regardless of your age. ATO online portal (SuperSeeker) The ATO has upgraded its SuperSeeker website so that it is now part of an individual s online portal. Individuals can view all the super data the ATO holds for them, as well as other tax information. Currently individuals can view on SuperSeeker: Accounts that have received contributions within the last two years Lost super ATO held super including unclaimed super money, SG contributions paid to the ATO, Government co-contributions. From 1 January 2014 new information will be available: Information about contributions and balances for all super accounts, including defined benefits, pensions, and accounts that have not received contributions. Whether the account has insurance cover. 5

6 Changes to the Integral Superannuation Fund during 2012/13 Change in Trustee On 30 April 2013, Plan B Trustees Limited (PBTL) retired as the Trustee for the Fund, and a related party, IOOF Investment Management Limited ABN , AFSL (IIML) became the new Trustee. The change in Trustee is intended to reduce duplicated resources, streamline administration processes and deliver operational efficiencies. We expect that overall, this will provide stronger risk management and compliance controls. This change has not impacted your account(s). Changes to the product range Product updates Closure of product to new applications On 30 April 2013, the Fund closed to new business and no new applications have been accepted after this date. Existing clients have retained their current Fund account, and have not be affected by the closure, although no new accounts have been able to be established from 30 April The change has not resulted in any change to the features, benefits or to the fees and costs for your Fund. Any arrangements you have, such as regular contributions or withdrawals, have been unaffected. Insurance After a recent comprehensive review of the current insurance arrangements, the Trustee decided to change insurance providers from MetLife Group Life Insurance (MetLife Insurance) to insurance with TAL Life Limited (TAL). This was effective 1 October TAL is one of Australia s largest group life insurers offering a large range of insurance options designed to give members the best cover possible. TAL is also the IOOF group s preferred group life insurer. 6

7 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 Investment performance Cash 30% Diversified Fixed Interest 25% Australian Shares (includes Australian property) 28% International Shares 17% Inception date 29 August / % 2011/ % 2012/ % Since inception 3.09% The manager of the Profile 45 strategy is IOOF Investment Management Limited as Responsible Entity of the Profile 45 managed investment scheme. 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 growth assets. Strategic asset allocation Investment performance Cash 20% Diversified Fixed Interest 25% Australian Shares (includes Australian property) 35% International Shares 20% Inception date 19 June / % 2011/ % 2012/ % Since inception 2.84% The manager of the Profile 55 strategy is IOOF Investment Management Limited as Responsible Entity of the Profile 55 managed investment scheme. 7

8 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 Investment performance Cash 10% Diversified Fixed Interest 25% Australian Shares (includes Australian property) 40% International Shares 25% Inception date 20 September / % 2011/ % 2012/ % Since inception 1.87% The manager of the Profile 65 strategy is IOOF Investment Management Limited as Responsible Entity of the Profile 65 managed investment scheme. 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 Investment performance Cash 6% Diversified Fixed Interest 19% Australian Shares (includes Australian property) 42% International Shares 33% Inception date 25 June / % 2011/ % 2012/ % Since inception 2.19% The manager of the Profile 75 strategy is IOOF Investment Management Limited as Responsible Entity of the Profile 75 managed investment scheme. 8

9 Profile 85 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 Investment performance Cash 1% Diversified Fixed Interest 14% Australian Shares (includes Australian property) 41% International Shares 44% Inception date 29 August / % 2011/ % 2012/ % Since inception 1.16% The manager of the Profile 85 strategy is IOOF Investment Management Limited as Responsible Entity of the Profile 85 managed investment scheme. Profile 95 Investment objective 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 Investment performance Cash 0.3% Diversified Fixed Interest 4.7% Australian Shares (includes Australian property) 40% International Shares 55% Inception date 28 September / % 2011/ % 2012/ % Since inception 0.20% The manager of the Profile 95 strategy is IOOF Investment Management Limited as Responsible Entity of the Profile 95 managed investment scheme. 9

10 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. Strategy Investment manager Date of inception 2010/11 % 2011/12 % 2012/13 % Since inception % Profile Diversified Fixed Interest To provide a gross return similar to that achieved by investing in domestic and global money market and fixed income securities generally with maturities of five years or less Profile Australian Shares To achieve long term capital growth through structured exposure to listed Australian equities Profile International Shares To achieve long term capital growth through structured exposure to listed global equities IOOF Investment Management Limited as Responsible Entity of the Profile Diversified Fixed Interest managed investment scheme IOOF Investment Management Limited as Responsible Entity of the Profile Australian Shares managed investment scheme IOOF Investment Management Limited as Responsible Entity of the Profile International Shares managed investment scheme 30/09/ /07/ /07/ Profile International Shares Hedged To achieve long term capital growth through structured exposure to listed global equities with reduced exposure to foreign currency risk IOOF Investment Management Limited as Responsible Entity of the Profile International Shares (Hedged) managed investment scheme 14/04/

11 General investment information (applying to all investment strategies) 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. 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 super 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 per cent of the Fund s assets as at 30 June Your Board Members The following persons held office as directors of PBTL during the year: Mr D C de Burgh (appointed 18 February 2002, resigned 12 November 2012) Ms B E Chandler (appointed 1 May 2011, resigned 8 October 2012) Mr D W J Coulter (appointed 8 October 2012) Mr B J Honey (appointed 14 June 2007, resigned 12 November 2012) Mr C F Kelaher (appointed 8 October 2012) Mr D K Pearce (appointed 22 April 2004, resigned 8 October 2012) Dr R N Sexton (appointed 9 November 2012) Mr K White (appointed 9 November 2012) The following persons held office as directors of IIML during the year and up to the date of this report: Mr I G Griffiths (appointed 23 June 2009) Ms J M Harvey (appointed 14 December 2005) Mr C F Kelaher (appointed 30 April 2009) Dr R N Sexton (appointed 23 June 2009) Mr G Venardos (appointed 23 June 2009) Mr K White (appointed 4 October 2011) The Trustee, IOOF Investment Management Limited, maintains an indemnity insurance policy to cover it against any claims made against it as Trustee of the Fund. 11

12 Abridged financial information Statement of financial position as at 30 June $ 2012 $ Assets Cash and cash equivalents 5,962,182 9,254,547 Investments Units in related unlisted managed funds 157,568, ,126,213 Units in other unlisted managed funds 375, ,457 Receivables Distribution receivables related unlisted managed funds 3,060,765 3,087,518 Distributions receivable other unlisted managed funds 5,466 5,674 RITC receivable 24,757 36,818 Other receivables 11,911 25,618 Other assets Current tax assets 335,869 92,414 Deferred tax asset - 629,912 Total assets 167,345, ,609,171 Liabilities Other payable 202,995 - Deferred tax liabilities 553, ,663 Total liabilities (excluding net assets available to pay benefits) 756, ,663 Net assets available to pay benefits 166,588, ,389,508 Represented by: Liability for accrued benefits 166,588, ,389,508 12

13 Operating statement for the year ending 30 June $ 2012 $ Investment income Interest income 255, ,055 Distributions related unlisted managed funds 5,377,670 4,713,932 Distributions other unlisted managed funds 8,104 12,159 Movements in net market value of investments 19,276,886 (7,604,261) 24,917,715 (2,593,115) Contributions revenue Employer contributions 3,676,977 4,501,405 Members contributions 5,578,974 8,628,791 Transfers from other funds 20,713,688 56,429,880 29,969,639 69,560,076 Other income Other income 41,172 34,857 Total revenue 54,928,526 67,001,818 Expenses Advisers fees (1,292,697) (1,170,533) Trustee s remuneration (754,445) (694,692) General administration expenses (744,253) (509,556) (2,791,395) (2,374,781) Benefits accrued as a result of operations before income tax 52,137,131 64,627,037 Income tax credit / (expense) attributions to benefits accrued as a result of operations 1,046,457 (182,215) Benefits accrued as a result of operations after income tax 51,090,674 64,809,252 Attributable to members of the Fund 51,090,674 64,809,252 13

14 Auditor s report The Integral Superannuation Fund and its accounts for the 2012/13 year have been audited by KPMG. Copies of the 2012/13 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, are 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. 14

15 IOOF Investment Management Limited ABN AFSL No RSE License No: L A member of the IOOF Group of Companies Level 28 Central Park St Georges Tce Perth Western Australia Telephone (08) Facsimile (08) Client Enquiries Telephone planb@planbonline.com PLA