Trustee Report for. Holden Employees Superannuation Fund

Transcription

1 Trustee Report for 2012 Holden Employees Superannuation Fund

2 Trustee Report for Contents From the Trustee 1 Your Fund Website 2 Super News 4 How your Fund works 6 Where your super is invested 7 Investment options 10 Who manages your Fund? 15 Fees and other costs 16 Financial summary 17 Additional information 18 What to do when you leave your employer 19 Who to contact 20 Issued by Holden Employees Superannuation Fund Pty Ltd, ABN , as Trustee of the Holden Employees Superannuation Fund, ABN November 2012 From the Trustee Welcome to the Holden Employees Superannuation Fund Trustee Report for It has been another difficult year in investment markets as indicated by the Fund s investment returns shown in the table opposite. Last year we made a number of enhancements to the Fund s Member Investment Choice arrangements effective from 1 October 2011 to give you greater flexibility to tailor the investment strategy for your super. The key changes included the introduction of a fifth investment option, the Cautious option, and the ability to select more than one investment option in which to invest your superannuation account balances and to have different investment options for your future contributions. As a result, 98 members took the opportunity to change the investment of their account balances, 23 members chose the new Cautious option and 76 members changed the investment of their future contributions. It is a legislative requirement that the Fund s Actuary conducts an Actuarial Review of the Fund every 3 years to provide information on the funding and financial status of the Fund. The latest actuarial review was conducted as at 30 June 2011 and I am pleased to advise that the Actuary has reported that the Fund is in a satisfactory financial position. The Government has announced a number of very significant changes to superannuation, as noted on pages 4 and 5. Where these changes impact on the Fund, the Trustee is taking the required steps for implementation. If you haven t visited the Fund s website, the Trustee strongly recommends you do so as it provides a wealth of information about the Fund as well as your own account. Further information on the Fund website is included on the next page. Finally, Debora Jackson recently resigned as the Independent Director on the Trustee Board due to her other work commitments. On behalf of the Trustee Directors, I wish to thank her for her tremendous contribution over the last 6 years. The Board is currently looking for her replacement. Fund Earning Rates for the year ending 30 June 2012 Net Earning Rate of 0.9% p.a. for the Defined Benefit Section Returns for the investment options under the Additional Benefit and Retained Benefit Sections: y -2.9% p.a. for the High Growth Option y -0.2% p.a. for the Balanced Option y 5.5% p.a. for the period 1 October 2011 to 30 June 2012 for the Cautious* Option y 4.7% p.a. for the Conservative Option y 4.4% p.a. for the Cash Option * The Cautious Option commenced 1 October Please be aware that past performance is not an indicator of future performance. Fund statistics as Net assets of $694.1 million 6,416 members (including 3,189 members in the Retained Benefit Section and 2 pensioners) Benefits totalling $11.8 million paid to retiring and totally and permanently disabled members $0.8 million paid to families of members who died $20.6 million paid to other members who left the Fund Andrew White Chair

3 Holden Employees Superannuation Fund 2 Your Fund Website at The Fund website is a great resource offering a wealth of information on the Fund. The website is divided into two parts a public area and a secure member area. The public area of the website The public homepage provides information about the Fund, including: the Fund s Investments the latest Trustee Report access to Fund publications, access to a range of Fund forms. It also includes a range of planning tools and an article library which has special interest and education articles on a range of financial topics not just super. Please note that in the Documents & forms section there are Information Sheets, which are specifically applicable to members of the Fund, and even to specific sections of members. The secure member area of website Via the homepage, you can also access up-to-date information on your personal contributions and benefits by signing into the secure member area. Once in this area you can: find out how much super you currently have (refer to the screen print on this page) review and make changes to your Member Investment Choice options view daily unit prices for the Member Investment Choice options view or download your annual Benefit Statements view your current beneficiaries for the payment of your death benefits in the Fund, and update them if required view your contribution details, and see how you re tracking against the Government contribution caps that apply (refer to the screen print on the next page) view your correspondence with the Fund, for example a completed Fund form, a financial advisor authority, a roll in to the Fund, PIN reset requests, inquiries you have made to the Fund Helpline. How to Sign in To access your personal account, you ll need your Member Number (find this on your last Benefit Statement) and your PIN (a PIN was issued to each member in early April 2008). If you have forgotten your PIN, please call the Holden Super Helpline on for assistance. If you ve provided an address to us previously, you can reset your PIN by following the prompts to Reset your PIN from the Sign-in section on the homepage.

4 Trustee Report for Recent enhancements All members can now update their telephone and contact details online via the Update your current details page. Retained Benefit Section members can also update their address online. All members can decide whether to receive certain information electronically. As part of this initiative, you can elect to have confirmation advice notifications sent to you electronically. If you provide your address, when you change your investment option or update your beneficiaries or rollin/transfer money into the Fund, then your confirmation will be sent directly to your address as a password protected PDF document. Or if you decide you no longer want to receive electronic confirmations, you can decide to opt-out by updating your member communication preferences on the Update current details section of your Personal details page. Contribution caps For detailed information on the contribution caps and their application under the Fund, please refer to an Information Sheet titled Caps on concessional and non-concessional contributions for your category of membership, available on the Fund website on the Documents & forms page under Fund information.

5 Holden Employees Superannuation Fund 4 Super News It seems that superannuation is always changing and the past year has been no exception with the Federal Government announcing or introducing a number of changes affecting superannuation. Some of these changes have already been legislated although, in some cases, we are still waiting for the Government to announce further details or to pass further amendments. Other changes are merely announcements at this stage and will need to be passed by Parliament before they are implemented. Changes already in place Changes to the Superannuation Guarantee The Superannuation Guarantee (SG) contribution rate will increase from 9% to 12% in small increments from 1 July 2013 to 1 July This will improve the adequacy of retirement benefits provided to Australians and the sustainability of Australia s retirement income system. The Government has also removed the SG age limit of 70 with effect from 1 July This is also a positive change which broadens the range of employees covered by the SG. Superannuation contribution for low income employees A new contribution of up to $500 (not indexed) will be provided by the Government for individuals with an adjusted taxable income* of up to $37,000 and who satisfy certain other conditions. This is designed to effectively return the 15% contribution tax on SG contributions. It will take affect from 1 July 2012 with the first payments being made in the year commencing 1 July This change will improve the tax effectiveness of superannuation for eligible low income earners and provide a boost to their superannuation savings. * Your adjusted taxable income includes your taxable income plus a number of other items. Concessional contribution caps From 1 July 2012 the concessional contribution cap is $25,000 for everyone, including members aged 50 or older. (The higher concessional caps for those 50 and above ceased on 30 June 2012.) The Government has frozen indexation of this cap for two years so the cap will remain at $25,000 until 1 July 2014 when it is expected to be indexed to $30,000. The Government has also announced, but not yet legislated, further changes to the cap for those over age 50 from 1 July 2014 (see under announced changes below). Refund of excess concessional contributions From 1 July 2011, individuals who breach the concessional contributions cap by $10,000 or less can request the excess contributions be withdrawn from their super fund and refunded to them. Those excess concessional contributions will be taxed at the individual s marginal tax rate. This refund will only apply for first time breaches of the concessional cap and only to contributions made from 1 July 2011 onwards. Fees for advice Limitations have been placed on fees that can be charged to members superannuation accounts for financial advice. This is primarily aimed at stopping ongoing fees for advice being automatically deducted unless they are regularly approved by the member. Account based pensions For the year 1 July 2012 to 30 June 2013, the minimum amount required to be drawn down from an account based pension has been reduced by 25%. This is the same reduction as allowed for the 2011/12 year. The reduced drawdown requirements enable pensioners to reduce the amount they withdraw from their account based pensions and provide more time for asset values to recover following the Global Financial Crisis. Announced changes Co-contributions reduced but still valuable Up until 30 June 2012, the Federal Government made a special contribution of up to $1 for each $1 contribution you made from your after-tax income (subject to you satisfying the qualification requirements). The maximum co-contribution was $1,000 a year if your total income was less than $31,920 a year. The co-contribution reduced gradually for those earning up to a maximum of $61,920. However, the Government has announced that it will change the rules from 1 July 2012 (however, has not yet done so). After that date, the maximum Government contribution will reduce to 50 cents for each $1 contribution you make from your after tax income. The maximum co-contribution will become $500 a year if your total income is less than $31,920 a year. The co-contribution will reduce gradually for those earning up to a maximum of $46,920. The income thresholds will not be indexed until 1 July Despite the reduction in the level of Government contributions, they can still provide you with additional retirement savings. * Your total income includes your assessable income, reportable fringe benefits and your reportable employer superannuation contributions (see above) less any deductions for carrying on a business. Higher concessional contribution caps for the over 50 s The Government has announced a higher concessional contributions cap will apply for those over age 50 with an account balance of less than $500,000. This will now apply from 1 July 2014 rather than 1 July 2012 as announced earlier. This will provide greater scope for eligible members to use concessional contributions to top-up their superannuation. However, it will add considerable complexity. The Government has not yet finalised the details of how this change will operate. Once finalised, the changes will need to be passed by Parliament.

6 Trustee Report for Increase in tax on contributions for high income earners The Government has announced an additional 15% tax on employer, salary sacrifice and some other contributions for high income earners (i.e. those with incomes of $300,000 per annum or more) from 1 July However, the higher tax rate will not apply to contributions that exceed the concessional contributions cap as these are already taxed at 46.5%. As yet there is no legislation for this measure so few details are available on how this additional tax will operate. It is important to recognise that generally, even with this additional tax, superannuation contributions will continue to be taxed on a concessional tax basis compared with salary income. MySuper From 1 July 2013, subject to Parliament passing the required legislation and the trustee obtaining approval from the superannuation regulator, APRA, super funds will be able to offer a new style of superannuation called MySuper. MySuper funds will need to meet a number of new standards including rules relating to fees and charges. They will also be simpler than many current arrangements. The Government has announced that, from 1 January 2014, unless an employee has specified another fund or arrangement, employers will need to pay their contributions for you to a MySuper fund. MySuper does not apply to defined benefit funds. New trustee requirements The Government will place more stringent requirements on trustees to ensure they act in an appropriate manner and in the interests of members. Trustees will also be required to establish an operational risk reserve to protect members if something goes wrong in the operation of the fund. These changes are intended to increase the security of members retirement benefits by improving the governance of superannuation funds. It is likely that these new requirements will start in 2013 subject to the relevant legislation being enacted. SuperStream The Government is working with the superannuation industry to develop new reporting protocols which will be standardised across the industry. The changes are expected to generate cost savings for superannuation funds which should eventually result in lower fees being applied to superannuation members. The changes include greater standardisation of forms and back-office practices used by the industry as well as working towards employers providing better data regarding contributions paid. Greater use of Tax File Numbers Super fund trustees will, subject to complying with regulations, be able to use tax file numbers (TFNs) to locate members accounts and facilitate account consolidation, whether in the same fund or across multiple funds, making it easier to track lost super and combine a member s accounts. Over time it is intended to extend the ability of trustees to use your TFN for the purposes of combining accounts. Super contributions on payslips From 1 January 2013 (previously expected to commence from 1 July 2012), employers will be required to provide information on an employee s payslip about the amount of super actually paid into the employee s super fund account during the pay period. From 1 July 2013, super funds will be required to either issue six monthly statements which show contributions made, or report electronically to members on whether they have received or not received any super contributions for that quarter. These changes, if passed by Parliament, are intended to help employees keep track of their employer s contributions.

7 How your Fund works The Fund is divided into three sections: the Defined Benefit Section (also referred to as the Contributory Benefit Section), Additional Benefit Section, and Retained Benefit Section. A summary of the features of each Section is provided on this page. Please refer to your Member Booklet or leaflet for detailed information about each Section of the Fund. These are available on the Fund website at Defined Benefit Section The main feature of this Section is that your retirement, death and total and permanent disablement benefits are provided in the form of defined benefits. These benefits are based on: your period of membership, your pension rate and your Base Salary/Wage. For Salaried Payroll members, the pension rate is % for each year of membership. For Plant Payroll members it varies with your Basic Contribution rate as follows: Basic Contribution rate (as a % of Base Wage) Pension rate for membership up to 30/6/2005 Pension rate for membership from 1/7/ % % % % % % % % Your benefit on resignation is an accumulation style benefit, based on your Basic Contributions and interest credited. You make Basic Contributions to this Section. Each year at 1 July, Plant Payroll members have the option to change their rate of Basic Contributions and whether this is on an aftertax or salary sacrifice basis. Your employer pays the balance of the cost of providing the benefits. The Fund Actuary monitors the Fund s financial position and recommends the contribution rate that the employer must make. Government regulations require that an Actuarial Review of the Fund takes place every three years. The purpose of this review is to provide information to the Trustee on the funding and financial status of the Fund. The last completed Actuarial Review covered the three year period ending 30 June Page 7 of this report provides investment and performance details. Additional Benefit Section Any Voluntary Additional Contributions you make to the Fund, any Government Co-contributions, any amounts you roll over or transfer from another fund and any Supplementary Superannuation Contributions made by the employer to the Fund on your behalf are credited to separate accounts established in your name. Each account is made up of the accumulation of these contributions (after deducting any tax payable on employer contributions) adjusted for investment earnings (which may be positive or negative). At the end of each quarter, you have the option to change the level of Voluntary Additional Contributions you make to the Fund and whether this is on an after-tax or salary sacrifice basis. You have a choice of investment options in which to invest your account balances and you can change your investment option. Details can be found in the Member Investment Choice Guide available on the Fund website. Pages of this Report provide investment and performance details as. Holden Employees Superannuation Fund 6 Retained Benefit Section Any member who leaves the employer and has a superannuation account balance of more than $1,000 can leave their benefit in the Fund. Members of this Section: have access to the Fund s investment options, can roll-in or transfer amounts from other funds, can make lump sum personal contributions, and can make withdrawals of non-preserved amounts. There are no entry fees to the Retained Benefit Section. A regular administration fee is deducted from your account. The fee is: $1.26 per week for year ended 30 June 2012, and $1.33 per week from 1 July This fee is indexed each 1 July to the increase in Average Weekly Ordinary Time Earnings.

8 Trustee Report for Where your super is invested Your Fund has guidelines for investing The Trustee has an investment policy that sets investment strategy and objectives covering how and where the Fund s assets will be invested as well as other investment related matters. The Trustee regularly monitors the Fund s performance against its objectives and strategy, and changes are made where necessary. The Trustee does not directly use derivative instruments. Derivatives are not an asset class; they are financial contracts in which parties agree to arrangements for buying or selling an asset at a set price at some specified time in the future. Examples are share options or futures. The underlying investment managers may use derivatives in managing their part of the pooled investment vehicles in which the Trustee invests. The use of derivatives is monitored by the Investment Manager. Decisions to invest in or realise investments are based on key financial and managerial criteria. The Trustee does not separately consider social, environmental or ethical factors or labour standards to make these decisions. This and the following pages outline the investment objectives, strategies and performance for each section of the Fund, apart from the Pension section. The assets supporting the Fund s pensions are in a tax-exempt investment. Defined Benefit Section for GMAC members The assets for GMAC members are fully invested in the Russell Australian Cash Fund. The investment return for the year ended 30 June 2012 was 3.71%. This was also the interest rate credited to their Basic Account. Defined Benefit Section for GM Holden Ltd members Investment objectives The long term investment objectives: To earn a return (after fees and tax) exceeding the rate of inflation (as measured by the Consumer Price Index (CPI) by at least 3.5% p.a. over rolling 5 year periods, and The likelihood of a negative return in any given year not being greater than 1 in 5 years. Performance against Objectives The chart below compares the Fund s Net Earning Rate with inflation (as measured by CPI) for the five years to 30 June Year Net Earning Rate % p.a. CPI % p.a Annual Compound Rate for the 5 year period

9 Holden Employees Superannuation Fund 8 Investment Strategy The actual asset allocation at 30 June 2011 and 2012 are shown in the table below. Also shown is the strategic asset allocation. Actual asset allocation % Strategic asset allocation % Asset class at 30 June 2011 Growth assets Australian Shares International Shares Unhedged International Shares $A Hedged Emerging markets* International Property $A Hedged Global Listed Infrastructure $A Hedged** Defensive assets Australian Bonds International Bonds $A Hedged Australian Enhanced Cash TOTAL * Emerging Markets This investment is exposed to a broad range of shares listed on the stock exchanges in emerging markets (such as those included in the Russell Emerging Markets Index. These economies typically have higher economic growth but are more susceptible to market fluctuations. ** Global Listed Infrastructure This investment aims to provide exposure to a diversified portfolio of predominantly global listed infrastructure securities on stock exchanges in developing and emerging markets (such as countries included in the S&P Global Infrastructure Index).

10 Trustee Report for Earning and Crediting Rates Whilst retirement, death and total and permanent disablement benefits are provided in the form of defined benefits, your resignation benefit is different as it is an accumulation style benefit and depends on the rate of interest credited to your Basic Contributions. The Fund s Crediting Rate Policy was changed with effect from 1 July Until the time when the Notional Crediting Rate reserve reached nil, the Crediting Rate continued to be calculated using the existing smoothing approach but with a minimum rate of zero. When the Notional Crediting Rate Reserve reached nil, the Crediting Rate would be the actual Net Earning Rate (which may be positive or negative). In March 2012, the Notional Crediting Rate Reserve reached nil (for more information refer to the notice posted to members in April a copy is available on the Fund website). Therefore from 1 April 2012 investment earnings are allocated to member s Basic Account using a Crediting Rate equal to the actual Net Earning Rate (which may be positive or negative). As a result the Crediting Rate applied to members Basic Account for the year ending 30 June 2012 was: Period Rate % 1 July February March March April 2012 to 30 March May 2012 to 30 May June 2012 to 30 June The table below shows the history of the Net Earning Rate and the Crediting Interest Rate over the five years to 30 June Year as at 30 June Net Earning Rate % p.a. Crediting Interest Rate % p.a Annual Compound Rate for the 5 year period Past performance should not be taken as an indication of future performance. Investment returns can go up or down. Additional Benefit and Retained Benefit Sections There are five investment options available for investing your accounts: High Growth, Balanced, Cautious, Conservative and Cash. Your accounts invested in units Your accounts buy you units in your chosen investment options. The price of units varies from day to day, depending on the value of the underlying assets. As contributions go into your accounts, you get more units in your chosen investment options. The total value of your accounts at any time is simply your total number of units in your chosen investment options multiplied by the relevant unit sell price. The impact of transaction and operational costs on the unit prices (i.e. expenses, commissions, brokerage and other fees which are incurred in buying or selling part or all of the underlying investments of each investment option) is passed on to members through what is commonly referred to as the buy/sell spread. The buy/sell spread is the difference between the (higher) price at which members can purchase units (the buy price) and the (lower) price at which members can sell units (the sell price). No part of the buy/sell spread is paid to the Trustee. For an example on how buy/sell spreads work in practice, please read the example on page 16 of the Member Investment Choice Guide, available on the Fund website. The buy/sell spread is different for each investment option and can change over time. The buy/sell spreads at 1 November 2012 were: High Growth option: 0.56% of the amount invested. Balanced option: 0.52% of the amount invested. Cautious option: 0.46% of the amount invested. Conservative option: 0.36% of the amount invested. Cash option: Nil. The latest buy/sell spreads for all options are available on the Fund website. Changing your investment choice From 1 October 2011, you can change your investment choice at any time. You can choose to invest your accounts in one or more investment options. You may also invest your current account balances one way and your future contributions a different way. To change your investment choice, you can either do this online or complete and return a Changing your investment choice form (which is available on the Fund website or by calling the Holden Super Helpline). Your change will be processed on the first business day after your form is received. Before making a decision to change your investment option you should read the Member Investment Choice Guide, also available on the Fund website. There are two costs which apply to changing investment options. There is the buy/sell spread and a processing fee of $30.00 which is debited to your account. Monitoring your investment You can view the performance of each investment option on the Fund website, which shows up-to-date unit prices for all investment options. The net earnings on your chosen investment option (which may be positive or negative) will be reflected via changes in the unit prices. Remember it is very important for most members that you take a long-term view of your investment rather than focusing on short-term results.

11 Holden Employees Superannuation Fund 10 Investment options The charts and tables on the following pages show each investment option s objectives and strategy applicable at 30 June 2012, and returns over the past five years. From 1 October 2011 the Growth option was renamed High Growth, the Capital Stable option was renamed Conservative and a new Cautious option was introduced. The investment returns quoted reflect the change in unit prices over the year expressed as a percentage. The unit prices for each option reflect the value of the underlying investments after making provision for investment tax and investment management fees. High Growth option (named Growth prior to 1 October 2011) Approximately 90% growth assets and 10% defensive assets. Suitable for investors who: want maximum growth plan to invest for 5 years or more are comfortable with high levels of volatility in returns. Objectives and strategy This option aims to earn a return (after investment fees and tax) of at least 4.0% p.a. above the Consumer Price Index (CPI) over rolling 10 year periods. For the 10 year period to 30 June 2012, this objective was not met; the investment return was 4.6% p.a. and the CPI for the same period was 2.74% p.a. Level of Risk: High On average, expected to produce a negative return approximately one year in every three and a half years. Investment return for the year ended 30 June % 12.7% % 16.4% % % Annual Compound Return for the 5 year period -3.0% Past performance should not be taken as an indication of future performance. Remember, investment returns can go up or down. Investment objectives on these pages are not a financial forecast. Where the assets were invested e d f c g h i b a Asset Class Actual allocation % at 30 June 2011 Actual allocation % Strategic allocation % a. Australian Shares b. International Shares (hedged) c. International Shares (unhedged) d. Australian Property e. International Property f. Alternative Strategies g. Australian Fixed Interest h. International Fixed Interest i. Cash

12 Trustee Report for Balanced option Investment return for the year ended 30 June Approximately 70% growth assets and 30% defensive assets. Suitable for investors who: % 2010 want high growth plan to invest for 5 years or more % are comfortable with some volatility in returns. Objectives and strategy This option aims to earn a return (after investment fees and tax) of at least 3.5% p.a. above the Consumer Price Index (CPI) over rolling 5 year periods. For the five year period to 30 June 2012, this objective was not met; the investment return was -0.8% p.a. and the CPI for the same period was 2.71% p.a % % % -0.8% Annual Compound Return for the 5 year period Level of Risk: Moderately high On average, expected to produce a negative return approximately one year in every four years. g Where the assets were invested f h e d i c a b Asset Class Actual allocation % at 30 June 2011 Actual allocation % Strategic allocation % a. Australian Shares b. International Shares (hedged) c. International Shares (unhedged) d. Australian Property e. International Property f. Alternative Strategies g. Australian Fixed Interest h International Fixed Interest i. Cash

13 Holden Employees Superannuation Fund 12 Cautious option Approximately 50% growth assets and 50% defensive assets. Suitable for investors who: want reasonable growth plan to invest for 3 years or more are comfortable with some, but not much, volatility in returns. Objectives and strategy This option aims to earn a return (after investment fees and tax) of at least 3% p.a. above the Consumer Price Index (CPI) over rolling 5 year periods. This option commenced from 1 October The return for the period from 1 October 2011 to 30 June 2012 was 5.5%. Level of Risk: Moderate On average, expected to produce a negative return approximately one year in every five and a half years. h Where the assets were invested g i f a e d c b b Asset Class Actual allocation % Strategic allocation % a. Australian Shares b. International Shares (unhedged) c. International Shares (hedged) d. Australian Property e. International Property f. Alternatives g. Australian Fixed Interest h. International Fixed Interest i. Australian Cash

14 Trustee Report for Conservative option (named Capital Stable prior to 1 October 2011) Approximately 30% growth assets and 70% defensive assets. Suitable for investors who: are happy with slower growth plan to invest for 3 years or more can accept only very little volatility in returns Objectives and strategy This option aims to earn a return (after investment fees and tax) of at least 2.0% p.a. above the Consumer Price Index (CPI) over rolling 3 year periods. For the three year period to 30 June 2012, this objective was met; the investment return was 8.0% p.a. and the CPI for the same period was 2.62% p.a. Investment return for the year ended 30 June % % 12.8% % % % Annual Compound Return for the 5 year period Level of Risk: Low On average, expected to produce a negative return approximately one year in every nine and a half years. Where the assets were invested h i a g b c e d f Asset Class Actual allocation % at 30 June 2011 Actual allocation % Strategic allocation % a. Australian Shares b. International Shares (unhedged) c. International Shares (hedged) d. Australian Property e. International Property f. Alternatives g. Australian Fixed Interest h. International Fixed Interest i. Australian Cash

15 Holden Employees Superannuation Fund 14 Cash option 100% defensive assets. Suitable for investors who: are happy with slow growth plan to invest for the short term want to minimise the chance of any volatility in returns. Objectives and strategy This option aims to earn a return (after investment fees and tax) above the Australian bank bills index. Level of Risk: Negligible Unlikely to produce negative returns. At 30 June 2012 the Cash Option was invested in the Cash Option managed by JANA Investment Advisers. This is invested in Australian Fixed Interest, International Fixed Interest and Australian Cash. Investment return for the year ended 30 June % 4.3% 4.1% 2.9% 4.7% Annual Compound Return for the 5 year period 4.4% %

16 Trustee Report for Who manages your Fund? Your Fund is run by the Trustee company called Holden Employees Superannuation Fund Pty Ltd ABN The Trustee manages the Fund according to the Fund s Trust Deed and superannuation laws. Trustee insurance protection The Fund pays for insurance to protect the Trustee, its Directors and your Fund against claims against it. The Directors are not insured for liability arising from dishonest, wilful or reckless acts. Trustee Board As, the Directors of the Trustee Company were: Appointed by FVIU Eddy De Geest Port Melbourne, Victoria Heinz Joham Elizabeth, South Australia Alex Kyriakopoulos Elizabeth, South Australia Appointed by GM Holden Andrew White (Chair) Port Melbourne, Victoria Ashley Winnett Elizabeth, South Australia Kristen Hooke Port Melbourne, Victoria Independent appointed by the Trustee Board Debora Jackson Effective 9 October 2012 Debora Jackson retired as an Independent Director. Fund Advisers The Trustee is assisted by the following advisers: Actuary Mercer Consulting (Australia) Pty Ltd Administrator and Consultants Mercer Outsourcing (Australia) Pty Ltd Auditor Deloitte Touche Tohmatsu Insurer CommInsure Investment Managers Russell Investment Management Ltd JANA Investment Advisers Investment Consultant Chant West Solicitor Maddocks Who manages the investments? During the year, the assets of the Defined Benefit Section and the High Growth, Balanced, Cautious (since 1 October 2011) and Conservative options were invested in the Russell Pooled Superannuation Trust. This Trust, through its underlying funds managed by Russell Investment Management Ltd, provides access to some of the leading asset class specialist investment managers in the world. The Fund invests in the Russell Pooled Superannuation Trust and not with the individual investment managers selected by Russell Investment Management Ltd. Until October 2011, the Cash option was invested in a Guaranteed Savings Account policy with AXA Australia. With effect from 1 October 2011, the investment was transferred to the Cash Option managed JANA Investment Advisers. The Fund has 2 pensioners and the underlying assets are invested in the Pensions Cautious Option managed by JANA Investment Advisers.

17 Holden Employees Superannuation Fund 16 Fees and other costs This section shows fees and other costs you may be charged. These fees and costs may be deducted from your account, from the returns on your investment, or from the Fund assets as a whole. You need to take into account the impact of tax as well. You do not pay GST on any of the fees and costs shown. The Trustee has the right to increase fees at any time. You will receive at least 30 days notice of any increase in fees. Type of fee or cost Amount How and when paid Fees when your money moves in or out of the Fund Establishment fee Nil The fee to open your Fund membership Contribution fee The fee on each amount contributed either by you or your Employer Withdrawal fee The fee on each payment made by the Fund Termination fee The fee to close your Fund membership Management costs The fees paid to administer your benefit The fees paid to the investment managers Buy/sell spread This applies when contributions are made, roll-ins/transfers received and withdrawals made. Service fees Investment Option Change Fee There is no fee deducted from your contributions, but a buy/sell spread applies to contributions made to the Additional Benefit Section and Retained Benefit Section (see Management costs below) There is no fee when paying your full benefit in one payment. A fee of $78.29 for any partial payments Nil Defined Benefit Section and Additional Benefit Section: Nil Retained Benefit Section: $1.26 per week up to 30 June 2012 and $1.33 per week from 1 July 2012 Defined Benefit Section: 0.53% p.a. of your Basic Contribution Account Additional Benefit Section and Retained Benefit Section: - Cash Option: 0.23% p.a. of your account balance invested in this option - Conservative Option: 0.39% p.a. of your account balance invested in this option - Cautious Option: 0.42% p.a. of your account balance invested in this option - Balanced Option: 0.45% p.a. of your account balance invested in this option - High Growth Option: 0.48% p.a. of your account balance invested in this option Additional Benefit Section and Retained Benefit Section: Buy/sell spread (refer to page 8 for explanation) Processing fee of $30.00 payable each time you request a change to your investment option. Not applicable Not applicable Deducted from the payment at the time of payment. Not applicable Not applicable Deductions are made from a member s account annually at 30 June or at earlier exit Deducted from the investment earnings before declaring the Section s net earning rate. Deducted from the investment earnings before declaring the unit prices. Deducted from the transaction amount through the daily unit price on the day of the transaction Deducted from your account balance at the time of the change. Family law fees Application for information (i.e. benefit valuation) in the format specified under the Family Law Act $ Paid by person making the request at time request is made. Splitting a benefit $70.00 Shared equally by both parties and will be deducted from each party s benefit at the time the benefit is split unless all of the benefit is going to the non-member spouse (in which case the non-member spouse pays the entire fee). Flagging a benefit None Not applicable

18 Trustee Report for Financial summary This is a summary of the Fund s audited accounts for the year ended 30 June You can request a copy of the audited accounts and auditor s report from the Fund Secretary Changes in net assets for the year ended June 2011 $ 2012 $ Net Assets at beginning of the year 626,405, ,930,717 Investment Earnings Change in Net Market Value of Investments 60,656,584 6,253,807 Investment Income 1,005, ,140 Management fee rebates 2,054,546 1,976,312 Contributions Member contributions - Defined Benefit Section: After Tax Member Basic 1,856,865 1,852,854 - Voluntary Additional Contributions 465, ,852 - Government Co-contributions 300,439 98,809 Employer contributions - Defined Benefit Section Salary Sacrifice Member Basic 7,503,165 9,388,813 Employer 20,027,941 16,527,806 - Salary Sacrifice Voluntary Contributions 3,576,009 3,959,638 - Supplementary Superannuation Contributions and Contributions for Casual and Fixed Term employees 8,771,047 8,904,948 Other Income Member Transfers In 737, ,771 Insurance Proceeds 1,204, ,089 Sundry 727 1,017 Total Income 108,160,790 50,646,856 Less Outgoings Benefit Payments 41,422,691 33,154,468 General Administration Expenses 2,182,531 1,913,339 Insurance Premiums 363,388 1,086,403 Surcharge Payments Income Tax Expense 5,666,365 5,378,212 Total Outgoings 49,635,178 41,532,422 Equals Net Assets at end of year 684,930, ,045,151 Net assets at 30 June 2011 $ Investments 2012 $ Cash at Bank 6,206,044 7,558,367 Pooled Superannuation Trusts 667,796, ,524,500 Life Policies 16,683,699 21,701,661 Other Assets Contributions Receivable - 3,018,193 Investment Income Receivable 78,828 26,391 GST Receivable 37,185 29,639 Future Income Tax Benefit 27,884 40,522 Group Life proceeds receivable 363,154 90,236 Prepayments 1,925 11,660 Total Assets 691,195, ,001,169 Less Liabilities Benefits payable 3,875,293 4,953,916 Creditors and Accrued Expenses 487, ,191 Income Tax Payable 1,900,053 1,141,182 Provision for Deferred Income Tax 2, ,729 Total Liabilities 6,264,852 6,956,018 Net Assets 684,930, ,045,151

19 Holden Employees Superannuation Fund 18 Additional information If you have a query Most queries can be sorted out over the phone, but if we are unable to help you immediately, you may be asked to put your question in writing. If you are not satisfied with the response, you should write to the Fund Secretary, who will pass on your complaint to the Trustee. You can expect a decision within 90 days. The Trustee always seeks to resolve any complaints to the satisfaction of all concerned and in the best interests of all members of the Fund. However, if you have followed the steps outlined above and are not satisfied with the outcome, you may be able to take the matter to the Superannuation Complaints Tribunal (SCT). The SCT is an independent body that aims to resolve certain types of superannuation disputes. Any complaints must be lodged with the SCT within certain time limits. For more information about requirements and time limits, you can call the SCT on If the SCT accepts your complaint, it will try and help you and the Fund reach a mutual agreement through conciliation. If conciliation is unsuccessful, the complaint may be referred to the SCT for a determination that is binding. Like to know more? As a member of the Holden Employees Superannuation Fund, you would have received a Member Booklet containing information about your benefits and the rules governing the Fund. You also receive an annual Benefit Statement containing important personal information about your benefits in the Fund. Other documents relating to the Fund that are available for you to look at are the: Trust Deed, latest audited accounts and auditor s report, and Privacy Policy. If you have a question about your benefits in the Fund, please contact the Fund Administrator. Please note that none of the Trustee Directors, the Fund Secretary or the Fund Administrator is able to give any personal financial advice relating to your own circumstances. Surcharge For some higher income earners and members who had not supplied their TFN, there has been an additional tax known as the surcharge on certain contributions and some termination payments made by your employer. The surcharge ceased at 30 June Although the surcharge has been removed in respect of future contributions, it will apply in respect of the period up to 30 June This means that the ATO will continue to issue surcharge assessments in respect of contributions and termination payments made before 1 July If the Fund is required to pay surcharge tax in respect of you, the tax payable is deducted from your benefit in the Fund. If you roll over benefits into the Fund from another super fund, any liability to pay the surcharge for contributions made to that fund that has not been paid may be transferred to the Fund. If we receive a surcharge assessment after you have left the Fund, we will return it to the ATO. The ATO will either forward it to the Fund to whom your benefit was paid to or to you if your benefit was paid direct to you. Special tax treatment Super can be one of the most effective ways to save because it is taxed at a lower rate than many other forms of income. To get this tax advantage, your Fund must operate according to a strict set of laws. To show that your Fund has followed these laws, the Trustee lodges a return each year with the Australian Prudential Regulation Authority. The Trustee is unaware of any event that occurred during the year that would affect this special tax treatment. The Fund is a regulated complying superannuation fund for the purposes of government legislation. No penalties were imposed on the Trustee under the Superannuation Industry (Supervision) or Corporations legislation during the year.

20 Trustee Report for What to do when you leave your employer If you are about to leave your employer make sure you respond promptly to letters from the Trustee about your benefit payment. If you have reached age 65 and have not told the Fund how and where to pay your benefit, and you cannot be contacted, then your benefit will be considered to be unclaimed money. It will then be placed with the ATO. You will then need to contact the ATO to find out how to claim your benefit. In the past, unclaimed money was sometimes put to State or Territory unclaimed money authorities. If your benefit is more than $1,000 and you are under age 65, and you do not respond to the Trustee within 90 days of leaving, your benefit will be automatically transferred to the Fund s Retained Benefit Section. If your benefit is less than $1,000 and you are under age 65, and you do not respond to the Trustee within 90 days of leaving, your benefit will be transferred to an Eligible Rollover Fund (ERF). Upon transfer, you will no longer be a member or have any rights under the Holden Employees Superannuation Fund. The ERF used by the Fund is AMP Eligible Rollover Fund. Set out below is a summary of some of the significant features of the AMP Eligible Rollover Fund, current as in this date of this Trustee report: The assets of the AMP Eligible Rollover Fund are invested in a capital guaranteed life insurance policy (Policy) issued to AMP Superannuation Limited (ASL). The Policy is a participating policy in AMP Life s No. 1 Statutory Fund (AMP No 1 Fund). There is no investment choice available to members within the AMP Eligible Rollover Fund. The investment return (crediting rate) will not be negative. The investment objective for balances over $2,500 is to provide returns over the longer term (adjusted for costs and tax) exceeding those from cash.. The investment strategy for the AMP Eligible Rollover Fund is to invest in a portfolio with a core of cash and limited exposure to shares. AMP Life declares multi-tiered crediting rates of investment earnings (interest) with respect to the Policy. The interest to be credited to a member s account is calculated based on a member s daily balance and credited annually (or on withdrawal). There are no fees charged directly to a member s account by ASL. Administration and investment fees as well as taxes (including earnings tax) are deducted by AMP Life before declaring any interest to be credited under the Policy. The AMP Eligible Rollover Fund is unable to accept contributions from members or their employers, however rollovers from other superannuation funds are permitted. The AMP Eligible Rollover Fund does not provide insurance cover. Should you wish to know more about the AMP Eligible Rollover Fund, contact an AMP Customer Service Officer on for a copy of their Product Disclosure Statement or go to amp.com.au Continuing your insurance The Fund s insurance policy provides a continuation option for death cover, which you may exercise if you are eligible (there are certain conditions that apply). This allows you to apply for a replacement individual insurance policy with the insurer within 60 days after your cover under the Fund s insurance policy ceases without the requirement to provide satisfactory evidence of good health. Cover under the continuation option is generally available up to the insured amount at the date your cover under the Fund s policy ceases. The cost of continuing your cover outside the Fund will be based on the insurer s prevailing individual policy premium rates, terms and conditions. You will need to pay the premium for any individual policy you take out under the continuation option. For more information, refer to the Information Sheet Insurance arrangements and options when you leave employment on the Documents & forms page of the Fund website. When you leave employment, you should call the Holden Super Helpline on for more information about continuing your insurance.

21 Trustee Report Who to contact Log onto the Fund s website Call Holden Super Helpline Fund Administrator at holden@mercer.com Write to the Fund Administrator Holden Employees Superannuation Fund c/o Mercer Outsourcing (Australia) Pty Ltd GPO Box 4303 Melbourne Vic 3001 Write to the Fund Secretary Holden Employees Superannuation Fund c/o Mercer Outsourcing (Australia) Pty Ltd GPO Box 9946 Melbourne Vic 3001 Advice about your super If you require information about your benefit in the Fund, contact the Holden Super Helpline on The Helpline is able to provide details of your current benefits over the phone. Please note that Helpline staff are not representatives of the Trustee. Any general financial product advice provided by Helpline staff is provided by Mercer Outsourcing (Australia) Pty Ltd, AFSL No employees of GM Holden Limited or GMAC Australia LLC are authorised to provide general financial product advice to Fund members. Please note that none of the Trustee, its Directors, the Fund Secretary or the Fund Administrator is able to give any personal financial product advice relating to your own circumstances. If you require any personal advice about superannuation, you should consult a licensed financial adviser.

22 Disclaimer This annual report has been prepared by the Trustee to meet its legislative obligations under the Corporations Act. The information contained in this annual report does not take account of the specific needs, personal or financial circumstances of any persons. Members should obtain specialist advice from a licensed financial adviser before making any decisions regarding their own superannuation arrangements or investments. The terms of your membership in the Fund are set out in the Fund s Trust Deed, and should there be any inconsistency between this annual report and the Fund s Trust Deed, the terms of the Fund s Trust Deed prevail. While all due care has been taken in the preparation of this report, the Trustee reserves its right to correct any errors and omissions. All statements of law or matters affecting superannuation policy are current as at date of issue. This document contains general information about investments and investment performance. Please remember that past performance is not necessarily a guide to future performance. Trustee Trustee Report Report