2012/2013 Annual Report

Transcription

1 2012/2013 Annual Report CUBS Superannuation Fund Hunter United Super Choice Fund Hunter United Super Choice Fund Pensions CUBS Superannuation Fund ABN Trustee The Trust Company (Superannuation) Limited ABN AFS License No RSE License No. L

2 CONTACT DETAILS If you have an enquiry about Hunter United Super Choice Fund or Hunter United Super Choice Fund Pensions or would like to receive your Annual Reports (including this Annual Report) by mail (free of charge), you should contact: The Administrator: Financial Synergy Pty Limited GPO Box 4344 Melbourne VIC 3001 Telephone: Facsimile: (02) Website: The Credit Union: Hunter United Employees Credit Union Ltd 130 Lambton Road Broadmeadows NSW 2292 Telephone: (02) Facsimile: (02) Website: Trustee: The Trust Company (Superannuation) Limited PO Box 361 Collins Street West VIC 8007 Telephone: (03) Facsimile: (03)

3 Disclaimer This Annual Report is accurate as at the date of preparation, and relates to the financial year ending 30 June This Report has been prepared in accordance with the Corporations Act and Corporations Regulations Reasonable care has been taken to ensure the information in this report is correct, but neither the Trustee, its service providers nor its advisers accept responsibility for any error or misprint or anyone using or acting on this information for any purpose. Information contained in this report is accurate as at 30 June 2013, based on information provided to the Trustee by the Fund s service providers and underlying investment managers. The Trustee does not guarantee the performance of any of the Fund s investments or underlying investment managers. The Trustee does endeavour to ensure that only professional managers using sound investment processes are utilised. This publication contains general information or advice only that has been prepared without taking into account your objectives, financial situation or needs. You should refer to the relevant Product Disclosure Statement (PDS) and factsheets and assess your own financial situation before making any financial decisions. You may wish to consult an appropriately qualified financial adviser before making any financial decisions in relation to this product. You can obtain the PDS and factsheets relevant to your membership by calling or downloading it from 1

4 CONTENTS MESSAGE FROM THE TRUSTEE 3 YOUR INVESTMENTS OPTIONS 4 INVESTMENT OPTIONS 5 FINANCIAL AND OTHER STATUTORY INFORMAITON 7 WHAT HAPPENS IF YOUR ACCOUNT BECOMES INACTIVE? 10 INQUIRIES & COMPLAINTS 13 YOUR PRIVACY 14 WHO S LOOKING AFTER YOU 15 DIRECTORY 17 2

5 Message from the Trustee An evolving industry The year ended 30 June 2013 proved to be a year for significant change in the superannuation industry. A large quantity of legislative change was introduced so as to streamline the administration of superannuation benefits as well as to strengthen the Prudential requirements that Trustees will be subjected to in the years ahead. Some key changes have come into effect and some continue to be refined and implemented with Industry and Government consultation. This changing superannuation landscape provides members with more visibility and confidence in how their money is invested and provides a stronger more robust superannuation system. Some of the key changes from 1 July 2013 include: An increase in the legislated superannuation guarantee to 9.25%. An increase in the concessional contributions limit to $35,000 for members who will be turning age 60 in the 2013/2014 year. This will enable affected members to make larger employer and salary sacrificed contributions to their superannuation before an additional tax impost applies. The concessional contributions limit for members under the age of 60 remains at $25,000 for the 2013/2014 year. Members over the age of 70 years will now also be able to receive superannuation guarantee contributions from their employer regardless of their age. Streamlining of administration to enable more efficient and timely processing of rollovers throughout the superannuation industry. This and other changes will make it easier for members to consolidate small accounts to minimise the fees that they may be subjected to by having multiple superannuation accounts. The Trustee continues to look with confidence toward the raft of changes that continue to be implemented in the superannuation industry with the goal of re-enforcing the ambition of superannuation clients to achieve their desired retirement outcome. Your Trustee The Trust Company (Superannuation) Limited helps protect the retirement savings of over 400,000 Australians and works with Financial Synergy Pty Limited to ensure your superannuation fund complies with relevant legislation and regulatory requirements. The Trust Company Limited which parent company of The Trust Company (Superannuation) Limited) has a 125 year history of protecting and growing it clients wealth. The Trust Company (Superannuation) Limited 3

6 YOUR INVESTMENT OPTIONS There are four investment options available to members of the Hunter products to choose from when making your investment decisions. The Trustee may close, vary or add to the investment options available to members from time to time. The investment options available to members of the Hunter products reflect the Fund s investment policy for this segment of the Fund and are part of an overarching approach to investments that takes into account various factors including relevant law, the Trust Deed and the nature of the Fund membership. You should also consider the current PDS and factsheets applicable to the Hunter product you participate in when making any investment decisions. INVESTMENT OPTIONS Cash Plus Option Conservative Option Balanced Option Growth Option This Report provides information about each of the options, as relevant to members of the Hunter products for the 2012/2013 financial year and can be downloaded from Check your Annual Member Statement to check which investment options you are invested in or have chosen. Your member statement shows your investment options as at 30 June Visit the website at for more up to date information. 4

7 INVESTMENT OPTIONS CASH PLUS OPTION CONSERVATIVE OPTION Risk Level No likelihood of negative returns. Likelihood of negative returns occurring no more than one year in fifteen. Investment Objectives To provide capital security and an income return before tax in line with a 50/50 combination of the RBA cash rate and six-month bank bill rates. Asset Allocation Range Fixed Interest 50% Cash 50% To achieve a before-tax return of 2% pa above the rate of inflation (CPI) over rolling 5 year periods. Australian Equities 15% International Equities 11% Property 4% Fixed Interest 28% Cash 42% Minimum Suggested Investment Timeframe Actual Asset Allocation as at 30 June* Short term (no minimum) Fixed Interest 50% 50.75% Short to Medium term investors (usually three to five years) Australian Equities 13% 13.80% Cash 50% 49.25% International Equities 11% 11.95% Property 3% 2.95% Fixed Interest 30% 29.70% Cash 43% 41.60% * Asset allocation may vary from time to time due to market fluctuations and amounts held in cash pending investment. 5

8 INVESTMENT OPTIONS Risk Level BALANCED OPTION Likelihood of negative returns occurring no more than one year in eight. GROWTH OPTION Likelihood of negative returns occurring no more than one year in five. Investment Objectives To achieve a before-tax return of 3% pa above the rate of inflation (CPI) over rolling 5 year periods. Asset Allocation Range Australian Equities 24% International Equities 20% Property 6% Fixed Interest 28% Cash 22% To achieve a before-tax return of 4% pa above the rate of inflation (CPI) over rolling 5 year periods. Australian Equities 34% International Equities 28% Property 8% Fixed Interest 28% Cash 2% Minimum Suggested Investment Timeframe Actual Asset Allocation as at 30 June* Medium to Long term investors (usually five years plus) Australian Equities 23% 22.85% Long term investors (usually seven years plus) Australian Equities 33% 29.60% International Equities 18% 19.85% International Equities 27% 25.65% Property 5% 4.90% Fixed Interest 30% 30.00% Cash 24% 22.40% Property 7% 6.35% Fixed Interest 29% 35.90% Cash 4% 2.50% * Asset allocation may vary from time to time due to market fluctuations and amounts held in cash pending investment 6

9 FINANCIAL AND OTHER STATUTORY INFORMATION This is an abridged summary of the audited financial statements for the CUBS Superannuation Fund for the year ended 30 June 2013 (incorporating all products including the Hunter products). A copy of the audited financial statements and auditor s report is available on request from the Administrator Net Assets Available to Pay Benefits At End of Previous Year 25,050,545 22,750,425 Revenue Changes in net market value of investments ,665 Contributions from employers 43,028 40,946 Contributions from members 380, ,045 Interest 938, ,350 Other Income 8,866 67,158 Transfer from other funds 1,641, ,889 Total Revenue 3,018,554 1,622,053 Expenses Administration (2,476) (6,752) Benefits paid (3,509,836) (3,502,720) General administration expenses (27,896) (35,594) Tax expense (88,969) (70,963) Trustee fees (732) (1,843) Total Expenses (3,629,909) (3,617,872) Movement in Fund reserves Net Assets Available To Pay Benefits At End of Year 22,750,425 20,755,044 Represented by Assets Cash and cash equivalents 21,123,153 18,676,148 Receivables Hunter Credit Union cash Hunter Credit Union fixed interest 7, , ,082 60, , ,441 Units in managed investment schemes 449, ,378 Total Assets 22,824,199 20,818,283 Liabilities Audit fee payable 15,950 19,445 Operating expenses payable 11,545 7,491 Current tax liability 46,156 33,748 Deferred Tax liability 124 2,555 Total Liabilities 73,775 63,239 Net Assets Available to Pay Benefits 22,750,424 20,755,044 7

10 FINANCIAL AND OTHER STATUTORY INFORMATION Significant Investments The following underlying investments each represent more than 5% of the total assets of the Hunter products as at 30 June 2013: INVESTMENT $ 000 % Vanguard High Growth Index Fund Hunter Cash* Hunter Fixed Interest * *The Hunter Cash and Hunter Fixed Interest are investments issued by Hunter United Employees Credit Union Employees Union Ltd The CUBS Superannuation Fund (incorporating all products including Hunter products) has 90% of its total assets ($18,652,461) as at 30 June 2013 invested in cash deposits with Greater Building Society Ltd, which relate to the Greater Rollover and Pension Fund segment of the Fund. Allocation of Earnings The allocation of earnings to member accounts depends on the segment of the Fund that you participate in. For members of Hunter products, net earnings (after the deduction of relevant fees, costs and taxes) are allocated to a member s account through changes in the unit prices (Sell Prices) applicable to the Investment Option(s) in which a member is invested during the year. Unit prices are usually determined daily based on market valuations of the assets of each option. Changes in the unit prices from time to time determine the value of a member s investment in an Investment Option. The Trustee s policy is to allow all investment returns (after taking into account relevant fees, costs and taxes) to flow through to members via increases (or decreases) in unit prices. For more information about unit prices, refer to the current factsheets applicable to your account. Derivatives It is the Trustee s policy not to use derivative instruments directly. Derivatives include investment products such as futures, options, swaps and warrants. They are securities whose value is derived from other securities or assets. Some of the investment managers utilised in the Investment 8

11 FINANCIAL AND OTHER STATUTORY INFORMATION Options may use derivatives to reduce risks in their investment product and to increase or decrease their exposure to particular investment sectors or markets. However, use of derivatives carry its own risks like the possibility that the derivative position is difficult or costly to reverse, that it does not perform as expected or that the parties to the derivatives contract do not perform their contractual obligations. 9

12 WHAT HAPPENS IF YOUR ACCOUNT BECOMES INACTIVE? Subject to any requirement on the Trustee to transfer lost accounts to the Tax Office in certain circumstances, if we have not received contributions or rollover amounts into your accumulation account for a period of 5 years or more we may transfer your benefit to our nominated Eligible Rollover Fund (ERF) - the Independent Superannuation Preservation Fund. The Trustee also reserves the right to transfer benefits to an ERF in any other circumstances that it considers appropriate (for example, small accounts) under broad powers conferred on superannuation trustees under superannuation legislation. The Independent Superannuation Preservation Fund is required to help protect member balances from being eroded by direct administration fees (called member protection ). The member protection rules do not extend to indirect fees (deducted from assets or earnings), taxes or insurance premiums and are subject to special arrangements where a negative investment period occurs. Its contact details are: Independent Superannuation Preservation Fund GPO Box 1047 Milton QLD 4064 Telephone: (07) Facsimile: (07) Being transferred to an ERF may affect your benefits because: You will cease to be a member of the CUBS Superannuation Fund and any insurance you may have will be affected. You will become a member of Independent Superannuation Preservation Fund and be subject to its governing rules. Where we have your current address, we will advise you of any transfer. The Trust Company (Superannuation) Limited is also the trustee of the Independent Superannuation Preservation Fund and receives remuneration in this capacity. 10

13 Important Information for Temporary Residents The Trustee is required to transfer the superannuation benefits of a former temporary resident to the ATO (as unclaimed money) on request, after six months has elapsed since the temporary resident has left Australia and their visa has expired or is cancelled. If this happens, a former temporary resident can claim their super benefits directly from the ATO as a Departing Australia Superannuation Payment (DASP), subject to applicable tax rates. Former temporary resident members whose benefits have been paid to the ATO will not be provided with notices or exit statements at the time or after their benefits are transferred to the ATO. The Trustee is taking this approach relying on relief granted by the Australian Securities and Investments Commission (ASIC) from certain reporting obligations in the law, which normally apply when fund membership ceases. This relief recognises that trustees will generally not be aware which members are former temporary residents (until advised by the ATO) and that they may have difficulty communicating to an overseas address or finding correct contact details for the member. For further information please contact the Administrator or go to Important Information Changes to the Terms and Conditions of the Fund s Insurance offering With effect from 1 June 2013, Terms and Conditions of the insurance policy have changed in relation to the following: Additional voluntary insurance cover Additional voluntary insurance cover is available on application to the insurer. This can include additional Death, TPD cover or Income Protection cover. If you are applying for additional cover you will be asked to provide evidence of health or other evidence as required by the insurer to assess your application. You can apply for an unlimited amount of Death Cover; however the maximum TPD cover available is $3,000,

14 Terminal Illness cover is subject to a maximum of $3,000,000. Terminal Illness cover is provided as part of Death cover. (The total amount of cover, including any automatic cover, cannot exceed these maximum cover limits). If you are eligible, your cover starts on the date of the insurer s written acceptance. For full details of how to apply for additional voluntary insurance cover, please refer to the Fund s Insurance Fact Sheet. Introduction of Income Protection cover You can apply for income protection cover to protect you against loss of income using the Income Protection option. This additional cover provides regular income in the event of a Total or Partial Disability (as defined under the insurance policy). In the event you are unable to work due to a Total or Partial Disability (as defined under the insurance policy), Income Protection cover provides you with a Total Disability or Partial Disability benefit after the expiry of a 30/90 days waiting period (as selected by you on application and as accepted by the insurer), for a period of up to 2 years, 5 years or to age 65 (also selected by you on application and as accepted by the insurer). Subject to the maximum available benefit of $25,000 per month, you can apply to insure for a Total Disability Benefit of up to 75% of your earnings plus any superannuation contributions benefits of up to 10% of earnings (if selected at the time of your insurance application and accepted by the Insurer). To apply for Income Protection cover you will need to complete the relevant parts of the Application for Membership Form and a Personal Statement Form providing evidence of your health. Your income protection cover commences upon the insurer s written acceptance. You can find full details of the Income Protection option regarding features, the application process and rate tables in the Fund s Insurance Fact Sheet. 12

15 INQUIRIES & COMPLAINTS The Trustee has established a procedure for dealing with member enquiries and complaints. Enquiries and complaints should be made to the Complaints Officer. Complaints can be made to: Complaints Officer CUBS Superannuation Fund Hunter United Super Choice Fund PO Box 4344 MELBOURNE VIC 3001 Telephone Facsimile (02) mcc@huecu.com.au If you are unhappy with the response to an enquiry, or have a complaint or dispute, you will generally be asked to place your question or problem in writing to the Trustee. The Trustee will endeavour to reach a satisfactory solution to your problem within 90 days of receiving the complaint and will advise you accordingly. If a satisfactory solution is not achieved within 90 days, or you do not hear from us in this timeframe, you are able to take your complaint to the Superannuation Complaints Tribunal (SCT) by: phoning (cost of a local call); writing to Locked Bag 3060, Melbourne Victoria 3001; or visiting level 15, 31 Queen St, Melbourne, Victoria. The Tribunal is an independent body set up by the Commonwealth Government to review trustee decisions relating to members (as opposed to trustee decisions relating to the management of the fund as a whole). You must follow the procedure set out above. The SCT will only handle certain types of complaints and time limits apply for lodging some complaints. If the SCT accepts your complaint it will try to help you and the Trustee to reach a mutual agreement through conciliation. If this is not successful, the SCT will make a decision that is binding on all parties (subject to a limited right of appeal to the Courts). 13

16 YOUR PRIVACY As an investor in CUBS Superannuation Fund you will be protected by the Fund s Privacy Policy, and that of the Administrator. This means that we only collect information that is necessary for the efficient operation of the Fund and as required by law. On occasion, and as required under various types of legislation, certain information may be required to be passed on to various regulatory bodies to ensure that you receive all the benefits to which you are entitled. All parties involved in these transfers are also subject to the privacy guidelines. A copy of the Administrator s Privacy Policy can be viewed on the Privacy Policy page at or you may call the Administrator on to have a copy mailed to you. It further explains what information is collected and how and when it is stored and transferred. A copy of the Trustee s policy is also available on request by contacting the Trustee. 14

17 WHO S LOOKING AFTER YOU The Trustee The Trust Company (Superannuation) Limited is the Registrable Superannuation Entity Licensee and Trustee of the CUBS Superannuation Fund, and is responsible for making sure the Fund is run in accordance with the Trust Deed and the governing superannuation legislation, including looking after the interests of members as a whole. The Trustee s Board of Directors as at 30 June 2013 comprised: John ATKIN (Appointed 1 September 2010) Luigi Mario RODRIQUEZ (Appointed 30 July 1998) David Roko GRBIN (Appointed 23 March 2011) (Chairman) John Edstein (Appointed 01 January 2013) FORMER DIRECTORS (during year ending 30 June 2013) Noel Albert DAVIS (Appointed 1 September 2005) (Resigned 31 December 2012) The Trustee holds professional indemnity insurance to protect the Trustee, its directors and the Fund against certain losses or liabilities. The indemnity insurance cover is subject to the terms and conditions of the relevant insurance policy. Approved Guarantee The Trustee satisfies its capital requirements under section 29 DA (3) of the Superannuation Industry (Supervision) Act through an Approved Guarantee in the sum of $5 million. A copy of the Approved Guarantee is available for review at the Trustee s offices. 15

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19 DIRECTORY Trustee The Trust Company (Superannuation) Limited ABN AFS License No RSE License No. L PO Box 361 Collins Street West VIC 8007 Telephone: (03) Facsimile: (03) Administrator Financial Synergy Pty Limited ACN as Trustee for the Financial Synergy Unit Trust ABN Level 9, 360 Elizabeth Street Melbourne VIC 3000 GPO Box 4344 Melbourne VIC 3001 Telephone: (03) Facsimile: (03) Insurer TAL Life Limited ABN Level 8, 1 O Connell Street Sydney NSW 2000 GPO Box 5380 Sydney NSW 2001 Credit Union Hunter United Employees Credit Union Ltd ABN Lambton Road Broadmeadows NSW 2292 Telephone: (02) Facsimile: (02) enquiry@hunterunited.com.au Promoter Top Quartile Management Pty Ltd ABN AFS License No Level 9, 360 Elizabeth Street Melbourne VIC 3000 GPO Box 4344 Melbourne VIC 3001 Telephone: (03) Facsimile: (03) Custodian National Australia Bank ABN Level 2, 330 Collins Street Melbourne VIC 3000 Auditor UHY Haines Norton Chartered Accountants ABN Level 11, 1 York Street Sydney NSW

20 For Further Information Website Telephone Facsimile (02) Postal Address CUBS Superannuation Fund - Hunter United Super Choice Fund GPO Box 4344 Melbourne VIC 3001