2012 Annual Report. Superannuation and Pension (PortfolioOne)

Transcription

1 2012 Annual Report Superannuation and Pension (PortfolioOne) Issued November 2012

2 Contents Annual Report Page About OnePath 3 Investing your money 4 Asset allocation 8 Other information 9 Abridged financial information 11 Important information PortfolioOne Superannuation and Pension (PortfolioOne) is offered by the Retirement Portfolio Service (ABN , RSE R , SFN ) (the Fund), a regulated superannuation fund. When you invest in PortfolioOne Superannuation Service or Pension Service, you become a member of the Fund. Trustee OnePath Custodians Pty Limited (ABN , AFSL , RSE L ) (the Trustee) is the Trustee of the Fund and the issuer of this Annual Report. The Trustee has indemnity insurance cover in respect to its trusteeship of the Fund. Your investment is subject to investment risk, including possible repayment delays and loss of income and principal invested. Administrator Macquarie Investment Management Limited (ABN , AFSL ) is the administrator of the Service and administers PortfolioOne on behalf of the Trustee. Auditor KPMG is the auditor of the Fund and is responsible for the yearly audit of the Retirement Portfolio Service, reviewing whether certain requirements of the superannuation laws are met. Trust Deed The Fund is governed by a Trust Deed, a copy of which is available upon request by contacting Customer Services on

3 The information and assumptions in this Annual Report are provided in good faith for you and your financial adviser and are current as at 30 June 2012, unless otherwise stated. Please note that this Annual Report is not intended to provide legal, investment or taxation advice (for which you should consult the appropriate professional adviser), and has been prepared without taking into account your objectives, financial situation and needs. Before making a decision based on this material, you should consider the appropriateness of the information, having regard to your objectives, financial situation and needs. Before acquiring or continuing to hold a product mentioned in this Annual Report, you should consider the relevant Product Disclosure Statement (PDS) to determine whether the product is appropriate for you. The PDS is available at onepath.com.au. Unless otherwise stated, the value of your investments will fluctuate as the values of underlying assets rise or fall. In this Annual Report, the terms we, us and our refer to OnePath Custodians. The terms PortfolioOne, refers to PortfolioOne Superannuation and Pension (as applicable). Trustee OnePath Custodians Pty Limited 347 Kent Street Sydney NSW 2000 Phone Fax Administrator Macquarie Investment Management Limited Locked Bag 50 Australia Square NSW 1215 Phone Fax Directors of OnePath Custodians Pty Limited The Directors of OnePath Custodians Pty Limited for the period 1 July 2010 to 30 June 2012 (the Trustee of the Fund), are provided below: Current Directors Name Period of Directorship C T Brackenrig Appointed 05/05/2011 S J Chapman Appointed 01/08/2011 V S Weekes Appointed 01/08/2011 C M McDowell Appointed 15/02/2012 Previous Directors Name Period of Directorship P D Barrett Appointed 05/05/2011, Resigned 15/02/2012 M A Bertram Appointed as Alternate to D J Kan on 17/07/2008, Resigned 21/04/2011 Appointed as Alternate to R A Bowden on 24/06/2009, Resigned 08/04/2011 R A Bowden Appointed 01/03/2005, Resigned 08/04/2011 D J Kan Appointed 07/07/2008, Resigned 21/04/2011 G J Kelly Appointed 30/11/2009, Resigned 31/08/2011 G Meyer Appointed 22/02/2007, Resigned 31/08/2011 2

4 About OnePath Helping you shape and protect your future OnePath is one of Australia s leading providers of wealth, insurance and advice solutions. We have been helping Australians grow and protect their wealth for over 130 years, previously as Mercantile Mutual and ING Australia. As a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ANZ), OnePath is part of ANZ s Global Wealth and Private Banking business. At OnePath we value and appreciate our customers, our staff and the communities we operate in. We are committed to acting with the highest standards and to meeting our corporate responsibilities. We also encourage and support staff involvement in volunteering and charitable activities supporting the wider community. OnePath actively participates in forums looking at regulatory and industry change. We also regularly review and conduct research to ensure we are attuned to changing customer and market needs. ANZ operates in 32 markets globally with representation in Australia, New Zealand, Asia Pacific, Europe, America and the Middle East. ANZ provides products and services to more than 8 million retail customers worldwide and employs over 48,000 people. OnePath has a comprehensive range of wealth and insurance products available through financial advisers or direct to customers making it easier for you to find the solution that best suits your needs. 3

5 Investing your money Trustee s investment objective and strategy The Trustee s objective and strategy is to provide you with a diverse and comprehensive range of investment options. The Trustee places significant importance on the assessment of investments prior to making them available to investors. The Trustee takes into account the requirements of SIS, APRA guidelines and general Trust law for any new managed investments proposed. Some key considerations undertaken by the Trustee in assessing investments prior to making them available to investors include: Risk and Return key risks addressed in assessing and monitoring investments include market risk, operational risk, possible conflicts of interest, leverage risk, liquidity risk and credit default risk. Diversification diversification of an investment is analysed as a useful risk mitigation tool. Alternately, a lack of diversification will raise concerns for the Trustee in relation to the managed investments ability to distribute and control risk and minimize the variability of investment returns. It may involve spreading investments over a number of individual assets, class, countries or investment managers. Liquidity the Trustee considers liquidity of managed funds during its assessment of them. This recognizes the Trustee s requirements to pay expenses, tax and benefits when they become due and accounting for circumstances beyond its control. You can select approved Australian Securities Exchange (ASX) listed securities, term deposits, or choose from a menu of over 200 managed funds. Specific information (including objectives and strategies) for each individual managed fund can be obtained from the relevant Product Disclosure Statement (PDS). Investment Managers PortfolioOne is supported by some of Australia s leading fund managers to provide you with a broad range of investment options. Information about the performance of these investments is available from ClientView or by contacting your adviser. The names of the investment managers of the investment options are as follows: Aberdeen Asset Management Limited Acadian Asset Management LLC Advance Asset Management Limited Alleron Investment Management Limited AllianceBernstein Alphinity Investment Management Pty Limited AMP Capital Investors Limited APN Funds Management Limited Arnhem Investment Management Arrowstreet Capital, L.P. ATI Asset Management Pty Ltd Aubrey Capital Management Ausbil Dexia Limited 4

6 AXA (National Mutual Funds Management Ltd) Bentham Asset Management BlackRock Asset Management (Australia) Limited BlackRock Investment Management (Australia) Limited BT Investment Management Capital International, Inc. CBRE Clarion Securities LLC Certitude Global Investments Colonial First State Global Asset Management Denning Pryce Limited Epoch Investment Partners, Inc EQT Funds Management Fidante Partners Limited Fidelity Worldwide Investment Franklin Templeton Investments Australia Limited Global Thematic Partners LLC GMO Australia Ltd Goldman Sachs Asset Management & Partners Australia Pty Ltd Hunter Hall Investment Management Limited Intrinsic Value Investments Limited Investors Mutual Limited K2 Advisors LLC Karara Capital Lazard Asset Management Pacific Co. Legg Mason Asset Management Australia Limited Lion Global Investors Ltd Lodestar Capital Partners Pty Ltd Macquarie Investment Management Limited Maple-Brown Abbott Merlon Capital Partners MFS Investment Management MLC Investments Limited NovaPort Capital Pty Limited Orion Asset Management Limited Perennial Investment Partners Limited Perpetual Investment Management Limited PIMCO Australia Pty Ltd Platinum Investment Management Limited PM CAPITAL Ltd Principal Global Investors (Australia) Limited RARE Infrastructure Limited (Renaissance Property Securities) - Renaissance Asset Management RREEF Alternative Investments Schroder Investment Management Australia Limited Sensible Asset Management Limited SG Hiscock & Company Limited Solaris Investment Management Limited 5

7 State Street Global Advisors, Australia Limited T. Rowe Price International Ltd The Boston Company Asset Management, LLC Tyndall Investment Management Limited UBS Global Asset Management (Australia) Ltd Value Partners Limited Vanguard Investments Australia Ltd Walter Scott and Partners Limited Wellington Management Company, LLP Western Asset Management Company Winton Capital Management Limited Zurich Investments Selecting investment funds When selecting investment funds, you need to consider how long you wish to invest your money and the level of risk you are prepared to accept. In general, investments with the potential to earn higher returns (for example, shares) carry the higher risk. Not only may the rate of return go up and down, but the value of your investment (the capital value) can also rise and fall. For investments that generally earn lower returns (for example, cash), the capital value is less likely to fluctuate. You may change/switch all or part of your existing account balance between investment funds. Please note that transaction cost factors may apply upon switching. Diversification PortfolioOne allows you to diversify your superannuation investments by providing access to a wide range of managed funds, term deposits and listed securities. Diversification is achieved by holding more than one type of investment. Investors are able to achieve diversification using one, or a combination, of the following: holding different assets such as shares in different companies investing in different asset classes such as shares, property and fixed interest investing with several fund managers all with different investment styles. Depending on how you diversify, underperformance in one area may be offset by positive performance in another. 6

8 Detailed information about the current managed funds offered through the Fund is available through your financial adviser. Investment earnings Units and shares are allocated to you proportionally according to the size of your investment in the underlying fund or listed security. At any time, your investment is equal to the number of units and/or shares you have been allocated, multiplied by the prevailing unit price of the relevant underlying fund or relevant share price. The net investment earnings (after deduction of management fees and taxes) are reflected by changes in the unit price, plus distributions, interest and dividends credited to your account. Distributions, interest payments and dividends from the underlying holdings can either be allocated to your Cash Account where they accrue interest, or you can use them for reinvestment. Derivatives The Trustee may hold approved ASX listed derivative securities. The managed funds may also invest in financial derivatives, such as futures, options or other derivative contracts to gain exposure to investment markets and manage the risk associated with market prices, interest rates and currency fluctuations. Derivatives may also be used by some fund managers to gear a managed fund. Unallocated funds Monies held by the Fund that have not been allocated to members accounts (unallocated funds), are invested by the Trustee in an interest bearing bank deposit. A detailed breakdown of these unallocated funds is provided in the table below. Reconciliation of unallocated amounts Unallocated amounts at the beginning of the financial year Add: Net movements attributable to unallocated amounts Unallocated amounts at the end of the financial year ,891 2,773 2, ,164 2,891 2,773 Except where specifically approved by the Investment Mandate for that particular managed fund, derivatives will not be used to gear a managed fund s assets or for speculative purposes. 7

9 Asset allocation The table below shows how the Fund is invested across different asset classes. When you invest into the Fund you can invest in a number of different term deposits, managed funds and approved ASX listed securities. Term deposits are classified as cash and ASX listed securities are classified as Australian Shares. Where a managed fund invests across a number of asset classes, we will treat the asset allocation based on a look through basis using the managed fund s individual asset allocations. Asset class 30 June June 2011 Cash 24.5% 27.3% Australian fixed interest International fixed interest 7.3% 6.7% 3.8% 2.9% Property 4.0% 3.9% Australian shares International shares 44.6% 44.0% 13.6% 13.0% Other 2.2% 2.2% Total 100.0% 100.0% The information in the preceding table has been obtained from fund managers either directly or from a third party and was current at the time this document was prepared. Whilst the external sources of this information are considered reliable, The Trustee and any ANZ company cannot guarantee either the accuracy or completeness of the information and do not accept any responsibility for any inaccuracies, errors or omissions. Investment options that exceeded five per cent of the total assets of the Fund. The Cash Account invests into the Macquarie Treasury Fund. This investment option exceeded five percent of the total assets of the Fund. The combined holdings in Macquarie Bank Term Deposits also exceed five percent of the total assets of the Fund. Managed fund Information The most up to date asset allocation for each of the managed funds is available on ClientView. The asset allocation for each fund that you are invested in is included in the Detailed Superannuation Asset Allocation report that can be accessed in the reporting section of ClientView. For asset allocation information on other funds that you are not invested in, please refer to the fund updates in the Resources section of ClientView. 8

10 Other information Superannuation surcharge The Federal Government has abolished the superannuation surcharge payable on an individual s surchargeable contributions and relevant termination payments made from 1 July The following reflects how the surcharge applies to contributions received prior to 1 July Please consult your financial adviser for further information. Superannuation members Where the Australian Taxation Office (ATO) has advised a superannuation surcharge is payable in respect of your benefit, the amount payable will be withdrawn from your account and paid to the ATO. The ATO will send you a copy of the surcharge assessment so that you can check the figures they have used in calculating the surcharge are correct. Pension members Should a superannuation surcharge assessment be issued after the commencement of your account, the liability for payment of the superannuation surcharge rests with you and not your account. Eligible Rollover Fund (ERF) This section does not apply to PortfolioOne Pension Service An ERF is a low risk, low return investment fund which does not offer insurance cover. Your superannuation benefits may be transferred to an ERF if your account balance is less than $1,500 and: we have not received a contribution from you (or received on your behalf) for two consecutive years where one item of correspondence is returned to us as unclaimed mail from your last known address. Before transferring your superannuation benefits to an ERF, the Trustee will attempt to communicate this to you and provide you with an option to nominate another fund. The ERF chosen for the Fund is: Australian Eligible Rollover Fund (AERF) C/- Jacques Martin Administration & Consulting Pty Limited Locked Bag 5429 Parramatta NSW 2124 Phone We will notify you if the ERF changes in the future. 9

11 The following is a summary of some of the significant features of the AERF, current as at the date of preparation of this report. For detailed information about the AERF, please contact the AERF directly. The trustee of the AERF is Perpetual Superannuation Limited (PSL), ABN , RSE L If your benefits are transferred to the AERF: You will cease to be a member of PortfolioOne Superannuation Service and become a member of the AERF, meaning you will be subject to its governing rules including a different fee structure. Member investment choice will not be available. Your benefits will be invested in a diversified portfolio with exposure to both growth assets (equities and property) and defensive assets (fixed interest and cash). There is no guarantee that investment returns will not be negative. Your benefits will be member protected meaning that generally, administration charges cannot exceed investment earnings on your account in a reporting period. However, other costs such as taxes may be deducted. Your benefits will not be protected against negative returns. The AERF is unable to accept any ongoing contributions from you or your employer, however, rollovers from other superannuation funds may be permitted. The AERF does not offer insurance benefits. Investment returns Information on the performance of accessible funds in PortfolioOne is available by viewing fund updates in the Resources section of ClientView. 10

12 Abridged financial information Retirement Portfolio Service Abridged statements of financial position as at 30 June Assets Cash and cash equivalents 139, ,876 Investments Term deposits 119,946 88,941 Listed equities 225, ,183 Units in unlisted unit trusts 447, ,483 Derivative assets Total investments 792, ,659 Receivables Interest receivable Dividends receivable 1,638 1,262 Distributions receivable 11,816 18,619 Total receivables 13,464 19,892 Tax assets Current tax asset 4,509 6,400 Deferred tax asset 8,113 6,951 Total tax assets 12,622 13,351 Total assets 957,722 1,023,778 11

13 Abridged statements of financial position as at 30 June Less: Liabilities Payables Administration fees and expenses payable 1,154 1,098 Total liabilities 1,154 1,098 Net assets available to pay benefits 956,568 1,022,680 Represented by: Liability for accrued benefits Allocated to members accounts 937,954 1,004,334 Allocated to members accounts in annual tax adjustment 15,450 15,455 Unallocated amounts 3,164 2, ,568 1,022,680 Reconciliation of unallocated amounts Unallocated amounts at the beginning of the financial year 2,891 2,773 Add: Net movements attributable to unallocated amounts Unallocated amounts at the end of the financial year 3,164 2,891 12

14 Retirement Portfolio Service Abridged operating statement for the year ended 30 June Revenue Investment revenue Interest income 6,771 5,079 Dividends 11,030 9,011 Distributions 32,149 38,056 Movement in net market value of investments (50,779) 21,208 Total investment revenue (829) 73,354 Contributions revenue Employers 5,190 5,163 Members 36,311 36,832 Transfers from other funds 68,093 70,880 Other contributions Total contributions revenue 109, ,087 Insurance proceeds 600 Total revenue 109, ,441 Expenses Contribution surcharge (5) 9 Administration fees and expenses 12,828 13,404 Insurance premiums Total expenses 12,990 13,551 Benefits accrued as a result of operations before income tax 96, ,890 Income tax (benefit)/expense attributable to benefits accrued as a result of operations (6,008) (4,337) Benefits accrued as a result of operations 102, ,227 Reconciliation of liability for accrued benefits Liability for accrued benefits at the beginning of the financial year 1,022, ,495 Add: Benefits accrued as a result of operations 102, ,227 1,125,214 1,167,722 Less: Benefits paid and payable during the year (168,646) (145,042) Liability for accrued benefits at the end of the financial year 956,568 1,022,680 13

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16 Customer Services Phone Between the hours of 8.00am and 7.00pm (AEST) weekdays Fax Postal address PortfolioOne Locked Bag 50 Australia Square NSW L2418/1112 portfolioone.onepath.com.au