Since 1937 BOCSUPER A NNIVERSARY

Transcription

1 BOCSUPER A NNIVERSARY Since 1937 Issued by BOC Superannuation Pty Ltd ABN , AFS Licence No as Trustee of the BOC Gases Superannuation Fund ABN (BOC Super). MySuper Authorisation number

2 Year in review BOC Super Trustee Board Welcome to the Annual Report for members of BOC Super for the year to 30 June Below we highlight some of the main activities for the year including some enhancements for the benefit of members. Frederick Lee, Chair Michelle Blume Christine Katic Retiring Director Angela Slocombe Bruce Currie John Coyne Warwick Webb Changes in BOC Super Trustee Board Angela Slocombe has taken maternity leave and resigned as a Company-appointed Trustee Director at the end of May Angela was the Chair of the Remuneration Committee, and a valued member of the Insurance Claims & Underwriting Committee as well as the Member Communications and Engagement Committee. Michelle Blume was appointed to replace Angela as a Company-appointed Trustee Director from 1 June Michelle is an experienced Senior HR Manager with strong leadership skills and more than 20 years service with BOC. The Trustee would like to welcome Michelle to the Board and thank Angela for her contribution to BOC Super as a Trustee Director since Strong investment performance in 2016/17 Despite continuing geopolitical risks and volatility in equity markets, investment performance for BOC Super options with a higher allocation to growth assets was strong in 2016/17. Political turmoil contributed to US market volatility as several controversial reports and revelations regarding the US President and his interactions with Russian officials negatively impacted investor sentiment. Economic activity continued to strengthen in the USA, however, with markets finishing the year strongly. The outcome of the French election was well received by investors in Europe, but the surprise result of the British election weighed heavily on investor sentiment. Global economic data continued to improve over the year, but factors such as high global debt, stubbornly low inflation and differences in consumer and business confidence remain as key challenges going forward. All BOC Super options delivered positive absolute returns for the year ending 30 June The High Growth option achieved a robust return of 10.46% net of investment fees and tax over the year, well above peers in the SuperRatings Balanced Fund survey. The net average return for the High Growth option over the five years to 30 June 2017 was 10.98% p.a. Other Super and Pension options have been tracking well over the year, with most options outperforming their respective survey peer medians. The Trustee continues to monitor BOC Super s investments closely. 1 BOC super annual report 2017

3 Changes to Pension options due to new rules BOC Super implemented some changes to our Pension options from 1 July 2017 to meet new Government legislation. During the year, we wrote to all our Pension members providing more information about the impact of the changes. The changes mean: z Members with a Transition to Retirement Pension are now invested in the same investment options as Super members so that tax of up to 15% can now be deducted from investment earnings of these accounts. This change reduces some of the advantages of this type of pension. z There is a $1.6 million cap which restricts the total amount anyone can transfer into a retirement pension. Anyone with more will be subject to additional tax. Any excess amounts must either be transferred to a superannuation account where the investment earnings are taxed or paid out in cash. BOC Super helping members reach retirement readiness The 2016 Mercer Retirement Readiness Index found that 89% of BOC Super members are on track for a comfortable retirement. BOC Super was ranked third out of the 18 funds included. The Index covered 640,000 members to broadly estimate retirement readiness against ASFA s Comfortable Retirement Standard*. ASFA produces estimates of the annual income needed by a typical retiree to enjoy a comfortable standard of living in retirement. The Index showed that overall, members in corporate super funds were better positioned than those in industry funds and master trusts. On average, 75% of members in corporate funds were on track for a comfortable retirement compared to only 58% in master trusts and 39% in industry funds. Super Simulator enhanced The BOC Super Simulator is a valuable tool for members to use in planning their potential retirement outlook. During the year the Simulator was enhanced so that members can use it from a mobile device such as a smart phone or tablet. The Simulator estimates: z How much super you might have when you retire; z How long your super might last when you retire; and z The amount of Age Pension you might receive. * The Association of Superannuation Funds of Australia Limited ASFA Retirement Standard Looking back over 80 years of service On 25 October 2017, BOC Super celebrates its 80th birthday. The Fund originally started as the CIG Pension Fund with an initial investment of 4,700. By 1958 this had grown to more than 1 million. It now has in excess of nearly $700 million of assets and manages the retirement savings of 3,400 members. Over this time we have assisted many thousands of members. Here s a brief look at our early days. z In 1939, the Company met the contributions of members joining naval, air or military forces for training or for the duration of the war. z Early records were typed on loose sheets of paper and pasted in a guard book. Duplicate records were kept at the bank due to the threat of air raid attacks in Sydney in z Inflation was an issue even in 1944 when member contributions were calculated to the nearest threepence not the nearest penny. z In 1946, a separate Trustee company was appointed to hold the Fund s assets. z On 1 December 1994 the Fund changed its name to the BOC Gases Superannuation Fund, reflecting the Company s new name. boc super annual report

4 Market review Investment markets performed strongly over the 2016/17 financial year, despite continuing political uncertainty and volatility in equity markets. Australia s economy expanded moderately over the year, helped by a sharp reversal of commodity prices which boosted Australia s monthly trade surplus to the highest ever on record in December The Reserve Bank of Australia (RBA) cut interest rates by 0.25% to 1.5% in August 2016 to attempt to further support economic recovery, and has kept rates on hold since. Global economic growth continued to improve over the year. The US economy remained resilient despite reduced intervention from the Federal Reserve. From November 2016, markets unexpectedly rallied following the surprise election of US President Donald Trump. Many have credited strong market returns to Trump s presidency, believing that a Trump leadership would contribute significantly to the economy as a result of fiscal spending, tax cuts and the deregulation of the financial sector. In Europe, monetary policy conditions remained supportive. While economic conditions across the European Union (EU) varied, the aggregate GDP growth improved over the year. Economic recovery continued to be supported by the European Central Bank s quantitative easing program, which was extended by nine months to December The United Kingdom was less positive. While it will take years for the full impact of Brexit to be known, the immediate result was a lower exchange rate for the British pound. This boosted economic activity initially, primarily benefiting exporters, but the UK has since seen rapidly rising inflation and a deterioration in some economic indicators. UK equity returns lagged the broader European market. Growing uncertainty regarding the path towards Brexit was compounded by the results of the snap election in June, which saw British Prime Minister Theresa May s attempt to consolidate parliamentary influence ahead of Brexit negotiations fail spectacularly. Instead the British electorate delivered a hung parliament. The Japanese equity market was one of the best performing developed markets, rising 30.2% over the year. This was largely driven by a sharp depreciation of the Japanese Yen against the US dollar, which strongly increased the competitiveness of Japanese export companies. Global equities as represented by the MSCI World ex-australia Index rose 21.2% on a hedged basis (in Australian dollars). Unhedged returns were lower (15.4%) due to an appreciation in the Australian dollar over the year. Emerging markets outperformed developed markets, with the MSCI Emerging Markets Index rising 20.5% (unhedged) for the year. Australian equities performed strongly for most of the year, buoyed by positive investor sentiment. The S&P/ASX300 Index weakened towards the end of the year, let down by the banking sector. The May Federal Budget proposal to impose a new levy on major banks weighed on returns. This was compounded by the widespread credit rating downgrade of Australian banks and other financial institutions by major global credit rating agencies. Both S&P and Moody s cited heightened risks of a sharp correction in domestic property prices. 3 BOC super annual report 2017 There were pronounced differences in industry sector performance over the year. The Materials sector rose 24.5% on the back of a sharp recovery in commodity prices. In contrast, Telecommunications Services (-21.2%) performed very poorly, primarily driven by stock-specific issues. In the Property sector, Australian Real Estate Investment Trusts (AREITs) fell 5.6% over the year. Australian unlisted property outperformed listed property and generated a strong return (12.0%) over the financial year. After several years of strong returns, fixed interest markets were muted over the financial year. Hedged global inflation-linked bonds (3.0%) provided the best returns within the fixed interest asset class. In contrast, hedged global bonds (0.5%) and Australian bonds (0.3%) performed poorly as global yields rose over the financial year. The current investment environment remains unpredictable and volatile. Although there has been a positive shift in the overall global economic outlook, it is hard to ignore the high global debt. This has been driven by historically low cash rates and investors search for higher returns, which has pushed them towards riskier assets where valuations are already above historical norms. In light of these uncertainties, BOC Super s Trustee Board and Investment Committee remain committed to closely monitoring the risks and opportunities presented by the challenging environment, and adjusting the portfolios accordingly, in order to help deliver healthy long-term return for members. Note: This investment commentary does not constitute advice. All investment figures quoted in this market review relate to before-tax performance of the relevant industry benchmark.

5 Your super investments an overview Investment policy BOC Super has an Investment Governance Framework which sets the investment strategy and objectives for the Fund and its investment options as well as benchmarks for monitoring the Fund s performance. It helps BOC Super to achieve strong investment returns for you over the long term. The Investment Governance Framework also covers details like the appointment of investment managers and guidelines for investing in futures and options. How your investment returns are calculated The crediting rate depends on the investment performance of the investment option(s) in which your account is invested and is determined from the net investment earnings of each option after deducting investment-related fees (and tax and indirect costs, where applicable). Crediting rates are calculated weekly to enable pricing of contribution receipts and benefit payments. These weekly rates are used to calculate the benefit values shown in your personal account pages on the Fund s website. Reserves The Trustee does not maintain investment reserves. However, it does maintain an operational risk financial requirement (ORFR) reserve. From 1 July 2013, super funds have been required to set aside financial resources to address their operational risks. A reserve of 0.25% of the Fund s total assets has been set aside out of the defined benefit assets for this purpose. The Trustee has decided that the ORFR reserve will be invested in the same way as the Fund s defined benefit assets, which are currently invested in the High Growth Super option. The reserve is monitored periodically by the Trustee to ensure that it remains at this level. Level of reserves As at 30 June ORFR reserve % of total Fund assets % % % Tax credits The Fund must pay tax on its investment income. For the year to 30 June 2017, income earned in respect of Retirement Pension and Transition to Retirement Pension members was tax free. The tax payable on the Fund s investment income is complicated. It depends on how much the Fund receives from different sources, such as company dividends, interest paid on bonds and the capital gains and losses that occur when investments like shares are bought and sold. For all Super options, the overall tax payable in any Fund year can only be calculated accurately three or four months after the end of each year, when the Fund s annual accounts and tax return are prepared. When setting the Fund s crediting rates and prices each week for each Super option, the Trustee must make advance allowance for the tax that will be paid on their investment income. To do this, the Trustee makes an estimate of the tax that will apply for each Super option. In any Fund year, the actual tax payable on the Super options investment income will normally turn out to be a little higher or lower than the estimated tax included in weekly crediting rates. Once the actual tax payable is known, an adjustment is then made to take account of the difference between the estimated and actual tax. This adjustment is made during the following Fund year. For all options (except Super Cash and Pension Cash), the Fund also receives franking (tax) credits arising from its investments in Australian shares. These are applied to crediting rates on an ongoing basis. boc super annual report

6 Who manages your investments? During the year to 30 June 2017, the Trustee used a number of professional investment managers to manage BOC Super s assets. In order to gain cost effective, efficient and risk-controlled access to sector specialist managers and investment advice, the Trustee has appointed JANA Investment Advisers Pty Ltd ( JANA ) as BOC Super s investment consultant. JANA oversees the management of a considerable portion of BOC Super s assets through the JANA implemented consulting platform. The Trustee invests in JANA Investment Trusts and some other investment trusts that are provided through JANA s implemented asset consulting service. Environment, Social and Governance (ESG) issues The Trustee has long been conscious of how ESG issues can make a difference to the performance of individual companies and, therefore, to the investment returns achieved by the Fund through shareholdings in those companies. With assets invested with the underlying managers within the JANA Investment Trust structure, there is currently no opportunity to screen shareholdings. The Trustee has concluded, however, that appropriate consideration of ESG matters is undertaken by the managers making day-to-day investment decisions which affect BOC Super assets. Investment managers/products as at 30 June JANA Core Australian Shares 13.6% 13.3% JANA High Alpha Australian Shares 4.0% 3.9% JANA Passive Australian Shares (Vanguard) 4.0% 4.0% JANA Core Global Shares 8.1% 7.6% JANA High Alpha Global Shares 8.3% 7.8% JANA Passive Global Shares (Vanguard) 4.7% 4.5% JANA Small Caps Australian Shares 0.9% 0.9% JANA Emerging Markets 2.5% 2.3% JANA Australian Listed Property 0.4% 0.01% JANA Global Listed Property 1.8% 2.2% AMP Diversified Property 3.2% 3.0% Charter Hall Core Plus Office 0.8% 0.7% DEXUS Wholesale Property 3.4% 3.2% AMP Australian Diversified Infrastructure 4.1% 3.9% AMP Community Infrastructure 0.8% 0.7% JANA Select Opportunities 11.0% 10.7% Low Correlation Strategy 4.2% 4.1% JANA Diversified Fixed Interest 4.6% 5.4% JANA All Maturity Debt 1.0% 1.0% JANA Short Maturity Debt 2.1% 2.3% JANA Cash 16.5% 18.4% Total 100.0% 100.0% 5 BOC super annual report 2017

7 Specialist investment managers Following are the specialist investment managers used by JANA within various sectors as at 30 June Domestic shares BEM, Concise, Fidelity, Solaris, Cooper, Ubique, BT, Paradice, Fairview, Vanguard International shares Acadian, Schroders, Janus, C Worldwide, Harding Loevner, Pzena, Tweedy Browne, Sands Capital, Delaware, Neuberger Berman, Vanguard Bonds Franklin Templeton, GIGC, PIMCO, UBS, GAR, Amundi, Antares, Goldman Sachs, Loomis Sayles, Wellington Property AMP, DEXUS, Charter Hall, Morgan Stanley, Resolution, SG Hiscock Alternatives Low Correlation Strategy, JANA Select Opportunities, AMP Cash Antares Our policy on derivatives As it is not the policy of the Trustee to directly invest the assets of the Fund, the Trustee would not directly invest in derivatives. External investment managers may utilise derivatives in managing investment portfolios for the Trustee and in managing pooled investment vehicles in which the Trustee invests. No investment manager is permitted to use derivatives (e.g. futures contracts, forward transactions and options) to an extent greater than the total value of the assets they manage. Derivatives may be used provided this is in accordance with investment management agreements between JANA and its appointed managers. The management and use of derivatives directly by the underlying managers in the JANA Investment Trusts is governed by the managers Derivative Risk Statements or other risk management processes. boc super annual report

8 How the investment options performed Super options # Note that past performance is not necessarily a reliable indicator of future performance. Net return for Super members 2016/17* Investment strategy Investment objective High Growth (default option) ## Aggressive Growth 10.46% 13.07% Aims to deliver a high level of long-term return, within a portfolio invested across a diverse mix of assets and markets, including shares, property, alternative assets and bonds. To earn a rate of return (net of tax and investment fees) of CPI + 4% per annum over rolling 10-year periods with the potential for a negative return once in every 4 years (5 times in 20 years). Risk profile High Very high Minimum suggested investment horizon 10 years 10 years Investment mix as at 30 June 2017 (figures in brackets show investment mix as at 30 June See page 8 for key.) 9.9% (10.1%) 5.2% (6.6%) 10.4% (10.5%) 25.3% (25.4%) Aims to deliver the maximum possible long-term return, by accepting increased volatility in returns over the short to medium term. It is potentially invested in fewer markets than the other diversified options and has a very high exposure to Australian and international share markets. To earn a rate of return (net of tax and investment fees) of CPI + 5% per annum over rolling 10-year periods, with the potential for a negative return once in every 3 years (7 times in 20 years). 6.0% (6.0%) 3.8% (3.9%) 7.3% (7.1%) 5.0% (5.0%) 39.0% (39.5%) 12.1% (12.0%) Net returns for Super members for periods ending 30 June 2017* 2.6% (3.6%) 8.0% (6.7%) 26.5% (25.1%) Year Return % % % % % 5-year compound 10.98% 10-year compound 4.49% 38.9% (38.5%) Year Return % % % % % 5-year compound 12.62% 10-year compound 4.00% # For the period to 30 June 2017, Super options were available to Employee, Retained and Spouse members. ## The High Growth option is the investment option for MySuper members. * All rates are net of tax, investment fees and indirect costs. Australian shares International shares Property unlisted Property listed Growth alternatives Defensive alternatives Diversified fixed interest Cash 7 BOC super annual report 2017

9 Super options continued # Note that past performance is not necessarily a reliable indicator of future performance. Net return for Super members 2016/17* Investment strategy Low Growth Cash 5.05% 2.00% A substantially more defensive option than the High Growth option, although it aims to deliver higher long-term returns than the Cash option with commensurately higher risk. It is also invested across a diverse mix of assets and markets, including shares, property and bonds. Aims to preserve capital after fees, and match the return of the bank bill index (the common measure of the institutional cash rate). It offers minimal scope of positive returns after inflation. Investment objective To earn a rate of return (net of tax and investment fees) of CPI + 1% per annum over rolling 3-year periods, with the potential for a negative return once in every 10 years (twice in 20 years). Risk profile Medium Very low Minimum suggested investment horizon 3 years Cash Investment mix 8.0% 8.0% (8.2%) as at 30 June 2017 (8.2%) Cash (figures in brackets show 32.0% investment mix Diversified as at fixed interest (32.8%) 30 June See page 8 for key.) Defensive alternatives Growth alternatives Property -- listed 32.0% (32.8%) 8.0% (7.9%) 6.5% (6.5%) 3.5% (3.5%) 7.0% (6.0%) 8.0% (7.9%) 6.5% (6.5%) 3.5% (3.5%) 7.0% (6.0%) To earn a positive rate of return (net of tax and investment fees) over rolling 1-year periods, with negligible chance of a negative annual return (perhaps one half in 20 years). 100% (100%) Property -- unlisted Overseas shares Net returns for Super members for periods ending 30 June 2017* Australian shares 24.0% (25.1%) 24.0% (25.1%) 11.0% (10.0%) Year Return % % % % % 5-year compound 6.22% 10-year compound 4.21% 11.0% (10.0%) Year Return % % % % % 5-year compound 2.55% 10-year compound 3.59% # For the period to 30 June 2017, Super options were available to Employee, Retained and Spouse members. ## The High Growth option is the investment option for MySuper members. * All rates are net of tax, investment fees and indirect costs. Australian shares International shares Property unlisted Property listed Growth alternatives Defensive alternatives Diversified fixed interest Cash boc super annual report

10 Pension options # Note that past performance is not necessarily a reliable indicator of future performance. Net return for Pension members 2016/17* Investment strategy Investment objective Moderate (default option)** Aggressive 10.50% 15.31% Aims to deliver a high level of long-term return, within a portfolio invested across a diverse mix of assets and markets, including shares, property, alternative assets and bonds. To earn a rate of return (net of investment fees) of CPI + 3% per annum over rolling 5-year periods, with the expected frequency of negative returns between 3-4 years in every 20 years. Risk profile Medium High Minimum suggested investment horizon 5 years 10 years Investment mix as at 30 June 2017 (figures in brackets show investment mix as at 30 June See page 10 for key.) 14.4% (15.1%) 6.2% (5.0%) 21.7% (22.1%) Aims to deliver the maximum possible long-term return, by accepting increased volatility in returns over the short to medium term. It is potentially invested in fewer markets than the other diversified options and has a very high exposure to Australian and international share markets. To earn a rate of return (net of investment fees) of CPI + 4% per annum over rolling 10-year periods, with the expected frequency of negative returns between 4-6 years in every 20 years. 5.5% (5.5%) 10.1% (10.0%) 5.5% (5.5%) 39.0% (39.5%) 14.8% (14.0%) 9.8% (9.9%) 10.3% (10.6%) 22.8% (23.3%) 39.9% (39.5%) Net returns for Pension members for periods ending 30 June 2017* Year Return % % % % % 5-year compound 11.47% 10-year compound 4.51% Year Return % % % % % 5-year compound 14.59% 10-year compound 4.65% ** # For the period to 30 June 2017, Pension options were available to Retirement Pension and Transition to Retirement Pension members. * All rates for Pension options are net of investment fees and indirect costs only. ** Member investment choice was introduced on 1 October New options were introduced for Pension members on 21 October Returns before this date were for the Low Growth (now Conservative), High Growth (then Assertive now Moderate) and Aggressive Growth (now Aggressive) options, net of fees. The Assertive option was revised and renamed the Moderate option on 28 February Australian shares International shares Property Growth alternatives Defensive alternatives Diversified fixed interest Cash 9 BOC super annual report 2017

11 Pension options continued # Note that past performance is not necessarily a reliable indicator of future performance. Net return for Pension members 2016/17* Investment strategy Investment objective Conservative Cash 5.70% 2.35% A substantially more defensive option than the Moderate option, although it aims to deliver higher-term returns than the Cash option with commensurately higher risk. It is also invested across a diverse mix of assets and markets, including shares, property and bonds. To earn a rate of return (net of investment fees) of CPI + 2% per annum over rolling 5-year periods, with the expected frequency of negative returns between 0.5 and 1 years in every 20 years. Risk profile Low Very low Minimum suggested investment horizon 5 years Investment mix as at 30 June 2017 (figures in brackets show investment mix as at 30 June See page 10 for key.) 19.0% (19.0%) 7.0% (7.1%) 9.0% (8.9%) 5.0% (5.0%) 7.5% (7.5%) Aims to preserve capital after fees, and match the return of the bank bill index (the common measure of the institutional cash rate). It offers minimal scope of positive returns after inflation. To earn a positive rate of return (net of investment fees) over rolling 1-year periods, with negligible chance of a negative annual return (perhaps one half in 20 years). 100% (100%) 40.0% (40.0%) 12.5% (12.5%) Net returns for Pension members for periods ending 30 June 2017* Year Return % % % % % 5-year compound 6.92% 10-year compound 4.73% ** Year Return % % % % % 5-year compound 3.01% 10-year compound 4.23% ** # For the period to 30 June 2017, Pension options were available to Retirement Pension and Transition to Retirement Pension members. * All rates for Pension options are net of investment fees and indirect costs only. ** Member investment choice was introduced on 1 October New options were introduced for Pension members on 21 October Returns before this date were for the Low Growth (now Conservative), High Growth (then Assertive now Moderate) and Aggressive Growth (now Aggressive) options, net of fees. The Assertive option was revised and renamed the Moderate option on 28 February Australian shares International shares Property Growth alternatives Defensive alternatives Diversified fixed interest Cash boc super annual report

12 Looking after your super The Trustee Your Fund is run by a Trustee company, BOC Superannuation Pty Ltd, in line with its governing legal document, the Trust Deed, and super laws. There are six Directors in the Trustee Company three elected by you, the members of BOC Super, and three appointed by BOC Limited. There is also a superannuation manager who is appointed by BOC Limited. Directors of the Trustee as at 30 June 2017 Company-appointed Directors Frederick Lee (Chair) Bruce Currie Michelle Blume Member-elected Directors John Coyne Christine Katic Warwick Webb In May 2017, Angela Slocombe resigned as a Company-appointed Director and was replaced by Michelle Blume. General Manager, Superannuation Allan Murphy The Trust Deed The Trust Deed is the governing document of BOC Super. In August 2016, minor changes were made in the Trust Deed to give effect to the insurance arrangements for the Fund. These included ensuring early payment is permitted as required under legislation for terminal illness and provide the Trustee flexibility in the payment of the Disability Income Benefit. A copy of the Trust Deed is available on the website at Trustee insurance protection The Trustee has indemnity insurance covering it for any loss suffered in exercising its power and duties as Trustee, other than where the loss is because of dishonest acts or intentional or reckless failure to exercise due care and diligence. BOC Super s advisers The table below shows the specialist advisers who help run BOC Super. Investment consultant Master custodian of assets Auditor Internal Auditor Administrator Legal advisers Actuary Risk & compliance consultant Communications JANA Investment Advisers Pty Ltd NAB Asset Services Ernst & Young Dymond, Foulds & Vaughan Mercer Outsourcing (Australia) Pty Ltd* Mercer Legal Pty Ltd Hall and Wilcox Towers Watson Australia Pty Ltd Professional Financial Solutions Towers Watson Australia Pty Ltd * The BOC Super Helpline is operated by Mercer Outsourcing (Australia) Pty Ltd AFSL No and Mercer Financial Advice (Australia) Pty Ltd AFSL No Superannuation Operations Manager Nathan BelI 11 BOC super annual report 2017

13 Don t want to be ERFed? If we lose contact with you, and don t have your current address, then we might have to ERF your super. This means, transferring your account from BOC Super to an Eligible Rollover Fund (ERF). An ERF is a fund designed for the benefits of members who cannot be located or who do not respond to letters from their superannuation fund. BOC Super may transfer your benefit to an ERF if: (i) You leave employment with BOC and or a) Your gross benefit is less than $5,000, and b) We do not receive your response to our request for payment instructions within 90 days of requesting it, (ii) We write to you advising that your benefit will be transferred to an ERF unless within the timeframe specified in the notice, you nominate an alternative fund that is eligible to receive the benefit. A summary of some of the significant features of the ERF as at 1 July 2017 is shown below. The assets of the ERF are invested in a capital guaranteed life insurance policy (ERF Policy) issued to AMP Superannuation Limited ( ASL ) by AMP Life Limited ( AMP Life ). The ERF Policy is a participating policy in AMP Life s Number 1 Statutory Fund ( AMP No 1 Fund ). There is no choice of investment available to members within the ERF. Returns are guaranteed never to be negative. For larger account balances (currently over $2,500), the investment objective is to provide returns over the longer term, exceeding those from cash with security of capital. The investment strategy for the assets in the AMP No 1 Fund (that are backing the ERF Policy) is centred on cash and fixed interest investments, supplemented by investments in shares and property to provide long-term growth. AMP Life declares multi-tiered crediting rates of investment earnings with respect to the ERF Policy. The earnings are to be credited on a member s daily balance and credited annually (or on withdrawal). Where a member s account balance is less than $1,000, no earnings are credited. There are no fees charged directly to an ERF member s account by ASL. AMP Life deducts administration and investment fees as well as taxes (including earnings tax) before declaring any interest to be credited under the ERF Policy. The ERF is unable to accept contributions from members or their employers, however, rollovers from other superannuation funds are permitted. The ERF does not provide insurance cover. You can obtain the ERF s Product Disclosure Statement using the contact details below. The ERF currently nominated by the Trustee is: AMP Eligible Rollover Fund The Administrator PO Box 300 Parramatta NSW 2124 Phone: Fax: Surcharge Any surcharge payments applying are deducted from the relevant members accounts. boc super annual report

14 Enquiries, compliments, complaints We re always happy to help you, so if you have a question about your super account or benefits, please call us on Most enquiries can be dealt with over the phone but you may be asked to put your enquiry in writing. If so, we aim to get back to you within 28 days. If you have a problem and it isn t resolved to your satisfaction, you should send a written complaint addressed to BOC Super s Complaints Officer (see back page for address details). The matter will be investigated and you will be advised of the Trustee s decision on progress as soon as possible and definitely within 90 days of receiving your complaint. You can request the Trustee s reasons for its decision on your complaint. A copy of the Trustee s Enquiries and Complaints Policy is available from the Fund website. If you are not happy with the Trustee s handling of your enquiry or complaint, you may then contact the Superannuation Complaints Tribunal. The Tribunal is an independent body set up by the Federal Government to deal with certain enquiries or complaints that the Trustee has not dealt with to your satisfaction. You can contact the Tribunal on or by to info@sct.gov.au. There are some complaints that the Tribunal cannot consider such as those relating to the management of the Fund as a whole. Time limits also apply to certain complaints relating to total and permanent disability claims and to complaints about objections to the payment of death benefits. If your complaint is in relation to one of these areas, please contact the Helpline or refer to the Tribunal s website on as soon as possible for further information. For privacy-related matters, the Office of the Australian Information Commissioner (OAIC) may review your complaint. You can contact OAIC on BOC super annual report 2017

15 The Fund s financials A summary of BOC Super s audited financial statements for the year ended 30 June 2017 is shown below. You can view the audited financial statements on the Fund s website. If you would like a copy of the audited financial statements and the audit report, please call the Helpline on Statement of financial position at 30 June 2017 $ Assets Cash and cash equivalents 9,243,179 Receivable 33,665,811 Investments 639,399,548 Prepayments 2,218,761 Deferred tax assets 5,943,598 Total assets 690,470,897 Less Liabilities Creditors and accruals 400,341 Current tax liabilities 819,136 Total liabilities 1,219,477 Equals Net assets available for member benefits 689,251,420 Total member benefits 669,265,965 NET ASSETS 19,985,455 Change in financial position 2016/17 $ Revenue Interest 67,972 Trust distributions 41,648,426 Changes in net market value 21,195,939 Other investment income 650,401 Sundry income 130,179 Total Revenue 63,692,917 Less Direct investment expenses 146,982 General administration expenses 1,782,914 Group life premiums payable by Company 2,295,953 Total expenses 4,225,849 Equals Profit From Operating Activities 59,467,068 Total allocation to member benefits 56,526,680 Income tax expense/(benefit) 2,794,614 PROFIT AFTER INCOME TAX 145,774 boc super annual report

16 Contact BOC Super We re here to help. If you have any questions about BOC Super, please contact us at: BOC Gases Superannuation Fund GPO Box 4303 Melbourne VIC 3001 Helpline Fax Issued by BOC Superannuation Pty Ltd ABN AFS Licence No RSE Licence No L as Trustee of the BOC Gases Superannuation Fund ABN RSE Registration No R MySuper Authorisation number Julius Avenue, North Ryde NSW 2113 The information in this document is general information only and does not take into account any person s individual financial objectives, financial situation or needs. Any examples are included for illustration only and are not intended to be recommendations or preferred courses of action. We recommend that you speak to a financial adviser if you need any specific advice. The value of investments in the investment options may rise and fall from time to time. Neither BOC Superannuation Pty Ltd (Trustee) nor BOC Limited (the Company) guarantees the investment performance, earnings or return of capital invested in BOC Super. The investment returns and objectives outlined in this document are not a forecast or indicative of future performance. Further, past performance is not necessarily an indication of future performance. Thanks to BOC employee Paul Jessop for permission to use his photo in this document.