Endeavour Super. Annual Report. 30 June 2015 ABN

Transcription

1 Endeavour Super ABN Annual Report 30 June 2015 This Report forms part of your annual periodic statement and should be read in conjunction with your 30 June 2015 Annual Member Statement. Trustee and Issuer: The Trust Company (Superannuation) Limited ABN AFS Licence Number RSE Licence Number L

2 About Endeavour Super Endeavour Super (the Plan ), a sub-plan of ISARF Superannuation Fund (ABN , RSE Registration R ) (ISARF) comprises of: Endeavour Employer Super, a branded sub-plan in the Employer Sponsored Division of ISARF, Endeavour Personal Super, a branded sub-plan in the Personal Super Division of ISARF, Endeavour Pensions, a branded sub-plan in the Pension Division of ISARF. Rebrand of the Plan The Trustee is pleased to confirm that rebranding of the Plan to Endeavour Super from Property Focused Super was completed in January Further enhancements to the Plan are planned to be implemented by the end of We will notify you in writing once these are available. Investment Performance 2014/15 Financial Year Closing Unit Price One year Return Inception Date Cash Plus Fund % Jul 2010 Conservative Fund % Aug 2010 Balanced Fund % Jul 2010 Growth Fund % Aug 2010 Diversified Aust. Residential Property % Feb 2011 Returns are calculated net of relevant fees, costs and taxes. PAST PERFORMANCE SHOULD NOT BE TAKEN AS AN INDICATOR OF FUTURE PERFORMANCE 1

3 Investment Objectives & Strategy CASH PLUS FUND Risk Profile Low to Medium Objective To achieve returns equal to inflation (CPI) over an annual period and to restrict the number of years between negative annual return periods to 1 in 10 years. Strategy This option invests in cash & short-term fixed Interest securities and where available, capital guaranteed portfolios in Australian life office statutory funds. Asset Allocation Range % Benchmark % Cash Australian Fixed Interest International Fixed Interest CONSERVATIVE FUND Risk Profile Low to Medium Objective To achieve a net return (after taxes, fees, and charges are deducted) of 3% greater than CPI growth over rolling five year periods. The probability of a negative return for this option is 1 in 7 years. Strategy This option invests in a diversified portfolio which may include fixed interest, listed and unlisted property trusts, infrastructure funds, hedge funds, cash, Australian & international shares. Asset Allocation Range % Benchmark % Cash Australian Fixed Interest International Fixed Interest Australian Shares International Shares Australian Property International Property

4 Investment Objectives & Strategy continued BALANCED FUND Risk Profile Medium Objective To achieve a net return (after taxes, fees, and charges are deducted) of 4% greater than the CPI growth over any five year period. The probability of a negative return for this option is 1 in 5 years Strategy This option invests in a diversified portfolio which may include fixed interest, listed and unlisted property trusts, infrastructure funds, hedge funds, cash, Australian & international shares. Asset Allocation Range % Benchmark % Cash Australian Fixed Interest International Fixed Interest Australian Shares International Shares Australian Property International Property GROWTH FUND Risk Profile Medium to High Objective To achieve a net return (after taxes, fees, and charges are deducted) of 4.5% greater than CPI growth over rolling five year periods. The probability of a negative return for this option is 1 in 4 years. Strategy This option invests in a diversified portfolio which may include fixed interest, listed and unlisted property trusts, infrastructure funds, hedge funds, cash, Australian and international shares. Asset Allocation Range % Benchmark % Cash Australian Fixed Interest International Fixed Interest Australian Shares International Shares Australian Property International Property

5 Investment Objectives & Strategy continued DIVERSIFIED AUSTRALIAN RESIDENTIAL PROPERTY FUND Risk Profile Medium to High Objective To achieve a gross return (before taxes, fees, and charges are deducted) of 4.5% greater than CPI growth over any five year period. The probability of a negative return for this option is 1 in 5 years. Strategy This option invests into the Residential Property Fund, which is a separate registered managed investment scheme that invests into a portfolio of residential investment properties Australia wide as well as maintaining some cash for liquidity purposes and operational purposes of the Fund. Asset Allocation Range % Benchmark % Cash Residential Property

6 Financial Information An abridged summary of the ISARF audited accounts for the year ended 30 June 2015 is shown below. The full audited accounts and auditor s report are available now by contacting the administrator. 30 JUNE JUNE 2014 NET ASSET AVAILABLE TO PAY BENEFITS AT START OF YEAR REVENUE 5,287,207)) 5,176,470)) Investment Revenue (168,098) 416,933 Contribution Revenue 252, ,898 EXPENSES AND BENEFITS PAID Benefits Paid 1,252, ,638 Operating Expenses 46,611 55,427 Group Life Premium 12,841 12,196 Tax Expenses 20,983 53,833 BENEFITS ACCRUED AS A RESULT OF OPERATIONS 4,038,508 5,287,207 NET ASSET AVAILABLE TO PAY BENEFITS AT END OF YEAR 4,038,508 5,287,207 Represented by: ASSETS Cash at Bank 103, ,979 Receivables 66,152 75,105 Investments in Managed Schemes 4,026,221 5,265,100 Other Assets 16, TOTAL ASSETS 4,212,299 5,488,685 LIABILITIES Benefits Payable 160, ,297 Operating Expenses Payable 5,586 14,365 Group Life Premiums Payable 476 1,398 Current Tax Liability 7,695 6,659 Deferred Tax Liability - 2,759 TOTAL LIABILTIES 173, ,478 NET ASSET AVAILABLE TO PAY BENEFITS AT END OF YEAR 4,038,508 5,287,207 ALLOCATED TO MEMBER ACCOUNTS 4,038,508 5,287,207 5

7 Endeavour Super Investment Managers or Products Investments greater than 5% of ISARF s investment assets as at 30 June Residential Property Fund 47.49% Colonial First State Wholesale Premium Cash Fund (COM0024AU) 12.99% Advance Alleron Australian Equity Growth Fund (ADV0133AU) 8.33% Kapstream Absolute Return Income Fund (HOW4003AU) 6.86% Bennelong Concentrated AEQ (BFL0002AU) 5.66% Investments less than 5% of ISARF s investment assets as at 30 June PIMCO EQT Wholesale Global Bond Fund (ETL0018AU) 4.81% Resolution Capital Global Property Securities Fund (WHT0015AU) 4.25% Pengana Emerging Companies Fund (PER0270AU) 3.30% ANZ Cash Account 2.50% Aberdeen International Equity Fund (EQI0015AU) 2.41% K2 Asian Absolute Return Fund (KAM0100AU) 1.40% Use of Financial Derivatives The Trustee does not enter into derivative contracts. However, underlying investment managers may use derivative instruments to assist with the effective management of portfolio assets. Allocation of Earnings Net earnings, positive or negative, are fully allocated to the members account through changes in the unit price. Your account balance will vary on the basis of your balance at the beginning of the period, plus contributions or transfers received, less benefits and other deductions paid during the period, and allowing for the timing of each of those transactions. Market and economic conditions will have an impact on the earnings achieved by the Plan s investments and this flows through to changes in the unit price. Operational Risk Reserve (ORR) During the year the Trustee introduced an Operational Risk Reserve ( ORR ). The ORR is a requirement of Prudential Standard SPS 114. This reserve is to specifically cover potential losses arising from operational risks that may affect the Plan s business operations. An operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. The ORFR may be drawn upon to assist in compensating members of the Plan in the event of an operational risk having materialised. The Trustee has determined that the target balance for this reserve is 0.25% of the Fund s Net Asset Value, and the Trustee has a strategy in place to reach this by 30 June An amount of 0.10% is deducted from member s accounts each year to help fund the Plan s ORR. The Plan s ORR balance at 30 June 2015 was $2,669. The ORR is currently invested in cash. 6

8 Legislation Update This is a summary only of some superannuation and taxation laws that impact superannuation contributions and benefits. It includes information arising from changes to legislation and proposed arrangements that may be applicable in 2015/16 (subject to being passed by Parliament). For further information about taxation go to The impact of these laws on you personally will depend on your personal situation. Special complex rules apply to certain amounts contributed to superannuation (e.g. amounts from overseas superannuation funds, personal injury settlements, proceeds from the sale of a small business, and employer termination payments). For information or advice about these amounts or, more generally, that takes into account your personal circumstances, you should contact your financial adviser. GOVERNMENT CO-CONTRIBUTION The Government co-contribution is a contribution, made by the Government, to the superannuation account of eligible low and middle-income earners who pay personal (after-tax) contributions to superannuation. The maximum co-contribution payable by the Government for the 2015/16 Financial Year is $500 where a person s income is below $35,454. The matching rate for the 2015/16 Financial Year onwards is 50%. The maximum co-contribution payable is reduced as income increases, phasing out at $50,454 for the 2015/16 Financial Year. Reportable employer superannuation contributions (e.g. salary sacrifice contributions) and fringe benefits are included in the assessment of your income for co-contribution purposes. If you are eligible, the Australian Taxation Office based on your tax return and information received from the Plan pays the co-contribution automatically. The Government co-contribution scheme extends to the self-employed, provided they satisfy eligibility criteria for the co-contribution. To be eligible, a self-employed person must be: under age 71 at the end of the income year, and earn 10% or more of their total income (assessable income plus reportable fringe benefits and reportable employer superannuation contributions) for that year from running a business, eligible employment, or a combination of both, and earn below the phasing out threshold noted above - this includes assessable income plus reportable fringe benefits and reportable employer superannuation contributions less tax deductions for running a business (not including employee deductions). For further or updated information about the Government co-contribution (including full eligibility criteria), refer to The Plan reports to the Australian Taxation Office on all personal contributions, ensuring that eligible members will receive their co-contribution when paid by the Government, and we separately identify these on a member s Annual Benefit statement. 7

9 Superannuation Changes CONCESSIONAL CONTRIBUTIONS CAP Individuals aged 48 or under as at 30 June 2015 have a concessional contributions cap of $30,000. The $30,000 concessional cap will be periodically increased in line with Average Weekly Ordinary Times Earnings in $5,000 increments. For those aged 49 and over as at 30 June 2015, an un-indexed concessional contributions cap of $35,000 applies. NON-CONCESSIONAL CONTRIBUTIONS CAP The non-concessional contributions cap will remain at $180,000 for the 2015/16 financial year. People under 65 years old may be able to make non-concessional contributions of up to three times their non-concessional contribution caps over a three-year period. This is known as the bring forward option, and is automatically triggered when your non-concessional contributions are more than $180,000 in a particular year. The bring-forward cap is three times the non-concessional contributions cap. If brought forward, the bring forward cap would be 3 x $180,000 = $540,000. SUPER CONTRIBUTION FOR LOW-INCOME EARNERS A low-income super contribution of up to $500 per year for low-income earners currently applies. This will apply to concessional (before tax) contributions made by or for eligible individuals who earn up to $37,000 (not indexed). The contribution is 15% of the concessional contributions you or your employer make for the 2015/16 financial year. Payment of the low-income super contribution will cease in respect of concessional contributions made on or after 1 July This will mean that the low-income super contribution will continue to be payable in respect of concessional contributions made up to and including the 2016/17 income year. CHANGES TO THE SUPER GUARANTEE (SG) Currently your employer is required to pay 9.50% based on your earnings to super. The SG rate will now remain at the current 9.50% until 30 June 2021 and then will gradually increase to 12% between 1 July 2021 and 1 July

10 Accessing Benefits Because superannuation is a long-term investment, the Commonwealth Government has placed restrictions on when you can gain access to benefits. Your benefit in the Plan comprises contributions, any transfers or rollovers, investment earnings (positive or negative) and the proceeds from any insurance claims (if applicable) for and on your behalf, less government charges and taxes, any insurance premiums, and fees and other costs. All contributions made by you or on your behalf since 1 July 1999, as well as investment earnings on those contributions, are required to be kept in the super system (or preserved ) until you satisfy a condition of release. The benefits that accumulated in superannuation prior to 1 July 1999 are divided into preserved and non-preserved components. Some non-preserved amounts are restricted and some are unrestricted. Unrestricted non-preserved amounts can be paid to you at any time from the Plan. Restricted non-preserved amounts can be withdrawn only when you have left your employment with an employer who has contributed to the Plan on your behalf. CONDITIONS OF RELEASE Preserved benefits can only be accessed as cash when you meet a condition of release, which generally includes any one of the following circumstances: you reach your preservation age that is less than 60 (see below) and ceased employment and the Trustee is reasonably satisfied that you do not intend ever again to become gainfully employed you reach age 60 and ceased employment and either of the following applies: o you attained age 60 on or before the ending of employment, or o the Trustee is reasonably satisfied that you do not intend ever again to become gainfully employed you reach age 65 the Trustee is satisfied that you suffer from permanent incapacity* you die* you have ceased gainful employment with your employer and your account balance is less than $200 you have a terminal medical condition* (in order to release your benefits, the Trustee requires medical reports from two practitioners, one of whom must be a relevant specialist, that certify that you are likely to die within 24 months) you qualify for an early release on the grounds of severe financial hardship or specified compassionate grounds* (in these circumstances only part of your benefit may be released, in most cases) you are a temporary resident permanently departing Australia* you attain preservation age and start a complying non-commutable income stream, or you comply with any other condition of release specified in government legislation. * Residents who hold temporary visas (except visas under subclasses 405 and 410) have restricted conditions of release. Benefits cannot be accessed unless they satisfy one of the specifically identified conditions of release. Temporary residents who have retired from the workforce or have reached preservation age cannot access benefits 9

11 Accessing Benefits continued PRESERVATION AGE Your preservation age depends on your date of birth. Date of Birth Age Before 01 July July 1960 to 30 June July 1961 to 30 June July 1962 to 30 June July 1963 to 30 June After 01 July Eligible Rollover Fund (ERF) The Trustee of the Plan has a very broad power given to it by legislation, to transfer a member s benefits to another fund, called an Eligible Rollover Fund or ERF. The Trustee may transfer your superannuation benefit to the Plan s ERF if you become: an inactive member (that is, you joined the Plan more than two years ago, but in the last two years there have been no contributions or rollovers credited to your account), or a lost member (that is, two items of written communication from the Plan have been sent to your last known address and have been returned unclaimed); The Plan s ERF is: Super Money Eligible Rollover Fund ( SMERF ) PO Box A2499 Sydney South NSW 1235 Telephone: Being transferred to an ERF may affect your benefit because: You will cease to be a member of the Plan; Any insurance cover you had with the Plan will cease; You will become a member of SMERF and be subject to its governing rules. In the event that your benefit is transferred to the ERF, and the Plan can provide SMERF with your current contact details, SMERF will provide you with its current Product Disclosure Statement. The Trustee of the Plan also acts as the Trustee of SMERF. 10

12 Enquiries and Complaints The Trustee provides an enquiry and complaints service for members. Through this service, you may make a general enquiry about your superannuation benefits or the operation of the Plan as it relates to you, or make a complaint if you are dissatisfied about some aspect of your membership or benefits. Any enquiries or complaints should be addressed in the first instance to: Enquiries and Complaints Officer Endeavour Super PO Box 1282 ALBURY NSW 2640 Telephone: The Trustee endeavours to resolve all complaints through the internal complaints process. If your complaint is not resolved to your satisfaction by the Plan s internal procedures or you have not received a response within 90 days, you may have a right to lodge a complaint with the Superannuation Complaints Tribunal (SCT). The SCT is an independent body established by the Federal Government. SCT contact details are; Superannuation Complaints Tribunal Locked Bag 3060 GPO MELBOURNE, VIC 3001 Telephone: Privacy A copy of the Plan s privacy policy is available by contacting the Plan s Client Services Team. Disclaimer The Trust Company (Superannuation) Limited, ABN , AFSL No , RSE Licence No L , is the Trustee of the Plan. The information provided in this report is given in good faith and believed to be accurate at the time of production. The information given in this document is of a general nature and has been prepared without taking into account your objectives, individual circumstances, financial situation, or particular investment needs. Before making any investment or other decision regarding your investments within the Plan, you should consult a financial adviser. 11

13 Who is Looking After You THE TRUSTEE The Trust Company (Superannuation) Limited (ABN , AFSL No ) is the Trustee of the Plan and is responsible for making sure the Plan is run in accordance with the Trust Deed and governing legislation. The Trustee works on members behalf to ensure the best possible management and performance by the Plan and the Trustee s first and foremost responsibility is to protect and advance the interests of the Plan s members. The Trust Company (Superannuation) Limited is the issuer of this Annual Report. The directors of The Trust Company (Superannuation) Limited at the end of the reporting period were: M. Cerché (Chairperson), appointed 1 September 2014 M. Jones, appointed 1 September 2014 A. de Vries, appointed 1 September 2014 V. Parrott, appointed 1 September 2014 During the year The Trust Company (Superannuation) Limited was appointed as trustee following the retirement of CCSL Limited (RSE No L ). The Trust Company (Superannuation) Limited was appointed as trustee on 1 February The directors of CCSL Limited during the reporting period to the time of retirement were as follows: M. Cerché (Chairperson), appointed 13 April 2005 M. Jones, appointed 13 April 2005 A. de Vries, appointed 15 April 2011 V. Parrott, appointed 15 April 2011 The Trustee holds professional indemnity insurance to protect the Trustee, its directors and the Plan against certain losses or liabilities. The indemnity insurance cover is subject to the terms and conditions of the relevant insurance policy. THE ADMINISTRATOR The Trustee has appointed Super Managers Funds Administration Pty Ltd (ABN ) as the administrator of the Plan. Plan contact details are: Mail: Endeavour Super PO Box 1282 ALBURY, NSW 2640 Telephone: Local call cost from anywhere within Australia. Extra charge if you use mobile or payphones Monday to Friday 9am to 5pm (EST) Website: service@propertyfocusedsuper.com.au 12

14 Directory SPONSOR: ISARF Pty Ltd ABN Level 3, O Connell Street SYDNEY NSW 2000 CUSTODIAN: RBC Investor Services Trust (RBC) ABN Level 11, 2 Park Street SYDNEY NSW 2000 INSURER: Hannover Life Re of Australasia Ltd (Hannover) ABN Level 7, 70 Phillip Street SYDNEY NSW