ACUMEN MEMBER MAGAZINE

Transcription

1 ACUMEN MEMBER MAGAZINE Spring 2011 Will your super be enough? With longer life expectancies and decreasing home ownership rates, will you have enough for your retirement? Rewarding life decisions.

2 2 CEO Welcome Message In this edition of Acumen AQ, we take a look at how your investments have performed over the year. One of the questions our members often ask is, How can I know if I will have enough super to fund my retirement? This is an important question to ask. We re living longer than ever, with many of us expected to spend over one quarter of our lives in retirement. This makes planning for retirement all the more important, so see Will your super be enough? on page 5 to help you get started on the right path. Increasing numbers of Australians are turning to Self Managed Super Funds (SMSF) to manage their super. If you too are thinking about it, we have some useful information that can help you decide if this is the best option for you. As an Acumen member, you can feel confident that our investment managers are continuing to perform well over the long-term. The returns of Acumen s investment options over the past year are pleasing, with the Core Strategy option remaining one of the best performing default options over the past ten years*. Finally, don t miss out on your chance to win one of five, $400 JetStar flight vouchers. See page 7 for details. Sincerely Damian Hill Chief Executive Officer Acumen * SuperRatings Crediting Rate Survey: 30 June 2011 If you have any questions, please contact Acumen: Phone: Hours of Operation: 8am to 6pm Monday to Friday AEDST Web: Issued by Retail Employees Superannuation Pty Limited ABN AFSL Retail Employees Superannuation Trust ABN

3 3 Your Acumen Investment Update Investment option performance Acumen s performance results to 30 June 2011* Structured Tailored 10 yr % pa 5 yr % pa 3 yr % pa 1 yr % pa Core Strategy Cash Plus Capital Stable Balanced Diversified High Growth Basic Cash* N/A N/A N/A 4.17 Cash Bond Shares Property N/A Australian Shares Overseas Shares N/A N/A * All investment options have been available to Acumen members, since 1 March 2002, except Basic Cash. The Basic Cash option was introduced by REST on 1 July 2009 and made available to Acumen members from 1 October The Core Strategy returns shown are crediting rates the rates allocated to members accounts. Crediting rates have differed from actual earnings rates in some years, and for more information visit and click on Performance & Investments. N/A applies to options running less than the indicated time periods. All returns are post investment management fees and tax. Returns for the three, five and ten year periods are annualised compound averages. Past performance is not necessarily an indicator of future performance. Our approach to investing We carefully select a range of specialist external investment managers in each asset sector, who in some asset sectors work alongside our wholly-owned investment manager, Super Investment Management^. In doing this, we employ an active approach to identify professional investment managers, who we believe can deliver long-term returns above relevant market benchmark indices or strong absolute returns in the case of unlisted assets. ^ Super Investment Management Pty Limited ABN (Australian Financial Services Licence Number ) is a wholly-owned company of REST. Super Investment Management Pty Limited, like other investment managers of REST, receives a fee for its investment management services. REST deals with Super Investment Management Pty Limited on an arms-length basis. We generally adopt a conservative approach to our investment strategy by having a lower than average allocation to equity markets, and having a bias towards investment managers that have a fundamental valuation and quality bias. Our Core Strategy and Structured investment options invest across different asset sectors. With our Core Strategy investment option, we actively change the allocation to different asset sectors, in response to expected market conditions. This is as much about risk mitigation when markets start to look expensive, as about seeking additional return. We always look to be ready to move early on investment opportunities that represent good medium to long-term value for our members. The plan for the 2011/12 financial year Because we are part of one of Australia s largest superannuation funds, we can take a longer-term view and also take advantage of some opportunities that smaller funds can t. By nature, investment markets are uncertain and subject to events that can t be anticipated. Understanding this, it is important to maintain a highly diversified portfolio. We currently prefer cash over bonds, and while equities will remain an important component of the portfolio, we are seeking to increase our exposure to real assets that provide a degree of inflation protection, such as property, infrastructure and floating rate debt. We are always on the lookout for good investment opportunities. Two recent examples are the purchase of the 717 Bourke Street office building in Melbourne, and our investment in the 206 megawatt Collgar wind farm near Perth in Western Australia, which commenced limited operation in May When completed at the end of this year, Collgar will be the southern hemisphere s biggest, single-stage wind farm, doubling the state s renewable energy output. With the government announcing tax concessions in the 2011/12 Federal Budget that seek to increase the attraction and certainty around infrastructure investments for super funds, we expect to see further scope to invest in assets such as these, provided the risks are appropriate for our members.

4 4 Your Acumen Investment Update (cont) Investment outcomes for the 2010/11 financial year Over the 2010/11 financial year, positive returns were achieved across all of Acumen s investment options, as shown in the table on the previous page. Equity markets produced solid results, particularly in overseas markets. However, the rise in the Australian dollar relative to most other currencies eroded the returns received by Acumen and all Australian investors from overseas equities. As the Australian dollar rises, the value of overseas investments when converted back into Australian dollars falls, because overseas currencies buy less Australian dollars. Fortunately, many of Acumen s overseas investments are hedged against currency risk, which protected members from this impact to some degree. Bond markets achieved returns in the midto-high single digits, and broadly in line with long-term expectations. The returns from Acumen s investments in direct property, infrastructure and alternative investments were strong, and made a solid contribution to the returns of Acumen s Core Strategy and Structured Options. Make the most of your super investment Everyone wants to get the best investment return from their super, but investment is about finding the right balance between risk and potential return. The key to managing the effects of the ups and downs of investment markets is to diversify your investment it s about not putting all your eggs in one investment basket. Acumen s Core Strategy and Structured Options are diversified* professionally managed investments. They diversify your investment across and within different asset sectors, and also across different investment managers. To find out more about Acumen s investment options or make an investment choice, go to or call us on * Except the Cash Plus option, which is 100% defensive.

5 5 Will your super be enough? Australians are living longer than ever before, which is great news. However, this means saving for your retirement is increasingly important. Compounding the adequacy issue, is Australia s lack of housing affordability. This issue is leading to an increase in the number of Australians, who are retiring without owning a home, or retiring with debt still owing on their house. Typically, home owners in this situation dip into their super savings to pay it off. So where does this leave you? It s important to consider whether you will be happy with your retirement outcome with just the 9% super put in by your employer, or whether you would like to make additional contributions. REST (the fund of which Acumen is a part) has released a new super and retirement calculator (pictured below) that can project a balance based on your current income, and other factors, including investment choices, and whether you plan to make voluntary contributions to your super. To utilise this new tool, visit Above: Screen shot of super and retirement calculator available at While calculators can help you consider your choices, they are no substitute for professional advice. As an Acumen member, we will pay for your first, single, super-related question to a Money Solutions * Money Coach. Money Solutions are a team of financial coaches and Retirement Specialists, who can help you understand your investment options and help you design an investment strategy that is right for you. Acumen does not pay commissions to Money Solutions. Visit or call Acumen Customer Service on to learn more about the Money Solutions services available to Acumen members. * Money Solutions Pty Ltd AFSL Money Solutions personnel are not representatives of the REST Trustee. Any financial product advice given by Money Solutions is provided under the Money Solutions AFSL. The Trustee does not accept liability for any loss or damage incurred by any person, as a result of using products or services provided by Money Solutions.

6 6 Considering a Self Managed Super Fund (SMSF)? Self Managed Super Funds (SMSFs) are becoming increasingly popular in Australia. However, before you start one, you should carefully consider whether it s right for you. If you have a very large super balance, it might be more cost effective, but you also need to be willing to take on the many responsibilities of being a trustee. Legal responsibility When you start a SMSF, you are the trustee, which means you are ultimately accountable for all the decisions related to the SMSF. Setting up and administering a SMSF requires a detailed understanding of an exhaustive list of legislative and taxation rules to ensure your fund is compliant. Additional time and effort is also required to keep up-to-date with the frequent changes to these laws. As you must be a trustee of your fund, you are legally responsible to ensure the SMSF is correctly structured, keep meticulous records, and meet all reporting requirements. Even if you receive advice from a financial planner, accountant or solicitor, the trustee is still the one who ultimately takes the blame if something goes wrong, so it s important to have an in-depth understanding of the relevant rules and regulations. Costs involved Running an SMSF is generally only cost effective, if you have a very large balance. Costs to consider include: accounting fees ATO supervisory levy investment management fees fees associated with preparation of annual report fees associated with creation of Trust Deed other legal fees financial planning fees administrative platform fees Additionally, starting a SMSF may mean that you can t obtain the cost savings that a large-scale super fund can, such as group rates for insurance, and cheaper investment costs. Investment strategy One of the biggest lures of SMSFs is the flexibility when creating an investment strategy, but it s important to consider whether you want to take on that responsibility. For the time and effort you put into an SMSF to be worthwhile, your investment strategy needs to outperform that of professional investment managers over the long-term. If you would like to determine your investment strategy for your Acumen account, there are 13 investment options to choose from.

7 7 Your chance to win a JetStar flight voucher Check your details online and WIN one of five, $400 JetStar flight vouchers. To enter, all you need to do is log in to MemberAccess at and check that your details are up-to-date or, if you are not already registered, simply register for MemberAccess and you will go in the draw. Prizes kindly provided by Chartis Travel Insurance. Check your details are up-to-date Through MemberAccess, you can check your account balance and update your personal details add your tax file number nominate your beneficiaries change investment options choose to receive estatements and enews How to register for MemberAccess Go to select Register and enter the following: your member number (on your statement) surname postcode (note, this may be an old postcode if you need to update your address details) date of birth Competition closes 10/12/2011. Terms and conditions apply. Visit for full terms and conditions. ACUMEN members save 40%* on Chartis travel insurance Taking a trip? Don t forget your travel insurance. Ensure you have protection against unwelcome surprises, including overseas medical and hospital costs, stolen and lost luggage, trip cancellations, flight delays and more. Take advantage of Chartis travel insurance and avoid landing in trouble. Visit for details. * Savings are calculated by comparing with Chartis full price premiums, as detailed at current at 5 May Savings do not apply to pre-existing medical assessment fees. TERMS AND CONDITIONS Take a rest on REST. Conditions apply, see Entry is only open to Australian residents aged 15 years or over, who are members of REST Industry Super, REST Personal, REST Pension or Acumen. Starts: 10/07/2011 and closes at 11:59pm AEDST on 10/12/2011. Max. one entry permitted per MemberAccess account. Draw: Anisimoff Legal Suite 3, Erina Plaza 210, The Central Coast Highway, Erina NSW 2250 on 10/01/2012 at 2:00pm AEDST. Winner s name will be published on and on 17/01/2012. If winner resides in VIC, their name will also be published in The Australian on 17/01/2012. Prize: 1 x JetStar flight voucher valued at $400. Five prizes available. Promoter: Retail Employees Superannuation Pty Limited, (ABN ), AFSL , trustee of the Retail Employees Superannuation Trust ABN of Level 6, 50 Carrington Street, Sydney NSW NSW Permit No. LTPS/11/4353, ACT Permit No. TP11/1977

8 Member benefits Access to financial advice when you need it Through Money Solutions #~ Acumen gives you easy access to good, personal financial advice. We want you to feel supported with simple, clear and effective advice when you need it. Making decisions about your superannuation, such as investing, insurance, tax and social security can be difficult. Most people just don t have the time, but it s something financial advisers do every day. You may need advice on a single issue, for example: choosing an investment option that s right for you making additional personal super contributions getting insurance Or you may need a broader financial plan that helps you: assess your current financial situation clarify your short and long-term financial goals put a plan in place to help you achieve your goals Money Solutions is a team of licensed financial advisers, who can tailor financial advice to your personal needs. Call and ask to speak to a Money Solutions Coach or visit Acumen will pay for your first, single, superannuation-related question over the phone with a Money Solutions Money Coach. ~ Money Solutions Pty Ltd AFSL Money Solutions staff are not REST Trustee representatives. Financial product advice given by Money Solutions is provided under their own AFSL. The REST Trustee does not accept liability for any loss or damage incurred by anyone, as a result of using Money Solutions products or services. Acumen members save 40%* on travel insurance Going on a holiday? No matter where you re going, the signs of trouble aren t always obvious. Protect yourself - and your holiday at a great price. Chartis # travel insurance covers you against unwelcome surprises, including overseas medical and hospital costs, stolen and lost luggage, trip cancellations, flight delays and more. For international travellers, you ll also get 24-hour access to Travel Guard emergency assistance, for expert help any time you need it. So take advantage of Chartis travel insurance and avoid landing in trouble. If you would like to buy travel insurance quickly and easily online, or find out more, visit or call Chartis on for a quote and purchase. * The savings are calculated by comparing with Chartis full price premiums, as detailed at current at 01 April Savings do not apply to pre-existing medical assessment fees. The Chartis logo is a registered trademark. Insurance products and services are provided by Chartis Australia Insurance Limited (Chartis) ABN , AFSL Chartis is the issuer of travel insurance products. The above is a brief summary of cover only, and exclusions and conditions may apply. You should read the Product Disclosure Statement, which is available at and consider the PDS in light of your personal circumstances, prior to making any decision to acquire the product. Better value banking with ME Bank If you re a member of REST Industry Super, ME Bank # is your bank. With ME Bank, you get banking that is simple, low cost and fair with real service and a no-nonsense approach to borrowing. All with low fees, discounts on home loans and higher returns built in for members. Owned by some of the largest industry super funds, ME Bank provides industry super fund members with a genuine banking alternative. Your REST membership gives you access to a full range of banking products including: home loans with no application fees, or ongoing account keeping fees, no fees to split, fix or redraw term deposits online savings accounts low rate personal loans low rate credit cards Two of the latest offerings are: Member Package^, which offers an all in one banking solution a lower rate home loan, currently 7.09% p.a with 100% offset transaction facility and a credit card with no annual fee. EveryDay Transaction Account comes with a Debit MasterCard to shop in-store, online, over the phone and overseas all while using your own money. As a REST member if you deposit $1,500 or more per month into the account, the $5 monthly fee is waived and we can help you switch your banking. Call or visit mebank.com.au to make an appointment for a Member Banking Manager to visit at a time and location convenient to you. ^ Member Package available for an annual fee to eligible super fund and union members. Interest rates are current as at 5 July 2011 and are subject to change. Applications for credit are subject to approval. Terms, conditions, fees and charges apply. This is general information only and you should consider if these products are appropriate for you. This information is about products and services available to you as a member of REST Industry Super. REST Industry Super and ME Bank are not agents or representatives of one another. REST Industry Super does not accept responsibility or liability for any loss or damage caused by the products or services provided by ME Bank. REST Industry Super does not receive any commissions as a result of members using ME Bank products and services. Members Equity Bank Pty Limited ABN Australian Credit Licence Number Save on health cover HCF # offers a special range of corporate health insurance products for REST Industry Super members. HCF is the third largest health fund in Australia and is the largest not-for-profit health fund. You can access great value health cover for hospital services, emergency ambulance transport and extras, including physio, optical and dental cover. You can also access HCF s seven Dental and Eyecare Centres in Sydney. Members outside Sydney can have access to a range of no-gap diagnostic and preventative dental services through HCF s Oral Health Program. HCF s experienced health cover advisers can help you choose the right level of cover for your needs. To see how you benefit or to join, call today, or visit # The Trustee is not responsible for, and does not accept liability for, the products, services or actions of Money Solutions, Chartis, ME Bank or HCF. You should use your own judgement before taking up any products or services offered by Money Solutions, Chartis, ME Bank or HCF. This magazine contains general information about superannuation products and has been prepared without taking into account your objectives, financial situation or needs. Before making any decision about our products based on this advice, consider whether it is appropriate for your own objectives, financial situation and needs, and consider the product Disclosure Statement (PDS) at www. acumensuper.com.au or call When you become a member of Acumen, you join the Retail Employees Superannuation Trust, Fund, ABN Issued by the Trustee, Retail Employees Superannuation Pty Limited ABN , AFSL Registered Office: Level 6, 50 Carrington Street Sydney NSW The Trustee has no relationship association with any other product issuer that might reasonably be expected to influence us in providing this advice. Any advice is provided by REST s employees, who are paid a salary and may receive a performance-related bonus. No commissions or fees are paid either to representatives or to third parties for financial advice given. RX/AR /11 ISS11