intouch investing lifestyle member magazine Find out how we ve performed member benefits Learn how we re bringing you more investment choices

Transcription

1 intouch member magazine spring 2013 investing Find out how we ve performed member benefits Learn how we re bringing you more investment choices lifestyle Meet CareSuper member Julie Haynes

2 CEO s message Welcome to the Spring 2013 edition of InTouch, your member magazine. Our investment returns to 30 June 2013 CareSuper has once again delivered strong investment results to our members, with our Balanced option returning 16.2% after fees and taxes for the 2012/13 financial year. This result has helped us to outperform our competitors once again: according to SuperRatings, our Balanced option s average returns outrank the median return over one, three, five and 10 years, * proving that we have delivered competitive returns in all types of market conditions. Read how we ve continued our commitment to bringing you strong long-term results on page 4. MySuper is now here MySuper, the Australian Government s initiative to provide low-cost and simple super products for members default Super Guarantee (SG) payments, officially started on 1 July 2013, and CareSuper has been an authorised product provider since that date. Our Board and staff have been working hard to make sure we comply with the new MySuper rules, and we have strengthened our governance processes and implemented several new internal procedures as a result. The good news for most members is that the transition to MySuper has been very straightforward, and you probably won t even notice that anything has changed. If all or part of your super is in our Balanced option, then you re now a MySuper member. Find out more about what MySuper means for you at caresuper.com.au/mysuper. Bringing you more choices At CareSuper, we aim to provide you with easy to use and flexible product choices. That s why, this December, we re adding to the range of investments available through the Direct Investment option. As well as introducing a range of new exchange-traded funds (ETFs), we re also adding a brand new type of investment: Listed Investment Companies (LICs). We ll be the first industry super fund to offer our members access to LICs, which shows our commitment to providing you with innovative solutions for your super investments. Read more about these changes on page 6. Continuing our award-winning form We were recently named Industry super fund of the year in the Smart Investor Blue Ribbon Awards We re thrilled to win this highly respected award and receive positive recognition for the hard work we put into delivering you high-quality products and services. Find out more about why we won on page 3. On behalf of the team at CareSuper, I hope you enjoy keeping up to date with the latest super news in this edition of InTouch. Julie Lander Chief Executive Officer CareSuper *As measured by the June 2013 SuperRatings Fund Crediting Rate Survey SR50 Balanced (60-76) Index, June inside your pack Your annual statement pack contains useful information about your super investment with CareSuper including: 2012/13 annual statement Quick reference guide to your statement InTouch member magazine Transfer your super form 2013 Annual Report Issued by CARE Super Pty Ltd (Trustee) ABN AFSL CARE Super (Fund) ABN Level 5, 53 Queen Street, Melbourne VIC 3000 making super easy for life 2013 Annual Report now online! Download it at caresuper.com.au, or call us on if you would like a copy sent to you. 02 caresuper.com.au

3 Strong, long-term returns inside Compare CareSuper s Balanced option with the median Balanced option and the master trust (retail) median over a range of timeframes years 5 years 1 year 16.2% 14.7% 15.0% 7.8% 6.9% 5.3% 5.2% 3.9% 3.1% CareSuper Balanced option Median Balanced option* Master trust (retail) median* Please note: CareSuper s 10 and 5-year returns are compound average annual returns. CareSuper returns are net of fees and taxes. Past performance is not necessarily an indicator of future performance. Returns have been rounded to one decimal place. * Source: SuperRatings Fund Crediting Rate Survey SR50 Balanced (60 76) Index, June This survey includes Balanced options for industry funds and master trusts. CareSuper wins Industry super fund of the year award in the Smart Investor Blue Ribbon Awards 2013 The Smart Investor judges recognised our excellent long-term investment performance, flexible investment options, value for money insurance and most importantly, our passion and commitment to servicing members needs. Visit caresuper.com.au/awards to find out more. Contents Spring 13 AWAR DS Investing 04 Investment update Member benefits 06 Invest your way Money 09 Super tip from Giaan Rooney We ve helped Julie got her super on track. Find out how on page 11. Lifestyle 11 Meet CareSuper member Julie Haynes CareSuperLine

4 Investment update CareSuper has once again delivered strong investment results to our members, with our Balanced option returning 16.2% after fees and taxes for the 2012/13 financial year. This result is great news for our members, many of whom have all or part of their super invested in the Balanced option. CareSuper continues to outperform When it comes to investing, it s the long-term returns that really count and CareSuper continues to perform over all time frames. When compared to our competitors, our Balanced option s average returns outrank the median return over one, three, five and 10 years,* which proves how reliably CareSuper has delivered above-average returns in all types of market conditions. Our members can be confident that the Balanced option s 10-year return of 7.8% p.a. places CareSuper in the top 5 Balanced funds.* And over the 26 years it has been in existence, the Balanced option has returned an outstanding average return of 9.3% p.a. We ve outperformed some of Australia s largest super funds yet again. Greg Nolan, General Manager, Investments What about our other investment options? After muted returns the previous year, strong equity markets meant that CareSuper s Managed options all delivered exceptional returns over the last financial year. Our Asset Class options also performed well, with most exceeding their benchmark. The Overseas Shares option delivered the highest annual return of 30.7%, assisted by the depreciating Australian dollar, with the Australian Shares (20.8% p.a.) and Growth options (20.0% p.a.) also performing strongly over the year. Our long-term performance compares favourably against other funds: all of our Managed and Asset Class options continue to be ranked in the top 10 over 10 years.** Investment returns (after fees and taxes) to 30 June 2013 Investment options 2012/13 (%) Managed options 04 caresuper.com.au 2011/12 (%) Annual returns 2010/11 (%) 2009/10 (%) 2008/09 (%) Compound average annual returns 10 years (% p.a.) 7 years (% p.a.) 5 years (% p.a.) 3 years (% p.a.) Capital Guaranteed Capital Stable Conservative Balanced Balanced Sustainable Balanced Alternative Growth Growth Asset Class options Capital Secure Fixed Interest Direct Property Australian Shares Overseas Shares The long-term returns shown above may differ from your actual returns. Where a 10-year average is not reported, it s because the option has existed for less than 10 years. The returns shown above are after fees and tax, and have been rounded to one decimal place. All net investment returns are reflected in the sell price of each investment option. Past performance is not indicative of future performance.

5 investing The year that was Investment markets improved markedly over the 2012/13 financial year, as fears of a GFC aftermath subsided and investor confidence grew. Central banks around the world continued to provide enormous amounts of liquidity to ensure that the global economy did not slip into recession. The optimism generated by central bank intervention underpinned strong share markets both in Australia and internationally. In fact, most of the growth in our Managed options during the 2012/13 financial year was due to returns generated by the Australian and overseas shares asset classes. Returns were also enhanced by our active investment managers outperforming the market indices. In contrast to shares, returns delivered by the fixed interest asset class in 2012/13 were noticeably lower when compared to previous years. This is a result of historically low global interest rates, a consequence of central banks continuing to adopt unprecedented easy monetary policies to ensure sufficient liquidity and prevent global recession. In fact, prices in this asset class retreated in the last quarter of the financial year as investors anticipated interest rates starting to rise. With uncertainty remaining about the level of economic growth and consumer demand, underlying valuations in the direct property asset class have remained relatively static, resulting in solid returns marginally below benchmark. Looking forward As share market volatility looks set to continue, members can depend on us to keep to our tried and tested investment philosophy and continue our vigilant approach to investing. This philosophy has helped us to achieve strong long-term returns, and is expected to help us maintain consistent returns in the future. * As measured by the June 2013 SuperRatings Fund Crediting Rate Survey SR50 Balanced (60-76) Index, June ** As measured by the June 2013 SuperRatings Fund Crediting Rate Survey, where a 10 year return is available. Thinking of changing your investments? Read this first. One of the best ways to make an investment decision that s right for you is to check that your personal investment profile matches how your super is invested. Three things to keep in mind: 1 If you change your investments without considering your personal investment profile, you may not reach your long-term investment goals. 2 If your super is invested in line with your personal investment profile, then you probably don t need to change anything. 3 Checking your personal investment profile is easy. A financial planner can help you out over the phone, at no extra cost.^ For example, if your investment profile shows that you prefer to invest your money in low-risk options with less chance of a negative return, then a financial planner can recommend the best option(s) to match your needs. Speak to a financial planner today As a CareSuper member, you can access super-related advice over the phone for simple matters such as investment choice within the Fund (excluding investments available through the Direct Investment option) at no extra cost. To be put in touch with a financial planner or request a callback, visit caresuper.com.au/advice or call the CareSuperLine on ^ Financial advice is offered through CareSuper s relationship with Industry Fund Services Limited (IFS), and is provided by an authorisation under the Australian financial services licence of IFS, ABN , AFSL CareSuperLine

6 Invest your way When it comes to investing, CareSuper gives you lots of options Leave it to us If you prefer to let us handle things, we ll automatically invest your super into CareSuper s Balanced option. Our Balanced option has delivered an outstanding average return of 9.3% per year over the 26 years it has been in existence, and is designed to provide you with a strong long-term return on your super. Start simple Investing your super into one or more of our Managed and Asset Class options may be an appropriate way to diversify your super investments across different asset classes and risk levels, while still taking advantage of CareSuper s investing expertise. Take control If you want to take an active role in your super investments, you may be interested in the Direct Investment option, which gives you the flexibility to control your super investments. You can choose to invest in a range of shares and term deposits as well as exchange-traded funds (ETFs). Get advice Regardless of which option you prefer, the key to making sure you re invested in an option that s right for you is to speak to a financial planner. CareSuper members can access super-related advice about investment choice over the phone, at no extra cost.^ Find out how to get in touch with a financial planner on page 5. ^ Financial advice is offered through CareSuper s relationship with Industry Fund Services Limited (IFS), and is provided by an authorisation under the Australian financial services licence of IFS, ABN , AFSL Enhancing our Direct Investment option We re introducing a range of enhancements to the Direct Investment option: Term deposit purchases changing from weekly to daily: From 21 September 2013, term deposit applications will be invested daily, which means you will be able to invest into a term deposit the next business day after you submit your application. This change will bring added convenience to members who can currently only invest money into term deposits once a week. More ETFs from which to choose: To offer members access to a wider range of markets and sectors, we re adding nine new ETFs to the Direct Investment option. The new ETFs will give members the ability to invest part of their super directly into specific overseas indices (for example Japan and China), as well as the resources and financials sectors. The new ETFs (available early December 2013) are: ETF name SPDR S&P/ASX 200 Financials ex AREITs SPDR S&P/ASX 200 Resource Fund SPDR MSCI Australia Select High Dividend Yield Fund ishares MSCI Japan ishares S&P Small Cap ishares EAFE (Europe, Australasia and Far East) ishares MSCI BRIC Index Fund ishares FTSE China Large Cap ishares UBS Government Inflation ASX code OZF OZR SYI IJP ISO IVE IBK IZZ ILB To access detailed information about the new ETFs, visit caresuper.com.au/dioption. 06 caresuper.com.au

7 member benefits Introducing Listed Investment Companies In response to member feedback, we are adding six Listed Investment Companies (LICs) to the Direct Investment option s menu. Listed Investment Companies (LICs) are traded on a stock exchange, like shares and ETFs. They generally invest in shares of companies that are also listed on the stock exchange. LICs are similar to ETFs in that they are a single security that invests in a number of other shares. Both LICs and ETFs offer access to a diversified portfolio of investments, and are managed by investment managers on behalf of investors. LICs are similar to managed funds because the investment manager actively selects and manages the shares in which they invest, unlike ETFs which aim to track a particular index, and not outperform it. Consequently, LICs are more likely to outperform an index than ETFs, but may be more expensive for this reason. Change to Direct Investment option fees as a result of the new ETFs and LICS Each individual ETF and LIC available through the Direct Investment option has an associated investment fee. These fees, which are not deducted directly from members accounts, are reflected in the value of the ETF or LIC, and its returns. From early December 2013, the range of investment fees applicable to ETFs and LICs will be 0.07% p.a. to 1.50% p.a. The investment fees you pay will depend on the ETF or LIC you choose. You can find out the fee applicable to a specific ETF or LIC by reading the relevant disclosure document available from the website of each ETF or LIC issuer. Please note different fees, risks and investment restrictions apply to the Direct Investment option please read the Investment Guide available from caresuper.com.au/pds for further details. The LICs that will be available through the Direct Investment option from early December 2013 are: Listed Investment Company Australian Foundation Investment Corporation Asset class Australian shares ASX code AFI Milton Corporation Australian shares MLT Mirrabooka Investments Limited Hunter Hall Global Value Australian shares (small caps) International shares (with an ethical overlay) MIR HHV Magellan Flagship Fund International shares MFF Platinum Capital International shares PMC stay up to date Make sure we ve got your address so you can stay updated with the latest Direct Investment option news. You can check or update your address and personal details by logging on to MemberOnline from caresuper.com.au/login More information? For detailed information about the new LICs and ETFs, or to find out about the other investments available through the Direct Investment option, visit caresuper.com.au/dioption. CareSuperLine

8 new to caresuper Have you explored the new MemberOnline? We recently unveiled a new-look MemberOnline, which will make managing your CareSuper account easier than ever. To help you stay in touch with your super, we ve introduced new features, including: A more appealing design, to improve your online experience An interactive home screen with a snapshot of your key account details, to help you keep track of your super as soon as you log in, and A simplified layout and user-friendly navigation, to make it easier to find the information you need. Keep track of your super To register for access or log in to your account, visit caresuper.com.au/login An even better discount on health insurance CareSuper s health insurance partner nib health funds * has recently increased the discount rate for our members to 10% off their regular premiums so you can enjoy a better discount on health insurance than ever before. Whether you are looking to renew or obtain new cover, it s worth checking the advantages of your CareSuper membership which include access to health insurance. When you join nib s CareSuper Corporate Health Plan on an eligible health cover, you can: Avoid the usual 2 and 6 month waiting periods 1 Receive a 10% discount on the cost of your membership simply for being a CareSuper member, when you pay by direct debit from your cheque, savings or credit card account Claim up to 85% 2 back on the cost of everyday Extras such as Dental, Optical, Physio and more Manage your health cover online with nib online services or with nib s smart phone app. 1. Offer applies to new policies when taking out any eligible combined Hospital and Extras package. Longer waiting periods apply for some services including major dental, obstetrics and pre-existing conditions. 2. Annual limits apply. 85% benefit applies to nib Premier Plus cover and the new Top Extras cover. For more information visit caresuper.com.au/health * CARE Super Pty Ltd does not in any way recommend or endorse that these products are suitable for your particular circumstances, so you may wish to seek independent advice before deciding to access these products. CareSuper does not accept responsibility or liability for any loss or damage caused by the product provided by nib and/or ISinsured. CareSuper does not receive any commissions for promoting nib and/or ISinsured products or when a CareSuper member uses a nib and/or ISinsured product. 08 caresuper.com.au

9 from Super tip Giaan Rooney After recently buying a new house, Giaan knew the next thing she needed was good home and contents insurance. Luckily, she was able to take advantage of one of the benefits of her CareSuper membership: access to special rates through ISinsured. * I m a big believer in insurance says Giaan. If something went wrong, I can t imagine what it would be like to lose what I ve worked so hard for. That s why I wanted to make sure I had good home and contents insurance. Fortunately, Giaan knew that CareSuper members can access insurance cover at exclusive rates through ISinsured, so she decided to find out more. It was pretty easy to find the information I needed online she explains. The CareSuper website linked me directly to the ISinsured page, and I got an online quote in about five minutes. It even let me customise my quote and choose how much excess I wanted to pay. Once she compared ISinsured s home and contents cover against others, the decision was easy. The ISinsured rates are better value, and they covered more than the other insurers explains Giaan. quick super tips Lost any super lately? If you ve lost track of one or more of your old super accounts, we can help you find it. Remember, your super is real money and it s yours, so make sure you know where it is! You can use our lost super tool to track down your old accounts all you need is your Tax File Number. It s quick and easy just enter a few key personal details and we ll do the rest. Visit caresuper.com.au to get started. money Make sure you re getting the most out of your membership Being a CareSuper member is about more than just super: you also have access to the ISinsured range of general insurance products. Our members are entitled to a great range of cover at exclusive rates, which can help you protect your most important asset: your home. Visit caresuper.com.au/gi to connect to ISinsured s website where you can get a quote and apply for cover online. Can you get more cover at no extra cost? Did you know you could be eligible for a higher level of cover, without having to pay more? There s an easy way to check if you qualify. Most CareSuper members receive their insurance at the General occupational category. But if you re eligible for the Office or Professional categories, you could be enjoying extra cover for no extra cost. To find out if you qualify for the Office or Professional categories, you need to answer three questions about the nature of your work. If you answer yes to all three, you could qualify for additional cover. To find out more and apply to change your occupational category, visit caresuper.com.au/ insurance. CareSuperLine

10 Super news It s now possible to transfer super between Australia and New Zealand The Australian and New Zealand Governments recently passed legislation making it possible for members to transfer retirement savings between Australian and New Zealand. This means that subject to certain conditions, members with money in an Australian regulated superannuation fund can now transfer it to a New Zealand KiwiSaver scheme account and vice versa, subject to the provision of the necessary documents. CareSuper is required to process our members requests to transfer their super to a KiwiSaver scheme account, providing that they meet all the requirements in the legislation. If you would like more information about transferring your super to a KiwiSaver account, call the CareSuperLine on However we are not required to accept transfers from a KiwiSaver scheme account into CareSuper, so this type of request is currently unavailable. To find out more about the Trans-Tasman retirement savings portability scheme, visit ato.gov.au. Reduced government co contribution rates now in place In 2012, the Federal Government announced that it would be reducing the co-contribution paid to members to 50% of a contribution (up to a value of $500). This rate has now been confirmed and applies to personal super contributions made by eligible members for the 2012/13 and 2013/14 financial years. If you earn less than $48,516 per year (before tax) and make personal after-tax super contributions, you may be eligible to receive a co contribution from the government, which gets paid directly into your super. If you earn less than $33,516, the government will match your contribution up to $500. Administration fee increase On 1 July 2013, CareSuper s administration fee increased from 0.15% to 0.19% per year. This fee, which can range from 0.15% to 0.20% of your account balance per year, is capped at $500. CareSuper reviews our fees annually. This year, our Board decided it was necessary to increase the fee to cover the significantly higher compliance, regulatory and service-related costs the Fund is now being charged. Since CareSuper doesn t have to provide a profit for shareholders, the fees we charge are only to cover the costs of managing the fund. Visit caresuper.com.au/feescosts to view our current fees. Increase in contributions tax for individuals earning over $300,000 The Federal Government has previously announced a reduction in the tax concession for individuals with a defined annual income of $300,000 or greater. This measure has now been legislated and applies from 1 July Members earning more than $300,000 will now pay more tax on their super, with the super contributions tax effectively increasing from 15% to 30%. The definition of salary for these purposes includes other non-salary amounts such as SG contributions. 10 caresuper.com.au

11 lifestyle Our members Meet CareSuper member, Julie Haynes At work I m an Administration Assistant and Events Co-ordinator at a conference centre within LaTrobe University in Bundoora, Melbourne. My day to day work is very varied and consists of booking functions, organising catering and general book-keeping. Outside work... I love horse riding, doing exercise classes at the gym and catching up with friends and family. I also enjoy watching my son play cricket he plays at a senior level and trains several times a week. Last year, I accompanied his team on a tour to Sri Lanka which was an amazing experience. I joined... CareSuper back in 1991 through my employer. I ve changed jobs several times and I d stopped contributing to my account but I still kept it open. After seeing a TV commercial with Giaan Rooney earlier this year, it prompted me to look into my super situation and reactivate my account, so I asked my work to start paying my super into my CareSuper account. I like... being a CareSuper member because of the great service I ve received since I re-joined. Within a week of CareSuper receiving my first contribution, I got a phone call welcoming me back and asking if I needed any help. When I asked about transferring other super accounts over, one of CareSuper s Client Partnership Managers organised to meet me at my work to help me through all the paperwork. She made the process very easy and the communication with her has been great. I decided... to apply for extra insurance through CareSuper, to protect my son and myself in the future. I didn t have any insurance before, so I have a bit more peace of mind now. I m thinking about making extra contributions to top up my super as well. Until recently... I was never very interested in super, but I m glad I ve now taken an interest in my financial future it was easier than I thought! A lot of it is still new to me and I m looking forward to working towards my retirement nest egg with CareSuper s help. I know that being a CareSuper member means I will benefit in the end. If you d like to share your story with us, please InTouch@caresuper.com.au. Don t forget to tell us about yourself, and include a photo if you can. CareSuperLine

12 hanging on to all your old super funds only weighs you down By consolidating your super into one fund now, you can eliminate any unnecessary fees and premiums you are paying, which leaves more money in your super to grow for your retirement. Simply complete the form that s included with your statement pack or visit caresuper.com.au/key to get started. Contact us call CareSuperLine visit caresuper.com.au for the latest news, information, brochures and forms. For online access to your CareSuper account visit caresuper.com.au/login. admin@caresuper.com.au write CareSuper Locked Bag 5087 Parramatta NSW 2124 This publication is printed on Nordset Offset. Manufactured under the strict ISO14001 & EU EMAS Environmental Management Systems using FSC certified Mixed Source pulp from Well Managed and Legally Harvested forests, and carries the internationally recognised EU Flower eco-label. Disclaimer: This InTouch newsletter has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this newsletter does not take into account any particular person s objectives, financial situation or needs and you should read the applicable Product Disclosure Statement. You should consider the appropriateness of this advice, having regard to your own particular objectives, financial situation and needs before acting on any advice. You need to apply the concepts to your own situation before making an investment decision. Past performance is not necessarily an indicator of future performance. Some products and services offered in this newsletter are provided by third parties. The Trustee is not responsible for the products or services, views or actions of these third parties. Terms and conditions may apply which should be obtained from the third parties direct. The Trustee does not accept liability if loss or damage is incurred from the acquisition of third party products or services. CARE Super Pty Ltd (Trustee) ABN AFSL CARE Super (Fund) ABN CR/INTOUCH/35OVER /13 ISS2