your Guild Retirement Fund annual report

Transcription

1 your Guild Retirement Fund annual report For the year ended 30 June 2015 The Annual Report highlights important changes that occurred during the financial year ended 30 June It provides details on the financial statements and investment options for the Guild Retirement Fund (the Fund), which includes GuildSuper, Child Care Super and GuildPension, as well as other important information which should be read by all members.

2 Welcome Welcome to your 2015 Annual Report which I trust you will find informative. I would like to take this opportunity to thank you for your commitment to our Fund. Having achieved the $1 billion mark in 2014, we continue to climb and now have $1.2 billion of funds under management, more than 72,000 members and 13,880 contributing employers. We remain uniquely a specialist super fund with the continued support of the Pharmacy, Child Care and Veterinary sectors. Our teams are dedicated to these sectors and it is our personalised service, which sets us apart. The year has also seen a strong focus on setting the strategic direction for the years ahead. Working with staff at all levels of the Fund we continuously work to build one team, unity around our vision and values and a deep culture of innovation and action. Our lifecycle investment options have all returned solid results since inception in 2013 with the Building option returning 10.8% p.a., Growing 8.8% p.a. and Consolidating 7.1% p.a. Most members are in one of these options. While recent years have seen solid returns including 2014/15, we are fully cognisant that superannuation is a long-term investment. Our insurance offering continues to be one of the most competitive in the market. Chant West s annual insurance survey of October 2014, reported in The Australian on 27 October 2014 that our insurance offering was one of the best value insurance offers across all funds. Throughout 2014/15 financial year we have engaged with our employers to ensure they are SuperStream compliant. We have helped to make this transition as simple as possible, by explaining important SuperStream information, and by offering a compliant electronic clearing house solution to make their super payments and contributions. Over the past year, the team has worked to increase services and solutions to help members make the most of their super savings. These include: a redesigned website making it easier to use and understand installed a series of helpful calculators that you can use to review your super and insurance cover; and launched an Online Learning Centre which has been designed to deliver simple interactive information about superannuation, investments and insurance. I encourage you to visit our websites to utilise these new services. If you would like to talk about your super please do not hesitate to get in touch with the Fund (contact numbers are on the back of this report). We re here to help you. Yours sincerely Mario Pirone Managing Director Guild Trustee Services Pty Ltd 2 Guild Retirement Fund

3 Achievements in 2014/15 About our fund $1.2 billion funds under management 72,064 13,880 MEMBERS EMPLOYERS Strong investment returns 10.1% return for Building Lifestage investment option. (majority of members are invested in this option) Helping our members with their Superannuation 6,479 Workplace 349,350 member contributions 17,794 calls to the helpline contacts & visits Annual Report

4 Legislative changes There were relatively few changes to super in the 2015 Federal Budget. However, it is important to be aware of the ongoing implications of some initiatives established in previous years and notable changes. Rate of Superannuation Guarantee (SG) unchanged The SG rate will remain at 9.5 per cent until 30 June 2021 and then increase by 0.5 per cent each year until it reaches 12 per cent from 1 July Early release of superannuation for terminal medical conditions From 1 July 2015, the Federal Government has relaxed the criteria for access to superannuation for people with a terminal medical condition. Under the previous criteria, superannuation fund members needed two medical practitioners (including a specialist), to certify that the member would be likely to die within one year. The Federal Government has now changed this life expectancy period to two years thereby enabling terminally ill patients to access their superannuation earlier. Lost and unclaimed superannuation Planned changes to rules and regulations around lost super are expected to make it easier for members to be reunited with their lost and unclaimed superannuation. A new package of measures will reduce red tape for superannuation funds and individuals by removing redundant reporting obligations and lost/unclaimed superannuation administrative arrangements from 1 July An example of the changes includes streamlining the un-contactable definition for lost member accounts. The current definition of lost un-contactable accounts is based upon returned unclaimed mail; and currently includes two written (including ) communications. The change proposes that modern communications methods will be recognised in determining if a member is un-contactable, and is intended to better define the true stock of un-contactable members. Another important example is the removal of the need to report separate bi-annual Lost Member Statement to the ATO because it overlaps with other funding reporting obligations. Legislation Cutting Red Tape lost and unclaimed superannuation is currently being developed for these measures. Government Co-Contribution Members may be entitled to a Federal Government co-contribution of up to $500 if they make an after-tax superannuation contribution of $1,000 and their income is $34,488 or less in the financial year. A reduced co-contribution amount may be payable if there is an after-tax superannuation contribution and income is between $34,488 and $49,488 in the financial year. For the financial year, the lower income threshold will be indexed to $35,454, while the higher income threshold will be indexed to $50,454. Low Income Superannuation Contribution The low-income super contribution will continue to apply for the next two financial years until 30 June The low-income superannuation contribution applies to concessional contributions for members whose adjusted taxable income does not exceed $37,000 for the income year. These members will receive the low-income superannuation contribution, which is 15% of the total concessional contributions they receive, but will be no more than $500. This is effectively a rebate of the 15% tax on concessional contributions. Concessional contribution (pre tax) cap for members The current transitional concessional contributions (pre-tax) cap of $35,000 in place for will continue for the financial year. Members must be aged 49 or over on 30 June 2015, to qualify for this higher cap in the financial year. If members are aged 48 or under on 30 June 2015, the standard concessional contribution cap will remain at $30,000 per annum. When members have more than one fund, concessional contributions to all of their funds are added together and counted towards the concessional contributions cap. Refund of excess non-concessional (after tax) contributions The Federal Government announced in the 2014 Budget that it would move to allow superannuation fund members to have their excess non-concessional contributions refunded. This proposal has now been legislated. Alternatively, members can choose to keep the money in their superannuation fund and have the excess contributions taxed at the top marginal tax rate plus Medicare levy. If members make contributions that exceed the non-concessional cap, the ATO will contact them. The non-concessional contributions cap for the year (1 July 2015 to 30 June 2016) is $180,000, which is the same limit that applied for the year. 4 Guild Retirement Fund

5 Changes to the Fund We continuously seek to improve the practices of the Fund, to provide better value to members and greater efficiency and effectiveness for employers. Recent changes are detailed below. Working with Mercer to improve services Guild Retirement Fund (GRF) outsources a number of services including back office administration to Mercer. We have enjoyed a good relationship with Mercer. In April 2015, GRF negotiated a new three-year contract with Mercer for the continued provision of administration services. While this represented a continuation of an existing arrangement we took the opportunity to review and reassess all services to ensure that we continue to meet the needs of our members and employers. Improvements to insurance claims The Fund was aware that if a member needed to make an insurance claim, the process was cumbersome and potentially added stress during an already challenging time for members. We also recognised that this is a critical service to our members. To assist members, we have improved the claims process by appointing a Senior Claims Specialist to oversee the process from the Trustee office and to ensure that both our Administrator and Insurer expedite claims. New websites for ease of use and engagement A highlight of 2015 has been the redesign and preparation of new content for our two websites - guildsuper.com.au and childcaresuper.com.au Features of the website upgrades and modernisation are: easier navigation and better content tailored information for different member lifestages a series of helpful calculators for various activities such as review of superannuation arrangements and insurance cover, how to save money on small budget items and transition to retirement an Online Learning Centre to deliver simple interactive information about superannuation, investments and insurance, and online forms to join as a new member or employer and also to consolidate superannuation from other funds into our super funds. Personalised service for members and employers To maintain and improve the Fund s strong reputation for personalised service, including face-to-face meetings at worksites, the Trustee is increasing its efforts to ensure both members and employers receive information that is relevant to them. Using a combination of new technologies and traditional communications, the Fund has undertaken a number of initiatives to assist members and employers over the course of the last 12 months. The initiatives include notifying members of their quarterly contributions by either or text message and for employers, notifying them when their superannuation contributions are due. We have received very positive feedback that these notifications are useful to keep both members and employers updated on their superannuation. Feedback that we receive from both members and employers is essential to our efforts to maintain and improve the Fund s strong reputation for personalised service. We encourage all members and employers to send feedback to us at any time. Easy online clearing house facility for employers All businesses with 20 or more employees were required to make Super Guarantee (SG) contributions electronically from 1 July The Australian Tax Office (ATO) subsequently extended this date to 31 October In response to the ATO s original requirement, the Fund provided the MercerSpectrum Clearing House facility to employers. The clearing house provides employers with an easy to use online service to process all their employees contribution payments on the one site. Further, and to assist our smaller employers meet their electronic payment requirement, we also made the MercerSpectrum Clearing House service available to employers with 19 or less employees, even though there is no legal obligation to do so until 1 July Renewal of our custodial agreement The Guild Retirement Fund custodian is responsible for maintaining members assets. As a result of an extensive review and tender process initiated in April 2015 (assisted by Ernst & Young), the Trustee renewed the Fund s custody agreement with NAB Asset Services for a further 5 year term with improved terms & conditions. New technologies Another major project undertaken by the Trustee involved a review of our technology platforms. As the digital age continues to accelerate, it is vital that we stay abreast of new technologies and opportunities to improve our service offering. To support this, there will be significant upgrades to our technology infrastructure to enable improvements to functions such as; business intelligence, data management, tracking and reporting on data quality and marketing automation tools. Annual Report

6 Investments Investment managers The Trustee uses external investment managers to invest the Fund s assets within the guidelines set out by the Trustee. The Trustee aims to achieve the objectives of each investment option by investing in pooled investment products that are managed by external professional investment managers. The performance of each manager is closely monitored and changes are made when appropriate. As per the table below, the majority of assets are managed by Mercer Investment (Australia) Limited with some residual cash held in a National Australia Bank account. The following table shows the Fund s investment holdings as a percentage of assets that investment managers held as at 30 June Investment Holdings % NCS Cash 2 Mercer Multi-Managers Australian Small Companies Fund 3 Mercer Multi-Managers Australian Shares Plus Fund 13 Mercer Multi-Managers Global Credit Fund 2 Mercer Multi-Managers Australian Shares Fund 6 Mercer Multi-Managers Australian Sovereign Bond Fund 2 Mercer Multi-Managers Passive Australian Shares 8 Mercer Passive International Share Fund 7 Mercer International Shares Fund 9 Mercer Global Unlisted Infrastructure Fund 4 Mercer Cash Fund Cash Units 10 Mercer Global Listed Property Fund 4 Mercer Australian Direct Property Fund 5 Mercer Hedged International Shares Fund 8 Mercer Global Small Companies Shares Fund 2 Mercer Emerging Markets Shares Fund 3 Mercer Global Sovereign Bond Fund 2 Mercer Passive Global Listed Infrastructure Fund 1 Mercer Passive Global Listed Property Fund 2 Mercer Australian Inflation Linked Bond Fund 3 Mercer Global Natural Resources Fund 2 Mercer Global Listed Infrastructure Fund 2 Please note actual holdings may vary slightly due to rounding. 6 Guild Retirement Fund

7 Investment performance The tables below show each investment option s net investment return to 30 June over the past five financial years as well as the compound average rate of net earnings for the five-year period ending 30 June The investment returns are net of investment fees and investment tax (where relevant). GuildSuper and Child Care Super Investment Option Investment returns (%) for the year ended 30 June Compound average (% p.a.) years to 30 June 2015 Consolidating * Growing * Building * Secure Conservative Balanced Growth High Growth Property Securities Australian Shares International Shares (Unhedged) Past performance is not a reliable indicator of future returns. * as the MySuper Lifecycle Investment Strategy commenced on 1 October 2013, these figures show the total net investment return for the period from the investment option s commencement date, and are not calculated on an annualised basis. GuildPension Investment Option Investment returns (%) for the year ended 30 June Compound average (% p.a.) years to 30 June 2015 Secure Conservative Balanced Growth High Growth Past performance is not a reliable indicator of future returns. How returns are allocated to accounts The net earnings of each investment option are reflected in the change in the price of each unit in that option. The effective rate of net earnings for a given period can therefore be determined by the proportionate change (positive or negative) in the unit prices from the start to the end of the period. It is the difference in these prices that shows how the option has performed over the year. It is important to remember that although the unit price may have fallen, the number of units held has only varied in line with the transactions on the account, for example units are added when contributions are made and deducted when items like fees and tax are paid. Annual Report

8 Investments continued Investment objectives and strategies The Trustee s investment strategy is to invest in a diversified portfolio of asset classes in accordance with each respective benchmark. Each investment option s investment mix is managed by the Trustee in accordance with the investment strategies set out in the following pages. The actual asset allocation may vary from time to time but will generally remain within the investment ranges set out in the following pages. The asset allocation may move outside those ranges in limited circumstances such as any large transition of assets. More information on investment options can be obtained by referring to the Fund s Product Disclosure Statements or by referring to guildsuper.com.au or childcaresuper.com.au. MySuper Lifecycle Investment Strategy The MySuper product was launched on 1 October 2013 and is only available to GuildSuper and Child Care Super members. Building Growing Consolidating Return target* CPI + 3.5% p.a. over rolling 10 year periods CPI + 3.0% p.a. over rolling 10 year periods CPI + 2.5% p.a. over rolling 10 year periods Total growth assets Total defensive assets 100% 75% 25% 50% 50% Asset class: Benchmark (%) Range (%) Benchmark (%) Range (%) Benchmark (%) Range (%) Australian shares to to to 40 International shares to to to 40 Property 10 0 to to to 20 Alternatives (growth) 12 0 to to to 30 Total growth to to to 65 Fixed interest 0 0 to to to 45 alternatives (defensive) 0 0 to to to 15 Cash / Money market securities 0 0 to to to 45 Total defensive 0 0 to to to 65 * Return targets are after all investment and administration fees, costs and taxes. 8 Guild Retirement Fund

9 MyMix suite of investment options These investment options are available to GuildSuper, Child Care Super and GuildPension members. Secure Investment objective Investment mix To provide gross investment returns at least equal to the UBS Bank Bill Index returns over rolling 1 year periods. 100% Defensive Asset class Benchmark (%) Cash / Money market securities 100 Total defensive 100 Conservative Investment objective Investment mix To provide net (after investment fees and tax) investment returns of at least 2.0% per annum above CPI increases over rolling 3 year periods. 25% Growth 75% Defensive Asset class Benchmark (%) Range (%) Australian shares 9 0 to 20 International shares 7 0 to 25 Property 5 0 to 20 Alternatives (growth) 4 0 to 20 Total growth to 40 Fixed interest 27 0 to 60 alternatives (defensive) 7 0 to 20 Cash / Money market securities to 60 Total defensive to 90 Balanced Investment objective Investment mix To provide net (after investment fees and tax) investment returns of at least 2.5% per annum above CPI increases over rolling 5 year periods. 50% Growth 50% Defensive Asset class Benchmark (%) Range (%) Australian shares 17 5 to 40 International shares 17 5 to 40 Property 7 0 to 20 Alternatives (growth) 9 0 to 30 Total growth to 65 Fixed interest 19 0 to 45 alternatives (defensive) 5 0 to 15 Cash / Money market securities 26 5 to 45 Total defensive to 65 Annual Report

10 Investments continued MyMix suite of investment options (contd.) Growth Investment objective Investment mix To provide net (after investment fees and tax) investment returns of at least 3.0% per annum above CPI increases over rolling 8 year periods. 75% Growth 25% Defensive Asset class Benchmark (%) Range (%) Australian shares to 41 International shares to 50 Property 9 0 to 20 Alternatives (growth) 11 0 to 30 Total growth to 90 Fixed interest 11 0 to 30 alternatives (defensive) 3 0 to 10 Cash / Money market securities 11 0 to 20 Total defensive to 40 High Growth Investment objective Investment mix To provide net (after investment fees and tax) investment returns of at least 3.5% per annum above CPI increases over rolling 10 year periods. 100% Growth Asset class Benchmark (%) Range (%) Australian shares to 55 International shares to 60 Property 10 0 to 25 Alternatives (growth) 12 0 to 30 Total growth to 100 Total defensive 0 0 to Guild Retirement Fund

11 MyMix suite of investment options (contd.) Property Securities Investment objective Investment mix To provide gross investment returns at least equal to the UBS Global Real Estate Investors Index in $A (hedged) over rolling 7 year periods. 100% Growth Asset class Benchmark (%) Range (%) Listed property to 100 Total growth to 100 Cash / Money market securities 0 0 to 10 Total defensive 0 0 to 10 Australian Shares Investment objective Investment mix To provide gross investment returns at least equal to the S&P/ASX 300 Accumulation Index returns over rolling 7 year periods. 100% Growth Asset class Benchmark (%) Range (%) Australian shares to 100 Australian small companies 0 0 to 20 Total growth to 100 Total defensive 0 0 to 10 International Shares (unhedged) Investment objective Investment mix To provide gross investment returns at least equal to the MSCI World Index (ex-australia) in Australian Dollars Net Dividends Reinvested (unhedged), over rolling 7 year periods. 100% Growth Asset class Benchmark (%) Range (%) International shares to 100 Overseas emerging markets 5 0 to 10 Overseas small companies 5 0 to 10 Total growth to 100 Total defensive 0 0 to 10 Annual Report

12 Investments continued Use of Derivatives The Trustee will not normally invest directly in derivatives, but may do as a short-term mechanism to achieve a desired asset allocation during the transitioning of assets between investment managers. Underlying investment managers may use derivatives as a tool to help manage investment risk. Some examples of derivatives include futures and options. Investment asset allocations The following shows the actual asset allocation of each investment option for the assets attributable to GuildSuper and Child Care Super members and GuildPension members at 30 June 2015 and 30 June GuildSuper and Child Care Super The MySuper Lifecycle Investment Strategy At 30 June 2015 (%) At 30 June 2014 (%) Building Australian shares 38.7% Australian shares 37.0% International shares 39.3% International shares 38.5% Property 9.2% Property 9.8% Alternatives (growth) 11.3% Alternatives (growth) 11.5% Fixed interest - Fixed interest - alternatives (defensive) - alternatives (defensive) - Cash / Money market securities 1.5% Cash / Money market securities 3.2% Growing Australian shares 26.7% Australian shares 28.2% International shares 27.4% International shares 27.3% Property 8.6% Property 9.3% Alternatives (growth) 10.7% Alternatives (growth) 11.4% Fixed interest 11.0% Fixed interest 10.7% alternatives (defensive) 3.0% alternatives (defensive) 3.0% Cash / Money market securities 12.6% Cash / Money market securities 10.1% Consolidating Australian shares 16.1% Australian shares 17.0% International shares 17.3% International shares 16.8% Property 7.0% Property 7.2% Alternatives (growth) 9.2% Alternatives (growth) 9.3% Fixed interest 18.5% Fixed interest 18.5% alternatives (defensive) 4.8% alternatives (defensive) 5.0% Cash / Money market securities 27.1% Cash / Money market securities 26.2% 12 Guild Retirement Fund

13 MyMix suite of investment options At 30 June 2015 (%) At 30 June 2014 (%) Secure Cash / Money market securities 100% Cash / Money market securities 100% Conservative Australian shares 8.8% Australian shares 9.2% International shares 7.3% International shares 7.1% Property 5.0% Property 5.4% Alternatives (growth) 3.9% Alternatives (growth) 4.2% Fixed interest 26.6% Fixed interest 27.1% alternatives (defensive) 6.8% alternatives (defensive) 7.3% Cash / Money market securities 41.6% Cash / Money market securities 39.7% Balanced Australian shares 16.7% Australian shares 17.0% International shares 17.5% International shares 16.8% Property 6.8% Property 7.2% Alternatives (growth) 8.5% Alternatives (growth) 9.3% Fixed interest 18.7% Fixed interest 18.5% alternatives (defensive) 5.0% alternatives (defensive) 5.0% Cash / Money market securities 26.8% Cash / Money market securities 26.2% Growth Australian shares 26.9% Australian shares 28.2% International shares 28.5% International shares 27.3% Property 9.1% Property 9.3% Alternatives (growth) 10.5% Alternatives (growth) 11.4% Fixed interest 11.1% Fixed interest 10.7% alternatives (defensive) 2.9% alternatives (defensive) 3.0% Cash / Money market securities 11.0% Cash / Money market securities 10.1% Annual Report

14 Investments continued MyMix suite of investment options (contd.) At 30 June 2015 (%) At 30 June 2014 (%) High Growth Australian shares 37.3% Australian shares 37.0% International shares 38.9% International shares 38.5% Property 9.2% Property 9.8% Alternatives (growth) 11.5% Alternatives (growth) 11.5% Cash / Money market securities 3.1% Cash / Money market securities 3.2% Property Securities Listed property 98.0% Listed property 99.7% Cash / Money market securities 2.0% Cash / Money market securities 0.3% Australian Shares Australian shares 88.7% Australian shares 89.1% Australian small companies 9.2% Australian small companies 9.6% Cash / Money market securities 2.1% Cash / Money market securities 1.3% International Shares (unhedged) International shares 89.1% International shares 89.4% Overseas small companies 4.3% Overseas small companies 5.2% Overseas emerging markets 3.9% Overseas emerging markets 3.3% Cash / Money market securities 2.7% Cash / Money market securities 2.1% 14 Guild Retirement Fund

15 GuildPension At 30 June 2015 (%) At 30 June 2014 (%) Secure Cash / Money market securities 100% Cash / Money market securities 100% Conservative Australian shares 9.1% Australian shares 8.9% International shares 7.2% International shares 6.9% Property 4.9% Property 4.9% Alternatives (growth) 3.9% Alternatives (growth) 3.9% Fixed interest 28.0% Fixed interest 26.7% alternatives (defensive) 7.2% alternatives (defensive) 6.9% Cash / Money market securities 39.7% Cash / Money market securities 41.8% Balanced Australian shares 15.7% Australian shares 13.4% International shares 15.8% International shares 13.3% Property 5.5% Property 5.5% Alternatives (growth) 7.4% Alternatives (growth) 7.1% Fixed interest 17.6% Fixed interest 15.0% alternatives (defensive) 4.6% alternatives (defensive) 4.0% Cash / Money market securities 33.4% Cash / Money market securities 41.7% Growth Australian shares 25.9% Australian shares 27.9% International shares 25.2% International shares 26.8% Property 8.0% Property 9.2% Alternatives (growth) 10.1% Alternatives (growth) 10.9% Fixed interest 10.4% Fixed interest 11.0% alternatives (defensive) 2.8% alternatives (defensive) 3.0% Cash / Money market securities 17.6% Cash / Money market securities 11.2% High Growth Australian shares 39.0% Australian shares 38.4% International shares 39.2% International shares 39.0% Property 7.0% Property 9.9% Alternatives (growth) 9.4% Alternatives (growth) 12.0% Cash / Money market securities 5.4% Cash / Money market securities 0.7% Annual Report

16 Financial information The following information is a summary of the Financial Statements for the Fund for the year ended 30 June The accounts have been prepared on an accrual basis and comply with the requirements of the relevant accounting standards. Assets are shown at net market value. The accounts have been audited by Ernst & Young. The Fund s full set of Audited Financial Statements are available to members on request. Statement of financial position 2015 ($ 000) 2014 ($ 000) Assets Cash Assets Cash and cash equivalents 48,905 25,170 Receivables Other receivables Investments Units in unit trusts 1,176,417 1,021,312 Other Assets Deferred tax assets 1,118 Total assets 1,225,924 1,047,898 Liabilities Unallocated contributions 1,399 2,111 Creditors and accruals 3,606 3,128 Current tax liabilities 3,769 3,949 Deferred tax liabilities 4,430 Total liabilities 13,204 9,188 Net assets available to pay benefits 1,212,720 1,038,710 Represented by: Vested benefits 1,196,316 1,033,311 Operational Risk Financial Reserve 3,887 2,958 Amounts allocated to the contingency reserve Amounts not yet allocated to members 11,960 2,243 Total 1,212,720 1,038, Guild Retirement Fund

17 Operating statement 2015 ($ 000) 2014 ($ 000) Investment revenue Interest Trust distributions 58,559 33,686 Changes in net market value 36,604 75,725 Other investment income 3,821 3,026 Direct expenses on investment income (2,244) (1,589) Total investment revenue 97, ,354 Contribution revenue Employer contributions 139, ,240 Member contributions 12,336 9,469 Government co-contributions 522 1,569 Transfers from other funds 43,634 35,711 Total contribution revenue 195, ,989 Other revenue Insurance proceeds 8,139 7,249 Compensation income 5 41 Total other revenue 8,144 7,290 Total revenue 301, ,633 Expenses General administration expenses 11,372 13,842 Group life premiums 15,411 13,807 Total expenses 26,783 27,649 Benefits accrued as a result of operations Benefits accrued before tax 274, ,984 Income tax expense 19,320 23,912 Benefits accrued after tax 255, ,072 Contribution surcharge payments (if any) are deducted from member accounts. Annual Report

18 Important information What should I do if I have a complaint? The objective of GTS complaints handling process is to ensure that all complaints are handled in an effective, prompt and objective manner. If you have a complaint about a financial product or the service provided to you by us, the following process will be followed: You should lodge a complaint with our Complaints Officer. The Complaints Officer will acknowledge receipt of your complaint and endeavour to resolve the complaint within 45 days of receipt. If you are not satisfied with the Complaints Officer s decision or you have not received a response within 45 days of the complaint being lodged, you can request a review of your complaint by the Trustee s Delegate. The Trustee s Delegate will have up to 45 days from receipt of your complaint to provide you with a written decision. You can lodge a complaint via the following channels: GuildSuper By Telephone: By mail: GPO Box 1088, Melbourne, Victoria, 3001 Child Care Super By Telephone: By mail: GPO Box 2788, Melbourne, Victoria, 3001 What can I do if I m not satisfied with the outcome of my complaint? If you do not receive a response to your complaint from us within 90 days of lodgement or if you are not satisfied with the response received; you can take your complaint to the Superannuation Complaints Tribunal (SCT), which is an independent federal government body. If the SCT can deal with your complaint, it will attempt to resolve the complaint through conciliation. If that is unsuccessful, the SCT will review the decision to which the complaint relates. Please note - the SCT has certain time limits for lodgement of complaints. For more information about the SCT s requirements and time limits, you can contact the SCT at: Superannuation Complaints Tribunal Locked Bag 3060 Melbourne VIC 3001 Phone: Fax: (03) info@sct.gov.au Web: ASIC also has an Information Line on which may be used to obtain further information about your rights. Indemnity insurance Under the Fund s Trust Deed, the Trustee has the right to be indemnified out of the Fund s assets for all liabilities it may incur except in the case of dishonesty, wilful neglect or misconduct. Professional indemnity insurance is in place to protect the Trustee and members interests. GuildPension By Telephone: By mail: GPO Box 1088, Melbourne, Victoria, 3001 GTS will endeavour to resolve your complaint as soon as possible and by no later than 90 days of receipt. 18 Guild Retirement Fund

19 Reserving policy Contingency Reserve The Fund maintains a Contingency Reserve and it is managed in accordance with the Fund s Contingency Reserving Policy. The reserve provides a buffer against losses not covered by the Operational Risk Reserve. It is also used to provide funding for the Operational Risk Financial Reserve. The target level of the reserve is 0.20% of the Fund s net assets. Operational Risk Financial Reserve Effective 1 July 2013, the Fund established an Operational Risk Financial Reserve in accordance with APRA s prudential standards. This reserve is managed in accordance with the Fund s Operational Risk Financial Requirement (ORFR) Strategy. The Trustee may use the reserve to make a payment to address an operational risk event. The target level of the reserve is 0.40% of the Fund s net assets. 30 June 2015 ($ 000) 30 June 2014 ($ 000) 30 June 2013 ($ 000) 30 June 2015 ($ 000) 30 June 2014 ($ 000) Balance at the 198 2, beginning of the year Current year increases ,300 Transfer to ORFR (2,352) Balance at the end of the year ,063 Balance at the 2,958 - beginning of the year Current year increases Transfer from the 2,352 Contingency Reserve Balance at the end of the year 3,887 2,958

20 If you need more information If you require additional information about this Annual Report or your account, in the first instance please refer to the Product Disclosure Statement which is available on the Fund s website, or contact the Fund on the details below. GuildSuper Child Care Super GuildPension GPO Box 1088 Melbourne VIC 3001 guildsuper.com.au GPO Box 2788 Melbourne VIC 3001 childcaresuper.com.au GPO Box 1088 Melbourne VIC 3001 guildpension.com.au Trustee and Issuer: Guild Trustee Services Pty Limited, 5 Burwood Road Hawthorn VIC ABN , AFS Licence No , RSE Licence No. L as Trustee for the Guild Retirement Fund ABN , Fund Reg. No. R , MySuper Authorisation No This document contains information of a general nature only. It is not intended to constitute the provision of advice. Before acting on any information you should consider its appropriateness having regard to your objectives, financial situation and needs. Prior to making a decision in relation to any financial product, you should consider the relevant Product Disclosure Statement in deciding whether to acquire, or to continue to hold the product. GLD2965 Guild Retirement Fund Annual Report 2015