member magazine
autumn 2012
money
You’re never too young to care
about super
member benefits
Giving you more for your membership
lifestyle
Meet CareSuper member Kerrie Oliver
02|caresuper.com.au
Julie Lander CEO, CareSuper Welcome to the Autumn 2012 edition of your
magazine, InTouch.
As market volatility continues, CareSuper’s Balanced option continues to outperform its peers. The Balanced option has recorded an average return of 6.2% per year, over 10 years to 31 December 2011, compared to the median Balanced return of 4.7% from the 50 largest super funds for that time.* Turn to page 6 to see how all of CareSuper’s investment options have performed over 1, 3, 5 and 10 years. In the Investing section, we give you a snapshot of market conditions and how CareSuper is responding. We encourage members to maintain a longer-term view to investing and, if necessary, to speak to a financial expert to make sure you’re invested in the investment strategy that best suits you. You can access our financial planning service^ by calling the CareSuperLine on 1300 360 149. We also take you inside the infrastructure asset class to show you that through super, you can access investments not otherwise readily available to an individual investor. In this edition, we give you some easy tips to set yourself up financially and show you how easy it is to sign up for electronic statements.
We’re continuing to offer you even more for your membership. Our new Direct Investment option lets you invest your super in your choice of companies listed in the S&P/ASX 300 Index, via our secure MemberOnline facility. We’ve also introduced InsuranceOnline – a convenient way to apply for higher death, TPD and income protection cover online. Turn to pages 8 and 9 to find out some of the exciting changes that will be available to CareSuper members.
On 4 May 2012, CareSuper will be moving to unit pricing to calculate and report returns in each of the Fund’s investment options. The move to unit pricing will provide even greater transparency and clarity, as you will be able to see movements in unit prices reflecting the value of your super. Unit pricing is also considered to be best practice in the financial services industry. I encourage you to read the important information we’re sending to you about the change to unit pricing.
Since the announcement of a proposed merger between CareSuper and Asset Super mid last year, both funds are continuing to work together to provide a bigger and even better Fund. Further steps are required before the proposed merger can take place and we will keep you informed of the outcome. We welcome your questions and feedback, so feel free to email us at admin@caresuper.com.au or call us on 1300 360 149.
Helping you secure your future lifestyle.
* Source: SuperRatings Fund Crediting Rate Survey – SR50 Balanced (60-76) Index, December 2011.
^ Financial planning is offered through CareSuper’s relationship with Industry Fund Services Pty Ltd (IFS), ABN 54 007 016 195, AFSL 232514. Advice is provided under the authority of the IFS AFS Licence.
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Contents
Autumn
12
in
s
ide
Money
You’re never too young to care
about super
04
Investing
Inside the investment markets
06
Member benefits
Giving you more for your membership
08
Lifestyle
Meet CareSuper member Kerrie Oliver
11
see back cover for details
Untangle
your
super
& win!
2011 RAINMAKER EXCELLENCE AWARDSWINNER
PERSONAL SUPER PRODUCT OF THE YEAR - VALUE CHOICE
By combining your super funds
into CareSuper, you could go
into the draw to win one of 20
$250 Myer Gift Cards
.
why should
you care?
Check out why you should care about your super at
whyshouldyoucare.com.au.
While you’re there, see why Giaan
Rooney cares about her super.
04|caresuper.com.au
By doing a few simple things today to get your finances in order, you could be
setting yourself up for a financially secure future. Don’t leave it until it’s too late –
just because you’re not planning to retire any time soon, doesn’t mean you can’t
be planning for it!
If that’s not enough to motivate you – maybe this is: by contributing extra money to your super, you could also benefit from either a co-contribution from the Government, or a tax benefit.
3
give us a call, and get
the right advice
When you need expert advice for your health, home or car – you know it’s smart to call a specialist for the best advice, right? Make sure you do the same when it comes to your finances!
As a CareSuper member, you can receive financial advice over the phone, at no extra charge. So if you have questions about your super, just give us a call. We can put you in touch with an Industry Fund Planner* who can give you advice over the phone on super topics like investment choice, contribution strategies, insurance and consolidation.
*Financial planning is offered through CareSuper’s relationship with Industry Fund Financial Planning, a division of Industry Fund Services Limited (IFS), ABN 54 007 016 195, AFSL 232514. Advice is provided under the authority of the IFS licence.
Find out more
To find out if you qualify for the Government’s co-contribution, and to read more about the tax benefits of salary sacrificing, check out the Super tips module available at
moneymentor.caresuper.com.au. You can also
find out more about Money Mentor on page 9. Even if you didn’t make a new year’s resolution,
here are our top three super tips to get your super under control this year.
1
less is more! get all your
super accounts together
When it comes to super accounts, less is more! Don’t pay multiple sets of fees when you could only pay one – simply consolidate your accounts into one and you won’t have to worry about fees from multiple funds eroding your super investment. You’ll also be reducing your paperwork!
Untangle your super and win
Reduce your fees and ongoing paperwork! Combine your super funds into CareSuper by
29 June 2012 for your chance to win one of
20 $250 Myer Gift Cards! Check out the
Untangle your super brochure
enclosed for further details.
2
contribute a bit extra
Adding extra money to your super account now can make a significant difference down the track. By contributing even a few extra dollars every month, you could be helping to boost your super balance over the long term.
You’re never
too young to
care about super
Untangle your super and win
Reduce your fees and ongoing paperwork! Combine your super funds into CareSuper
by 29 June 2012 for your chance to win one
of 20 $250 Myer Gift Cards! Visit
caresuper.com.au/untangle2012
Want less super-related
paperwork?
Sign up for electronic statements today!
Signing up for electronic statements is quick and easy – just follow these 4 steps: 1. Visit caresuper.com.au
2. If you’ve already registered for MemberOnline, click the ‘Member login’ link at the top of the page
3. Log on to your account and go to the
Communications section, which is where
you sign up for online statements 4. Enter your email address and sign up for
online statements
If you haven’t registered for MemberOnline yet,
click the ‘Member register’ link at the top of the page when you get to step 1. You will need your CareSuper member number to register. Once you have logged on, just follow steps 3 and 4 above.
Already getting your statements online?
Make sure you stop by caresuper.com.au for the latest in super news. While you’re there, you can also view our Money Mentor modules, which cover a range of money management and super topics.
By signing up for electronic statements, you will:
✔
Get an email notification when your super statements are ready to view online✔
Have access to your past statements, which you can download and print out at any time✔
Reduce your paperwork, and✔
Help to save trees!06|caresuper.com.au
Equity markets began the 2011/12 financial year by suffering their worst quarter since the GFC. Much of this decline seemed to be centred on two factors: the US Government’s failure to approve an increase in their debt ceiling in a timely manner, and Standard and Poor’s downgrading the rating of US sovereign debt. Other factors contributing to this decline were the European sovereign debt crisis, and fears of a faster than anticipated slowdown in China. Not surprisingly, fixed interest securities performed well as investors flocked to the safe haven of government bonds. In a sign of the volatile times, the dismal September quarter was followed by a strong October, as equity markets experienced one of their largest intra-month rallies on record. Yet, as has been the case so often in recent years, negative economic concerns re-emerged as the dominant force driving markets. While the concerns in Europe and China are well known, closer to home the Reserve Bank of Australia cut interest rates by 0.25% in both November and December, as non-mining sectors of the Australian economy, such as retail, continued to show signs of weakness. On the positive side, the US saw strong
economic data, a sign that perhaps the economy would avoid dipping back into recession.
Looking forward
Equity markets started 2012 strongly, but while economic concerns remain unresolved, volatility in listed markets is expected to continue. We encourage members to maintain a longer-term view to investing, and if necessary seek financial advice to ensure investment strategies meet objectives.
How has CareSuper responded?
To make sure that our investment strategies are appropriate and up to date, we review the asset allocation of our Managed options every quarter. Over the past 12 months we have marginally reduced listed equity exposure for favourable risk-adjusted returns in the credit, property, infrastructure and private equity asset classes. For example, during the year we funded an infrastructure debt investment which provides funding for various Australian infrastructure projects. To date, our investment has provided funding to the Victorian Comprehensive Cancer Centre and the new Royal Adelaide Hospital.
CareSuper’s estimated investment returns to 31 December 2011
6 months
(%) 1 year (%) (% p.a.)3 years (% p.a.)5 years 10 years (% p.a.)
Managed options Capital Guaranteed 1.5 3.2 2.9 4.3 4.8 Capital Stable 0.9 3.6 6.6 3.7 5.8 Conservative Balanced -0.4 2.0 6.5 2.9 – Balanced -2.3 0.1 5.5 1.7 6.2 Sustainable Balanced -1.9 0.3 5.0 0.8 – Alternative Growth -2.6 -0.1 6.8 2.1 – Growth -4.2 -2.6 6.3 0.4 5.2
Asset Class options
Capital Secure 2.0 4.4 4.1 4.2 4.5 Fixed Interest 5.5 9.5 8.2 6.9 6.8 Direct Property 3.8 8.5 1.1 4.0 7.5 Australian Shares -6.9 -7.3 7.6 -0.7 7.4 Overseas Shares -6.9 -5.9 4.5 -3.0 0.2
Please note: CareSuper’s 3, 5 and 10-year returns are compound average annual returns to 31 December. Where a 10-year return is not reported, it is because the option has existed for less than that period. Note: Interest is applied to your account at the end of the financial year, when you make an investment switch or make a full or partial withdrawal. Interest will appear on your annual statement. Past performance is not necessarily an indicator of future performance. Returns are rounded to one decimal place.
check out your super account balance by logging on to MemberOnline at
caresuper.com.au.
How your CareSuper investment performed to 31 December 2011
inside the
investment markets
Tom Stewart, Investment Analystinve
s
ting
Asset class in the spotlight:
infrastructure
CareSuper is invested in a diversified set of six infrastructure managers which invest in assets in Australia and globally. These assets include toll roads, airports, utilities (e.g. gas pipelines) and social infrastructure such as aged care facilities. One of our major commitments is to Pacific Hydro, a leading renewable energy company with hydro, wind, solar and geothermal power projects at varying stages of development, construction and operation in Australia, Brazil and Chile. CareSuper has access to Pacific Hydro through its holding in the IFM Australian Infrastructure Fund.
The components of returns delivered by infrastructure assets can be both in the form of income, which is often guaranteed and linked to inflation, and capital growth, which is achieved when the value of the asset increases. Since its inception in 2005, CareSuper’s Infrastructure asset class has produced a sound average return of 8.6% p.a. and has also demonstrated a low correlation to listed equities, providing valuable diversification benefits for CareSuper’s Managed investment options. Infrastructure assets are held in CareSuper’s Growth Alternatives asset class. Our Managed investment options (excluding the Capital Guaranteed option) all have exposure to infrastructure via the Growth Alternatives asset class.
As at 31 December 2011, the composition of CareSuper’s Infrastructure asset class was as follows:
Fund manager manager weightAsset class Example assets AMP Capital Infrastructure Equity Fund 16.0% Melbourne Airport M5 Motorway (NSW) AMP Capital Strategic Infrastructure
Trust Of Europe ($A) 13.2% CLH petroleum pipeline (Spain) Thames Water (UK) Hastings Utilities Trust Of Australia 20.8% Perth Airport South East Water (UK)
IFM Australian Infrastructure Fund 31.3% Port of Brisbane and Pacific Hydro Macquarie Global Infrastructure Fund II 7.6% Retirement Care (NZ) DCT Gdansk seaport (Poland)
RARE Infrastructure Value Fund 11.1% Global listed infrastructure securities. Major sectors include electricity and water.
Pacific Hydro’s first wind development and Australia’s first commercial wind farm in Codrington, near Port Fairy, Victoria.
For more information about how CareSuper’s other asset classes are invested, please visit caresuper.com.au
08|caresuper.com.au
Enjoy greater flexibility and control over how you manage your super,
with our new and upcoming product enhancements.
Invest your super in the
Australian share market
Our new Direct Investment option allows you to invest a proportion of your super in your choice of companies listed in the S&P/ASX 300 Index. It lets you trade shares every day that the ASX is trading, via the secure online facility MemberOnline.
✔
You’re eligible to invest in the Direct Investment option if you have at least $10,000 in your CareSuper account and you have a CareSuper MemberOnline account with a valid registered email address.✔
You can invest up to 75% of your existing account balance into the Direct Investment option, the remainder must be invested in other investment options.✔
You can invest up to 20% of your total account balance in a single stock.Coming soon to the
Direct Investment option
Soon, members invested in the Direct Investment option will be able to take part in dividend reinvestment plans as well as certain types of corporate actions. You’ll also be able to enjoy direct online access to your Direct Investment option account through Macquarie’s website.
We’re also considering adding different types of investments to the Direct Investment option’s menu such as Exchange-traded funds (ETFs) and term deposits.
More information will be available soon at caresuper.com.au.
This investment option is provided through Macquarie Investment Management Limited (ABN 66 002 867 003, AFSL 237492).
Before investing in this option, you should read the Member Guide PDS and the Investment Guide, available at caresuper.com.au/PDS.
Important information – we’re changing when the Direct Investment option administration fee is charged
We previously advised that the monthly $25 administration fee would be payable as long as a member has a balance in their cash account. From 27 April 2012 onwards, the $25 monthly fee will now be payable as long as a member’s cash account is open. To find out more, please read our Investment Guide, available from
caresuper.com.au/PDS or call the CareSuperLine on 1300 360 149.
Giving you more
for your membership
A financial expert can also help you decide whether this investment option is right for you. For advice on super investments that suit you, call the CareSuperLine on 1300 360 149 and ask to be put in touch with a financial planner. You can speak to a planner about super-related advice and investment choice over the phone, at no cost to you. The financial planners can give you advice about your overall risk profile and a recommended asset allocation, however they cannot give you advice about individual stocks.
Through CareSuper MemberOnline, CareSuper members can now apply for new or increased death, total and permanent disablement (TPD) and income protection insurance cover securely over the internet. InsuranceOnline is an online insurance application process that’s quick and convenient to help you apply for the cover you need. While you’re young and fit, it’s probably not something you think about, but unfortunately the unexpected can happen, so it’s important to get the right cover when you can. Cover is subject to acceptance by the insurer. Further enhancements to the online insurance application are planned for the coming months. Members can access InsuranceOnline by logging on to MemberOnline and going to the Insurance section. To register for MemberOnline, or for more information, go to caresuper.com.au.
Covering you for more
Soon members will also be able to apply for insurance cover with medical exclusions, if an existing condition currently prevents them from being eligible for cover. If you have any questions about your current insurance cover, call the CareSuperLine on 1300 360 149.
m
e
mber b
e
nefits
Attend one of our free information sessions
We regularly host free information sessions for CareSuper members, in a range of convenient locations in and around Melbourne, Sydney and Brisbane. Our sessions, which you are welcome to attend, are a handy way for you to hear directly from CareSuper
staff on a range of topics to do with your super. You can even bring a friend or family member along with you!
To find out when we’ll be in your area,
visit caresuper.com.au/seminars.
Want insurance help?
Check out Money Mentor!
To find out more about how insurance works, how you can buy it and why it might come in handy if something unexpected happens, take a look at the Insurance module of Money Mentor. It can help you start thinking about your insurance needs and the importance of protecting your most important asset – you!
To view the Insurance module of Money Mentor, visit moneymentor.caresuper.com.au. While you’re there, you can also take a look at some of the other modules like:
• Home loans, including what’s involved in purchasing a home and a handy step-by-step guide through the process
• Wealth creation for Gen X and Y, including tips for saving for travel and information about starting your own business
• Women and money, including advice about the unique financial challenges that women face
• Good debt and bad debt, including useful information to consider when you’re making a major purchase.
Visit moneymentor.caresuper.com.au
for more.
Applying for insurance just got
easier – with InsuranceOnline
10|caresuper.com.au
Super
corner
Here’s a snapshot of
the latest news in super.
Tax file numbers (TFNs) in super
Legislation is being developed to allow super funds to use members’ TFNs as a primary identifier to link contributions and rollovers with member accounts, and to locate ‘lost’ member accounts.
From 1 January 2012, super funds have started using TFNs to consolidate accounts, with all consolidations requiring approval by members. These changes are intended to benefit members and super funds by allowing funds to be located quickly and easily.
More flexibility for excess contributions
The Government has proposed changes to existing rules around excess contributions to super. The changes will allow anyone who exceeds the concessional contributions cap by up to $10,000, to have their excess contributions withdrawn from their super account. This process, driven by the ATO, will allow these contributions to be refunded to them and ensure that they are not penalised with a higher tax rate on their account. This would be available on a first-time only basis.
SG increase from 9% to 12%
There has been lots of discussion around the push to increase the Super Guarantee (SG), paid by employers for their employees, from 9% to 12% over the next few years. However, it is important to note that it is still in proposal stages only, and is not confirmed. It’s always a good idea to consider topping up your super either through salary sacrifice or with voluntary contributions. Putting in a little bit extra now can make a big difference in the long run.
For more about boosting your super go to
caresuper.com.au.
Visit the Australian Tax Office website
at ato.gov.au if you’d like an update
on these proposed changes to super.
The maximum co-contribution may fall
It has been indicated that the Government will decrease the existing maximum co-contribution from $1000 to $500 from 1 July 2012.
To make the most of the government’s $1000 maximum co-contribution available in the 2011/12 financial year, get your voluntary contribution in before 30 June 2012! To find out how you could be eligible for the $1000 co-contribution, or for other ways to boost your super, go to caresuper.com.au.
Super to feature on payslips
It’s been proposed that as of 1 July 2012, all employees must receive information about their super payments on their payslips. The expected amount and payment date are to be included. It is also proposed that eventually employees will be notified each quarter if their regular super payments are stopped. This will help members to keep track of their super and ensure payments are being made when they should be.
lif
e
style
our
members
If you’d like to share your story with us, please email InTouch@caresuper.com.au. Don’t forget to tell us about yourself, and include a photo if you can.
Meet CareSuper member,
Kerrie Oliver
At work… I’m an accountant for a privately-owned property and investment firm, which gives me exposure to different types of investments including rental properties, multi-million dollar construction developments, structured foreign currency notes and SMSFs.
Outside of work… I spend a lot of time with family and friends, and playing sport. I enjoy the winter months because of the AFL and I go to the MCG as often as I can. Every year I make the most of my annual leave by seeing little bits of the world, a few weeks at a time.
I joined… CareSuper when I returned from the UK in early 2009. CareSuper was the super fund of choice for my employer but I also knew they had a good reputation for low fees and stable performance during the GFC. Since then I’ve spoken to CareSuper about moving my UK pension to Australia. I’ve also registered for an online account so that I can check my account balance at my convenience. It makes looking after my super easy.
I realised… that after working in the UK as a contractor for nearly five years, my super balance was quite low and needed a boost. So when I finally paid off my HELP debt (HECS), I decided to redirect this extra cash to my super through salary sacrifice. The next thing on my ‘super to do’ list is to take a look at CareSuper’s income protection insurance.
I expect… retirement is another 30 years from now, but in the meantime I would like peace of mind knowing that when I do retire, I will be able to enjoy a reasonably active life. I’m confident I can achieve this if I continue to make additional super contributions and benefit from low fees.
I am grateful... to Dad for his advice on super and finances. He’s now enjoying his hard earned super in retirement and he was the reason I decided to salary sacrifice into super. I can’t count the number of times I have heard about the benefits of compound interest and investment returns!
I don’t think… 9% super is enough. I understand the benefits of making additional contributions, especially when you’re young. Every little bit makes a difference.
CR/UND40/INTO/MAG 814.1 03/12 ISS2
To be eligible for the Untangle your super competition, complete the Untangle your super transfer form enclosed or available on the website and with certified proof of identity submit the form to the address provided. The closing date of the promotion is 29 June 2012. The prize draw will be held at Telads Australia (The Permit King), Level 20 Como Tower 644 Chapel St, South Yarra VIC 3141 on 27 July 2012 at 11:00am AEST. Winners will be notified in writing. For full terms and conditions go to caresuper.com.au/ untangle2012. Authorised under permit numbers: NSW LTPS/12/00967, ACT TP 12/00504. CARE Super Pty Ltd (Trustee) ABN 91 006 670 060 AFSL 235226. CARE Super (Fund) ABN 98 172 275 725
Disclaimer: The ‘In Touch’ Magazine has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the book does not take into account any particular person’s objectives, financial situation or needs and you should read the Member Guide 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.
Untangle
your
super & win!
CareSuper uses
Greenhouse Friendly™ Envi 50/50
Envi 50/50 is an Australian Government certified Greenhouse Friendly™ Product.
call
CareSuperLine 1300 360 149visit
caresuper.com.au for the latest news and information, brochures and forms.write
CareSuper Locked Bay 5087 Parramatta NSW 2124Contact us
Untangle your super by 29 June
2012 for your chance to
win one
of 20 $250 Myer Gift Cards
.
It’s easy to untangle your super!
See the brochure enclosed for
details.
For full terms and conditions visit
caresuper.com.au/untangle2012
CareSuper uses
Greenhouse Friendly™ Envi 50/50
Envi 50/50 is an Australian Government certified Greenhouse Friendly™ Product.
call
CareSuperLine 1300 360 149visit
caresuper.com.au for the latest news and information, brochures and forms.write
CareSuper Locked Bag 5087 Parramatta NSW 2124Contact us
Untangle your super by 29 June
2012 for your chance to
win one
of 20 $250 Myer Gift Cards
.
It’s easy to untangle your super!
To find out more and for full
terms and conditions visit
caresuper.com.au/untangle2012
Untangle
your
super & win!
To be eligible for the Untangle your super competition, complete the Untangle your super transfer form available on the website and with certified proof of identity submit the form to the address provided. The closing date of the promotion is 29 June 2012. The prize draw will be held at Telads Australia (The Permit King), Level 20 Como Tower 644 Chapel St, South Yarra VIC 3141 on 27 July 2012 at 11:00am AEST. Winners will be notified in writing. For full terms and conditions go to caresuper.com.au/ untangle2012. Authorised under permit numbers: NSW LTPS/12/00967, ACT TP 12/00504. CARE Super Pty Ltd (Trustee) ABN 91 006 670 060 AFSL 235226. CARE Super (Fund) ABN 98 172 275 725
Disclaimer: The ‘In Touch’ Magazine has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the book does not take into account any particular person’s objectives, financial situation or needs and you should read the Member Guide 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.
