From your CEO

It’s been another year of strong growth and progress for CareSuper. We approached the year with a long-term view, making decisions and evolving to shape our vision for the future.

Our returns were strong, with the Balanced option for super (and transition to retirement) members providing a return of 10.10% and the Balanced option for pension members returning 11.09% (after fees and taxes).^ But even more pleasingly, our super Balanced option delivered the highest average annual return over 20 years for the period ending 30 June 2018 as well as a top-three return over 10 years.*

The world has changed a lot over 31 years and so have we. As we’ve grown, our members have become increasingly diverse, demonstrating a variety of ages, backgrounds, occupations, work patterns and lifestyles. This year we updated our brand to fit with our members’ individuality and aspirations and better articulate our active, long-term approach to investment. Our new website complements the brand update, making it easier for members and employers to find the information they need to take control of their super.

This year we were awarded 5 stars from Canstar – one of only 7 Super funds to receive this recognition. SuperRatings recognised CareSuper as a top tier Platinum fund for the 15th year in a row and awarded us MySuper of the Year for 2018, indicating that in its opinion we were the top default fund in Australia. And just recently, SuperReview magazine and Heron named CareSuper as having the Best Pension Product.

For us, it’s not about the trophy; it’s about what it signifies. For members, that’s a super fund that acts in their best interests to get the results that will make a difference to their future.

Over the last year we have been looking to the future! A market tender was conducted for administration services to ensure we can continue to innovate while providing value for money. As a result, we’re moving to a new administration platform in the first half of 2019, which will deliver several changes, including extending the website to provide new online portals for super and pension members and a new mobile app. Daily unit pricing will be introduced, enabling investment switches to be processed every day, not just once per week. There will also be a new Direct Investment option platform for those who want to choose their own shares and term deposits.

While CareSuper takes environmental, social and governance factors into account in all of its investment strategies, those with a particular interest in sustainability will be interested in the upcoming improvements to the Sustainable Balanced option.

As you’ve seen, we don’t stand still and neither does legislative change. The Federal Government announced several proposed new rules affecting superannuation accounts and insurance which, if legislated, may come into effect from 1 July 2019. 

We have been working on a new default insurance package to provide members with a valuable safety-net level of death and TPD cover, taking into account industry-wide changes determined by a new Code of Practice and the Federal Government’s budget announcements. The effective date of such changes depends on legislation passing.

Naturally it can take time to adjust to any change, no matter how big or small. Rest assured we’ll communicate these changes to members in detail, continuing to monitor feedback and adjust where necessary.

Importantly, throughout all this change our purpose is unchanging –  to advance our members to a better future in retirement.

Julie Lander
CEO

* SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60-76) Index, June 2018; SuperRatings Pension Fund Crediting Rate Survey - SRP50 Balanced (60-76) Index, June 2018.
^Past performance is not a reliable indicator of future returns.

From the Chair

CareSuper has had another successful year in 2017/18 and I thank the Board, Julie Lander, executives, staff and our service providers for their hard work in achieving this result.

The success of our fund has been built on the foundation of a culture of promoting members’ interests above all else. We watched with intense interest the deliberations of the Productivity Commission as well as the exposures of the Royal Commission. We believe we are well positioned to respond to any legislative changes that may arise.

The work of both commissions revealed that industry funds have continued to significantly outperform retail funds.

As an industry fund run only to benefit members, CareSuper does not have to wrestle with the conflict of promoting shareholder interests above those of our members. We believe the structure of the Board, with equal numbers of member and employer-nominated directors, has maintained this focus. 

During the year, Cate Wood completed her four-year term as Chair of the fund and I would like to thank her for her dedication and leadership during this time. At the conclusion of Cate’s term, I was appointed Chair and Julie Bignell was appointed Deputy Chair. The new appointments were made in line with CareSuper’s policy, which provides for employer and member directors to nominate the Chair and Deputy Chair on a 4-year rotational basis.

I also acknowledge the service of Mark Sibree and Greg McLean, who both stepped down from the board during the year. Jeremy Johnson was appointed as an employer director while Sascha Peldova-McClelland joined the board as a member director in September 2018. Following these retirements, several changes were made to our board committees based on directors’ knowledge and expertise.

CareSuper has held annual member updates for many years, providing a valuable opportunity for our members to hear about our performance, achievements and plans.

We have been around for over 30 years and we are proud of our position as a top-performing fund. In an ever- competitive world the challenges increase but our intention is to serve you, our members, in a manner that ensures that your interests are foremost.

Terry Wetherall
CareSuper Chair