CareSuper has once again had a successful year, backed by strong returns across all investment options. The Balanced (MySuper) option returned 10.76% for the 12 months to 30 June 2015, and the Balanced option for Pension members returned 11.64% for the same period. Importantly though, the 10-year average return to 30 June this year of the super Balanced option was 7.39% p.a. which places CareSuper in the top 5 funds, according to SuperRatings.* Our focus, as always, is on the long term net benefit for members. Super is a long term investment and it’s important to understand how the combination of fees and investment performance affect a member’s final account balance, which determines their income in retirement.
Our strong investment performance was recognised by a number of independent ratings agencies throughout the financial year. As well as receiving the highest possible ratings from all agencies, we were particularly pleased to be named ‘Best Fund: Integrity’ by Chant West which acknowledges our commitment to doing the right thing by our members. We were also awarded a Platinum rating, the highest possible, by SuperRatings for both super and pension which we have maintained for a number of years. To see more of our awards, please read on below.
As an industry super fund, our main goal is to empower our members to achieve long term financial security, by helping them to make informed financial decisions. We are committed to supporting our members not only during their working lives by growing their super balances, but also after they have finished working to help them manage their retirement investments and income through a CareSuper Pension. In the last 12 months we have explored a number of different ways to better cater for members’ needs leading up to and in retirement. We are looking forward to implementing some of these changes and providing further options such as a guaranteed lifetime income product, to further assist members in this stage of their lives.
Over the last year, the Fund has been working on a number of new resources and improved communications for members, with a focus on digital engagement. Our website and member account portals are all now mobile-responsive web pages, which means members can stay up to date with their super on any device whenever it suits them. The annual statements were also updated with an improved design and to give members a better perspective on how their super is tracking.
*As measured by the SuperRatings Fund Crediting Rate Survey – SR50 Balanced (60-76) Index, June 2015.
Past performance is not a reliable indicator of future performance and other factors should be considered before choosing a fund or changing investments.
It is a privilege and great responsibility to look after the retirement savings of CareSuper members, and one that the CareSuper Board takes very seriously. Our focus is always on members and ensuring they have the best possible chance for a financially secure retirement. This objective is simple, but we understand the complexities of achieving it.
Some of the ways we work to achieve this include keeping fees and costs as low as possible, and returning all profits to members. We aim to make it easy to deal with CareSuper, and strive to communicate clearly to both members and employers. We also work hard to understand and listen to members and their needs.
As a Fund we contribute to public debate, either directly or through relevant industry bodies, to ensure that superannuation policy will support our members and to protect their savings from those who may seek to profit from them.
We are focused on providing strong investment returns for all members, including those who are invested in the default Balanced option which has demonstrated consistently strong performance according to SuperRatings.* There are also several options available for those who do want to make their own choices about how their money is invested. In addition, CareSuper members have access to financial planning - this service is designed to help them to understand all of their options both through the accumulation phase and going into retirement.
I encourage all CareSuper members to think about their super – regardless of age. It is important for everyone, but particularly for female members who are more likely to have time out of the workforce and subsequently smaller super balances. Small actions now could make your future much brighter. Visit caresuper.com.au or call the CareSuperLine on 1300 360 149 for more information.
Catherine (Cate) Wood
* As measured by the SuperRatings Fund Crediting Rate Survey – SR50 Balanced (60-76) Index, June 2015
Past performance is not a reliable indicator of future performance and other factors should be considered before choosing a fund or changing investments.
Superannuation is intended to help deliver a better standard of living in retirement, by providing members with a reliable and sustainable income stream to either supplement or replace the Age Pension. The value of the income stream will be dependent on contributions and investment returns accumulated during a person’s working life.
We focus on maximising the net benefit derived from returns and fees, complemented by relevant product features and services including advice, so that members can enjoy a more comfortable lifestyle in retirement.
SPIRIT is the backbone of CareSuper and it defines what we stand for and how we behave. The staff jointly devised the values, as follows: service, professionalism, integrity, relationships, innovation and teamwork.
At CareSuper, we are committed to delivering superior service and developing long-term relationships with our members and employers. We draw on our experience, integrity, teamwork and innovative approach to business when working with stakeholders to achieve common goals.
To empower our members to achieve long-term financial security.
CareSuper’s mission is to maximise financial outcomes for its members during and after their working lives and to help employers by:
Compare CareSuper’s Balanced (MySuper) option returns to 30 June 2015 with other Balanced option returns and see how we’ve delivered strong performance year after year.
Compare CareSuper’s Balanced option returns to 30 June 2015 with other Balanced option returns and see how we’ve delivered strong performance year after year.
CareSuper client partnership managers visited every state and territory at least once.
With a focus on making super easy and increasing digital engagement as well as additional benefits for members, some of the changes to products and services throughout the year were:
There were no major changes announced in the Budget to superannuation. The SG contributions rate and tax treatment of super and contributions remain the same.
From 1 January 2017 the thresholds for the assets test, which determines eligibility for the Age Pension, are changing. This could result in a significant reduction in the Age Pension for some members.
The requirements for accessing super early due to terminal illness have changed so that members with a life expectancy of less than 24 months are now eligible to access their super account balance. Previously the eligible time period was 12 months. This change came into effect on 1 July 2015. It is important to note that this applies to super account balances only and the certification period for insurance claims through CareSuper will remain at 12 months.
Due to a change in UK legislation that outlines the requirements for funds to be Qualifying Registered Overseas Pension Schemes (QROPS), CareSuper is no longer eligible to accept transfers from UK pension funds. These legislative changes came into place on 6 April 2015 in the UK and affect Australian super funds, including CareSuper.
CareSuper is focused on continually improving the services and products provided to members and a number of projects are in progress for the coming year.
To ensure it’s easy to deal with CareSuper, digital services and online functionality undergo continual improvement.
Last year, the MyFutureMe website was launched to provide tips and information for women to help them take control of their finances. In addition, all online account portals were optimised for viewing on mobile devices.
In 2015/16 a new online join process will be introduced to make becoming a CareSuper member as simple and straightforward as possible. The Fund is also aiming to communicate and engage with members across all different mediums by focusing on increasing CareSuper’s social media presence.
The self-managed super fund (SMSF) wind up service has been running for over 12 months, with the assistance of Crowe Horwath. Following the success of this partnership CareSuper members now also have access to a discounted tax return service. Find out more here.
A member experience project is underway looking at different stages of the superannuation journey. There has been an increased focus on data analytics, acknowledging the importance of this analysis to better understand members and, as a result being able to communicate in a more relevant way. Incorporating this data along with new technologies will enable the Fund to improve the services available to members.
The Direct Investment option (DIO) allows eligible members to invest part of their super in their choice of securities that form part of the S&P/ASX 300 Index, a range of listed investment companies (LICs), exchange-traded funds (ETFs) and term deposits. Access to the DIO platform is now available via a single sign-on through CareSuper’s member portal and, from November 2015, accumulation members with a DIO account will be able to transition to the pension phase seamlessly without incurring any transaction costs or time out of the market.
Over the last 12 months the Fund has been examining the needs of pension members and how to best help them build a sustainable income during retirement. This project, which has been supported by an actuarial firm, has provided greater insight into the financial position of our members both now and in the future.
The Board brings to the table specialist skills and experience to ensure the Fund is professionally managed to deliver the best outcomes for members. The CareSuper Board consists of equal numbers of Member and Employer representative Directors, and an Independent Director. Member and Employer Directors are nominated by relevant organisations in accordance with their particular nomination procedures and appointed by the Board following an interview process and assessment of fit and proper requirements. Board decisions are made by at least a two-thirds majority.
The Trustee of CARE Super has an indemnity insurance policy in place to protect the Directors of the Trustee from the potential costs of legal action. The Trustee of CARE Super is CARE Super Pty Ltd ABN 91 006 670 060 and it is a holder of Australian Financial Services Licence number 235226. CARE Super Pty Ltd is a Registered Superannuation Entity Licensee, Licence number L0000956 and authorised to offer a MySuper product, MySuper identification number 98172275725867.
The Board has established several committees to assist it to meet its obligations and oversee certain operations of the Fund.
All Directors are required to serve on a minimum of one and a maximum of two committees for which they receive an attendance fee. The Chair is a member of two committees and attends other committee meetings on an ex officio basis.
The purpose of the Compliance, Audit and Risk Management Committee (CARC) is to assist the Board in meeting its compliance and risk management responsibilities. The main activities of the Compliance, Audit and Risk Management Committee (CARC) in 2014/15 included:
The key tasks for the Governance and Remuneration Committee (GRC) in 2014/15 included:
The primary function of the Investment Review Committee (IRC) is to monitor the implementation of the investment strategy and investment operations of the Fund within the framework approved by the Board. The Committee is responsible for the ongoing review of all external providers who manage the investments of the Fund.
Some of the main activities of the IRC in 2014/15 included:
The Member and Employer Services Committee (MESC) is responsible for oversight of:
In 2014/15 some of the specific activities of the MESC included:
To reflect the time and commitment provided to the Fund, and take into account the additional responsibilities of those who serve on and chair committees, Director remuneration is set using a total fee approach, which includes an annual base fee, a fee for meeting attendance for Board and Committee meetings and superannuation contributions.
The target level of income for a Director is the average of the median fees paid by Funds in the ‘profit to members’ sector in the same bracket of asset size, contribution income and member numbers assuming attendance at 12 Board meetings per year.
The following table outlines the attendance and remuneration for the 2014/15 financial year.
|Director||Board meetings attended||Committee meetings attended||Directors fee||Super (where paid to an individual)||Fees paid to|
|Cate Wood (Chair)||10/10||11/114||$68,441.74||$6,501.97||Director|
|David Michaelis (Deputy Chair)||10/10||8/8||$62,830.74||$5,968.92||Director|
|Chris Christodoulou||9/10||11/11||$55,027.20||Unions NSW|
CareSuper has a number of governance policies and documents including, but not limited to, the Trust Deed, Board and Committee Charters and Constitution. These policies can be viewed on our website.
The Trustee’s approach to managing the Fund is detailed in the corporate governance framework which consists of a number of these documents. They outline the powers and responsibilities vested in the Trustee (CARE Super Pty Ltd) and how the Trustee will operate. This includes provisions for the appointment and removal of Directors. The Board Charter outlines the principle functions, policies and operations of the Board.
The Trustee has adopted a new Constitution effective 1 September 2015.
As part of the overall governance of the Fund, CareSuper has developed a Risk Management Framework that covers risks across all operations. The framework is actively managed and reviewed by the Board and Committees. The material risks covered by this framework include investment governance, liquidity, insurance, fraud, operations, strategy and outsourcing. In addition, ongoing monitoring includes a risk radar to identify any potential future risks.
The CareSuper Board has appointed an executive group who manage the day-to-day operations of CareSuper.
Julie joined CareSuper in 2001 as General Manager – Trustee, Investment & Member Services and was appointed Chief Executive Officer in 2002. She is responsible for developing and implementing the Fund’s strategy and business plan to meet the needs of members, employers and other stakeholders, and for overall management of the Trustee’s operations through the executive team and staff.
Her experience in superannuation has been developed over 30 years with corporate superannuation funds, both defined benefit and accumulation, as well as with industry funds. Julie holds a Bachelor of Business, a Graduate Certificate in Organisational Leadership and has completed RG146 (Superannuation). She serves on the Policy Committee of AIST, the Executive of Industry Funds Forum, is a Fellow of the Australian Institute of Superannuation Trustees, a Member of the Australian Human Resources Institute and is a Director of the Fund Executives Association Limited.
Suzanne joined CareSuper in February 2015 as General Manager – Investments. She is responsible for managing the investment program of the Fund and CareSuper’s internal investment team. Suzanne works with the Fund’s external managers and advisers to manage the investments of the Fund in accordance with the investment strategy and policies determined by the CareSuper Board and Investment Review Committee.
Suzanne has over 20 years’ experience in financial markets, primarily in direct investment roles. Her experience encompasses both research and portfolio management, with a long-standing focus on strategy and asset allocation. Prior to joining CareSuper, Suzanne spent nine years at another industry super fund. Her role extended across the fund’s investment functions and included manager research and selection, asset class responsibility and fund strategy. Suzanne has also held senior positions at Goldman Sachs JBWere. She holds a Bachelor of Economics (Honours), Graduate Diploma of Applied Finance and is a Fellow of the Financial Services Institute of Australasia.
Belinda joined CareSuper in January 2012 and is responsible for managing risk and finance, the compliance team and major projects for CareSuper.
Belinda has over 18 years’ experience in superannuation including consulting, auditing and accounting.
Belinda started her career as an auditor at Ernst & Young before moving to Towers Watson where she held numerous roles including Senior Consultant for corporate super funds and Head of Research, Information and Compliance. Belinda holds a Bachelor of Business (Accounting & Information Systems) and is a Member of the Institute of Chartered Accountants in Australia.
Rachel joined CareSuper in January 2015 as General Manager – Operations. She is responsible for managing the administration of the Fund, as well as providing reporting and analysis to internal stakeholders.
Rachel has previously worked in administration and operations management at law firms and other super funds. Her experience in the super industry spans 14 years, and she has developed an extensive knowledge of superannuation operations and associated systems. Rachel holds an Advanced Diploma of Financial Services (Superannuation) and has also studied continuous improvement programs, focused on delivering efficient and effective processes and services.
Peter joined CareSuper in 2002 as General Manager – Marketing & Client Services. He is responsible for marketing strategy and execution, and for the delivery of member and employer services, including education, communications, business services and ancillary products.
His experience in the superannuation industry spans over 20 years across a variety of roles which include marketing, sales, relationship management, product development, sponsorship agreements and administration. Peter has experience in accumulation and defined benefit schemes, as well as corporate superannuation. Peter is a Fellow of the Association of Superannuation Funds of Australia (ASFA) and has completed RG146 (Superannuation).
At CareSuper we believe that the quality of decision making is enhanced by having a range of views represented at Board, Executive and staff levels. We consciously strive to achieve balance by seeking diversity across a number of factors including gender, age, experience, skills and professional qualifications.
The Fund aims to achieve equal gender representation at Board level, and when seeking to fill Director vacancies nominating organisations are asked to consider this, along with other criteria, when proposing candidates. In recruitment of staff, selection is made on merit, taking into account the skills, qualifications, experience and other attributes required to perform the role and contribute to the team.
The objectives of the Fund’s remuneration policy are to ensure that:
Staff are remunerated by way of a fixed salary package. The Fund does not pay short- or long-term incentives, believing these are not aligned with the profit-to-members ethos. CareSuper’s target salary position is the 50th percentile (median) of the profit-to-members financial services sector (covering superannuation funds and credit unions). Annually, the CEO sources relevant market data from surveys to benchmark the salaries of each position within the Trustee Office. The annual salaries budget and total increases are approved by the Governance and Remuneration Committee.
|Salary range||Number of staff|
|$50,000 - $100,000||21|
|$100,000 - $200,000
|$200,000 - $300,000||3|
|$300,000 - $400,000
|$400,000 - $500,000||1|
CareSuper works with a range of independent service providers to assist with the key operations of the Fund.
CareSuper’s service providers during 2014/15 include:
JANA Investment Advisers Pty Ltd (JANA) was established in 1987 as a specialist investment adviser to large institutional investors such as CareSuper. JANA provides extensive research and recommendations on investment strategy and managers for the Fund. With JANA’s assistance, the Trustee monitors and reviews the performance of each investment manager.
Sustainable investing refers to the incorporation of non-financial risks, threats and opportunities into investment decision making and ownership practices. CareSuper believes it is imperative to invest funds under management responsibly, in a way that aligns with our overall risk management approach and focus on maximising retirement outcomes. As such, CareSuper considers environmental, social and governance (ESG) factors when making investment decisions, as we believe that managing these risks will improve long-term returns to members.
CareSuper is a signatory to the Principles of Responsible Investing (PRI), a founding member of the Australian Council of Super Investors (ACSI) and ESG Research Australia and a supporter of the Carbon Disclosure Project.
CareSuper believes in being part of a collective voice and working with others within the investment industry to enhance our effectiveness in response to ESG issues. With regard to Australian Shares held by the Fund, it is CareSuper policy to vote on all issues that companies in which we invest put to their shareholders at general or annual general meetings.
CareSuper strongly encourages all of its investment managers to consider ESG factors when investing. These ESG principles are applied across all asset classes that make up the investment options, thereby providing strong sustainability credentials. The Fund also offers a Sustainable Balanced option, which specifically invests in entities that are considered to have a sustainable future on environmental and/or social grounds.
The investment managers who manage the Australian and overseas shares components of the Sustainable Balanced option are specialists who apply an ESG filter to their decision-making process and consider ESG factors such as climate change, human rights and corporate behaviour when selecting the investments that form part of the option.
Since their appointment to CareSuper, these specialist managers have worked with the Fund to further develop and enhance these processes.
CareSuper has been working hard to improve the way we communicate with members. As much as possible, we now try to keep members informed about their super via email. This minimises printing, which in turn reduces our impact on the environment.
At CareSuper, members have a range of environmentally friendly communication options available to them, both online and over the phone.
CareSuper feels strongly about incorporating environmentally friendly workplace practices into the day-to-day running of our office. Over the 2014/15 financial year we have actively lowered our carbon footprint, recycled PCs, servers and 55 kilograms of other e-waste items, and decreased the running costs of our phones and computers as a result of an IT infrastructure upgrade.
This is in addition to ongoing practices, which include:
To ensure strong sustainability practices, CareSuper has a proactive staff sustainability committee. It is the committee’s role to raise awareness of sustainability issues within CareSuper’s offices and among members, suppliers and partners. The committee ensures sustainability is considered with regard to our products, services and other internal operations.
Watch the video to hear from Suzanne Branton, General Manager – Investments, on CareSuper’s investment returns for the 2014/15 financial year, or read on below for more information.
The superannuation Balanced (MySuper) option, which is the option in which most of our members have all or part of their super invested, returned 10.76% for the 12 months to 30 June 2015. The pension Balanced option also performed well, returning 11.64% for the same period.
All 12 super Managed and Asset Class options performed well with very good returns across the board. As always it’s important to consider long term returns, and the Balanced option’s 10-year average return was 7.39% p.a. ranking CareSuper in the top 5 funds over this time period.* The Capital Stable, Growth, Fixed Interest, Direct Property, Australian Shares and Overseas Shares options are all in the top 25% of funds in their respective SuperRatings surveys over 10 years.^
While many super funds have delivered strong results over the short term, only a handful have demonstrated consistent top-quartile results over longer periods. CareSuper’s ability to do so highlights the strength of our long-term approach to investing.
Returns across the pension investment options were also very competitive, showing that we remain focused on bringing our pension members consistent investment performance and steady growth in retirement.
The 3 largest pension investment options in 2014/15 were:
Over longer periods, these options also performed well. According to SuperRatings, all 3 options listed above ranked in the top 5 funds when compared to similar options over the 7 years to 30 June 2015.# In addition, Growth, Alternative Growth, Fixed Interest and Overseas Shares were also ranked in the top 5 in their respective surveys.# These results demonstrate how committed we are to helping our Pension members achieve their retirement goals, over the short and long term.
* As measured by the SuperRatings Fund Crediting Rate Survey – SR50 Balanced (60-76) Index, June 2015
^ As measured by the SuperRatings Fund Crediting Rate Survey, June 2015 (various indices).
# As measured by the SuperRatings Pension Fund Crediting Rate Survey, June 2015
CareSuper expects more modest returns in the future, due to the combination of global market conditions and the current low interest rate environment.
In order to keep providing members with competitive returns, CareSuper will stay committed to our investment philosophy. This involves:
We’re confident that the strength of our approach will help us to continue delivering consistent, long-term returns in periods of market uncertainty.
General Manager - Investments
|Annual returns||Compound average annual returns|
|Investment options||2014/15 (%)||2013/14 (%)||2012/13 (%)||2011/12 (%)||2010/11 (%)||10 years (% p.a.)||7 years (% p.a.)||5 years (%p.a.)||3 years (%p.a.)|
|Asset Class options|
|CareSuper Pension annual returns||Compound average annual returns|
|Investment options||2014/15 (%)||2013/14 (%)||2012/13 (%)||2011/12 (%)||2010/11 (%)||Since inception^ (%p.a.)||5 years (%p.a.)||3 years (%p.a.)|
|Asset Class options|
CareSuper has appointed professional investment managers to manage the assets of the fund. The performance of each investment manager is monitored closely by the Trustee. The table below lists the investment managers by asset class, the value of funds held by each and the percentage of the total fund’s assets that each holding represents.
|CareSuper's investment managers during 2014/15||Investments held by managers|
|$m||% of Fund||$m||% of Fund|
|GAM Absolute Return Bond Fund||142.08||1.37%||76.59||0.85%|
|GMO Multi Strategy Trust||381.06||3.67%||154.92||1.71%|
|Wellington Global Total Return||155.25||1.50%||84.89||0.94%|
|IFM Enhanced Index Equity Fund||647.28||6.24%||611.81||6.77%|
|Ophir Opportunities Fund1||70.70||0.68%||0.00||0.00%|
|Integrity Australian Equity2||0.00||0.00%||149.80||1.66%|
|Paradice Investment Management Large Caps||476.32||4.59%||430.61||4.77%|
|Renaissance Smaller Companies||75.60||0.73%||73.69||0.82%|
|Schroder Australian Equity Fund||515.93||4.97%||497.70||5.51%|
|AMP Guaranteed Savings Account3||51.60||0.50%||56.06||0.62%|
|CFS Wholesale Cash Fund||579.63||5.59%||516.10||5.71%|
|Apollo Credit Fund||169.43||1.63%||129.05||1.43%|
|Gresham Property Fund No. 4||4.29||0.04%||7.46||0.08%|
|HayFin Direct Lending||73.06||0.70%||23.91||0.26%|
|IFM Infrastructure Debt||92.56||0.89%||77.49||0.86%|
|Putnam Structured Credit||257.08||2.48%||204.63||2.27%|
|TGM Credit Overlay||0.00||0.00%||0.00||0.00%|
|Charter Hall Core Plus Office Fund||220.14||2.12%||205.86||2.28%|
|DEXUS Wholesale Property Fund||499.48||4.81%||427.82||4.74%|
|Eureka Development Fund No. 2||0.09||0.00%||0.20||0.00%|
|ISPT Core Fund||304.80||2.94%||275.25||3.05%|
|ISPT Development & Opportunities Fund No. 2||3.85||0.04%||19.33||0.21%|
|ISPT Grosvenor International Property Trust5||0.20||0.00%||0.59||0.01%|
|ISPT Retail Australia Property Trust||65.55||0.63%||42.53||0.47%|
|Lend Lease Australian Prime Property Fund Retail||33.63||0.32%||31.09||0.34%|
|Franklin Templeton Global Aggregate Bond Fund||132.44||1.28%||89.66||0.99%|
|IFM Specialised Credit Fund||123.88||1.19%||114.66||1.27%|
|Legg Mason Brandywine Global Fixed Income Trust||241.22||2.32%||221.01||2.45%|
|ME Bank Super Loans Trust||7.93||0.08%||10.44||0.12%|
|Perennial Australian Fixed Interest||236.78||2.28%||205.54||2.28%|
|Schroder Fixed Income Fund||226.87||2.19%||197.80||2.19%|
|AMP Capital Infrastructure Equity Fund||106.61||1.03%||61.91||0.69%|
|AMP Capital Strategic Infrastructure Trust Of Europe ($A)2||0.00||0.00%||44.53||0.49%|
|Antin Infrastructure Fund||21.93||0.21%||25.51||0.28%|
|Hastings Utilities Trust Of Australia||153.20||1.48%||139.36||1.54%|
|IFM Australian Infrastructure Fund||220.81||2.13%||217.81||2.41%|
|IFM Renewable Energy (Convertible Notes)||20.00||0.19%||20.00||0.22%|
|Macquarie Global Infrastructure Fund II||25.77||0.25%||23.72||0.26%|
|TGM Infrastructure Overlay||0.00||0.00%||0.00||0.00%|
|Baillie Gifford Long Term Global Growth||268.65||2.59%||194.67||2.15%|
|CFS Global Emerging Markets||189.48||1.83%||160.80||1.78%|
|MFS Global Equity Trust||747.61||7.20%||591.91||6.55%|
|Neuberger Berman Emerging Markets||80.95||0.78%||70.86||0.78%|
|Orbis Global Equity Fund||306.03||2.95%||257.06||2.85%|
|Pzena Global Value Fund5||0.27||0.00%||161.66||1.79%|
|Schroder Global Dynamic Blend||581.78||5.61%||476.08||5.27%|
|Wellington Global Contrarian Equity||277.96||2.68%||227.63||2.52%|
|Zurich Global Thematic Share Fund||225.78||2.18%||182.54||2.02%|
|TGM Overseas Shares Overlay||0.00||0.00%||0.00||0.00%|
|Advent Private Capital V||4.55||0.04%||6.32||0.07%|
|AMP Business Development Fund2||0.00||0.00%||0.01||0.00%|
|Bain Capital Fund IX||5.93||0.06%||6.58||0.07%|
|Bain Capital Fund X2||0.00||0.00%||9.95||0.11%|
|Coller International Partners V||3.80||0.04%||3.92||0.04%|
|Highland Credit Opportunities Fund||6.46||0.06%||6.72||0.07%|
|IFM Australian Private Equity Fund III||3.43||0.03%||4.68||0.05%|
|IFM Australian Private Equity Fund IV||9.52||0.09%||14.11||0.16%|
|IFM International Private Equity Fund I||1.31||0.01%||1.45||0.02%|
|IFM International Private Equity Fund II||8.82||0.09%||8.33||0.09%|
|IFM International Private Equity Fund III||42.59||0.41%||32.40||0.36%|
|Industry Super Holdings Pty Ltd||11.30||0.11%||9.74||0.11%|
|LGT Crown Europe Middle Market II||33.55||0.32%||31.59||0.35%|
|LGT Crown Global Secondaries II||27.87||0.27%||34.55||0.38%|
|Members Equity Bank Pty Ltd||25.92||0.25%||23.41||0.26%|
|Partners Group Direct Investments 2012||55.31||0.53%||32.01||0.35%|
|Partners Group Secondary 2008||25.64||0.25%||25.32||0.28%|
|Partners Group Secondary 2011||98.97||0.95%||64.76||0.72%|
|Siguler Guff Distressed Opportunities IV||97.23||0.94%||65.89||0.73%|
|Siguler Guff Small Buyout Opportunities Fund II||57.83||0.56%||29.41||0.33%|
|Stafford International Timberland VI||19.35||0.19%||13.81||0.15%|
|Warakirri International Hedge Equity Fund5||0.76||0.01%||0.49||0.01%|
|Wilshire Private Markets||33.51||0.32%||30.12||0.33%|
|Wilshire Private Markets Asia No. 2||2.71||0.03%||2.00||0.02%|
|TGM Private Equity Overlay||0.00||0.00%||0.00||0.00%|
|AMP Capital Sustainable Share Fund||22.19||0.21%||20.84||0.23%|
|Candriam Sustainable Global Equity Fund||29.70||0.29%||24.40||0.27%|
|TGM Sustainable Overseas Shares Overlay||0.00||0.00%||0.00||0.00%|
|TGM Pension Balanced Overlay||1.49||0.01%||1.02||0.01%|
|TGM Pension Capital Stable Overlay||0.66||0.01%||0.44||0.00%|
|TGM Super Balanced Overlay||39.60||0.38%||26.85||0.30%|
|TGM Super Capital Stable Overlay||0.70||0.01%||0.82||0.01%|
|TGM Super Growth Overlay||2.04||0.02%||2.09||0.02%|
|TGM Super Sustainable Balanced Overlay||0.48||0.00%||0.29||0.00%|
|TGM Pension Conservative Balanced Overlay||0.30||0.00%||0.24||0.00%|
|TGM Super Conservative Balanced Overlay||0.25||0.00%||0.23||0.00%|
The top holdings of the Australian shares and overseas shares asset classes are shown in the following tables.
|Security||% of asset class||% of Balanced (MySuper) option|
|Commonwealth Bank of Australia||7.83%||1.65%|
|Westpac Banking Corporation||6.75%||1.42%|
|National Australia Bank||6.32%||1.33%|
|BHP Billiton Limited||6.02%||1.27%|
|Australia And New Zealand Banking Group||5.93%||1.25%|
|Telstra Corporation Ltd||5.68%||1.20%|
|Macquarie Group Ltd||2.62%||0.55%|
|Rio Tinto Ltd||2.04%||0.43%|
|Woodside Petroleum Limited||1.93%||0.41%|
|QBE Insurance Group Ltd||1.50%||0.32%|
|AGL Energy Ltd||1.14%||0.24%|
|Lend Lease Group||1.09%||0.23%|
|Origin Energy Ltd||1.05%||0.22%|
|Total of asset class||61.93%||13.07%|
|Security||% of asset class||% of Balanced (MySuper) option|
|Tencent Holdings Ltd||0.94%||0.26%|
|Honeywell International Inc||0.90%||0.25%|
|Walt Disney Co||0.86%||0.23%|
|Reckitt Benckiser Group||0.84%||0.23%|
|Samsung Electronics Co Ltd||0.81%||0.22%|
|Time Warner Inc||0.78%||0.21%|
|State Street Corp||0.72%||0.20%|
|Thermo Fisher Scientific Inc||0.69%||0.19%|
|Total of asset class||16.91%||4.64%|
|Location||% of asset class|
|Sector||% of asset class|
CareSuper's Cash asset class invests in two sub-asset classes: Cash and Term Deposits. Cash is managed by Colonial First State and invests in a range of securities deemed as cash, including term deposits and discount securities. Term Deposits are managed internally by CareSuper. Benchmark exposures to sub-asset classes within the Cash asset class can be found below.
|Cash instrument||Cash (sub-asset class)||Term deposits (sub-asset class)|
|Negotiable Certificates of Deposits||67.36%|
|Floating Rate Notes||10.77%|
|Maturity profile||Cash||Term deposits|
|0 - 30 days||26.29%||8.39%|
|31 - 90 days||47.62%||20.09%|
|91 - 180 days||26.09%||41.13%|
|181 - 365 days||0.00%||30.40%|
|Option||Cash sub-asset class benchmark %||Term deposit sub-asset class benchmark %||Total cash asset class benchmark %|
|Location||% of asset class|
|Sector||% of asset class|
|Government Bonds / Cash||Non-Government|
It is the responsibility of the Board to develop the investment policy and ensure the Trustee adheres to its principles, philosophy and guidelines.
There are several sub-policies covering the investment governance framework, investment fees, currency, proxy voting and asset valuation. Each of these policies is reviewed on a regular basis.
CareSuper’s assets are managed according to the investment strategy for each investment option that has specified asset allocation benchmarks or, in the case of the Managed options, an asset allocation range. The Trustee has developed an investment strategy after taking into consideration the Fund’s overall circumstances, reviewing membership demographics, current market conditions and all applicable legislation.
The Trustee has given consideration to the following objectives in establishing an investment strategy:
The Trustee’s philosophy is to actively manage investments for the long term, with the aim of producing competitive returns while reducing risk when markets are volatile.
The Trustee selects and appoints professional investment managers to invest members’ assets consistent with the investment options.
Within most asset classes, the Trustee has diversified the management of investments between several investment managers (and varying investment styles) with the aim of moderating the volatility in the overall return of the asset class. The Trustee does not manage any investments internally, with the exception of term deposits and the cash flow required for day-to-day operations. Licensed investment consultants advise on all investment matters including the selection of investment managers whose investment objectives must be consistent with those of the Fund. Constraints applied to the managers are consistent with the objectives and philosophy of the Trustee.
All investments have varying degrees of risk and can change in value. Risk can mean either a fall in the value of an investment, particularly over shorter periods, or an investment not meeting its investment objectives over the long term. When investing, some of the most significant risks are:
Investment managers may use futures, options and other derivative instruments to enhance returns or manage risk. However, these instruments may not be used to leverage the portfolio or to cause the overall exposure to any asset class or combination of classes to breach the long-term strategic ranges.
Each year the Trustee seeks a statement from each investment manager on the use of derivatives within its portfolio.
Voting is a tool that shareholders, as owners of a company, can use to exert influence or send a signal to the board of a company. CareSuper considers voting best practice and exercises its voting rights on behalf of members in the Australian equities portfolio. CareSuper’s voting history can be viewed at caresuper.com.au/voting.
At 30 June 2015 the following investment houses managed more than 5% of the Fund’s assets: Schroder Investment Management Australia 12.70%; IFM Investors 11.22%; Colonial First State 7.38%; MFS Investment Management 7.17%; Perennial Investment Management 6.31%.
CareSuper uses unit prices to calculate and report members’ superannuation balances and apply investment returns in relation to investments in a Managed or Asset Class option. Every CareSuper member’s account balance information includes the number of units they own, as well as the latest sell price. A buy price is usually the price applied when contributions are made into an investment option, at which time a member’s account will be allocated units at the buy price. A sell price is usually applied when money is withdrawn from an investment option, including withdrawals from accounts for investment switches and payments, insurance premiums and tax deducted directly from an account. The sell price is used to calculate account balances. To find out additional details about buy–sell spreads and how unit prices are calculated, please see the Member Guide PDS and Investment Guide available at caresuper.com.au/PDS, or read the Pension Guide at caresuper.com.au/PensionGuide.
In the event of a unit pricing error deemed material in nature, CareSuper aims to correct the financial position of current and former members by an amount that would bring their account balance to a position as if no error had occurred. In determining an amount of compensation CareSuper will, where practical, use actual values. If these are not available estimates will be used.
CareSuper maintains reserves designed to provide for known and potential commitments and contingencies. The Fund maintains two reserve accounts as follows:
The General Reserve is maintained as a percentage of net assets (currently 0.40% of net assets) and is reflective of the size of funds under management, the demographics of the member base and the perceived financial market conditions and liquidity risks. The Operational Risk Reserve (ORR) is maintained to provide for risks reflective of the size, complexity and business of the Fund. On a quarterly basis the ORR is formally reviewed as a percentage of net assets (currently 0.30% of net assets).
The reserves are invested in a strategy (appropriate to the time frame and risk profile) which is reviewed annually by the Board. Each strategy is invested in existing asset classes held by the Fund and are maintained by the Fund’s custodian.
|CareSuper’s reserves over the last 3 years:||% of fund net assets|
CareSuper is a ‘profit for members’ fund committed to maximising members’ retirement savings. Therefore, fees are structured only to cover costs, not to make a profit for shareholders.
The Trustee always aims to minimise investment fees, but is also focused on achieving strong long-term returns, which have a significant impact on account balances. This combination of fees and investment returns is why we highlight the importance of ‘net benefit’. Find out more about this approach below.
We believe it is important to ensure our fees are transparent and easy to understand. It is our policy to include underlying investment costs in fees disclosed to members, and we have always done so.
Indirect investment costs cover the cost of investing the Fund’s assets and include base and performance fees paid to investment managers, asset consultant fees, bank fees and custody costs. Performance fees may be paid to an investment manager whose fee is linked to investment outcomes and are paid when the manager’s portfolio performs above an agreed benchmark. CareSuper has a number of managers whose fee is aligned to their performance, predominantly in the Australian shares, overseas shares and alternative asset classes. Where a performance fee is paid, a lower base fee applies.
These fees, known as the indirect cost ratio (ICR), are not taken directly from members' accounts, but deducted from investment earnings over the year and reflected in the calculation of unit prices. These investment expenses change from time to time because of changes in managers, performance and/or other fees. Any revisions to the ICR for an investment option will be available at caresuper.com.au.
Contributions tax is deducted from employer and salary sacrifice contributions after the deduction of the administration fee and insurance premiums.
While the Trustee understands the importance of net returns, minimising investment costs is an ongoing goal for CareSuper. We are pleased to report that the ICR for the Balanced (MySuper) option, where most members are partially or fully invested, has reduced for the second year in a row.
CareSuper has always sought to demonstrate best practice and transparency around disclosure of all costs, including those relating to investments. One component of the ICR relates to manager costs which are incurred when a fund manager appointed by CareSuper in turn invests in a number of investment managers (referred to as ‘fund of funds’). This is an additional layer of costs that may not be disclosed by some super funds and may be why CareSuper’s ICR may appear higher than that of other funds. CareSuper considers full disclosure of these costs as best practice and expects that more funds will report these fund of funds costs in the future.
The ICR varies according to the investment option. These costs are not deducted directly from an account but are deducted over the year from unit prices. Performance costs are deducted from unit prices as relevant investment manager performance objectives are met.
View these costs for 2014/15 in the investment options section.
It can be difficult to calculate the long-term effect of both returns and fees on super savings. See the difference not just fees but also investment performance have made over 10 years on the same starting balance.
Over 10 years, the CareSuper Balanced option returned over $26,000* more than the average of the retail super balanced options surveyed by independent ratings agency SuperRatings.
In order to maintain a healthy Fund, CareSuper’s Trustee Board keeps a close watch on investment performance and spending. The result is a financially fit Fund.
CareSuper’s financial statements can be viewed online at caresuper.com.au/governance. For a printed copy of the financial statements, call the CareSuperLine on 1300 360 149.
The Trustee has established procedures to deal fairly with enquiries and complaints from members, employers and beneficiaries.
Complaints can be made in a variety of ways – by telephone, email or letter (addressed to 'The Enquiries & Complaints Manager'). If an enquiry or complaint is made by telephone we will endeavor to answer it immediately. In some cases we may ask that a complaint is submitted in writing so it can be investigated further and we will provide a written response.
The accounts of members who are uncontactable or inactive and with a balance of less than $2000 (increasing to $4000 from December 2015) will be transferred to the ATO in April and October each year.
Members who are uncontactable or inactive with an account balance of between $200 and $2000 will be transferred to the eligible rollover fund in June and December each year and any insurance cover with CareSuper will cease.
Contact details for CareSuper’s eligible
rollover fund are:
PO Box 543
Carlton South VIC 3053
1300 361 798
1300 366 233
If your account is transferred to AUSfund you will cease to be a member of CareSuper. You should obtain a Product Disclosure Statement (PDS) from AUSfund to understand the differences of the fee structure and how they will manage your account balance.
CareSuper is required to pay the super of former temporary residents to the ATO if it has been more than 6 months since they departed Australia and their visa has expired or been cancelled.
The Trustee relies on relief from ASIC to the effect that it is not obliged to notify or give an exit statement to a non-resident in the above circumstances. Non-residents can apply to the Commissioner of Taxation to claim the unclaimed super under this Act. Visit ato.gov.au for more information.
For more information about your super, you can reach us in the following ways:
CareSuperLine 1300 360 149
Monday to Friday 8am to 8pm AEST
Locked Bag 5087
Parramatta NSW 2124