A word from the CEO and Chair

From the CEO

Welcome to CareSuper's Annual Report for the 2016/17 financial year. I'm pleased to report that it's been another successful year for CareSuper, with plenty of exciting developments.

A year of strong returns

The Fund performed strongly this year across all Managed and Asset class options.

The Balanced options for super and pension closed out the year with returns of 11.70% and 12.7% respectively (after fees and taxes). Not only do these returns exceed the investment objectives set for the Balanced options, they also outperform other surveyed options, ranking in the top 25% of funds in the annual SuperRatings surveys.*

Take a look at our Investment update to find out how our super and pension investment options performed, and some of the key factors that contributed to our strong returns.

An award-winning Fund

At CareSuper, our primary goal is to make a positive, tangible difference to the lives of our members, and it’s rewarding to be recognised for the work we do.

This year, we were proud to be named by all the major ratings agencies as being one of the top 10 funds in Australia. CareSuper was awarded Choice Fund of the year by SuperRatings, Fund of the Year by Money Magazine, and winner of SelectingSuper’s Long Term Performance Award for the second year in row.

More options for retirement  

We know that as a population, Australians are living longer and spending more time in retirement. We want to help our members make their income last, which is why we have introduced a new Guaranteed Income product.

The benefit of a Guaranteed Income account is that it provides certainty, through regular payments, which can be indexed, for a fixed term or your lifetime, regardless of how the market performs. To find out more about our Guaranteed Income product, visit caresuper.com.au/retirement or call us on 1300 664 781.

A new insurance arrangement

We believe insurance plays an important role in super – to cover those who cannot work through to retirement age, or support the families of those who prematurely pass away.

This year, following an extensive tender process, we appointed MetLife as our new insurer from 1 January 2017. This decision was based on a broad range of criteria, including the ability to enhance member experience through technology; underwriting and claims philosophy and processes, and sustainable pricing.

Celebrating 30 years

Finally, I’m proud to say that CareSuper celebrated its 30th anniversary late last year.

Over the years we’ve been consistently recognised for our product offering, investment performance and integrity. These things don’t happen by accident – they are a testament to the dedication of our Board and staff.

Of course, none of it would have been possible without the loyalty of our members and employers, and the support of our professional service partners.

I hope we can continue to work together for many years to come.

Julie Lander
CareSuper CEO
*Source: SuperRatings Fund Crediting Rate Survey – SR50 Balanced (60-76) Index, June 2017; SuperRatings Pension Fund Crediting Rate Survey – SRP50 Balanced (60-76) Index, June 2017.

From the Chair

CareSuper has had another successful year in 2016-17 and I thank the Board, CEO – Julie Lander, executives, staff and our service providers for their hard work in achieving this result.

Helping members for 30 years

In 1986, CareSuper (then known as CARE) was first established as a fund for people employed in administration and office based roles. We've seen significant growth and many changes since then, but most of our milestones have one thing in common: they're all about finding new ways to create better futures for our members.

This 'members first' ethos has been at the heart of CareSuper's philosophy from the very beginning, and I'd like to thank our members for your support over this time.


A superior super model

We believe that the industry super model has delivered superior outcomes over the long term – primarily for members but also for the Australian economy by investing in local companies, property and infrastructure. Industry funds have buy-in from stakeholders – both members, which are represented by unions, and employer representatives, which are equally represented on our Board. Our governance structure and culture are firmly focused on producing the best results possible for members and our approach has delivered strong investment returns and quality services over the long term. Around the world, funds that are run under this model and with the sole purpose to benefit their members, not to profit shareholders or other parties, have produced superior outcomes.

We also believe in transparency – building the trust of our members while strengthening our fund and delivering a quality product.

Recently there has been pressure put on the Government by banks and other financial institutions, which run their businesses to deliver a profit for their shareholders, to make changes to superannuation laws that would give them greater access to managing superannuation savings. As an industry fund, our goal is to protect the interests and retirement outcomes of our members, and we believe the Government should also prioritise member interests given that superannuation is a compulsory pillar in the nation's retirement incomes policy.  You can read about these issues at www.banksarentsuper.com and rest assured that we will resist changes that are not in your best interests.

Changes to the Board

This year, employer directors, David Michaelis and Sandy Grant, retired from the Board. Claire Keating was appointed to replace Mr Michaelis and the Board resolved that Gabriel Szondy, an existing independent director, would be re-appointed as an employer director to replace Mr Grant and become Chair of the Investment Committee. This has reduced the size of the Board, which was previously increased following the merger with Asset Super in 2012. Ms Keating was appointed Chair of the Compliance Audit and Risk Committee. There are now six employer directors and six member directors on the CareSuper Board, meeting the current legislative requirement for equal representation. The Board also reviewed committee structures and delegations during the year. Details regarding our directors, executives, governance structure and policies can be accessed at caresuper.com.au.

New super laws

A number of superannuation changes legislated in 2016 came into force on 1 July 2017. These changes affect how much can be contributed to superannuation both before and after your income has been taxed, how much can be transferred into a pension account, and super tax rates in certain circumstances. To learn more about the changes, visit caresuper.com.au/superchanges.

Annual member meetings

CareSuper has held Annual Member Updates for many years, providing a great opportunity for our members to hear from the Fund's leaders about our performance, achievements and plans. You can find out more about our events at caresuper.com.au.

Improving retirement outcomes

CareSuper has long been an advocate for fairness in the super industry, and we believe that more must be done to improve retirement outcomes for women and low-income earners generally. With women currently retiring with around 47% less super than men, and around 40% of single women retiring below the poverty line, the Government must urgently act to help create a fairer system that sees women and low-income earners retire with dignity. We support industry initiatives to boost the super balances of these Australians including the Women in Super Make Super Fair campaign.

To find out more about how we're managing our members' retirement savings, visit caresuper.com.au or call us on 1300 360 149.

Cate Wood
CareSuper Chair

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