Inside your Member Newsletter message A from the CEO
ur performance O â€“ 2014/15 Year in Review 4 y Super Statement M 2015 The Aussie Camino
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etirement Planning R Seminars
A message from the CEO Catholic Super welcomes the Pope’s encyclical You may have heard about the Pope’s recent encyclical (his letter to all bishops of the Church) inspired by Saint Francis of Assisi, which is an appeal to find solutions to the question: What is happening to our common home? It calls for action to change the lifestyles that are damaging our world and to better support the marginalised and poor. But what does this mean to you, as a member of Catholic Super? We agree with the Pope’s urgency for solutions to protect our communities, the environment and the economy whilst also supporting the poor. The way that we manage and invest your super is aligned with Pope Francis’ aspirations. At Catholic Super your money makes a real difference and supports the Pope’s message. As a long-term responsible investor we consider returns, as well as social and environmental issues, when making investment decisions. This helps us achieve more stable and profitable returns, and work towards a more sustainable and financially secure retirement for our members.
Our investment approach is pragmatic and from the outset is about risk and return to our members. Frank Pegan, CEO, Catholic Super
Our investment approach is pragmatic and from the outset is about risk and return to our members. Each opportunity is evaluated on its merit and, to date, the Fund has invested over half a billion dollars in assets that are helping us move to a more environmentally sustainable world.
These investments are reducing our reliance on carbon and fossil fuels and continue to deliver long term returns. For example, we invest in a global fund that includes local projects such as a sustainable agriculture business in Victoria and an environmentally friendly food processing plant in New South Wales. With the trust of your funds we also assess the business practices of companies we invest in. Are they acting responsibly in the conduct of their business? Are their values in lines with ours? What is their impact on local communities, the treatment and conditions of their staff, diversity of their board and workforce, and their environmental footprint?
Our welfare in retirement will be influenced by the social and environmental beauty of the world in which we live. Together, our super is making a difference.
Together, our super is making a difference. Director Elections The Federal Government is legislating to change the composition of the Boards of superannuation funds. At this stage, it is unlikely that the Legislation and associated Prudential Standards will be finalised by the end of this year.
The Popeâ€™s input is timely in the lead up to the United Nations Climate Summit, at which I spoke last year in my role as the Chair of the Investors Group on Climate Change. This group manages over $1 trillion in assets worldwide and is actively working towards a low carbon economy. This was an opportunity for us as investors to assure world leaders that we want to work with them and be part of the solution to help move to a more environmentally sustainable world.
As this may affect the Trusteeâ€™s Governance structure, the Board have decided to defer all Director elections until 2017.
Our Performance â€“ 2014/15 Year in Review
Catholic Superâ€™s investment performance in the last financial year concretes our position as the top-rated fund by members in terms of service and financial performance.
A Roy Morgan poll of members in May found that Catholic Super ranked number 1 out of the top 20 Australian super funds, and our members are the most satisfied superannuation customers in the country. The top rating by our members for financial performance is reflected in our results for 2014/15, which saw solid returns for the third consecutive year which build upon our consistent long-term performance. As superannuation is a long-term investment, we focus our performance targets with a long-term objective. Our target for the Balanced Option is to achieve returns of 3% (after fees and taxes are deducted) above inflation (Consumer Price Index - CPI) over the long-term. This CPI + 3% target worked out to be a 73% increase over the past 10 years, and as it turned out we beat it.
Instead our Balanced Option more than doubled with a total increase of 101% over the 10 years to 30 June 2015. This means that $50,000 invested in this Option, increased by almost $14,000 more than our target over the 10 year period. For the 2014/15 financial year our Balanced Option delivered an annual return of 9.8% after tax and fees for superannuation members and 11.1% for pension members. The Australian dollar fell significantly against major currencies over the year (down by around 18% against the US$) and this boosted returns on overseas assets. Unhedged global equities was the best performing major asset class over the year (up by around 25%). Accordingly, Managed Choice options with higher allocations to equities were our strongest performers with our Aggressive Option recording a return of 12.0% for super members (13.2% for pension members).
This financial year represented the third consecutive year of returns well above our long-term expectations for our Managed Choice options. Indeed, four of the last five years have now delivered very favourable outcomes. Nevertheless, returns such as the 9.8% in our Balanced Option, the 12.3% of 2013/14 and the 14.1% of 2012/13 are not sustainable. Investment markets finished the 2014/15 financial year well down from the peaks reached in the March/April period. The Australian sharemarket fell by more than 5% in the month of June alone. Newsflow from Greece and China was very unsettling for markets in the closing days of the year.
Over recent weeks the Australian economy has experienced intense volatility reflective of the global markets. Catholic Super has experienced many market highs and lows over the past 43 years and we have learned that a steady and consistent approach brings the best results. We will continue to manage your super very closely as we enter this new financial year. Garrie Lette, Chief Investment Officer, Catholic Super
Furthermore, the market confronted broader concerns about the outlook for the Australian economy (falling commodity prices, the so-called bubble in house prices in some cities, end of the mining investment boom) and various aspects of global monetary policy (the likelihood that the US Federal Reserve will increase US cash rates in the second half of 2015, the medium to long-term effects of the unconventional monetary policies pursued by central banks in many countries over what is now a protracted period).
Yields on the most secure investments available to us (cash, government bonds) are well below our long-term target for the overall portfolio and below levels that we find attractive. Accordingly, we have reduced our investment in such assets to relatively low levels. We have been able to redeploy funds to other assets that we believe, in combination, provide us with a sound and well-diversified portfolio which will deliver on our objectives over the long-term.
There is bound to be volatility along the way of course, and the occasional sharp setback over shorter term periods. As always, we urge you, our members, to contact us for guidance as to the appropriate choice of investment option given your particular circumstances.
By Garrie Lette, Chief Investment Officer
After a recent review of the strategic asset allocation of all investment options we offer, we have made some minor changes to our Aggressive, Moderately Aggressive and RetirePlus options. These changes will be implemented gradually in the coming weeks. Please refer to the relevant Product Disclosure Statement (PDS) at csf.com.au for more information.
my SUPER STATEMENT 2015 Your annual Catholic Super statement is expected to be available mid-October 2015, and will look different than it has in the past. We’ve redesigned the statement so that your super details are easier to understand, and in line with our new look.
Please take the time to read through the below features of your new look statement and how you will be receiving it. Doing so will make it easier to understand the statement when you receive it.
What has changed on your Catholic Super statement? Your new look statement has snapshots of information so you can easily find and view what you want to know about your account straight away, including: 1. your account balance as at 30 June 2015, 2. a quick overview of what has happened in the 2014-15 year, 3. the ‘money in’ and ‘money out’ of your account as two separate tables, 4. your chosen investment option(s) and the mix of growth and defensive assets that your money is invested in, 5. your combined super and insurance cover, 6. your beneficiaries, and 7. your unique BPAY details for personal contributions. As an example of the transparency of the new look statements, you can clearly see the details of all deductions each month including the two regular direct fees: • Member Fee, and • Administration Fee (which was an indirect fee until March 2015). Also, unless you have altered your communication preference, you will be notified of your statement by email, not by post. You will then be able to download your statement from MyLife Online. This change was made to conserve our planet’s resources and reduce postal costs.
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weekly and depend on market developments.$810,297.88 Investment switches are processed on a forward pricing basis which means that the followin g week’s unit price is used for the switch. Other transactions (withdra wals, roll ins, etc) use the unit price declared at the date of 1 process ing. As mentioned above, the VIEW OVER UNT specific time through the year(s) YOUR ACCO at which these transactions occur will affect the actual return on your account.
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The 1 year investment returns shown aboveA MORE DETAILED VIEW are determined by dividing 2015 the unit price at 30 June this year of each investment option by the unit price of the same investment option at 30 June last year. Note: RetireS table commenced on 1 April 2015 therefore a 1 year return is not availabl e.
Choose the investment option that best suits you
CATHOLIC SUPER | MEMBER STATEMENT 2015
se the investment optio n that best What hasn’t changed is thatChooyou can receive your suits you super statement in whatever format you prefer. CATHOLIC SUPER |
You can nominate your communication preferences by using your MyLife Online access, or contacting our Superannuation Specialists. Your statement will be sent to the postal address and/or the email address that you have registered with us as at 2 October 2015. An email will be sent to you unless you have nominated your postal communication preference. To ensure your personal details are secure, the email will contain a link for you to log in to your MyLife Online access and view the statement there. If you are unsure of your PIN/password, you can request a temporary PIN be sent to you by clicking the Reset your PIN link on the login page.
For your convenience, your statement will always be available for you 24 hours a day, 7 days a week using MyLife Online at csf.com.au/mylifeonline whatever your communication preference is. You can also contact our Superannuation Specialists between 8am and 8pm AEST Monday to Friday on 1300 655 002 or at firstname.lastname@example.org.
The Aussie Camino – A Catholic Super member story
Three Catholic Super members are honouring Australia’s first Saint, Mary MacKillop, by organising an original Australian pilgrimage. In a recent edition of our newsletter, we featured Harvest Pilgrimages, an Australian tour operator specialising in Catholic pilgrimages, and we spoke to Dr Bob Dixon, who was halfway through his Camino pilgrimage across France and Spain. This edition, we uncover the inspiration of three Catholic Super members, who started the tradition of regular pilgrimages from Portland in Victoria to Penola in South Australia, inspired by the journeys of Australia’s Saint Mary of the Cross MacKillop.
We wanted to make it like the Camino in Spain with a guidebook and passport stamp for each stop.
In 2013, Luke Mills, Steven Murphy and Michael Dillon, from St Francis Xavier College in Victoria, set out on the first ever recorded Australian pilgrimage. Since that first journey, more than 100 registered pilgrims have completed the Aussie Camino.
“There is no tradition of Christian pilgrimage in Australia as there is in countries such as Spain, France, Italy and the Holy Land,” Luke explained. “With the canonisation of Mary Mackillop in 2008, the tradition of pilgrimage began to take root in Christian consciousness.”
Steven and Luke set about planning a pilgrimage that would be ‘challenging but achievable’. It usually takes between 7-10 days, walking 20-30 kms a day. Although Mary travelled widely throughout Australia and New Zealand, the small town of Penola was the obvious choice for the destination, as the widely accepted birthplace of her order, the Sisters of St Joseph.
Pilgrims are encouraged to register and can either go at their own pace or join a group, generally of about 20-30 others.
For more information see www.aussiecamino.org
Portland was chosen as the starting point. This was Mary’s last posting as a lay teacher and it was here she was called by her mentor, priest Fr. Julian Tenison-Woods back to Penola. On 19 March, 1866 Mary wore her black habit for the first time and declared herself Sister Mary. Special trips are planned for December 2015 and next March, 2016, coinciding with the 150th anniversary of the founding of Mary MacKillop’s order of the Sisters’ of St Joseph. Each registered pilgrim receives a guidebook, passport, scallop shell and bag tag for a small fee. “We wanted to make it like the camino in Spain with a guidebook and passport stamp for each stop,” Luke said. The pilgrimage includes a visit to the Mary MacKillop museums in Penola and in Melbourne.
HAVING JUST ONE SUPER ACCOUNT CAN SAVE YOU MONEY If you have multiple superannuation accounts, you are throwing money away on unnecessary management fees. Consolidate your super accounts with Catholic Super and start saving. — save on excess management fees — save on excess paperwork — grow with a strong, long-term investment performance
Visit csf.com.au/consolidate-now Consolidating your super is just a mouse click away. You can even do it from your desk at work.
Just log into MyLife Online, under Contributions choose the Rollover option and follow the simple steps and we’ll take care of the rest.
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Want to maximise your super savings for retirement? Catholic Super is here to help. Details of the Age Pension
Visit our website at csf.com.au/seminars to view dates, times and locations. If there is not a seminar near you contact us to organize a workplace visit.
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Visit www.csf.com.au for the latest information, brochures and forms.
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Issued by CSF Pty Limited (ABN 30 006 169 286; AFSL 246664), the Trustee of the MyLifeMyMoney Superannuation Fund (ABN 50 237 896 957; SPIN CSF0100AU). The information contained herein is about the Fund and is general information only. It has been prepared without taking into account your personal investment objectives, financial situation or needs. It is not intended to be, and should not be construed in any way as, investment, CS071 010915 legal or financial advice.