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Peace Earth Inside your Member Newsletter  message A from the CEO

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 hristmas Service C Centre hours

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 he Ups and Downs of T Investment Markets

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Responsible Investment 5  he financial benefits T of shopping around

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 eaching out to every R corner of the land

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December 2015

Image: Lights of Christmas – St Mary’s Cathedral, Sydney

 nnual Report A Coming Soon


A message from the CEO Don’t become a victim of elder financial abuse! When Australia’s Age Discrimination Commissioner, the Hon. Susan Ryan AO, spoke out to increase awareness about elder financial abuse recently, I joined her call for action. Sadly, there seems to be a growing number of unscrupulous people who are taking financial advantage of their vulnerable older relatives, neighbours or friends. The problem is becoming so widespread that Commissioner Ryan has called for a national response. Recent research by Monash University found that up to five per cent of Australians over age 65 have experienced financial abuse – most likely by their closest relatives. The research, conducted on behalf of legal and financial services organisation State Trustees, found that women over 80 were at greatest risk. Financial abuse by someone in a position of trust could involve misusing an ATM or credit card, taking money or property, forcing or forging an older person’s signature; or persuading them to change the terms of an existing contract, clauses in a will or their powers of attorney through deception or undue influence. In her October speech to the Financial Services Council, Commissioner Ryan said a typical victim of elder abuse did not seek independent legal or financial advice. She highlighted the important role of financial service providers to help combat the problem and has advocated a rights-based approach to “empower older people to speak out and seek help”. Anyone who has doubts or is at risk should feel they can reach out to their financial services provider for confidential and independent advice.

Our in-house advisers at Catholic Financial Services welcome any enquiry with understanding and empathy. There is no need to feel intimidated – no question is too small or silly. If alarm bells are ringing for yourself, or maybe a close friend or neighbour, it might just take a phone call to make sure your money is absolutely safe. As Commissioner Ryan suggests, please seek independent advice. We provide such advice through Catholic Financial Services. Our financial advisers provide simple and confidential advice to everyone – not just members – either over the telephone or face-to-face. You can be sure you are receiving advice from qualified, experienced planners who are paid a salary, not commissions, to ensure their advice is in their client’s best interests.

I f you are concerned, you can arrange an appointment with one of our trusted advisers at csf.com.au/financial-planning-booking-form or by calling us on 1300 655 002 between 8am and 8pm, Monday to Friday.

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Thank you for entrusting us with your financial future during 2015 and into 2016. On behalf of all of us at Catholic Super, I wish you a very merry Christmas and a happy and safe new year.

Christmas Service Centre hours Our Service Centre is normally open from 8am to 8pm*. Listed below are our operating hours over the holiday period: Date

Opening hours*

Friday, 18 December 2015

8am to 12:30pm

Monday, 21 December 2015

8am to 8pm

Tuesday, 22 December 2015

8am to 8pm

Wednesday, 23 December 2015

8am to 12pm

Thursday, 24 December 2015

Closed (Christmas Eve)

Friday, 25 December 2015

Closed (Christmas Day)

Monday, 28 December 2015

Closed (Boxing Day)

Tuesday, 29 December 2015

10am to 4pm

Wednesday, 30 December 2015

10am to 4pm

Thursday, 31 December 2015

10am to 3pm

Friday, 1 January 2016

Closed (New Years Day)

Monday, 4 January 2016 onwards

8am to 8pm

*AEST

your fund

Frank Pegan, CEO, Catholic Super

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The Ups and Downs of Investment Markets The last 3 or 4 years have generally been very favourable for investment markets, however more recent months have seen mixed returns with high volatility and some setbacks over short term periods. The July to September quarter was the worst quarter for the Australian share market for 4 years, with a loss of around 7%. Indeed, the month of August was the worst month since the Global Financial Crisis in October 2008. Sharp market falls will attract media attention with headlines such as “$50b lost in share market crash”. The story under the headline will often talk about the impact on the super or savings of Australians, however it’s important to keep this in some perspective. The table below shows the July to September 2015 returns (net of tax and fees) of Catholic Super’s various Managed Choice options for superannuation members. Option

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Return

Aggressive

-1.7

Moderately Aggressive

-1.1

Balanced (MySuper)

-0.8

Conservative Balanced

-0.4

Moderately Conservative

0.0

Conservative

0.5

RetirePlus

0.3

RetireStable

0.5

As you can see, the returns from those options with higher allocations to share markets were negative over the quarter, but these returns (such as the -1.7% return from our Aggressive Option) should not be regarded as disastrous. For the 1, 3 and 5 year periods ending September 2015, the return of the Aggressive Option was 7.8%, 12.9% pa and 9.7% pa respectively. Also, returns have generally been positive between the start of October and the time of writing (mid-November), and all our Managed Choice options are showing a positive return for the financial year to date. On the other hand, some of our other options with lower exposures to share markets and/or a more protective focus (e.g. RetirePlus and RetireStable) were flat or marginally positive over the quarter. The main factors explaining the fact that our Managed Choice options held up better over the quarter than might have been expected given the media headlines on some days during the period are: • These options are diversified across a number of asset classes. This means that on the days when the Australian share market is suffering its most extreme falls, other assets will be performing better and this lessens the overall impact.

• Share markets fluctuate rapidly. Often, when a really sharp fall is experienced on a particular day or over a 2-3 day period, part or all of the loss will be recovered over the subsequent days. Unfortunately, the media mostly focuses on the bad news. For you, the important things to bear in mind are: • If you are invested in one of our Managed Choice options, impacts on your accumulated super balance may not be as drastic as they seem, especially if you are able to take a long-term view. • We offer a range of investment options with differing risk/return profiles. Usually, the options which are expected to deliver the higher returns over the long term can also be expected to have greater volatility and to suffer lower returns during difficult market environments. It is important to ensure that you are invested in the option which is best suited to your own inclination to risk and to your particular circumstances. Please contact us if you wish to discuss your investment options.

By Garrie Lette, Chief Investment Officer


Responsible investment Catholic Super leads the way

Frank Pegan, CEO Catholic Super (far right)

Earlier this month, Frank Pegan (Catholic Super’s CEO and the Chair of the Investor Group on Climate Change) spoke to audiences at the United Nations Climate Change Conference (COP21) at Le Bourget in France and then discussed the outcomes of the Conference with the Vatican in Rome. The aim of COP21 was to deliver an agreement to keep global warming below 2°C and Frank addressed comprehensive climate policies with global institutional investors. At both events, Frank was invited to showcase the investment practices of Catholic Super and the role that investors can play to influence regulators, companies and others in the financial sector in favour of a low carbon and climate resilient economy.

Frank is passionate about the global transition away from carbon in order to provide economic, social and environmental benefits for the world’s population. Last year in his capacity of Chair of the IGCC, Frank addressed world leaders at the UN Climate Summit in New York, calling for bold and consistent policies for global capital markets. “For Catholic Super, our investment approach is pragmatic and from the outset is about risk and achieving returns for our members. We invest in opportunities that meet return requirements whilst also supporting the low carbon transition,” said Frank. More details of Frank’s experiences at COP21 and the Vatican will be included in the next newsletter.

What is the Montreal Carbon Pledge? Launched by the United Nationssupported Principles for Responsible Investment (PRI) initiative on 25 September 2014, the Montreal Carbon Pledge is a commitment by a group of investors to measure and report the carbon footprint of its listed equity investment portfolios on an annual basis. As the Australian founding signatory of the PRI, Catholic Super is committed to the Montreal Carbon Pledge, and actively involved in the PRI initiatives. More information is available online at csf.com.au/responsibleinvesting-approach and montrealpledge.org.

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The financial benefits of shopping around Did you know that you could save money by switching providers for your home, personal, or car loan?

There’s been a lot of talk recently about the financial benefits of taking action. In the Money section of the Sunday Age (15 November 2015), John Collet wrote that “…there’s no reason to meekly accept higher repayments”. In recent national research, Juliana Silva-Goncalves of the Queensland University of Technology (QUT) stated that “…apathy is the key barrier to switching…” and that this “…is stopping households from saving thousands of dollars.” The QUT research drew on a survey of 1,000 Australians in August 2015 and looked at their habits of switching providers for a variety of products and services, including home loans, credit cards, home and contents insurance, energy and grocery suppliers, and mobile phone and internet providers. Almost a third of those surveyed think that switching is too much effort, and one in six don’t switch because they think it will cost too much. But the QUT report found that people made significant savings by switching.

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“The big banks are raising rates but most of their competitors are not. Fees for breaking a home loan early are lower than ever”, wrote John Collett. The QUT report showed that you could save up to $1,130 on your home loan per year, and credit unions like Transcomm are not only retaining their low interest rates, but even waiving some or all of the costs for establishing a new loan. Transcomm Credit Union do this because, like Catholic Super, they’re member-owned and focus on giving the best personal service to their clients. They know that customers are far more likely to switch providers when potential savings are clear and that service is also essential to satisfaction, with one in five Australians leaving banks due to unhelpful staff (according to the QUT study). So in addition to covering some/all of the new loan costs, Transcomm provides dedicated, personal specialists who do all the work for you once your application is approved.

Tony Ryan, Chief Executive Officer of Transcomm Credit Union, stated that “there’s no need for clients to have that awkward break-up conversation with their bank, we’ll organise everything on their behalf in a friendly, professional way.” “There used to be a time when loyalty to a brand was expected”, says Tony Ryan, “but whether through legislation or a drive for profits, banks and other providers are turning away from that. A lower interest rate may not equate to a lower ongoing rate. People can make their own decisions based on the right information, so it’s important to make sure you compare features which are relevant to your lifestyle and financial needs. Now, Australians who shop around are in the best position to save a great deal of money.”


Transcomm Credit Union offers a range of loans to assist you to purchase the things you want in life. Whatever your reason, it is quick and easy to arrange a loan with flexibility to suit your individual requirements.

Home loans

Car loans

Personal loans

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Y  ou may be borrowing to buy your first home or refinancing to upgrade to a larger home or looking to invest in a rental property.

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F or new or used cars, also new boats, motorbikes, and caravans, Transcomm car loan rates are amongst the best available with repayments to meet your personal needs.

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T ranscomm offers a variety of secured and unsecured personal loans for just about any worthwhile purpose.

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R  ates from:

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R  ates from:

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R  ates from:

3.95% p.a. (3 year fixed interest – conditions apply)

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C  omparison rate:

5.05% p.a.

*

6.99% p.a. (conditions apply)

n

C  omparison rate:

7.18% p.a.

**

10.40% p.a. (conditions apply)

n

C  omparison rate:

10.58% p.a.**

It’s easy to apply online at transcomm.com.au To speak with friendly service staff and compare rates, you can contact Transcomm Credit Union anytime at enquire@transcomm.com.au or on 03 9629 4484 (or 1800 013 042 outside Melbourne Metro) between 8.30am and 4.30pm AEST, Monday to Friday.

Other fees and charges may apply. Normal lending criteria apply. Statutory government charges and legal costs may apply. *Comparison rate based on a loan of $150,000 over a 25 year term. **Comparison rate based on a loan of $30,000 over a 5 years term. Warning: These comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other amounts might result in a different comparison rate. Transcomm Credit Co-Operative Ltd trading as Transcomm Credit Union. ABN 54 087 651 750 AFSL/Australian Credit Licence Number 245606. 99 King Street, Melbourne, VIC 3000.

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Reaching out to every corner of the land – A Catholic Super member story

Two Darwin locals shared their experiences with us as long-term Catholic Super members. Their stories illustrate how seriously Catholic Super takes its commitment to customer service – and how important that personal touch can be to individual members. Gerry McCormack joined the local Catholic super fund in the late 1980s when he began teaching at St John’s Catholic College in Darwin. His wife Helen, who died in 2013, also worked in the local Catholic education system and, like Gerry, she became a member of the fund that would later become known as Catholic Super.

Now 74 and the President of St Vincent de Paul in the Northern Territory, Gerry says he has been ‘very pleased’ with the level of service from Catholic Super - whether it has been planning for retirement, dealing with financial issues following his wife’s death, or accessing his money during retirement. “Having people coming up here regularly, to either just visit or to answer questions, and the workshops that they ran regularly – it was always good to have that updated information. For a person who is not in one sense really financially literate, I found them quite good to have,” he said. Sue Ahern has been a member of Catholic Super since in the early 1990s when she took up a position as the school nurse at St John’s College in Darwin.

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Like Gerry, Sue also found value in attending Catholic Super’s workshops early on. The workshops were also where they both first met financial advisor Craig Voyer, who is now the head of Catholic Financial Services. Both Gerry and Sue said Craig’s service went beyond their expectations. “Craig Voyer became a special person. He came up regularly, we didn’t have to go to the school to meet him – he would come to our home and have a cup of coffee. He was just part of the family. I think that really was important,” Gerry said. When Sue’s husband Tony died almost five years ago, the ability to call on Craig for help and advice on finances was a comfort to her.


Having people coming up here regularly, to either just visit or to answer questions, and the workshops that they ran regularly – it was always good to have that updated information. For a person who is not in one sense really financially literate, I found them quite good to have.

“Before Tony passed away, when he got really sick, he said ‘you make sure you keep going to Craig, because he will look after you. He won’t do you any wrong’,” Sue said. “Even now Craig comes up to see me and does all my financial stuff for me. It’s been a very nice experience for me, especially now that I don’t have Tony, to have Craig – someone who is there for me all the time.” It is this human touch – combined with experience and trusted advice – which our team of financial advisers at Catholic Financial Services is known for.

Sue and Gerry’s stories are taken from our 2015 Annual Report. If you want to know more about our commitment to our members across Australia, look for the Report coming online soon at csf.com.au/newsletters-reports.

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Harvest is very excited to present a new look for 2016, re-branded with a new logo and mission tagline – the Genuine Experience. With the same unwavering dedication to quality, Harvest Journeys invite you to join them on their popular and new itineraries. The new Harvest Journeys 2016 catalogue features journeys to The Holy Land, Greece, Turkey, Spain, France, a Rome Jubilee itinerary (commemorating the upcoming Holy Year of Mercy) and you can enjoy discounts through their Early Bird incentive or the Past Pilgrim Rebate. Harvest Journeys can also custom design pilgrimages for private, school or Parish groups. With over 30 years of providing unique and life-changing memories for thousands of pilgrims, Harvest Journeys remains singularly devoted to faith-based travel and this focus allows them to specialise in providing you with an unforgettable encounter. Their hand-picked guides share a passion for the sacred, and enrich each experience whilst specially chosen Catholic priests assure the all-important focus on the daily faith journey of the pilgrims.

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Let Harvest Journeys turn an ordinary trip into a genuine experience. To find out more or to request our 2016 catalogue, call 1800 819 156, email info@harvestjourneys.com or visit harvestjourneys.com.


Annual Report coming soon The 2015 Annual Report will be released online shortly. Get the full picture on how your fund is working for you: • news of our outstanding 10-year investment returns, • a review of the 2014/15 financial year, • information about our service team and Australia-wide coverage, • a message from our CEO and Board Chair, and more! “Australia’s most satisfied superannuation members” Roy Morgan Poll, May 2015

INVESTMENT

objectives and strategies

These tables explain each of our investment options, their current objectives, strategies and asset allocations. For more information, read our Product Disclosure Statements available from our website at www.csf.com.au/sup please er–pds and www.csf.com.au/pen sion–pds.

Managed Choice Options

Aggressive Aim

Return Objective (Super) Standard Risk Measure

Risk Band and Label Target Asset Allocation Suggested minimum timeframe Strategic asset allocation*

Moderately Aggressive

Conservative Balanced

To achieve attractive returns over the long term. Returns are likely to be very volatile and risk of capital loss over short to medium term periods is high.

CPI + 4.0% over rolling 10 years

To achieve favourable returns To achieve solid long term over the long term. Returns returns over the long term. are likely to be volatile and a Returns are likely to be risk of capital loss over short visitedand risk havevolatile moderately Specialists Superannuation toOur medium term periods is of or capital loss over short at home members in their workplace substantial. to medium term periods is year. across Australia this financial significant.

CPI + 3.5% over rolling 10 years

CPIContact + 3.0% over find out more! rolling us to CPI + 2.75% over rolling 10 years 10 years

Estimated number of negative annual returns over any 20 year period, 4 to less than 6 years.

Estimated number of negative annual returns over any 20 year period, 4 to less than 6 years.

MORE VISITS

Estimated number of negative annual returns over any 20 year period, 3 to less than 4 years.

Estimated number of negative annual returns over any 20 year period, 3 to less than 4 years.

Risk Band 6, High

Risk Band 6, High

96% Growth assets, 4% defensive assets

Risk Band 5, Medium to High

80% Growth assets, 20% defensive assets

Risk Band 5, Medium to High

70% Growth assets, 30% defensive assets

55% Growth assets, 45% defensive assets

Very long (7 – 10 years +) Australian Shares Overseas Shares Property Private Equity Growth Alternatives Infrastructure

38% 37% 5% 4% 7% 9%

Very long (7 – 10 years +) Australian Shares Overseas Shares Property Private Equity Growth Alternatives Fixed Interest Cash Infrastructure Defensive Alternatives

30% 30% 6% 4% 6% 7% 2% 8% 7%

service

PERSONAL IS OUR PRIORITY

Balanced (MySuper option)

To achieve strong investment returns over the long term. Returns are likely to be extremely volatile and risk of capital loss over short to medium term periods is very high.

Long (5 – 10 years +) Australian Shares Overseas Shares Property Private Equity Growth Alternatives Fixed Interest Cash Infrastructure Defensive Alternatives

THAT MAKES CATHOLIC SUPER HOW DO WE PROVIDE THE SERVICE financial performance. MEMBERS THE MOST SATISFIED? we something right. Platinum service supports at the heart of what Personal service is our priority, and and knowledge, do. We want to help you with understanding a team of highly skilled and we’re here to support you with friendly Superannuation and compassionate people. From our planners, we have a Specialists to our experienced financial of mind about your common goal – to give you the peace money. over the phone from 8am to Our Service Team provides support use any phone scripting, 8pm AEST, Monday to Friday. We don’t query about your super or and our team can help you with any we’ll respond to your email pension account. If you can’t call us, within 24 hours. and we work hard to Our members expect platinum service, voted Catholic Super as deliver it. The fact that our members performance in the number 1 fund for service and financial we must be doing shows poll this year’s Roy Morgan Research

Medium (5 years +) 27% 27% 8% 3% 6% 13% 3% 6% 7%

Australian Shares Overseas Shares Property Private Equity Growth Alternatives Fixed Interest Cash Infrastructure Defensive Alternatives

as we deliver excellent Our members trust us with their super not just our targets, long-term returns and consistently exceed but those of other super funds.

we keep investing in more As we continue to grow as a fund, members. For example: personalised and local service to our are shutting down offices against the trend of companies who our Service Team is and/or relocating their call centre overseas, several local offices based in Melbourne and we have opened years, including our new across Australia over the past three Darwin office in late 2014. our financial planners With face-to-face service across Australia, offer personal advice and and Senior Superannuation Specialists areas. Our planners do not free seminars in all metro and rural we believe your money receive commissions or bonuses because financial future. is there to work for you, to secure your

members.” “As we grow, we invest in our service toEmily Wooden Executive Officer – Business Transformation,

Catholic Super

21% 21% 9% 2% 6% 18% 10% 5% 8%

MORE LOCATIONS

We’ve opened local offices across Australia

since 2008.

Annual Report 2015 | page 17

Article from The Catholic Weekly, 21

Past Annual Reports are available to you online 24 hours a day, 7 days a week at csf.com.au/newsletters-reports. The 2015 Report will also be published online, so that we can conserve our planet’s resources and reduce postal costs.

Depending on your contact details and communication preferences, a copy of the 2015 Annual Report may be sent to you either by email or post.

June 2015

You can nominate your communication preferences and contact details by using your MyLife Online access (csf.com.au/mylifeonline), or contacting our Superannuation Specialists on 1300 655 002 or at info@csf.com.au.

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Call 1300 655 002 8am to 8pm AEST Monday to Friday

Visit csf.com.au

Email info@csf.com.au

Post GPO Box 4303 Melbourne VIC 3001

Brisbane Canberra Darwin Geelong Hobart Melbourne Perth Sydney

Level 5, 303 Coronation Drive, Milton QLD 4064 PO Box 1931, Milton QLD 4064 Unit 3, 59 Wentworth Ave, Kingston ACT 2604 PO Box 4367, Kingston ACT 2604 1 Dashwood Place, Darwin NT 0820 GPO Box 845 Darwin NT 0801 Ashby House, 1 Malone St, Geelong VIC 3220 PO Box 816, Geelong VIC 3220 35 Tower Rd, New Town TAS 7008 Level 1, 535 Bourke St, Melbourne VIC 3000 PO Box 333, Collins Street West VIC 8007 St Brigid’s Centre, 60 John St, Northbridge WA 6003 PO Box 132, Northbridge WA 6865 Level 7, 133 Liverpool Street, Sydney NSW 2000

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, CS216 011215 legal or financial advice.

Catholic Super - Member newsletter December 2015  
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