tasplan ltd annual report 2015 · annual report 2015. 2 new era for tasplan ... double digit...

Tasplan Ltd Annual report

2015

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New era for TasplanIt’s been a watershed year for Tasplan and I’m honoured to be at the fund’s helm as we enter a new era. While it was satisfying to be one of Tasmania’s three funds, this year has seen the foundations laid for us to become the sole Tasmanian super fund. I couldn’t be more pleased and proud.

The merger with Quadrant Super was officially completed on 30 November. It’s triggered some changes that will make Tasplan an even stronger organisation. We’ve set up a new in house administration system and put a new online access system in place. From 1 November, we’re applying the end-of-day price to all transactions. Further, from 1 December, we’re offering nine investment options for both super and pension members. Finally, to help you with your super, our new, friendly in house contact centre team started taking calls on 30 October. This is the beginning of a true renaissance for the fund.

To round out Tasplan’s transformation, the Tasmanian government announced, this year, that it supports the creation of a single Tasmanian super fund. The Treasurer has given in principle backing for a merger with the RBF Tasmanian Accumulation Scheme. This is excellent news for Tasplan members, Tasplan staff and Tasmania.

The fund will be larger and stronger, after a merger, with around 165,000 members, managing around $6.5 billion and delivering significant economies of scale and value for money for its members.

If the merger goes ahead, the merged fund will maintain a solid presence in the Tasmanian community and be competitive in the Australian super industry, long term. It will help grow the financial services industry in Tasmania, promote job growth to boost the Tasmanian economy and provide opportunities for Tasmanian businesses through local investments.

The consolidation of the three funds will build an even more secure and sustainable Tasmanian super fund.

While excitement is high, I must acknowledge that even positive change can be very challenging and the twin mergers have been no exception, so far. I am grateful to all staff and directors for their unwavering efforts, expertise and enthusiasm in moving us towards our goals.

I’d also like to take this opportunity extend my deep appreciation to Neil Cassidy, former CEO of Tasplan, for his outstanding work in driving Tasplan for more than 20 years. Neil stepped down in March. I wish him well in his future endeavours.

Most of all, I’d like to thank our loyal members and employers – new and old – for their patience, interest and support as we guide Tasplan into a new and exciting future.

Wayne Davy Chief Executive Officer

ContentsWhat’s new at Tasplan 3

Investments 4

Who manages Tasplan 9

Financial statements 12

Other things you need to know 13

Contact details 15

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Membership summary

Our membership details as at 30 June 2015 are shown below:

Fund Members Funds under management

Tasplan Super 96,420 $2,384,771,827

Tasplan Pension 693 $113,595,408

Total 97,113 $2,498,367,235

Merger update

The merger between Tasplan and Quadrant is expected to be finalised on 30 November 2015.

A significant event notice was sent out with annual statements which explains the changes that will happen as a result of Quadrant merging with us and how they may impact you. This is available on our website, or you can call us and we’ll mail you a paper copy.

The Tasmanian government announced in July 2015 that it supports the creation of a single Tasmanian super fund, with the Treasurer giving in principle backing for a merger between Tasplan, Quadrant and RBF Tasmanian Accumulation Scheme.

Tasplan and RBF have started a process to consider what the fund might look like and check that the merger is a good idea. Subject to approvals, agreements contracts and law changes, we expect that the earliest the merged fund would be up and running would be early 2017.

For the latest information, visit www.tasplan.com.au/merger-info

New Tasplan website

We’ve refreshed our website and made it mobile friendly - you can see it here at www.tasplan.com.au

We hope you like the look and feel, and as your new super home online we trust it makes finding what you need easier and faster.

The new site has a range of new tools, videos and downloadable publications, so why not jump on in and have a quick poke around!

If you have any feedback on the new website or information that you would like to see more of, please let us know!

What’s new at Tasplan

New online account access system

We’re putting a new online access system in place. It has a fresh look and feel while keeping all the functionality you’re used to.

We wound up the old MemberAccess on 30 October 2015, but you’ll be able to register for the new Tasplan Online from 1 December using your member number. Just go to our website at www.tasplan.com.au and click ‘Login’.

Change to unit pricing

From 1 November 2015, we’re applying the end-of-day price to all transactions. In technical terms, we’ll calculate unit pricing using a daily indexed unit price and process transactions on a forward pricing basis. Previously, we updated our unit prices weekly and applied the previous week’s close prices to transactions.

The cut off for daily transaction processing will be close of business (Hobart time), other than switch requests, which will cut off at 4pm (Hobart time) each business day.

New clearing house

On 30 October 2015, we wound up EmployerAccess. We’ve replaced it with a super payment system that ticks all the SuperStream boxes to help employers meet the new government SuperStream rules.

Built using state-of-the-art QuickSuper (Westpac) technology, our new clearing house will make processing super transactions easier, faster and cheaper.

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Performance

Performance for the year ended 30 June 2015

Investment option Tasplan Super Tasplan Pension

Equities 12.90% 13.57%

Longer term growth 11.61% 13.00%

MySuper balanced (super) or Balanced (pension) 10.05% 11.28%

Short term defensive 6.77% 7.35%

Cash 2.73% 3.05%

Investments

Market commentary

Despite a volatile ending to the year with most asset classes experiencing negative returns for the month of June, all of the Tasplan investment options recorded strong annual performance numbers for the third straight year.

The MySuper Balanced option, in which the vast majority of members invest their super, recorded the third straight year of double digit returns, largely thanks to strong returns from global equites markets, real estate investment trusts and a weaker Australian dollar.

Strategic moves were made by our Investment committee to reduce home bias and lower currency hedging levels some 18 months ago and this has paid handsomely.

All of the Tasplan options have met their stated return objectives as at 30 June 2015.

A longer term perspective

Super is a long term investment, so returns over a five year period are generally more important than results achieved on a year by year basis. The MySuper balanced option achieved an average 10 year return of 6.70% p.a. at 30 June 2015.

Tasplan Super

Investment option 3 years 5 years 10 years

Equities 16.86% 11.20% 7.15%

Longer term growth 14.60% 10.49% 7.03%

MySuper balanced 11.72% 8.86% 6.70%

Short term defensive 7.47% 6.82% 5.93%

Cash 2.77% 3.38% 4.46%

Tasplan Pension

Investment option 3 years 5 years

Equities 18.71% 12.16%

Longer term growth 16.32% 11.49%

Balanced 13.56% 10.31%

Short term defensive 8.38% 7.63%

Cash 3.20% 3.89%

The performance information on this page shows net investment returns, that is, after tax and indirect costs have been paid. Longer term figures are compound annual returns. Past performance is not an indication or guarantee of future returns.

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Asset class Investment manager 30 June 2015 30 June 2014

$ % $ %AUSTRALIAN SHARES

Goldman Sachs Australian Equities $136,719,952.27 5.5% $108,268,618.68 4.9%

Eley Griffiths Group Small Companies $28,513,092.71 1.2% $27,155,916.42 1.2%

Perennial Growth Australian Equities $148,691,736.19 6.0% $144,342,941.24 6.6%

SG Hiscock 20 $64,545,816,85 2.6% $60,329,387.49 2.7%

Nikko AM Australian Shares Fund $147,719,915,97 6.0% $136,216,052.27 6.2%

Total Australian shares $526,190,513.99 21.3% $476,312,914.10 21.7%

INTERNATIONAL SHARES

Global Thematic Partners $173,449,335.42 7.0% $132,790,364.77 6.0%

Schroder Global Dynamic Blend Fund $168,001,388.16 6.8% $130,270,345.76 5.9%

Hexavest Global Equity Fund $175,122,914.14 7.1% $134,098,868.94 6.1%

MFS Global Equity Fund $220,619,106.39 8.9% $169,476,669.88 7.7%

Investec Emerging Market Equities Fund $47,440,462.13 1.9% $39,752,273.10 1.8%

T Rowe Price Emerging Markets Equities Fund $48,255,960.25 2.0% $40,227,531.75 1.8%

Total international shares $832,889,166.49 33.7% $646,616,054.20 29.5%

PROPERTY

AMP Capital Global Property Securities Fund $43,360,937.76 1.8% $40,883,628.84 1.9%

SG Hiscock Property Securities Fund $50,929,365.47 2.1% $43,519,491.00 2.0%

AMP Capital Australian Diversified Property Fund $32,590,728.05 1.3% $35,419,545.27 1.6%

AMP Capital Hedged Global Direct Property Fund $15,729,046.43 0.6% $14,628,012.56 0.7%

Investa Commercial Property Fund $36,573,842.02 1.5% $14,003,755.33 0.6%

Lend Lease APPF Retail Fund $23,831,601.61 1.0% $23,120,487.19 1.1%

Goodman Australia Industrial Fund $12,112,341.53 0.5% $11,148,343.33 0.5%

Tasmanian Growth & Development Fund $4,034,802.06 0.2% $4,711,032.51 0.2%

Tasmanian Growth & Development Fund No.2 $13,778,011.41 0.6% $12,711,013.70 0.6%

Total property $232,940,676.34 9.4% $200,145,309.73 9.1%

PRIVATE EQUITY AND INFRASTRUCTURE

AMP Capital Select Property II Fund $8,193,804.72 0.3% $8,154,248.47 0.4%

IGC Europe Fund VI $2,609.38 0.0% - 0.0%

Calibre Capital Real Estate Workout Fund - 0.0% $21,249,102.48 1.0%

First Tasmania Investment Limited $18,748.27 0.0% $19,661.30 0.0%

Harbourvest Non US Fund of Fund HIPEP 6 $7,027,352.35 0.3% $4,247,209.21 0.2%

Harbourvest US Fund of Fund 9 Venture Capital $2,679,461.21 0.1% $1,340,066.03 0.1%

Harbourvest US Fund of Fund 9 Buyout $2,406,239.89 0.1% $1,129,368.52 0.1%

Industry Super Holdings Pty Ltd $5,509,188.83 0.2% $4,954,529.68 0.2%

Lexington Partners Secondaries Fund of Fund No. 7 $12,867,253.46 0.5% $20,334,270.42 0.9%

Lexington Partners Secondaries Fund of Fund No. 8 $2,760,539.69 0.1% - 0.0%

AMP Infrastructure Equity Fund - 0.0% $20,492,384.92 0.9%

Antin Infrastructure Partners Fund II $11,044,643.42 0.4% - 0.0%

IFM Global Infrastructure Fund $20,969,149.62 0.8% - 0.0%

IFM Australian Infrastructure Fund $72,497,896.31 2.9% $71,545,384.85 3.3%

Total private equity and infrastructure $146,057,887.15 5.9% $153,466,225.88 7.0%

ABSOLUTE RETURN

AQR Delta Fund $50,334,903.42 2.0% $41,559,562.11 1.9%

Insight Pareto Inflation Plus Fund $37,337,990.92 1.5% - 0.0%

BlackRock Total Return Multi Opportunities Fund $39,687,788.64 1.6% $33,411,343.36 1.5%

Natixis Loomis Sayles Credit Opportunities Fund $34,551,447.20 1.4% $33,081,050.57 1.5%

Metrics Credit Partners Senior Loan Fund $37,590,545.55 1.5% - 0.0%

Schroders Real Return Fund $39,264,882.26 1.6% $36,686,866.70 1.7%

Winton Global Alpha Fund $31,661,136.09 1.3% $27,885,299.41 1.3%

Total absolute return $270,428,694.08 10.9% $172,624,122.15 7.9%

FIXED INTEREST

BT Wholesale Fixed Interest Fund $82,871,958.35 3.4% $101,912,979.70 4.6%

Kapstream Global Sovereign $63,601,053.30 2.6% $59,839,680.84 2.7%

Colonial First State Global Credit Fund $71,919,562.27 2.9% $69,004,533.39 3.1%

Wellington Emerging Market Debt Fund $43,470,933.02 1.8% $42,030,281.83 1.9%

Member’s Equity Bank Super Loan Trust $1,800,314.06 0.1% $2,354,808.51 0.1%

Total fixed interest $263,663,821.00 10.7% $275,124,284.27 12.5%

CASH

Colonial First State Wholesale Premium Cash Fund $91,660,872.22 3.7% $166,231,842.44 7.6%

Mercer Term Deposit Fund $107,556,840.00 4.4% $104,516,010.00 4.8%

Total cash $199,217,712.22 8.1% $270,747,852.44 12.3%

TOTAL ASSETS $2,471,388,471.27 100% $2,195,054,762.77 100%

Where your money was invested

The following table shows the actual market value and percentage of fund assets held with each investment manager.

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We’ll also be introducing some new options:

• Australian shares

• International shares

• Fixed interest

• Moderate

• Sustainable.

Full details about the nine investment options, including asset allocations, will be available on our website at www.tasplan.com.au from 1 December 2015.

Investment policies

We employ professional investment managers and an asset consultant to handle our assets. We assess them against strict performance criteria and make sure they complement each other, so our assets stay diversified.

We also have strict guidelines and strategies for all of our investments.

We invest your account balance in the investment option or options you choose; or in the MySuper balanced option if you don’t make a choice.

For more information, visit www.tasplan.com.au/investment

Derivatives policy

We don’t undertake day to day management of derivative instruments such as futures or options.

Our investments may have exposure to derivatives. Our investment managers or platforms through which we invest may use derivatives for a variety of strategies including protecting the value of the portfolio, changing market exposure quickly and to reduce the exposure to foreign currency risk. Derivatives would not be used for borrowing, leveraging or speculative purposes.

Each manager that uses derivatives has its own risk management statement (RMS) that describes the risks and controls in place. We receive regular reports of the managers’ compliance with their RMS.

The derivatives charge ratio is the percentage of the total market value of the fund’s assets, other than cash, that we have charged as security for derivative instruments made by us. The derivative charge ratio didn’t exceed 5% at any time during the reporting period.

We believe that the risk management strategies are appropriate for our investments.

Changes to our investment strategy

During the year to 30 June 2015 our Investment committee reviewed each asset class as well conducting an overall ‘health check’ of the fund from an investment perspective.

As a result of these reviews there were some minor changes to the appointed managers.

New managers were appointed in absolute returns (Insight Pareto), private equity (Lexington Partners and ICG) and infrastructure (IFM Global and Antin IP), with further allocations made to existing managers in unlisted property and international shares.

The investment in Calibre Capital was wound up with capital returned to investors and funds were withdrawn from the AMP Infrastructure Equity Fund.

Investing in Tasmania

We continue to support investment in Tasmania and have reviewed opportunities as they arise.

We currently hold 50% stakes in the following office buildings through the Tasmanian Growth and Development Fund (TGDF):

• 1 Franklin Wharf, Hobart

• Barrack Place, Hobart

• 199 Collins Street, Hobart.

TGDF has been a great success so far, returning in excess of 17% each year over the 5 years to 30 June 2015.

New investment options

From 1 December, we will offer nine investment options for both super and pension members.

We may rename your investment option as follows:

Current investment option New investment option

MySuper balanced MySuper balanced

Balanced (pension) Balanced (pension)

Longer term growth Growth

Short term defensive Conservative

Equities Split across Australian shares and international shares

Cash Cash

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Reserving policy

We don’t keep an investment reserve and unit prices reflect the actual earnings for the period.

We do have an administration reserve, so we can maintain equity between members and make sure we can always meet expenses. This is funded by any surplus arising from the difference between the fees charged and the actual costs incurred.

The reserve for Tasplan Super is invested 100% in cash. Our reserve movements over the last five years are shown below.

Year ending Balance at end of year

30 June 2011 $21,527,783

30 June 2012 $23,578,047

30 June 2013 $37,436,438

30 June 2014 $38,942,331

30 June 2015 $40,495,633

Indirect cost ratioWe pay fees to our professional investment managers, referred to as the indirect cost ratio (ICR). The ICR varies depending on the investment strategy chosen.

The ICR is deducted before investment returns are declared, so the investment earnings applied to your account are net of this fee. In other words, it isn’t directly paid out of your account. The ICR is included in the financial statements as a fund expense.

These fees ranged between 0.11% for the Cash option and 0.64% for the Longer term growth option in 2014-2015. The MySuper balanced option had an ICR of 0.61% ($6.10 per $1,000 invested).

These numbers include additional performance based fees paid to some investment managers if they outperformed agreed benchmarks. Performance based fees totalling $605,971 were paid to Blackrock, AQR and Nekon Pty Ltd (TGDF) in 2014-2015.

Our investment beliefs This statement of our investment beliefs provides a framework for the strategic management of our investments. It aims to strengthen our investment decision making and overall investment governance.

Investment belief Implication for investment strategy

There is a relationship between risk and return.

We seek to achieve attractive risk-adjusted returns. This means we may choose to accept additional portfolio risk in order to gain additional returns, but not at any price, as we’re mindful that this action doesn’t guarantee higher returns.

We will also manage risk by diversifying exposures, i.e. combining assets with return patterns that don’t tend to move in tandem, to help reduce portfolio risk during normal market conditions.

Asset allocation is the most important determinant of long-term portfolio returns.

We will set asset allocations for our investment options that ensure a high probability of achieving investment objectives within our risk parameters.

We will use dynamic asset allocation to take advantage of over- and under-valued asset classes over a 1 to 3 year investment horizon. This assists in enhancing risk-adjusted return.

Investment markets aren’t always efficient and it is possible to exploit these inefficiencies to generate additional risk-adjusted return for our investment options.

We seek to identify inefficient markets i.e. those where all market information is not priced in. We then seek to identify fund managers with the skill and experience to exploit these market inefficiencies. Where markets are relatively efficient, we will investigate the use of passive investment strategies.

Costs, taxes and implementation leakage matter.

We will assess manager fees on a case-by-case basis, taking into consideration the expected risk and return profile and the impact to the overall portfolio fee. We will also consider brokerage fees, taxes and opportunity costs from being “out of the market” when structuring our investment options.

For good risk management, it’s important to understand any material environmental, social and governance (ESG) risks embedded in our investment options.

We will actively seek ways to better understand ESG risks in our investments. We will require our fund managers to acknowledge and adhere to our ESG beliefs where possible.

Some investments should be avoided due to their significant negative impact on society and the environment, irrespective of their investment returns. However, some sectors are attractive for their positive impact on society and the environment.

We are seeking ways of divesting from tobacco stocks. We will work to understand our members’ views of sectors that are to be treated favourably and those which are unacceptable for Tasplan to invest in. We will continue to seek cost effective ways of implementing these views.

It’s important to engage with companies we are invested in and to express ownership rights, including voting rights, with regards to good standards of corporate governance, including board structure, independence and executive remuneration.

Our investment managers will actively vote our shares on our behalf. We will continue to seek cost effective ways of implementing this belief.

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CashThe investment return objective will be to seek returns after tax and fees that exceed cash rates (as measured by the UBS Australian Bank Bill Index), over successive one year periods.

Risk objectiveTo avoid negative cumulative returns measured over successive one year periods.

Benchmark 2014 2015Cash 100% 100%

Asset mix100 %

Defensive

Short term defensiveThe investment return objective will be to seek returns after tax and fees that exceed CPI increases by at least 2.5% p.a. over rolling three year periods. The secondary objective is to outperform the benchmark and suitable peer group over three year periods.

Risk objectiveTo achieve a positive return 18 out of every 20 years.

Benchmark 2014 2015Cash - Australian 30% 30%Fixed income - Australian 12% 12%Fixed income - international 16% 16%Fixed income - other 2% 2%Equity - Australian listed 9% 9%Equity - international listed 11% 11%Property - Australian listed 2% 0%Property - unlisted 2% 4%Property - international listed 2% 2%Infrastructure - unlisted 2% 2%Other - listed 12% 12%

Asset mix70 %

Defensive

30 %Growth

MySuper balancedThe investment return objective will be to seek returns after tax and fees that exceed CPI increases by at least 3% p.a. over rolling five year periods. The secondary objective is to outperform the benchmark and suitable peer group over three year periods.


Benchmark 2014 2015Cash - Australian 5% 3%Fixed income - Australian 5% 5%Fixed income - international 9% 9%Fixed income - other 3% 3%Equity - Australian listed 21.2% 22%Equity - international listed 25.8% 27%Equity - other unlisted 5% 5%Property - Australian listed 2.5% 2.5%Property - unlisted 5% 6.5%Property - international listed 2.5% 2.5%Infrastructure - unlisted 5% 6.5%Other - listed 11% 8%

Asset mix30 %

Defensive

70 %Growth

Longer term growthThe investment return objective will be to seek returns after tax and fees that exceed CPI increases by at least 4.5% p.a. over rolling seven year periods. The secondary objective is to outperform the benchmark and suitable peer group over three year periods.


Benchmark 2014 2015Cash - Australian 1% 1%Fixed income - Australian 1% 1%Fixed income - international 2% 2%Fixed income - other 3% 3%Equity - Australian listed 30.2% 30.2%Equity - international listed 36.8% 36.8%Equity - other unlisted 5% 5%Property - Australian listed 3% 3%Property - unlisted 5% 5%Property - international listed 2% 2%Infrastructure - unlisted 5% 5%Other - listed 6% 6%

Asset mix10 %

Defensive

90 %Growth

EquitiesThe investment return objective will be to seek returns after tax and fees that exceed CPI increases by at least 5% p.a. over rolling seven year periods. The secondary objective is to outperform the benchmark and suitable peer group over three year periods.


Benchmark 2014 2015Equity - Australian listed 40.5% 40%Equity - international listed 49.5% 50%Equity - other unlisted 5% 5%Infrastructure - unlisted 5% 5%

Asset mix100 %

Growth

Your investment optionsAll options aim to outperform their respective benchmarks and suitable peer groups over three year periods.

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Employer directors Anthony Stacey AM

• Director since 24 January 1995

• Attended 9 of 12 board meetings

• Audit, risk and compliance committee

• Administration committee

Barrie Macdonald

• Director since 1 July 2003


Paul Arnold

• Director since 24 March 2015


• Audit, risk and compliance committee (Chair)

• Investment committee

Susan Parr




• Remuneration committee

Member directors

Angela Briant

• Director since 16 May 2003



Roz Madsen





Paul Griffin

• Director since 13 November 1995



Steve Walsh

• Director since 10 October 2014




Our board

The Tasplan trustee is Tasplan Ltd (ABN 13 009 563 062). The board of the trustee company is responsible for all decisions regarding the management and operation of Tasplan to ensure that it’s run in the best interests of members.

Our board is made up of an equal number of employer and member representatives, nominated by the sponsoring organisations, and includes representation from the former boards of the NSW Bus & Coach and transport sector industry funds.

During the 2014-15 financial year, the following directors left us:

• Peter Tullgren

• Ronald Ward

• Tracey Matthews

We thank Peter, Ronald and Tracey for their efforts while serving on our board, and wish them all the best in their future endeavours.

The following new faces were appointed:

• Steve Walsh

• Paul Arnold

• Susan Parr

Our new directors bring with them a wealth of knowledge and experience in their respective fields.

More information about our directors is available at www.tasplan.com.au/about-us

We operate a number of separate committees which oversee different aspects of our operations. Directors on each committee attend these meetings in addition to board meetings. These are:





The directors of Tasplan as at 30 June 2015 were:

Independent Chair Naomi Edwards

• Chair

• Director since 14 October 2011


• Remuneration committee (Chair)

• Investment committee (Chair)



Who manages Tasplan

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Directors Year

Short term benefitsCash salary, fees and short

term compensated absences

Post employment benefits

Super and pension benefits

Total

Third party payments

Included in short term benefits

Naomi EdwardsChair Term: 14/10/2011 - current

2015 $115,197 $11,520 $126,716

2014 $64,938 $6,494 $71,432

Anthony StaceyTerm: 24/01/1995 - current

2015 $8,211 $32,721 $40,932

2014 $12,966 $28,761 $41,727

Barrie MacdonaldTerm: 01/07/2003 - current

2015 $37,211 $3,721 $40,932

2014 $37,693 $3,769 $41,462

Paul ArnoldChair Audit, risk and compliance committeeTerm: 24/03/2015 - current

2015 $9,017 $902 $9,918

2014 - - -

Susan ParrTerm: 24/03/2015 - current

2015 $9,017 $902 $9,918

2014 - - -

Angela BriantTerm: 16/05/2003 - current

2015 $35,139 $5,793 $40,932 $24,277 (Note 1)

2014 $37,693 $3,769 $41,462 $28,065 (Note 1)

Roz MadsenTerm: 04/03/2011 - current

2015 $37,211 $3,721 $40,932 $37,211 (Note 2)

2014 $37,452 $3,745 $41,197 $37,452 (Note 2)

Paul GriffinTerm: 13/11/1995 - current

2015 $37,211 $3,721 $40,932 $37,211 (Note 3)

2014 $37,693 $3,769 $41,462 $37,693 (Note 3)

Steve WalshTerm: 10/10/2014 - current

2015 $25,761 $2,576 $28,338 $25,761 (Note 4)

2014 - - -

Peter TullgrenTerm: 17/08/2011 - 10/10/2014

2015 $11,450 $1,145 $12,594 $11,450 (Note 5)

2014 $40,768 $429 $41,197 $40,768 (Note 5)

Ronald WardTerm: 05/10/2007 - 26/02/2015

2015 $16,602 $11,736 $28,338

2014 $20,564 $20,898 $41,462

Tracey MatthewsPrevious Chair Audit, risk and compliance committeeTerm: 15/10/2010 - 26/02/2015

2015 $29,097 $2,910 $32,007

2014 $42,270 $4,227 $46,497

Note 1: 100% sitting fees paid to Independent Education Union (to 7 May 2015) and 60% of director fees paid to Unions Tasmania.Note 2: 40% of director fees and 100% sitting fees paid to Australian Education Union. 60% of director fees paid to Unions Tasmania.Note 3: 40% of director fees and 100% sitting fees paid to Shop Distributive & Allied Employees Association. 60% of director fees paid to Unions Tasmania.Note 4: 100% director and sitting fees paid to Unions Tasmania.Note 5: 100% director fees and sitting fees paid to Unions Tasmania.

Director remuneration

Directors were paid an annual fee of $35,300 in the year ending 30 June 2015. The Chair was paid an annual fee of $62,077 plus a short term allowance of $48,000 relating to the additional work associated with the merger with Quadrant. The Chair of the Audit, risk and compliance committee received $40,600 per annum.

Directors also received a sitting fee of $5,632 per annum for their attendance at board meetings, sub committee meetings (for an endorsed member of the committee) and the strategic planning day.

Directors are reimbursed for travel and meeting expenses, but aren’t entitled to annual leave, long service leave or performance payments.

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Trustee liability insurance

The trustee has taken out a trustee liability insurance policy that provides sufficient and adequate cover to protect the fund against misconduct by the trustee.

Executive officers

We employ a team of responsible officers to manage the day to day operations of the fund.

Our responsible officers have met minimum levels of education, experience and integrity, as prescribed by ASIC, to be responsible for the legal obligations under our Australian financial services licence (AFSL).

Neil Cassidy resigned from his role as Chief Executive Officer (CEO) on 5 March 2015. Neil will terminate his employment with Tasplan due to genuine redundancy effective 1 November 2015.

Wayne Davy, CEO of Quadrant, commenced as CEO of Tasplan from 6 March 2015.

Executive officer remuneration

Executive officer Year

Short term benefitsCash salary, fees and short

term compensated absences

Post employment benefits

Super and pension benefits

Non-monetary benefits (Note 1)

Total

Wayne Davy (Note 2)Chief Executive Officer

2015 $117,560 $6,502 $4,518 $128,580

2014 - - - -

Michael IrwinChief Operating Officer

2015 $250,326 $33,718 $2,186 $286,229

2014 $206,610 $24,613 $1,913 $233,136

Mark WilliamsManager Investments

2015 $161,678 $25,815 $2,094 $189,586

2014 $155,741 $23,194 $1,913 $180,848

Greg HaniganCompany Secretary

2015 $138,965 $16,924 $2,478 $158,367

2014 $132,525 $13,748 $2,181 $148,454

Neil CassidyPrevious Chief Executive Officer

2015 $272,724 $35,000 $13,267 $320,992

2014 $274,147 $35,000 $25,762 $334,909

Note 1: Non-monetary benefits include motor vehicle, parking and expense payment benefits and any associated fringe benefits tax.Note 2: Wayne Davy commenced as Chief Executive Officer on 6 March 2015. Wayne’s salary, super and non-monetary benefits are paid by Quadrant

Superannuation Pty Ltd, ABN 82 067 516 938.

Specialist service providers

We employ some specialist service providers to help us administer Tasplan.

Role Service provider

AdministratorAustralian Administration Services (AAS)ABN 62 003 429 114

Asset consultants/actuary MercerABN 66 008 612 397

CustodianNAB Asset Servicing (NAS)ABN 12 004 044 937

External auditorCrowe HorwathABN 55 418 676 841

InsurerCommInsurer (Colonial Mutual Life Assurance Society Ltd)ABN 12 004 021 809

Internal auditor

Until 14 October 2015Dymond, Foulds and VaughanABN 17 857 006 902From 14 October 2015KPMGABN 51 194 660 183

SolicitorPage SeagerABN 37 078 672 294

12

Our abridged financial reports for 2014-2015Below is a summary of the audited financial statements. The full audited financial statements, and the auditor’s report is available on our website, or we can mail you a paper copy on request.

The abridged statements were audited by Crowe Horwath. We’re satisfied that they represent a true and accurate record of our financial position, and that they were prepared in accordance with relevant accounting standards.

Financial statements

Tasplan Superannuation Fund Statement of financial position

As at 30 June 2015 2015 2014 $ $ASSETS

Cash and Cash Equivalents Cash at Bank 100,345,789 75,790,802 Trade and Other Receivables Contributions Receivable 16,676,127 15,072,844 GST Receivable 305,781 220,258 Sundry Debtors - 424 Investments Pooled Superannuation Funds 72,497,908 71,545,389 Australian Equities 607,398,708 548,214,662 International Equities 975,058,978 777,515,115 Other Investments 55,368,909 42,836,922 Other Interest Bearing Securities 533,022,768 540,363,612Property 222,455,040 211,390,971 Other Assets Fixed Assets 349,458 110,434 Intangible Assets 596,220 -Capitalised Expenses 1,066,666 1,143,879Other Assets 300,100 -Prepayments 155,908 -Tax Assets Deferred Tax Assets 230,073 264,563

TOTAL ASSETS 2,585,828,433 2,284,469,875

LIABILITIES Trade and Other Payables Benefits Payable 3,348,913 3,234,266Accounts Payable 2,615,012 2,499,096 Investment Expenses Payable 430,059 586,409 Sundry Creditors 90,943 51,799 Provision for Employee Benefits 583,187 399,580 Tax Liabilities Superannuation Contribution Surcharge 9,451 7,565 Income Tax Payable 16,868,667 5,120,705Deferred Income Tax Liability 26,504,617 20,501,714

TOTAL LIABILITIES 50,450,849 32,401,134

NET ASSETS AVAILABLE TO PAY BENEFITS 2,535,377,584 2,252,068,741

Represented by: LIABILITY FOR ACCRUED BENEFITS

Vested Benefits 2,494,881,951 2,213,126,410 ORFR Reserve 5,771,037 5,616,161Administration Reserve 11,367,607 11,367,607Unallocated Reserve 23,356,989 21,958,563 2,535,377,584 2,252,068,741

Tasplan Superannuation Fund Operating statement

For the year ended 30 June 2015 2015 2014 $ $INVESTMENT REVENUE

Interest 3,097,278 2,855,596 Distributions 77,647,409 85,944,570Other Investment Income 3,695,144 3,779,330 Net Foreign Exchange Gains/(Losses) (1,754,471) (4,266,509)Changes in Net Market Value 153,443,682 161,271,095

236,129,042 249,584,082

CONTRIBUTIONS REVENUE Employer Contributions 204,342,867 189,879,651Member Contributions 31,051,018 26,647,295Transfers In 45,895,137 47,730,800 Government Co-Contributions 733,490 844,615

282,022,512 265,102,361

OTHER REVENUE Proceeds from Group Life Policies 13,293,701 9,729,552Other Income 139,425 37,044

13,433,126 9,766,596 TOTAL REVENUE 531,584,680 524,453,039

INVESTMENT EXPENSES Investment Manager Fees 3,330,329 3,283,020

GROUP LIFE INSURANCE EXPENSES 19,420,697 17,384,936

GENERAL ADMINISTRATION EXPENSES Administrator Expenses 6,369,926 6,317,803Auditor’s Remuneration 43,701 51,263Anti-Detriment Payments 398,364 336,772Operating Expenses 7,065,986 6,034,623 Superannuation Contribution Surcharge (75) (80)

TOTAL EXPENSES 36,628,928 33,408,337 BENEFITS ACCRUED BEFORE INCOME TAX 494,955,752 491,044,702 INCOME TAX EXPENSE 41,602,617 43,172,056 BENEFITS ACCRUED AFTER INCOME TAX 453,353,135 447,872,646

13

Other things you need to know

General advice warning

The information in this annual report is general information only and doesn’t take into consideration your specific objectives, financial situation or needs. You should consider these before acting on this information. You may wish to speak with a financial planner. Read the relevant member guide before deciding to join or remain a member of Tasplan. Call us on 1800 005 166 for a free paper copy.

More information

Our website is a great source of information on our products and services, super and retirement strategies, fund policies and much more. Visit www.tasplan.com.au

You can call or email us at any time to ask for paper copies of any documents you need to understand your benefit entitlements.

How your account works

Your account works in a similar way to a savings account.

Your Tasplan Super account receives contributions including transfers, and is reduced by withdrawals, taxes, fees and insurance premiums (as applicable). Tasplan Pension accounts are also reduced by your pension payments. Investment earnings can increase or reduce your account balance.

Each dollar you invest buys ‘units’. For example, if you invest $10 and the buy price is $1 per unit, you get 10 units. You receive units in the investment option or options that you have chosen.

The value of your units goes up and down according to the markets. So, your account balance may increase or decrease in line with the unit prices. Our unit prices are net of tax on investment earnings and indirect costs. Our latest unit prices are available at www.tasplan.com.au/investment/unit-price

When you switch investment options, you trade the units you have for different units. The value of the units in each investment option varies, so you may get more or fewer units when you switch, depending on the current unit prices.

When you make a withdrawal or pay fees, taxes or insurance premiums out of your account, you trade your units for money. The amount of money your units are worth depends on the current unit prices. So, if you withdraw $10 and your units are worth $1 each, you will trade 10 units for your money. If your units are worth $2, you will trade five units for your money.

Your account will remain open until you have no units left. If you have a Tasplan Pension account, there’s no guarantee that you’ll receive your pension payments for your lifetime or any fixed period. The longevity of your investment depends on how much you draw out and how your chosen investment option or options perform.

Fees, charges and taxes

For more information about how fees, charges and taxes apply to your account, refer to the relevant product disclosure statement. These are available at www.tasplan.com.au/publications or you can call us and we’ll mail you a paper copy.

Member insurance

For more information about our insurance products, refer to the Tasplan Super insurance booklet which is available at www.tasplan.com.au/publications or you can call us and we’ll mail you a paper copy.

Lost and inactive super

If you’re an inactive member with an account balance of less than $2,000, or have an account that has been inactive for 12 months and we lose contact with you, we’ll transfer your balance to the Australian Tax Office (ATO). If your account is transferred to the ATO your Tasplan membership will cease.

Losing contact with you means that we don’t know your whereabouts and our attempts to contact you have failed.

We review lost and inactive accounts every six months. The government has proposed to increase the current $2,000 account balance to $4,000 from 31 December 2015.

We can help you look for your lost super and combine it into your Tasplan Super account. Just give us a call or email us and we’ll gladly give you a hand.

Eligible rollover fund

Accounts that have balances less than $200 and haven’t received a contribution within fourteen months may be transferred to an eligible rollover fund. We regularly review accounts with small balances.

We have selected Super Safeguard as our eligible rollover fund. Super Safeguard’s contact details are below:

Phone: 1300 135 181

Email: [email protected]

Mail: GPO Box 3426

Melbourne VIC 3001

We’ll let you know in writing if your account is transferred, if we have a valid address on record. You should contact Super Safeguard to find out more information and to obtain a copy of their product disclosure statement.

14

Constitution and trust deed amendments

The amendments to the constitution included such things as:

• specification of directors to be appointed for the transitional terms of office after the successor fund transfer of the Quadrant Superannuation Scheme

• changes to appointment and removal of directors including changes to sponsor arrangements

• insertion of a maximum tenure period of 12 years to apply after the completion of the transitional terms of office

• amendment of provisions relating to attorneys of directors and alternate directors

• amendment of voting and quorum provisions

• inclusion of provisions to enable the appointment of delegated committees which consist of directors and persons who aren’t directors

• various other amendments.

The amendment to the trust deed include such thing as:

• inclusion of required changes for the successor fund transfer of the Quadrant Superannuation Scheme

• inclusion of benefit design for the defined benefit funds which were previously part of the Quadrant Superannuation Scheme

• various other amendments.

Compliance

We ensure that Tasplan meets all the requirements of the Superannuation Industry (Supervision) Act 1993 (the SIS Act) so that our members can benefit from the lower tax rates that apply to complying resident regulated super funds.

We lodge quarterly returns with the Australian Prudential Regulatory Authority (APRA) confirming our compliance with relevant legislation and licensing requirements. We believe that we continue to comply with all relevant laws.

No penalties have been imposed on Tasplan responsible persons under section 38A of the SIS Act.

Complaints

We’re committed to handling any complaints promptly and fairly. Any complaints will be managed in strictest confidence.

For information refer to our complaints handling policy which is available at www.tasplan.com.au/complaints-handling-policy or you can call us and we’ll mail you a paper copy.

15

Contact us if you have any questions.

Freecall 1800 005 166

Email [email protected]

Mail GPO Box 1547

Hobart TAS 7001

In person Level 8, 1 Franklin Wharf

Hobart TAS 7000

Website www.tasplan.com.au

Important fund members

Tasplan Ltd - the trustee

ABN 13 009 563 062

AFSL 235391

RSE L0000680

Tasplan Super - the fund

ABN 14 602 032 302

RSE R1000924

SFN 123481940

USI TPN0100AU

MySuper unique identifier 14602032302734

Contact details

AR-G

EN01 12/2015

tasplan ltd annual report 2015 · annual report 2015. 2 new era for tasplan ... double digit...

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