tasplan pty ltd annual report 2015-16 · 2018. 10. 16. · 4 | annual report 2015-16 how our...

Tasplan Pty LtdAnnual report2015-16

| ANNUAL REPORT 2015-16

Contents1. What's new at Tasplan 32. Investments 43. Who manages Tasplan 12 4. Financial statements 155. Other things you need to know 16

Contact details

Head office Level 8, 1 Franklin Wharf Hobart TAS 7000

Postal address GPO Box 1547 Hobart TAS 7001

Phone 1800 005 166

Email [email protected]

Website www.tasplan.com.au

Issuer Tasplan Pty Ltd RSE L0000680 AFSL 235391 ABN 13 009 563 062 (Trustee)

Fund registration details ABN 14 602 032 302 (Tasplan Super) RSE R1000924 SFN 123481940 USI TPN0100AU MySuper Unique Identifier 14602032302734

The information provided in this Annual report is general information only and doesn’t take into account your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances before making a decision to invest with Tasplan. 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.

2

Message from the CEOEvolution has become something of a norm here at Tasplan. As we continue to move towards being the sole member owned Tasmanian super fund, I reflect on our achievements with pride and anticipation.

Last year, I wrote about Tasplan having a watershed year. We were just about to merge with fellow Tasmanian fund, Quadrant Super. We’d just established our own in-house, Hobart-based customer contact centre and transferred all of Tasplan’s members to our own self-administration platform.

This year, we are in the midst of further transformational growth. By April 2017, we will have completed the transfer to Tasplan of RBF’s Tasmanian Accumulation Scheme members. We’ll be managing over $7 billion for over 150,000 members. We were pleased that the passing of legislation to enable the transfer received tri-partisan support in its passage through Tasmanian Parliament. I particularly acknowledge the RBF Board and its Chief Executive Officer, Phillip Mussared, for their support and collaboration as we prepare for the transfer.

I am humbled to have been confirmed as the ongoing CEO of Tasplan earlier this year and I’m looking forward to working with an outstanding team. The new Tasplan executive team is a very experienced and talented group of individuals from Tasplan and RBF and our managers and staff are a very impressive line-up with deep skills and experience in their respective areas of expertise.

Our change and growth has brought benefits for our members. In May 2016 we opened our first office in Tasmania’s North West. Members can visit our Devonport office by appointment for in person advice or attend a regular retirement planning seminar.

We’re introducing a new default investment option, Tasplan OnTrack. This lifecycle option changes with members over their lives, investing in a larger amount of growth assets when they are young and de-risking as they approach retirement. It’s an approach that we believe can deliver a better outcome over the longer term for our members invested in that option.

I’m particularly pleased that we’ve been formally recognised for our achievements on a number of fronts. We won an AIST award for an integrated campaign educating members about changes to the age pension, our fund services manager was a finalist in the Women in financial services awards, our Chair, Naomi Edwards, was a finalist in the corporate category for the Telstra women in business awards and our new contact centre has just been awarded the best internal project in this year’s AIST awards.

We’ve outgrown our home on Hobart’s waterfront. Next year we’ll move to 188 Collins Street to a premises that co-locates all of our head office operations. Our Launceston office is on the move too, to 113 Cimitiere Street where members can drop in for advice and help with managing their super.

I pay particular tribute to the efforts of our staff and directors. Achieving one merger is significant in itself, but having a second merger backing up shortly after requires outstanding commitment and energy. To our members and employers, I thank you for your support and loyalty. Although our fund is changing and growing, your interests remain at the heart of what we do.

Wayne Davy Chief Executive Officer

3FIND OUT MORE > FINANCIAL EXPERTS 1800 005 166

Membership summary

Our membership details as at 30 June 2016 are shown below:

Fund Members Funds under management

Tasplan Super 108,046 $3,158,629,639

Tasplan Pension 1,450 $271,870,343

Total 109,496 $3,430,499,982

Quadrant merger created a bigger, stronger Tasplan

The merger between Tasplan and Quadrant is was completed on 1 December 2015.

Through the Quadrant merger, we employed 38 new staff increasing the number of full time equivalent employees to 88 as at 1 December 2015.

The merger between Tasplan and Quadrant saw the fund grow to managing $3.3 billion in funds, 100,000 members, 15,000 employers, and nine investment options.

We also increased our commitment to investing in Tasmanian businesses through the Tasmanian Growth and Development fund by $20 million.

This pledge is expected to provide both good investment returns for members and inject much needed capital into the Tasmanian economy.

The good news is more than just bigger numbers, it’s about giving members a better experience.

Our brand new in-house contact centre, enhanced administration systems and increased staffing levels mean the organisation represents a true centre of excellence.

We introduced new IT infrastructure that is capable of administering the affairs of up to twice the 100,000 members we had at that time.

We're proud to say that this system is leading edge in the national super industry. It not only allows us to satisfy the needs of our current members, but also means we can scale up, putting Tasplan on a solid platform to deliver growth through the merger with the RBF Tasmanian Accumulation Scheme by April 2017.

This next step, which we're enthusiastically preparing for, will be a huge step for super in Tasmania – and enormously beneficial for members, staff and the community.

What’s new at Tasplan

Volunteering – the power of giving back

Tasplan proudly sponsored three award categories in the inaugural Tasmanian Volunteering Awards, presented at Government House on 9 May 2016.

The awards recognise the work that goes on by our volunteers, often happily unsung.

Each year, four in five Tasmanians donate 7.1 million hours of their time to the community. Volunteers touch almost every aspect of our society every day.

We’re looking forward to the announcement of the winner of the Tasmanian Volunteer Awards Corporate Award, which Tasplan is sponsoring in 2017.

New office opens in Devonport

On 10 May 2016, the doors officially opened on our Devonport office, extending our face-to-face service in Tasmania’s North West, and creating the largest footprint of any super fund in the region.

A gathering of community leaders and business associates celebrated the opening in Devonport.

While some financial services businesses are centralising services in capital city and mainland centres, we’re bucking the trend and increasing them in regional Tasmania. As well as opening this new office in Devonport, we’ve employed another member services consultant in Launceston and we continue to employ more people at our head office in Hobart.

Tasplan’s Devonport office, located in the Corporate Centre on the corner of Edward and Best Streets, provides members with general advice and financial planning services.

SuperStream ready clearing house

Tasplan introduced a fully SuperStream compliant clearing house for making payments in November 2016.

Tasplan's online clearing house offers a fast and efficient way to meet the new electronic standard for making super contributions.

Many of Tasplan’s 15,000 employers have simplified paying their contributions by using the Tasplan clearing house.

4 | ANNUAL REPORT 2015-16

How our investments performed

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. All returns are the effective rate of net earnings for the period ending 30 June 2016. The amount of investment earnings applied to your account is determined by the investment option/s chosen and factors such as cash flow, the length of time that your money was invested in a particular option, government taxes and applicable fees and charges. Past performance isn't a reliable indicator of future performance.

Tasplan Super compound average returns as at 30 June 2016

Investment optionReturn since

commencement* 1 year 3 years 5 years 10 yearsCommencement

date

Growth - 2.80% 9.85% 8.99% 5.59% 1 July 1999

Sustainable 2.74% - - - - 1 December 2015

MySuper balanced - 3.78% 8.57% 7.86% 5.67% May 1987

Moderate 2.58% - - - - 1 December 2015

Conservative - 4.07% 6.32% 6.21% 5.50% 1 July 1999

Australian shares 3.64% - - - - 1 December 2015

International shares -1.09% - - - - 1 December 2015

Fixed interest 4.21% - - - - 1 December 2015

Cash - 2.35% 2.59% 2.98% 4.13% 1 July 2002

Tasplan Pension compound average returns as at 30 June 2016

Investment optionReturn since

commencement* 1 year 3 years 5 years 10 yearsCommencement

date

Growth - 3.63% 11.27% 9.90% - 1 August 2007

Sustainable 2.73% - - - - 1 December 2015

Balanced - 4.62% 10.10% 9.13% - 1 September 2007

Moderate 3.00% - - - - 1 December 2015

Conservative - 4.92% 7.12% 6.96% - 1 August 2007

Australian shares 4.65% - - - - 1 December 2015

International shares -1.26% - - - - 1 December 2015

Fixed interest 4.83% - - - - 1 December 2015

Cash - 2.71% 2.96% 3.41% - 1 September 2007

*We've provided the returns since commencement for the investment options that don't have long term returns available.

InvestmentsMarket commentaryThe past year has been a rocky one with another seemingly long list of concerns for investors to consider, with most share markets falling and record low (some even negative) bond yields.

We have seen:• a plunge in Chinese shares• ongoing falls in commodity prices• intensifying concerns on deflation• rising US interest rates strengthening the US dollar and

the impact that has on China, the emerging world and commodity prices

• risk of defaults in the energy sector• multiple IS related terrorist attacks in Europe and the

Middle East• worries about the results of US elections• the ‘surprise’ Brexit vote and concerns that it might lead

to further exits by other countries• a close call election result in Australia• escalating tensions in the South China Sea• negative interest rates in Japan and Europe.

In late June, a referendum was held on whether the UK should exit the European Union (EU). Surprisingly, the vote ended up a narrow victory for the Leave campaign. Initially share markets plummeted while the impact was digested and the UK currency took a pounding (pardon the pun). However, in the weeks following, markets rallied and quickly returned to above the pre-vote levels.

What should we expect for 2016–17?• A lower return environment – achieving solid real returns

in a low growth environment will be challenging.• Bonds look expensive and shares fully valued. Further falls

in bond yields could improve the relative attractiveness of shares.

• Growth will be constrained.

Areas to watch closely:• When will the US continue raising rates?• Will non-mining investment continue to improve?• Nexit? The risk of another country leaving the EU will

cause jitters.


Asset class Investment manager 30 June 2016 30 June 2015

$ % $ %Australian shares

Goldman Sachs Australian Equities 187,366,810.20 5.4% 136,719,952.27 5.5%

Eight Investment Partners 47,970,321.15 1.4% - 0.0%

Schroder Australian Equities 153,211,545.94 4.4% - 0.0%

Macquarie True Index Australian Share Fund 109,693,493.07 3.2% - 0.0%

TasFood Limited 6,400,125.00 0.2% - 0.0%

BT Australian Sustainable Share Fund 4,140,346.34 0.1% - 0.0%

Eley Griffiths Group Small Companies - 0.0% 28,513,092.71 1.2%

Perennial Growth Australian Equities - 0.0% 148,691,736.19 6.0%

SG Hiscock 20 83,211,946.27 2.4% 64,545,816.85 2.6%

Nikko AM Australian Shares Fund 150,884,633.80 4.4% 147,719,915.97 6.0%

Total Australian shares 742,879,221.77 21.5% 526,190,513.99 21.3%

International shares

Ironbark Global Thematic Partners 73,335,593.32 2.1% 173,449,335.42 7.0%

Schroder Global Dynamic Blend Fund 259,763,183.56 7.5% 168,001,388.16 6.8%

Eaton Vance Hexavest Global Equity Fund 174,490,509.75 5.0% 175,122,914.14 7.1%

MFS Global Equity Fund 180,258,387.09 5.2% 220,619,106.39 8.9%

Vanguard International Shares Fund 230,795,975.42 6.7% - 0.0%

Colonial First State Generation Global Share Fund 5,457,190.76 0.2% - 0.0%

Investec Emerging Market Equities Fund 53,299,787.64 1.5% 47,440,462.13 1.9%

T Rowe Price Emerging Markets Equities Fund 55,160,001.63 1.6% 48,255,960.25 2.0%

Total international shares 1,032,560,629.17 29.8% 832,889,166.49 33.7%

Property

AMP Capital Global Property Securities Fund 48,081,301.11 1.4% 43,360,937.76 1.8%

SG Hiscock Property Securities Fund 60,615,588.85 1.8% 50,929,365.47 2.1%

AMP Capital Australian Diversified Property Fund 78,249,101.75 2.3% 32,590,728.05 1.3%

AMP Capital Hedged Global Direct Property 17,027,323.53 0.5% 15,729,046.43 0.6%

Investa Commercial Property Fund 61,003,644.08 1.8% 36,573,842.02 1.5%

Lend Lease APPF Retail Fund 24,559,807.23 0.7% 23,831,601.61 1.0%

Goodman Australia Industrial Fund 14,055,008.44 0.4% 12,112,341.53 0.5%

Tasmanian Growth & Development Fund 4,448,850.50 0.1% 4,034,802.06 0.2%

Tasmanian Growth & Development Fund No.2 15,811,001.08 0.5% 13,778,011.41 0.6%

Total property 323,851,626.57 9.4% 232,940,676.34 9.4%

Private equity and infrastructure

AMP Capital Select Property II 7,848,520.52 0.2% 8,193,804.72 0.3%

IGC Europe Fund VI 1,323,492.61 0.0% 2,609.38 0.0%

Avenue Europe Fund III 9,793,285.15 0.3% - 0.0%

First Tasmania Investment Limited - 0.0% 18,748.27 0.0%

Harbourvest Non US Fund of Fund HIPEP 6 7,982,844.65 0.2% 7,027,352.35 0.3%

Harbourvest US Fund of Fund 9 Venture Capital 3,463,130.28 0.1% 2,679,461.21 0.1%

Harbourvest US Fund of Fund 9 Buyout 3,286,666.44 0.1% 2,406,239.89 0.1%

Industry Super Holdings Pty Ltd 6,669,282.44 0.2% 5,509,188.83 0.2%

Lexington Partners Secondaries Fund No. 7 11,322,308.43 0.3% 12,867,253.46 0.5%

Lexington Partners Secondaries Fund No. 8 9,730,830.55 0.3% 2,760,539.69 0.1%

ROC Australian Investment Trust IV 2,278,941.40 0.1% - 0.0%

Antin Infrastructure Partners Fund II 16,515,418.21 0.5% 11,044,643.42 0.4%

IFM Global Infrastructure Fund 24,117,261.18 0.7% 20,969,149.62 0.8%

IFM Australian Infrastructure Fund 88,351,539.20 2.6% 72,497,896.31 2.9%

Total private equity and infrastructure 192,683,521.06 5.6% 146,057,887.15 5.9%

Absolute return

AQR Delta Fund 60,863,475.09 1.8% 50,334,903.42 2.0%

Insight Pareto Inflation Plus Fund 56,610,389.56 1.6% 37,337,990.92 1.5%

BlackRock Total Return Multi Opportunities Fund 38,850,356.17 1.1% 39,687,788.64 1.6%

BlackRock Style Advantage 40,000,000.00 1.2% - 0.0%

Natixis Loomis Sayles Credit Opportunities Fund 35,693,117.87 1.0% 34,551,447.20 1.4%

Metrics Credit Partners Senior Loan Fund 49,298,330.49 1.4% 37,590,545.55 1.5%

Schroders Real Return Fund 56,362,288.05 1.6% 39,264,882.26 1.6%

Winton Global Alpha Fund 34,739,704.95 1.0% 31,661,136.09 1.3%

Total absolute return 372,417,662.18 10.8% 270,428,694.08 10.9%

Fixed interest

BT Wholesale Fixed Interest Fund 103,552,359.26 3.0% 82,871,958.35 3.4%

BlackRock Wholesale Fixed Interest Fund 92,339,927.70 2.7% - 0.0%

Kapstream Global Sovereign 40,093,246.26 1.2% 63,601,053.30 2.6%

Vanguard International Fixed Interest Hedged 39,650,219.71 1.1% - 0.0%

Colonial First State Global Credit Fund 88,635,540.69 2.6% 71,919,562.27 2.9%

Wellington Emerging Market Debt Fund 45,334,412.06 1.3% 43,470,933.02 1.8%

Member’s Equity Bank Super Loan Trust 1,694,086.33 0.0% 1,800,314.06 0.1%

Total fixed interest 411,299,792.01 11.9% 263,663,821.00 10.7%

Cash

Colonial First State Wholesale Premium Cash Fund 292,231,778.05 8.4% 91,660,872.22 3.7%

Mercer Term Deposit Fund 94,965,367.02 2.7% 107,556,840.00 4.4%

Total cash 387,197,145.07 11.2% 199,217,712.22 8.1%

Total assets 3,462,889,597.83 100%* 2,471,388,471.27 100%

*Total may not add up to 100% due to rounding.

Where your money was invested

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


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.

During June 2016, Tasplan Super took part in capital raising for the ASX-listed company TasFoods Limited (ASX:TFL) and invested $5 million. TasFoods is focused on acquiring and developing Tasmanian premium branded food businesses. This supports the Tasplan board’s philosophy of investing in Tasmania where it suits the investment strategy of the fund.

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. If you don't make an investment choice you'll be invested in the MySuper balanced option if you're a Tasplan Super member or the Cash option if you're a Tasplan Pension member.

For more information about our investments, visit our website at 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 won't be used for borrowing, leveraging or speculative purposes.

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

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

Following the merger with the Quadrant Superannuation Scheme on 1 December 2015, there were a number of changes to our investment strategy. This was due to the introduction of new member investment options and to take advantage of the additional diversification the increased scale afforded to Tasplan.

At the merger date:

• the following investment managers were added: Eight Investment Partners, Macquarie Investment Management, Schroders Investment Management and BT Investment Management (Australian shares); Vanguard and Generation Capital (international shares); ROC Investment Partners (private equity); BlackRock (Australian fixed income); and Vanguard (global sovereign bonds).

• the following investment managers were removed: Perennial Growth (Australian equities).

During the financial year:

• the following investment managers were added: BlackRock (absolute returns); TasFoods Limited (Australian shares); Avenue Capital (private equity).

• the following investment managers were removed: Babson Capital (absolute returns).

New investment options

On 1 December 2015, we introduced five new investment options. Some existing investment options were renamed. The investment options available are:

Investment options

GrowthPreviously called Longer term growth

Sustainable New option

MySuper balanced/Balanced Existing option

Moderate New option

ConservativePreviously called Short term defensive

Australian shares New option

International shares New option

Fixed interest New option

Cash Existing option

Information about our investment options, including asset allocations, is detailed in our Investment guide which is available on our website at www.tasplan.com.au or call us on 1800 005 166, and we'll mail you a paper copy.


Reserving policy

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

We have an administration reserve so we can maintain equity between members, and to 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 is invested in 100% cash.

The reserves based upon the vested benefits of the fund as at 30 June 2016, 30 June 2015 and 30 June 2014 are shown below.

The Actuary has undertaken a review of the financial position of the Scheme at 30 June 2016. The fund as a whole, the Quadrant Defined Benefits fund, Launceston City Council (LCC) Defined Benefits fund, the RACT Defined Benefits fund and the Hobart City Council (HCC) Defined Benefits fund were all in a satisfactory financial position. The Actuary concluded that the contribution rates and the restoration plan proposed in the 2014 actuarial review remained appropriate.

Investment feesWe pay fees to our professional investment managers, referred to as the investment fee. The investment fee varies depending on the investment option you've chosen.

The investment fee is deducted from investment returns before they are credited to your account, 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 investment fee is included in the financial statements as a fund expense.

The annualised investment fees for the 2015-16 financial year were:

Investment optionInvestment fee

Super Pension

Growth 0.627% 0.627%

Sustainable 1.103% 1.103%

MySuper balanced/Balanced 0.607% 0.607%

Moderate 0.463% 0.463%

Conservative 0.387% 0.387%

Australian shares 0.383% 0.383%

International shares 0.483% 0.483%

Fixed interest 0.303% 0.303%

Cash 0.127% 0.127%

These numbers include additional performance based fees paid to some investment managers if they outperformed agreed benchmarks. Performance based fees totalling $792,715.97 were paid to Perennial Growth, BlackRock Multi Opportunity, Goldman Sachs Asset Management, AQR Delta and Tasmanian Growth & Development Fund.

For more information about fees and costs payable on your Tasplan account, refer to the relevant member guide which is available on our website at www.tasplan.com.au/pds or call us on 1800 005 166, and we'll mail you a paper copy.

Vested benefits $million

Assets $million Vested benefits index

Fund 2016 2015 2014 2016 2015 2014 2016 2015 2014

Quadrant Defined Benefits fund 52.00 58.82 113.1%

HCC Defined Benefits fund 45.42 47.14 103.8%

LCC Defined Benefits fund 63.54 64.69 101.8%

RACT Defined Benefits fund 0.84 1.00 119.0%

Tasplan accumulation 3,267.85 2,494.88 2,213.13 3,267.85 2,494.88 2,213.13 100.0% 100.0% 100.0%

TOTALS BEFORE RESERVES 3,429.65 2,494.88 2,213.13 3,439.50 2,494.88 2,213.13 100.3% 100.0% 100.0%

Total reserves 71.56 40.50 38.94

TOTAL NET ASSETS 3,429.65 2,494.88 2,213.13 3,511.06 2,535.38 2,252.07 102.4% 101.6% 101.8%


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 one to three 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.


Pre-mixed investment options

Growth Sustainable MySuper balanced/Balanced Moderate Conservative

Description This investment option aims to achieve attractive long-term returns, while tolerating a high level of volatility of returns.

This investment option invests in a wide range of assets, with a higher allocation to growth assets such as shares, property and infrastructure, than defensive assets such as cash and fixed interest.

This investment option aims to achieve attractive long-term returns while accepting a medium to high level of investment risk.

This investment option aims to achieve attractive long-term returns while accepting a medium level of investment risk.

This investment option aims to achieve reasonable long-term returns, while limiting volatility to a moderate level, and accepting that this is likely to result in investment returns over the long term that are lower than may be achieved in more equity-oriented options.

Type of investor You’re chasing high returns and don’t mind substantial risk and volatility over more than 10 years.

You want environmentally and socially responsible investments with low to medium risk and volatility over more than 10 years.

You'll tolerate medium to high risk and volitility for decent returns over more than 10 years.

You want a balance between risk and return over five to 10 years.

You’re seeking reasonable returns with a medium volatility over at least three years.

Asset allocation

90% growth10% defensive





Benchmark %

Range %

Benchmark %

Range %

Benchmark %

Range %

Benchmark %

Range %

Benchmark %

Range %

Cash - Australian 1 0-10 3 0-15 3 0-15 17.5 0-25 30 0-50

Fixed income - Australian 1 0-10 5 0-15 5 0-15 8.5 0-15 12 5-30

Fixed income - international 2 0-10 9 0-15 9 0-15 12.5 0-15 16 5-30

Fixed income - other 3 0-7 3 0-7 3 0-7 2.5 0-7 2 0-5

Equity - Australian listed 30 20-50 24 15-45 22 15-45 15 10-30 9 0-20

Equity - international listed 37 20-50 25 15-45 27 15-45 18.5 10-30 11 0-20

Equity - other unlisted 5 0-10 5 0-10 5 0-10 2.5 0-10 0 0-5

Property - Australian listed 3 0-10 2.5 0-7 2.5 0-7 1.5 0-7 0 0-5

Property - unlisted 5 0-10 6.5 0-10 6.5 0-10 4.5 0-10 4 0-8

Property - international listed 2 0-10 2.5 0-7 2.5 0-7 2 0-7 2 0-5

Infrastructure - unlisted 5 0-10 6.5 0-10 6.5 0-10 3.5 0-10 2 0-8

Other - listed 6 0-10 8 3-15 8 3-15 11.5 3-15 12 0-20

Investment return objective1 CPI + 4.5% a year over rolling 7 year periods.

CPI + 3% a year over rolling 5 year periods.


CPI + 2.5% a year over rolling 5 year periods.


Minimum suggested time frame

10+ years. 10 years. 5-10 years. 10 years. 3-5 years.

Risk level2 High – risk band 6.

You may expect 4-6 negative annual returns in a 20 year period.

Medium to high – risk band 5.


Medium to high – risk band 5.


Medium – risk band 4.


Low to medium – risk band 3.


1 The investment return objectives are after fees and taxes.

2 Refer to www.tasplan.com.au/risk for more information about these risk measures.

Your investment optionsThe following tables show the investment strategy and objective for each of our investment options as at 30 June 2016.


Single sector investment options

Australian shares International shares Fixed interest Cash

Description This investment option aims to maximise long-term investment returns through diversified investments in Australian shares. Returns are likely to be very volatile.

This investment option aims to maximise long-term investment returns through diversified investments in international shares. Returns are likely to be very volatile.

This investment option invests in a diversified portfolio of fixed interest type securities.

This investment option aims to ensure security of capital and to limit year-to-year variability through a diversified investment in cash.

Type of investor You’re prepared to risk your account balance to go after big returns over more than 10 years.

You’re prepared to risk your account balance to go after big returns over more than 10 years.

You’re seeking better than basic returns but with low risk and volatility over five years.

You want very low risk and fairly consistent but low returns over any length of time.

Asset allocation

100% growth 100% growth 100% defensive 100% defensive

Benchmark % Range % Benchmark % Range % Benchmark % Range % Benchmark % Range %

Cash 100 100

Fixed income - Australian 37.5 25-75

Fixed income - international 37.5 25-75

Fixed income - other 10 0-25

Equity - Australian listed 100 100

Equity - international listed 100 100

Equity - other unlisted

Property - Australian listed

Property - unlisted

Property - international listed

Infrastructure - unlisted

Other - listed 15 0-25

Investment return objective1 CPI + 5% a year over rolling 7 year periods.


CPI + 1.5% a year over rolling 10 year periods.

Positive returns in all years.

Minimum suggested time frame

10 years. 10 years. 5 years. 1-3 years

Risk level2 High – risk band 6.

You may expect 5 negative annual returns in a 20 year period.

High – risk band 6.

You may expect 5 negative annual returns in a 20 year period.

Low to medium – risk band 3.


Very low – risk band 1.

You may expect less than 0.5 negative annual returns in a 20 year period.

1 The investment return objectives are after fees and taxes.

2 Refer to www.tasplan.com.au/risk for more information about these risk measures.


Defined Benefits fundsThe Quadrant Defined Benefits fund, the Hobart City Council (HCC) Defined Benefits fund, the RACT Defined Benefits fund and the Launceston City Council (LCC) Defined Benefits fund were transferred to Tasplan on 1 December 2015 as part of the merger with Quadrant Superannuation Scheme. These defined benefit funds are closed and consists only of those members who have not exited or transferred from the funds. There were no changes to member accounts, benefit calculations or how the fund was invested when transferred to Tasplan.

Interest crediting rates

The return you receive on your accumulation account is calculated by applying the fund’s crediting rate to your account. The crediting rate is calculated based on the investment return on the fund’s assets, adjusted for fees and taxes in accordance with the crediting rate policy adopted by the trustee. The crediting rate for the fund may be positive or negative depending on the returns from the underlying investment markets. The trustee determines the investment policy of the fund.

The crediting rates as at 30 June 2016 for the defined benefit funds are shown below. Past performance in not a reliable indicator of future performance.

Fund 2016 2015* 2014* 2013* 2012* Five year average

Quadrant Defined Benefits fund 1.90% 7.90% 11.10% 15.90% -0.60% 7.07%

HCC Defined Benefits fund 1.90% 7.90% 11.10% 15.90% -0.60% 7.07%

RACT Defined Benefits fund 1.90% 7.90% 11.10% 15.90% -0.60% 7.07%

LCC Defined Benefits fund 2.70% 8.70% 11.90% 16.70% 0.20% 7.87%

*Funds transferred to Tasplan on 1 December 2015.

Asset allocation

The following table shows how money was split between the different asset classes in the Quadrant Defined Benefits fund, the Hobart City Council Defined Benefits fund, the Launceston City Council Defined Benefits fund and the RACT Defined Benefits fund as at 30 June 2016.

Asset class Asset allocation

Australian shares 29.9%

International shares 30.6%

Listed property 2.1%

Total listed shares 62.6%

Private equity 0.5%

Unlisted property 9.2%

Unlisted infrastructure 5.1%

Total unlisted assets 14.8%

Alternative debt (EMD) 0.0%

Absolute return 5.0%

Alternative assets 5.0%

Australian fixed interest 7.2%

International fixed interest 4.2%

Cash 6.2%

Cash and fixed interest 17.6%

Fees and costs

The expenses for the operation and management of Tasplan are allocated to members through direct fees and indirect costs. Indirect costs include all ongoing administration, investment management, expense recovery and other fees charged by the fund. Any direct fees charged to your account will be reflected in your member statement as a separate amount.

Indirect costs are calculated based on the actual costs incurred for the overall fund and apportioned to the defined benefits funds. The indirect costs for the year ended 30 June 2016 were:

Fund Indirect costs

Quadrant Defined Benefits fund 1.27%

HCC Defined Benefits fund 1.27%

RACT Defined Benefits fund 1.27%

LCC Defined Benefits fund 0.47%

The administration fee for LCC Defined Benefit members is an expense of the LCC Defined Benefits fund and is not paid by the members.

HCC Superannuation Policy Committee

A Superannuation Policy Committee is set up to oversee the activities of the HCC Defined Benefits fund. As at 30 June 2016, the representatives were:

• member representatives - David Spinks and Mark Painter

• employer representatives - Ald. Jeff Biscoe and Ald. Philip Cocker.

| ANNUAL REPORT 2015-1612

The directors as at 30 June 2016 were:

Name Position Start date Board meetings attended 2015-16

Naomi EdwardsChair, independent director

14 October 2011 8 of 10

Anthony Stacey AM Employer director 24 January 1995 7 of 10

Paul Griffin Member director 13 November 1995 8 of 10

Roz Madsen Member director 4 March 2011 8 of 10

Steve Walsh Member director 10 October 2014 9 of 10

Paul Arnold Employer director 24 March 2015 10 of 10

Susan Parr Employer director 24 March 2015 9 of 10

Allan Garcia Employer director 1 December 2015 7 of 7

Frank Barta Employer director 1 December 2015 7 of 7

Mike Tidey Member director 1 December 2015 7 of 7

Nick Heath Member director 1 December 2015 4 of 7

Directors and Chair also received committee membership and chairmanship fees from 1 December 2015.

Role Name Fee paid

Audit, risk and compliance committee

Chair Nick Heath $12,900

Members Mike Tidey, Steve Walsh, Anthony Stacey $8,600

Investment committee

Chair Naomi Edwards $12,900

Members Roz Madsen, Frank Barta, Paul Arnold $8,600

Remuneration committee


Members Susan Parr, Steve Walsh $4,300

Administration committee

Members Allan Garcia, Paul Griffin, Susan Parr $4,300

RBF merger governance committee


Members Roz Madsen, Frank Barta $4,300

Who manages TasplanOur board

Tasplan’s trustee is Tasplan Pty Ltd, ABN 13 009 563 062.

The trustee board is responsible for all decisions regarding the management and operation of Tasplan to ensure that it’s run in the best interests of members.

During the 2015-16 financial year, the following directors retired from the board:

• Barrie Macdonald

• Angela Briant.

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

Director remuneration

Directors were paid an annual fee of $43,044 for the 2015-16 financial year. The Chair was paid an annual fee of $85,840 plus a short-term allowance of $12,000 relating to the additional work associated with the merger with Quadrant and the upcoming merger with RBF.

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:

• Audit, risk and compliance committee

• Investment committee

• Remuneration committee

• Administration committee

• RBF merger governance committee.


Director Financial year

Short-term benefitsCash salary, fees and

short‑term compensated absences

Post employment benefitsSuper and pension benefits

Total(Note 5)

Third party payments

Included in short‑term benefits

Naomi Edwards

Chair

Term: 14/10/2011 - current

2015-16 $107,707 $10,306 $118,013

2014-15 $115,196 $11,520 $126,716

Anthony Stacey


2015-16 $15,388 $34,780 $50,168

2014-15 $8,211 $32,721 $40,932

Barrie Macdonald

Term: 01/07/2003 - 15/10/2015

2015-16 $12,787 $1,220 $14,007

2014-15 $37,211 $3,721 $40,932

Paul Arnold


2015-16 $46,943 $4,360 $51,303

2014-15 $9,016 $902 $9,918

Susan Parr


2015-16 $45,808 $4,360 $50,168

2014-15 $9,016 $902 $9,918

Angela Briant

Term: 16/05/2003 - 15/10/2015

2015-16 $6,616 $7,391 $14,007 $6,616 (Note 1)

2014-15 $35,139 $5,793 $40,932 $24,277 (Note 1)

Roz Madsen


2015-16 $48,119 $4,579 $52,698 $48,119 (Note 2)

2014-15 $37,211 $3,721 $40,932 $37,211 (Note 2)

Paul Griffin


2015-16 $43,497 $4,140 $47,637 $47,497 (Note 3)

2014-15 $37,211 $3,721 $40,932 $37,211 (Note 3)

Steve Walsh


2015-16 $48,119 $4,579 $52,698 $48,119 (Note 4)

2014-15 $25,760 $2,576 $28,338 $25,761 (Note 4)

Frank Barta


2015-16 $25,834 $7,087 $32,921

2014-15 - - -

Allan Garcia


2015-16 $19,385 $8,475 $27,860

2014-15 - - -

Nick Heath


2015-16 $30,065 $2,856 $32,921

2014-15 - - -

Mike Tidey


2015-16 $27,754 $2,637 $30,391

2014-15 - - -

Note 1: 60% of director fees paid to Unions Tasmania.Note 2: 40% of director fees and 100% committee membership fees paid to Australian Education Union. 60% of director fees paid to Unions Tasmania.Note 3: 40% of director fees and 100% committee membership fees paid to Shop Distributive & Allied Employees Association. 60% of director fees paid

to Unions Tasmania.Note 4: 100% director and committee membership fees paid to Unions Tasmania.Note 5: Total fees paid include committee membership and chairmanship fees.

Director remuneration for 2015‑16 and 2014‑15

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 management team

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

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

The executive officers as at 30 June 2016 were:

Name Position

Wayne Davy Chief Executive Officer

Michael Irwin Chief Operations Officer

Mark Williams Investment Manager

Greg Hanigan Company Secretary

Steve ThomasGeneral Manager Fund Administration & Technology

Executive officer

Financial year

Short-term benefitsCash salary, fees and

short‑term compensated absences

Post employment benefits

Super and pension benefits

Non-monetary benefits (Note 1)

Performance bonus

Termination payments

Total

Wayne Davy

(Note 2)

2015-16 $392,509 $19,959 - $20,000 - $432,468

2014-15 $117,560 $6,502 $4,518 - - $128,580

Michael Irwin 2015-16 $274,651 $41,575 $3,345 $60,000 - $379,571

2014-15 $250,325 $33,718 $2,186 - - $286,229

Mark Williams 2015-16 $203,440 $30,961 $2,456 - - $236,857

2014-15 $161,677 $25,815 $2,094 - - $189,586

Greg Hanigan 2015-16 $164,904 $17,449 $2,347 - - $184,700

2014-15 $138,965 $16,924 $2,478 - - $158,367

Neil Cassidy

(Note 3)

2015-16 $261,934 $35,000 $7,636 - $323,100 $627,670

2014-15 $272,725 $35,000 $13,267 - - $320,992

Steve Thomas

(Note 4)

2015-16 $141,984 $22,688 - $60,000 - $224,672

2014-15 - - - - - -

Note 1: Non-monetary benefits include motor vehicle, parking and expense payment benefits and any associated fringe benefits tax.Note 2: Wayne Davy's remuneration was paid by Quadrant Superannuation Pty Ltd, ABN 82 067 516 938, from 1 July 2015 to 30 November 2015.Note 3: Neil Cassidy, former Chief Executive Officer, terminated his employment with Tasplan due to genuine redundancy on 1 November 2015.Note 4: Steve Thomas commenced as General Manager, Fund Administration & Technology of QT Administration Pty Ltd, a subsidiary of Tasplan, from

1 December 2015.

Specialist service providers

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

Specialist service provider Role ABN

Rice Warner Actuary 35 003 186 883

QT Administration Pty Ltd (100% owned subsidiary of Tasplan Pty Ltd) Administrator 11 602 741 891

Mercer Investments (Australia) Limited Asset consultants 66 008 612 397

NAB Asset Servicing (NAS) Custodian 12 004 044 937

Wise Lord & Ferguson External auditor 23 563 132 864

CommInsurer (Colonial Mutual Life Assurance Society Limited) Insurer 12 004 021 809

KPMG Internal auditor 51 194 660 183

Page Seager Solicitor 37 078 672 294


Our abridged financial reports for 2015‑16Below is a summary of the audited financial statements. The full audited financial statements, trustee declaration and independent audit report is available on our website at www.tasplan.com.au/about-us/governance-and-transparency or call us on 1800 005 166, and we can mail you a paper copy.

The abridged statements were audited by Wise Lord & Ferguson. 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 FundStatement of financial position

For the year ended 30 June 2016

2016 2015

$ $

ASSETS

Cash and cash equivalents

Cash at bank 73,972,416 100,345,789Trade and other receivables

Contributions receivable - 16,676,127Interest income receivable 34,751 -GST receivable 255,120 305,781Sundry debtors 9,028 -Investments

Pooled superannuation funds 88,351,551 72,497,908Australian equities 776,756,429 524,591,017International equities 1,258,375,976 1,023,314,947Other investments 73,903,480 55,368,909Other interest bearing securities 947,545,833 567,574,490Property 311,150,140 222,455,040Other assets

Fixed assets 1,234,787 349,458Intangible assets 1,904,921 596,220Capitalised expenses - 1,066,666Other assets 607,155 300,100Prepayments 466,546 155,908Tax assets

Deferred tax assets 868,856 230,073

TOTAL ASSETS 3,535,436,989 2,585,828,433

LIABILITIES

Trade and other payables

Benefits payable 2,815,253 3,348,913Accounts payable 2,441,448 2,615,012Investment expenses payable 595,845 430,059Sundry creditors 327,798 90,943Provision for employee benefits 1,168,670 583,187Tax liabilities

Superannuation contribution surcharge 9,451 9,451Income tax payable 4,698,498 16,868,667Deferred tax liability 12,312,896 26,504,617

TOTAL LIABILITIES 24,369,859 50,450,849

NET ASSETS AVAILABLE TO PAY BENEFITS 3,511,067,130 2,535,377,584

Represented by:

LIABILITY FOR ACCRUED BENEFITS

Allocation to members accounts 3,267,852,561 2,494,881,951Defined benefit accounts 171,651,600 -Operational risk financial requirements reserve 7,860,363 5,771,037Adminstration reserve 11,367,607 11,367,607Unallocated reserve 52,334,999 23,356,989

3,511,067,130 2,535,377,584

Tasplan Superannuation FundOperating statement

For the year ended 30 June 2016

2016 2015

$ $

INVESTMENT REVENUE

Interest 2,291,459 3,097,278Distributions 204,067,367 77,647,409Other investment income 4,692,119 3,695,144Net foreign exchange gains/(losses) 2,861,537 (1,754,471)Changes in net market value (97,307,601) 153,443,682

116,604,881 236,129,042

CONTRIBUTIONS REVENUE

Employer contributions 216,911,898 204,342,867Member contributions 33,352,682 31,051,018Transfers in 62,340,064 45,895,137Successor fund transfer 809,162,593 -Government co-contributions 716,337 733,490

1,122,483,574 282,022,512

OTHER REVENUE

Proceeds from group life policies 12,241,431 13,293,701Other income 271,196 139,425

12,512,627 13,433,126

TOTAL REVENUE 1,251,601,082 531,584,680

INVESTMENT EXPENSES

Investment manager fee 4,279,267 3,330,329

GROUP LIFE INSURANCE EXPENSES 19,913,098 19,420,697

GENERAL ADMINISTRATION EXPENSES

Administrator expenses 7,728,566 6,369,926Auditor's remuneration 145,049 43,701Anit-detriment payments 105,093 398,364Operating expenses 12,458,893 7,065,986Superannuation contribution surcharge - (75)

TOTAL EXPENSES 44,629,966 36,628,928

BENEFIT ACCRUED BEFORE INCOME TAX 1,206,971,116 494,955,752

INCOME TAX EXPENSE 24,228,332 41,601,617

BENEFITS ACCRUED AFTER INCOME TAX 1,182,742,784 453,353,135


Other things you need to knowHow your account works

Super and pension accounts

If you're a Tasplan Super or a Tasplan Pension member, your account works in a similar way to a bank account—money goes in and money goes out.

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

Defined benefit accounts

If you're a defined benefits member, your super benefits are worked out according to a formula based on a range of factors which may include your age, your salary, your category of membership and how many years you've been a member.

Using a formula means your benefit can be defined in advance. That's why it's called a defined benefit. Your annual member statement gives you all the information you need to work out your payout if you leave.

More information

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

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

Lost and inactive members

If you’re an inactive member with an account balance of less than $4,000 ($6,000 from 31 December 2016) or, if you're over age 65, and there haven't been any contributions or transfers to your account in a two year period, and we haven't been able to contact you for five years, then your super will be sent to the Australian Tax Office (ATO).

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

Tasplan may transfer money to the ATO every six months, and once your account is transferred, your membership with Tasplan will stop and any insurance you may have will cease.

Eligible rollover fund

Legislation allows the trustee to transfer small and inactive member accounts to an eligible rollover fund (ERF). Super Safeguard is our ERF.

If your account is transferred to Super Safeguard your membership with Tasplan will stop, and any insurance you may have will cease. You’ll become a member of Super Safeguard and will be subject to their governing rules, investment options and fee structure.

You can contact Super Safeguard to find out more information about the fund or to obtain a copy of their product disclosure statement:

Address Super Safeguard GPO Box 3426 Melbourne VIC 3001

Phone 1300 135 181

Email [email protected]


Constitution and trust deed amendmentsThe 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 RBF Tasmanian Accumulation Scheme

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

• changes to facilitate the change in company type from Ltd to Pty Ltd

• minor consequential changes.

The amendment to the trust deed include such things as:

• inclusion of required changes for the successor fund transfer of the RBF Tasmanian Accumulation Scheme

• minor consequential changes.

ComplianceWe 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.

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

For more information refer to our complaints handling policy which is available on our website at www.tasplan.com.au/complaints-handling-policy or call us on 1800 005 166, and we’ll mail you a paper copy.

AR-G

EN01 12/2016

tasplan pty ltd annual report 2015-16 · 2018. 10. 16. · 4 | annual report 2015-16 how our...

Documents