2016 yellowbrickroad annual report€¦ · currency devaluation and fears of mounting deflationary...

Annual Report

2016

Super

2016 Annual Report For members of YellowBrickRoad Super

2

Contents

Report from the General Manager, YellowBrickRoad Wealth Management .............................................................. 3

Report from the Board of Trustees .......................................................................................................................................... 4

What’s New ..................................................................................................................................................................................... 5

Investments: Our Year in Review ............................................................................................................................................. 6

Investment Options .......................................................................................................................................................................7

Investment Allocation .................................................................................................................................................................. 8

Investment Performance............................................................................................................................................................. 9

Investment Managers ................................................................................................................................................................. 10

Governance .................................................................................................................................................................................... 11

Important Information.................................................................................................................................................................. 14

Directory ......................................................................................................................................................................................... 17

About this Annual Report

This Annual Report is for members of YellowBrickRoad Super, sub-plan of MAP Superannuation Plan (Div II) ABN 71 603 157 863, SFN 2967 359 49, APRA Registrable Superannuation Entity No R1001587; and referred to in this Annual Report as the Fund or the Plan.

YellowBrickRoad Super and Pension (ABN 71 603 157 863) (‘YellowBrickRoad’) are issued by MAP Funds Management Ltd (ABN 85 011 061 831, AFSL 240753) (‘MAP’) as trustee. YellowBrickRoad Super is distributed by Yellow Brick Road Wealth Management Pty Limited (ABN 93 128 650 037, AFSL 323 825) (‘YBR’) and its authorised representatives. The Product Disclosure Statements (‘PDS’) are available from www.ybr.com.au. This document may contain advice which is general in nature and not specific to your particular circumstances. Before making an investment decision or acting on general advice you should consider your own financial situation, the PDS and whether the particular financial product is right for you. You may wish to seek financial advice.

This information is general in nature and not specific to your particular circumstances. Before making an investment decision you should consider your own financial situation, the PDS and whether the particular financial product is right for you. Product disclosure statements are available from www.ybr.com.au. Information contained herein is believed to be reliable and accurate but may be subject to change. No guarantee is given by the Trustee, Yellow Brick Road Wealth Management Pty Limited, the Custodian, their advisors or any of their associates for the repayment of capital; any particular rate of return on any investment; any tax deduction availability; or the performance of the Fund. Investments in YellowBrickRoad Super are subject to investment risk and other risks including loss of income and capital invested.


3

Staying the course with our clients

2016 has been a big year for YBR Super, formerly RetireRight. Bringing more than just a change of name, the year has also seen our online presence enhanced, providing improved access and greater functionality to this popular client portal.

We have focused this year on providing even greater flexibility for our clients, offering the choice of:

■ Professionally managed investment options – covering the spectrum from Smart Cash, to 50/50, to Go for Growth portfolios, to meet varying client requirements

■ Self-managed investment options, allowing a tailored portfolio to be constructed to individual client requirements – options including combinations of cash, term deposits, direct shares, managed funds, and separately managed account portfolios

■ Default group insurance cover together with comprehensive retail insurance alternatives from TAL, Zurich and now AIA, with a range of policy types and options tailored to provide a personal protection plan to meet individual client needs.

External factors over the year have included uncertain markets, as well as low interest rates and low inflation resulting in lower returns overall. In this more difficult investment landscape our strength and experience have stood our clients in good stead, as we recognise the importance of diversifying in order to manage risk, while also remaining exposed to growth assets to earn income and produce growth in the longer term. In these times, more than ever, the investor needs to be prepared to get good advice, and to stay the course. And this is where YBR Super comes in.

Looking ahead to FY17, we are committed to ensuring our clients continue to receive the same solid professional advice that they have come to expect of us, and to further enhance the options we are able to offer to them.

We look forward, in particular, to adding more insurance options over the coming year, in order to provide an even more flexible mix for our clients.

Kind regards

Adam Youkhana GM, Wealth Management Yellow Brick Road


4

Report from the Board of Trustees Welcome to our annual report for the year to June 2016. The year presented market challenges, consolidation and changes for the better along with continuing commitment to serving members.

Overall, it’s been a year of careful progress for the Fund in the face of international economic headwinds caused by factors such as the Brexit vote, reduced interest rates and uncertainty in Australia caused by proposed changes to super and by the federal election.

The Trustee is part of the expanding OneVue Group, which provides superannuation and investment management solutions and has more than $3.2 billion in funds under management. OneVue’s $177 million merger with the Diversa group this year helps to make the company even stronger and carves out a broader financial services footprint across administration for funds and superannuation.

Leveraging the strength of this group is an important priority for the Trustee and this continued to be a key strategy through the year.

The Trustee has been focussing on building a stronger fund for members benefit. We aim to provide a high quality of service to members and ensure that the Fund complies with all relevant legislation, audit and regulatory requirements.

The Board provides leadership and vision for the organisation and monitors investment strategies and returns for each product.

Investment Management

It’s been a challenging year for financial markets, with superannuation returns for median balanced funds at their lowest levels in the general market since 2012. Against this background, our in-house investment managers have strived this year to maintain a diversified exposure within our multi-asset portfolios. We have a very capable investment team which is dedicated to providing

you with research, economic analysis and portfolio management.

Risk Reserve

In order to provide ongoing assurance and protection for members, we have now fully funded the Operational Risk Financial Reserve in accordance with APRA standards. This provides for protection against member losses arising from an operational risk event.

After a recent review it was confirmed that costs would be lowered from 1 August for indirect costs associated with this Reserve. An Expense Reserve Ratio will also be set up for non-administration costs of the fund. Overall, members will benefit from a drop of 0.10% p.a. in indirect costs.

Outlook

The Board would like to thank you for entrusting your retirement savings to us. The Board would also like to thank the management team and staff for their dedication and efforts in administering the superannuation fund.

With political and economic uncertainty dominating the landscape at the moment the Board will continue to manage the superannuation fund so that it continues to meet the needs of members in a world of continuous change in investment markets, regulation and technology.

Vin Plant Chair MAP Trustee Board


5

What’s New Proposed changes to Super

Proposed changes to superannuation for 2016-17 and beyond were announced in the Federal Budget on May 3, 2016. These were further updated through legislation of the changes. The changes impact several areas including contribution limits and new pension limits.

For further details on this and what this means for you please refer to our quarterly newsletter, which can be found on our website at www.mapfunds.com.au

Co-contribution thresholds

The co-contribution thresholds have been indexed for inflation. The full co-contribution rate now applies to incomes up to $36,021 and the partial co-contribution to incomes up to $51,021.

Maximum Contribution Rate

High-income earners should take note that the maximum contribution base for super was indexed. This means that the 9.5% super guarantee now applies to incomes up to $206,480.

Assets test pension changes

The following changes take effect from July 2017.

From 2017, the assets threshold will increase, which means that some Australians will lose their right to qualify for the age pension. The assets threshold does not apply to the value of your home.

Homeowner Not a homeowner

Single $250,000 $450,000

Couple $375,000 $575,000

If you’re eligible to receive the age pension and the total value of your assets is above the threshold, the amount of age pension you receive will decrease faster than it currently does.

Currently, it will decrease by $1.50 per fortnight, for every $1,000 you have over the threshold. In 2017, it will decrease by $3.00 per fortnight, for every $1,000 you have over the threshold. It’s estimated that just over 300,000 retirees will lose some, or all, of their pension entitlements.

What can you do to retain your pension?

Not everything you own is actually counted towards your assets for the purposes of the test – for example, your family home is not included in your total assets. Since everyone’s financial position and asset portfolio is different, it is important to get professional advice from a financial planner with expertise in retirement income.

.


6

Investments: Our Year in Review Dragana Timotijevic Head of Research

The trend of soft economic growth, lower and more volatile returns continued througout the 2015/2016 Financial Year. Given this environment, it is pleasing to note that during the year up until June 2016, all multi asset options generated positive returns, albeit below the objectives.

The beginning of the Financial Year was characterised by increased volatility on the back of the Chinese currency devaluation and fears of mounting deflationary pressures. Volatility spiked up again at the beginning of 2016 with major equity markets being sharply sold off during the March quarter. However, central banks stepped in with the US Fed Reserve pulling back from raising interest rates and the European Central bank announcing another round of quantitative easing through an expended bond buying program. The Japanese central bank pushed the deposit rate into negative territory while the Chinese authorities accelerated the social financing program. In May, the RBA cut interest rates to 1.50%.

Towards the end of the Financial Year, the markets were once again rattled by the uncertainty related to the British referendum. In spite of the unexpected Brexit vote, the markets rallied after the event as the central banks came to the rescue once again.

Fixed Income allocations are most impacted by central bank policy settings, with over $13 trillion of Government Bonds now in negative yield territory. Essentially, investors have been pushed out the risk curve to achieve positive yields let alone their long term target rates of return.

As in the previous FY, both domestic and global Listed equities were the strongest returning asset classes.

Bonds also offered decent returns, while the performance from equities was mixed.

Over the next twelve months we expect the economic backdrop to be shaped by the same themes, which to a varying degree, have prevailed over the last year. In summary, we expect the continuation of slow growth, low inflation and extremely low interest rates. The “lower for longer” growth scenario accompanied with high valuations for both equities and bonds suggest that returns are likely to be more modest going forward compared to the ones experienced over the last several years.

Portfolio Management

The investment team has continued to focus on refining the mix of managers within the major sectors, while ensuring careful use of the investment management fee budget. Hence, Index strategies have remained a large part of Australian and International Equities while the portfolios maintained a relatively sizeable allocation to alternative assets as they tend to provide a more stable and consistent pattern of returns relative to equities.

New investments The investment team added three new investment managers: Northcape (Emerging Markets), T Rowe Price (Global Dynamic Bond Fund) and Invesco (Global Target Return Fund) with a view of increasing the bias towards more active, absolute return managers.

Redeemed investments

The Fund redeemed from the following managers: Schroders Investment Management, Barwon Investment Partners, Colonial First State Investments, Dimensional Fund Advisers, QIC and Perennial Investment Partners Ltd.

Objectives and strategies

In the three years to June 2016, all options delivered returns above the objectives. However, during the year up to June 2016, only the Diversified Property option generated returns above the objectives.

Dragana Timotijevic


7

Investment Options As at 30 June 2016

Smart Cash 50/50 Go for Growth

Suitable for: Members who prefer low risk and a high level of security on their account balance and prefer a lower cost option

Members who seek moderate to high returns over the medium to long term in a diversified investment option, and who are comfortable accepting fluctuations in their account balance over the medium to long term

Members who seek to maximise returns over the long term in a diversified investment option, and who are comfortable accepting fluctuations in their account balance over the long term

Investment Return Objective

CPI + 1.50% CPI + 2.50% CPI + 3.50%

Minimum Suggested Time Frame

1 year 3 – 5 years 7 or more years

Standard Risk Measure* Very Low Risk: with an estimate of up to half a year of negative annual return over any 20 year period

Medium: with an estimate of between two and three years of negative annual returns over any 20 year period

High Risk: with an estimate of between four to six years of negative annual returns over any 20 year period

Investment Allocation Range

Div. fixed interest 0-100%

Cash 0-100%

Aust. equities 10-30%

Intl. equities 10-35%


Div. property 0-20%

Alternative assets 0-20%

Cash 10-60%

Aust. equities 10-45%

Intl. equities 15-50%


Div. property 0-25%

Alternative assets 0-25%

Cash 2.5-25%

Defensive vs Growth Asset Allocation

100% Defensive

0% Growth

40-60% Defensive

40-60% Growth

5-25% Defensive

75-95% Growth

* Standard Risk Measure Guidance; The Standard Risk Measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a customer may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s.


8

Investment Allocation Asset Allocation

Investment option allocation by asset class (as of 30 June 2016)

YellowBrickRoad Super

Investment Option

Option size ($)

Asset class allocation (%)

Australian Equities

International Equities

Diversified Property

Diversified Fixed Interest

Cash Alternatives

2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015

Smart Cash 3,908,964 - - - - - - 60.6 60.0 39.4 40.0 - -

50/50 36,804,133 15.2 19.7 20.1 14.9 7.7 10.0 30.0 30.3 19.3 20.1 7.6 4.9

Go for Growth 52,539,646 25.3 32.1 35.2 25.2 12.5 20.1 10.0 10.1 4.6 2.5 12.5 10.0

TOTAL 93,252,743

YellowBrickRoad Pension

Investment Option

Option size ($)

Asset class allocation (%)

Australian Equities

International Equities

Diversified Property

Diversified Fixed Interest

Cash Alternatives

2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015

Smart Cash 3,725,637 - - - - - - 60.6 60.0 39.4 40.0 - -

50/50 7,530,761 15.3 19.7 20.0 14.9 8.0 10.0 30.0 30.2 19.3 20.2 7.4 5.0

Go for Growth 8,332,544 25.3 32.4 35.1 24.7 12.4 20.1 10.0 10.1 4.6 2.5 12.6 10.1

TOTAL 19,491,444


9

Using Derivatives

The Trustee may use derivatives to manage risk or gain exposure to types of investments where we believe it is appropriate. Derivatives include a wide assortment of instruments such as forwards, futures, options, swaps, and warrants. Derivatives are used to control risk, improve returns or to change asset class weightings as part of an overall investment strategy. Derivatives are not used for speculation. All derivatives are cash or security backed and no gearing of positions is allowed.

Investment Performance Investment Returns

For fair comparison purposes, returns shown are net of all investment fees, administration fees and taxes. Past performance should not be relied upon as an indication of future returns. Actual returns will be determined by the investment strategy adopted and prevailing market conditions.

YellowBrickRoad Super Returns (%)*

Investment Option 2016 2015 2014

Smart Cash 2.5 2.7 3.9

50/50 2.0 6.6 9.5

Go for Growth 1.7 8.8 14.0

YellowBrickRoad Pension Returns (%)*

Investment Option 2016 2015 2014

Smart Cash 2.9 3.3 3.9

50/50 2.9 6.9 10.3

Go for Growth 2.9 9.4 15.1

* Returns are to 30 June 2016 and net of all investment fees, administration fees and taxes.

** The Fund and the investment options opened from 1 May 2013. Subsequently 3 and 4 year returns, and 5 and 10 year compound returns are unable to be determined.

Neither past performance nor volatility is a reliable indicator of what may happen in the future. Neither capital nor returns is guaranteed. Past performance is calculated pre-tax and after fees and expenses, assumes distribution reinvestment but does not take into account inflation.


10

Investment Managers Investment Managers of YellowBrickRoad Super and YellowBrickRoad Pension

Bennelong Australian Equity Partners Pty Ltd

Bennelong Avoca

BlackRock Investment Management (Australia) Limited

Grantham, Mayo, Van Otterloo & Co

Lazard Asset Management Pacific Co

Macquarie Investment Management Limited

Mercer (Australia) Pty Ltd

Northcape Capital Pty Ltd

Select Investment Partners

Schroder Investment Management Australia Limited

T Rowe Price International Ltd

YBR Funds Management Pty Ltd

Concentration of Assets of YellowBrickRoad Super and YellowBrickRoad Pension

As at 30 June 2016, the following underlying investments exceeded 5% of the total assets of the Fund:

■ Macquarie Investment Management Limited (24.3%)

■ BlackRock Investment Management (Australia) Limited (13.6%)

■ YBR Smarter Money Investments (11.2%)

■ Mercer (Australia) Pty Ltd (8.2%)

The Trustee acknowledges that, as a result of member discretion, individual accounts may have a greater than 5% exposure to a single investment.

Further, the Trustee acknowledges that when considered in aggregate (across all options in which the Trustee holds assets on behalf of members of the Fund), the Fund may be construed as having a total exposure to a single investment manager and this exposure may exceed 5% of the total value of the Fund.


11

Governance The Trustee

YellowBrickRoad Super is a sub-plan of the MAP Superannuation Plan. MAP Funds Management Ltd (ABN 85 011 061 831) is Trustee of the Plan. MAP holds an Australian Financial Service Licence (No. 240753) and a Registrable Superannuation Entity Licence (No. L0000703).

No penalties were imposed this year on any responsible person under Section 38A of the Superannuation Industry (Supervision) Act 1993.

This year, fees totalling $3.79 million were charged to the Plan to meet both of the following:

■ Management Costs

■ APRA financial requirements

A copy of the audited financial statements and APRA returns are available upon request.

The Board

The Board provides leadership and vision for the organisation and monitors investment strategies and returns for each product. It ensures compliance with all legislative and regulatory requirements, to give MAP members security and peace of mind about their investments.

The Board’s commitment includes all of the following:

■ Adopting a Directors’ Charter and Role Statement

■ Focusing on future strategy and planning

■ Building and maintaining a culture of compliance and accountability to members and regulators

■ Regular meetings between the Audit, Risk Management and Compliance Committee and MAP’s Auditors to ensure a direct and proactive relationship with respect to the monitoring of internal financial controls

■ Annual performance reviews for members of the Board and management

Board Members

Following are the profiles of Board members as at 30 June 2016:

Mr Vincent Plant BBus Fin, MBA, F Fin, MAICD

Vin Plant was appointed as Chair of the MAP Trustee Board in November 2015.

Mr Plant is a Sydney-based financial services specialist and chairman of the MAP Trustee Board. Mr Plant, who has served as a non-executive director on the PayPal Australia Board since 2009, has been Chairman of PayPal's Audit & Risk Committee since 2010. A former investment banker, he was a Partner at HSW Capital from 2009 to 2010 and held various senior positions at Standard Chartered Bank from 1991 to 2008. Vin is a fellow of FINSIA and a member of the Institute of Company Directors.

Mr Garry Wayling BComm ACA GAICD

Mr Wayling was appointed as a Director of the MAP Board in May 2014 and is a member of the OneVue Board. He brings with him more than 30 years of experience in professional services, primarily in external audit and advisory roles with Arthur Andersen and Ernst and Young. He is an independent Director of Inabox Limited, Eaton Vance Australia, AppDynamics Australia, and Odyssey House as well as an ex-officio member of the Board Audit Risk Committee for Mission Australia.


12

Mrs Karen Gibson BSc MBA GAICD Mrs Gibson was appointed as Chair of the MAP Trustee Board in February 2015 and as Director of the MAP Board in February 2013. She has senior executive experience in the superannuation industry and consults with for-profit and not-for-profit organisations. Mrs Gibson is a graduate member of the Australian Institute of Company Directors and fellow member of the Australian Institute of Management.

Mr Robert J Brown BSc, M.A. (Applied Mathematics), Grad. Dip. Applied Finance, GAICD

Robert Brown was appointed as a Director of the MAP Trustee Board on March 22, 2016. He is the founder of Alford Brown & Associates, a consultancy providing insight and perspective to leading financial services organisations. Mr Brown draws on significant industry experience having previously held senior executive roles with HSBC, National Australia Bank, Westpac and State Street. Along with his recent appointment to the MAP Trustee Board, Mr Brown holds directorships in both the for-profit and not-for-profit sectors.

.

Board Committees

The Board of the Trustee is committed to strong principles of corporate governance, including continuous improvement of its performance and processes.

The following committees assist the Board, which in some cases involves engagement of external experts:

■ Investment Committee; and

■ Audit, Risk Management and Compliance Committee

■ Human Resources, Nominations and Remuneration Committee

Members of all committees are appointed by the OneVue Holdings Limited Board. OneVue Holdings Limited is the ultimate parent company of MAP Funds Management Limited.

Ethics

We observe the highest ethical standards in formulating corporate policies and business practices. We embrace transparency, honesty, integrity and consistency in our decision-making and communication, and our firm commitment to responsible corporate governance requires us to remain proactive in meeting the:

■ Regulatory standards specified by government and industry

■ Legal duties of directors; and

■ Law.


13

Committee members as at 30 June 2016

Committee Members

Audit, Risk Management and Compliance Committee

Mr Garry Wayling (Chair) Ms Gail Pemberton Ms Greta Thomas Ms Karen Gibson

Investment Mr Robert Brown (Chair) Mr Michael Cole Mr Brendan Foley

Human Resources, Nominations and Remuneration

Ms Karen Gibson (Chair) Ms Gail Pemberton Ms Greta Thomas

The below directors have resigned from the MAP Funds Management Ltd Board during the Financial Year 2016:

Mr Adriaan C. Ryder – resigned on 5th February 2016.

Ms Gail Pemberton – resigned on 30th November 2016.

Ms Greta Thomas – resigned 2nd October 2015.

Audit and Risk Management

Our comprehensive risk management program identifies analyses, evaluates, treats, monitors and communicates risk.

MAP has professional indemnity insurance cover and other internal arrangements in place in respect of financial services provided to its retail clients. This is intended to cover claims in relation to the conduct of both past and present representatives of MAP. These arrangements comply with the requirements of Section 912B of the Corporations Act 2001.

Code of Conduct

MAP’s Code of Conduct is based on utmost good faith and ‘high trust’ and guides our interactions with employees, clients, business associates and other stakeholders. Staff know its underlying principles, and are aware that failure to observe them could lead to dismissal.

These principles focus on honesty, integrity, objectivity, compliance with the law, respect for equal opportunity and cultural diversity, confidentiality, avoidance of conflicts of interest and the pursuit of excellence in skills, services and problem solving.

Ethics

We observe the highest ethical standards in formulating corporate policies and business practices. We embrace transparency, honesty, integrity and consistency in our decision-making and communication, and our firm commitment to responsible corporate governance requires us to remain proactive in meeting the:

■ Regulatory standards specified by government and industry

■ Legal duties of directors

■ Law

The Trust Deed

The governing rules of the Fund are set out in the MAP Master Superannuation Plan Trust Deed.

The Board has some powers to alter the Trust Deed. The only changes to the MAP Master Superannuation Plan Trust Deed throughout the financial year were amendments to include the ability to offer a MySuper product. The Trustee does not yet have a MySuper licence.


14

Important Information Abridged Financial Information MAP Superannuation Plan (Div II)

Set out below is the abridged financial information relating to the MAP Superannuation Plan (MAP Super) and the MAP Pension Plan (MAP Pension).

As sub-plans of the MAP Master Superannuation Plan (Div II), YellowBrickRoad Super and YellowBrickRoad Pension financial information is included in these financial statements. If you would like to obtain a copy of the Funds’ full audited financial statements and related audit reports for the financial year, please contact us.

Net Assets (at 30 June 2016)

DIV II

$’000

Opening Net Assets 388,132

Increase (decrease) 21,093

Closing Net Assets 409,225

* From 31st October, refer to website audited figures.

Abridged Financial Information – MAP Pooled Superannuation Trust (Div IV)

Set out below is the abridged financial information relating to the MAP Pooled Superannuation Trust (Div IV).

If you would like to obtain a copy of the Funds’ full audited financial statements and related audit reports for the financial year, please contact us.

Net Assets (at 30 June 2016)

MAP Pooled Superannuation Trust

$’000

Opening Net Assets 398,393

Increase (decrease) 19,528

Closing Net Assets 417,921

Reserves

The trustee maintains the following reserves.

■ Operational Risk Financial Requirement ORFR)

The Reserve complies with prudential requirements and can only be utilised for the purpose of rectifying losses to members and/ or beneficiaries of the Fund caused by operational risk events such as incorrect benefit payments due to human or system error, unit pricing errors and loss of data. The reserve is funded from fees and other costs – refer current PDS for more information.

■ Taxation and Expense Reserve

The Reserve complies with prudential requirements and is utilised for the payment of fund fees, costs, tax and levies. The Reserve is funded through fees and other costs – refer to current PDS for more information.

Reserves (at 30 June 2016) MAP Superannuation Plan

2016

$’000

2015

$’000

2014

$’000

Opening Balance 0 0 0

Increase (decrease) in Reserves

1,317 0 0

Closing Balance 1,317 0 0


15

Reserves (at 30 June 2016) MAP Pooled Superannuation Trust

2016

$’000

2015

$’000

2014

$’000

Opening Balance

3,387 1,267 1,772

Increase (decrease) in Reserves

681 2,120 (505)

Closing Balance 4,068 3,387 1,267

Allocating net earnings to members’ accounts

The value of the notional units in each Managed Investment option, and the unit price for each option, change with the value of all of the underlying assets of the investment option you have chosen.

Unit pricing is calculated using the following steps:

Step 1 – Each day we calculate the net value1 of the assets we attribute to each investment option.

Effective January 2015, this changed from three times weekly to daily pricing.

Step 2 – This value is then divided by the number of units we have on issue in the investment option.

These steps give us the unit price at which we value units for the allotment of net earnings of the fund to members’ accounts. It also provides us with the unit price at which contributions, withdrawals, rollovers and switches between investment options are transacted. In the event of significant market movements, unit pricing may be delayed until a unit price can be struck which accurately reflects the underlying asset values. This may result in a delay in the processing of the transactions listed above. 1Investments with external Investment Managers are valued daily, with the exception of some investments in alternative assets such as hedge funds and infrastructure, which may be priced monthly.

Indemnity insurance The fund through the OneVue Group has taken out insurance to indemnify the directors and responsible officers from loss resulting from any

claim or wrongful act by the trustee or any other party. The directors are not indemnified against penalties or fines imposed by law from a lack of good faith, negligence or dishonest conduct.

Unclaimed money

Legislation requires the Trustee to transfer benefits to the Australian Taxation Office (ATO) when money is classified as Unclaimed Super. There are two ATO reporting periods when the information and superannuation benefits are required to be sent to the ATO on 31 October for the 30 June period and on 30 April for the 31 December period.

Set out below is an outline of when money may be classified as unclaimed superannuation – more information is available from the ATO at https://www.ato.gov.au/Forms/Unclaimed-super-money-protocol/

1. Age 65 - your account has been inactive for two years or more, and we have not been able to make contact with you for five years;

2. Deceased member - the trustee is unable (after reasonable endeavour) to locate a beneficiary to pay your benefit to;

3. Temporary residents – temporary residents permanently leaving Australia have up to six months to claim their super and if not claimed the amount will be transferred to the ATO;

4. Former temporary resident member and you have not claimed your benefit after six months from your visa expiry or cancellation date and you are not Australian or New Zealand citizen; or

5. Small and Lost member - when your balance is less than $4,000* (increasing to 6000 from 31 December 2016) and you are considered as;

■ non-contactable (two pieces of mail sent to you have been returned undelivered and no contributions or rollovers received within the last 12 months; or

■ inactive member (no rollovers or contributions received from you in the last five years), and there has been no positive act from you advising that you wish to stay with us.


16

16

How are the account balances calculated?

The balance of a member account is equal to the number of units held multiplied by the applicable unit price.

Member Statements

Annual statements are distributed after the end of the financial year.

Eligible Rollover Fund

There are no circumstances in which the Trustee would pay a member benefit to an eligible rollover fund (ERF). For details on the Trustee’s ERF refer to the Directory of this report.

Complaints

If you have a complaint about the Trustee or your RetireRight account, including insurance, please contact our Complaints Officer:

Telephone: 1800 640 055

Write to: The Complaints Officer YellowBrickRoad Super PO Box 1282 Albury NSW 2640

We will do everything we can to resolve the issue as quickly as possible. If you are dissatisfied with our decision regarding your complaint or we have not made a decision within 90 days, you may take your complaint to the relevant external dispute resolution scheme.

The Superannuation Complaints Tribunal (SCT) is an independent body established by the Commonwealth Government to review trustee decisions relating to members. To find out if the SCT can handle your complaint and determine the type of information you would need to provide, you should contact the SCT:

Telephone: 1300 884 114

Website: www.sct.gov.au

Email: [email protected]

Write to: Superannuation Complaints Tribunal Locked Bag 3060 GPO Melbourne VIC 3001

Access to the SCT is free of charge.

You can also find out more about Yellow Brick Road’s complaint Charter via Yellow Brick Road Online.

17

Directory MAP Funds Management Ltd Level 5, 10 Spring Street Sydney NSW 2000

ABN 85 011 061 831 AFSL No. 240753 APRA RSE Licence No. L0000703

Chief Executive Officer: Connie Mckeage

Chief Financial Officer: Ashley Fenton

Head of Research: Dragana Timotijevic

Superannuation Complaints Tribunal

Locked Bag 3060 GPO Melbourne VIC 3001 Phone 1300 884 114 Website: www.sct.gov.au

Auditors

BDO East Coast Partnership Level 14, 140 William Street Melbourne VIC 3000

Custodian

JP Morgan Nominees Australia Limited Level 21, 55 Collins Street Melbourne VIC 3000

Website: www.jpmorgan.com.au

Administrator

OneVue Super Services Level 2, 540 Swift Street Albury NSW 2640

Eligible Rollover Fund

AUSfund Unclaimed Super Fund PO Box 2468 Kent Town SA 5071

Website: www.ausfund.net.au

Promoter

Yellow Brick Road Wealth Management Pty Ltd Mezzanine�Level1�Chifley�Square Sydney NSW 2000

Contact YellowBrickRoad Super

PO Box 1282, Albury NSW 2640

Phone: 1800 850 538

Website: www.ybr.com.au/super

2016 yellowbrickroad annual report€¦ · currency devaluation and fears of mounting deflationary...

Documents