Investments
> Crediting Rates
> Interim crediting rate policy
> Investment objectives
> Investment strategy
> Asset allocation
> Reserving and crediting rate policy
> Insurance Administration Reserve
> Investment returns and errors
Investment performance over the 12 months ended 30 June 2011 has seen a mixture of strong results for the majority of the year, with a general fall in share markets in Australia and overseas at the end of the financial year.
For the twelve months ended 30 June 2011, the AUST(Q) Super earning rate was 8.2%*. This was made up of 5.02% for the six months ended 31 December 2010 and 3.03% for the six months ended 30 June 2011.
6 months ending |
Credited six monthly (p.a.)*
|
Year ended 30 June (p.a.)*
|
CPI for Year ended 30 June
|
| 30/06/11 | 3.03% |
8.20% |
3.60% |
| 31/12/10 | 5.02% |
||
| 30/06/10 | 0.00% |
10.00% |
3.10% |
| 31/12/09 | 20.81% |
||
| 30/06/09 | 4.00% |
-11.97% |
1.50% |
| 30/12/08 | -25.29% |
||
| 30/06/08 | -6.90% |
-3.43% |
4.50% |
| 31/12/07 | 0.00% |
||
| 30/06/07 | 16.84% |
16.00% |
2.10% |
The investment returns quotes are an average for the fund and your personal return might be different, depending on when you joined the fund and when your contributions were received.
To obtain the most recent crediting rate, call the AUST(Q) Customer Service Centre on 1800 637 698.
Interim investment returns are declared monthly and applied to members’ balances from the date of last declared rate, where the member leaves the Fund. The interim rate will be determined based on the earning rates of the various underlying investment products the Fund invests in and after an allowance for tax and fees. The estimated tax rate used for the Fund is 9%. However, the Trustee may vary the interim crediting rate at any time, cognisant of the performance of the Fund.
In periods of extreme market movements (defined as a movement of greater than 5% in a day) the Trustee may temporarily suspend payments, or declare a new interim rate outside of the monthly cycle.
The interim crediting rate will apply from the next business day following approval by the Board.
To obtain the most recent interim crediting rate, call the AUST(Q) Customer Service Centre on 1800 637 698.
The Fund aims to:
Ensure that the per annum rate credited to members will exceed the annual rate of increase in the CPI in most years.
Maximise the rate credited to members in excess of the CPI increase, after taking account of the risks associated with various types of investment. Consistent with this, the Trustee acknowledges that occasional negative returns may occur.
Earn above median three year returns relative to the return in the Mercer Pooled Fund Survey.
Over a one year period to out perform the notional return of the benchmark portfolio.
These objectives are intended to be consistent with any applicable legislation and regulations which, from time to time, may regulate the manner of investment of the Fund and may be modified accordingly.
The investment strategy adopted is an asset allocation normally set within ranges by the Trustee. Professional investment managers may, if appropriate, be appointed who will actively vary the asset allocation of funds under their management within the Fund's overall asset allocation ranges set by the Trustee. The Trustee will regularly monitor the aggregate asset allocation of the Fund. The Fund does not have direct derivative exposure as the Fund invests in Pooled Investment Trusts.
Asset allocation as at 30 June 2011
| Australian equities |
34.80% |
| Overseas equities |
19.40% |
| Property |
14.90% |
| Fixed interest |
12.50% |
Opportunities |
13.60% |
| Cash |
4.80% |
Asset allocation as at 30 June 2010
Australian equities |
35.10% |
Overseas equities |
18.50% |
Property |
12.80% |
Fixed interest |
14.00% |
Opportunities |
15.70% |
Cash |
3.90% |
Reserving and crediting rate policy
The Fund maintains an Investment Fluctuation Reserve. The Reserve will be used in periods of poor investment markets to increase the crediting rates to members, and will be added to in periods of above average returns. The Trustee having regard to the actual after-tax and expenses return and the amount in the Reserve will determine the actual rate to be credited to members' accounts. The Trustee may take into account other factors relevant to the maintenance of equity in the Fund. Interest will be credited at the applicable interim crediting rate if benefits are paid at other times.
*Note: past investment performance is not a reliable indicator of future performance.
Insurance Administration Reserve
Subject to the claims experience of the Fund, insurance premiums can be reduced by up to a 10% rebate. When such rebate applies, the Trustee has decided to apply the rebate to an insurance administration account that will be used to cover costs to the Fund of providing insurance benefits.
AUST(Q) relies on advice from professional investment consultants and administrators when adopting our interim crediting rates and 6 monthly investment returns.
Unfortunately, even with their help, errors can occur. If an error is identified, AUST(Q) will compensate affected members where the amount of compensation is equal to or more than 0.3% of the value that would have accumulated without the error.
For members that have exited the Fund, we will pay compensation where the amount is $20 or more. Any amounts under $20 will be allocated to Fund reserves. If we find, as a result of an error, members have overpaid, the Trustee may seek to recover this amount.
Where an error arises due to miscalculation of fees, it will be compensated in all cases.