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					Australian Unity
Total Super
Annual Report
Year ended 30 June 2006




Australian Unity Funds Management Limited (‘AUFM’) ABN
60 071 497 115, AFS Licence No. 234454, RSE Licence No.
L0002882, is the Approved Trustee of Australian Unity Total Super
(a division of the Freedom of Choice Superannuation Masterfund
RSE Registration No. R1067330), and is the issuer of this Annual
Report for the period 1 July 2005 to 30 June 2006.
    Important information
    Australian Unity Funds Management Limited ABN 60 07 497 5, AFS Licence No. 234454,
    RSE Licence No. L0002882 (‘AUFM’ or ‘the Approved Trustee’), as the Approved Trustee of
    Australian Unity Total Super (a division of the Freedom of Choice Superannuation Masterfund
    RSE Registration No. R067330) (‘the Fund’), is the issuer of this Annual Report. AUFM was
    Trustee of the Fund during the period  July 2005 to 30 June 2006. This Annual Report contains
    some general investment advice. It does not take into account your individual objectives, financial
    situation or needs and you should consider its appropriateness to you (taking into account your
    individual objectives, financial situation and needs). You should seek your own financial advice
    from a financial services licensee or an authorised representative before investing.

    Neither Australian Unity Funds Management Limited, the Australian Unity Group, nor the fund
    managers of the underlying investments available through the Fund guarantee the success
    of the investments offered through the Fund nor any return of capital or income (unless
    explicitly stated by the fund managers). Past performance is not a reliable indicator of future
    performance.

    Australian Unity Total Super is closed to new employer accounts. A Product Disclosure
    Statement (PDS) is available for employees of an employer who already has an active employer
    account with Australian Unity Total Super. A copy of the PDS can be obtained by contacting
    your financial adviser or by calling Client Services on 800 806 03 Australia-wide.





WELCOME

Welcome to the Australian Unity Total Super (‘Total Super’) Annual Report for the year ended
30 June 2006.

The Government proposed significant reform to superannuation in the 2006 Federal Budget,
aiming to simplify the superannuation system from  July 2007. While the changes are pending,
if the proposals become law, members may be affected.

The proposals include:

 capping the amount of personal contributions that can be made to superannuation to
  $50,000 pa, and the ability to bring forward two years of contributions for those members
  aged under 65. A transitional cap of $,000,000 in personal contributions will apply from 0
  May 2006 until 30 June 2007;
 the age-based limits for deductible contributions will be abolished, and replaced with a
  limit of $50,000 pa for all employees. A transitional cap of $00,000 pa will apply for those
  employees age 50 and over until 30 June 202;
 self employed and unsupported people to receive a 00 percent tax deduction for deductible
  contributions of up to $50,000 pa for those under age 50, and a transitional cap of $00,000
  pa until 30 June 202 for those age 50 and over;
 self employed and unsupported people (i.e. those who do not receive superannuation
  support from an employer) to be eligible for the Government’s Super Co-contribution
  scheme;
 the abolition of Reasonable Benefits Limits;
 simplification of eligible termination payments;
 benefits within superannuation can be retained indefinitely once preservation age is reached
  and from age 65 if not retired (proposed to be effective 0 May 2006); and
 retirees age 60 and over to be able to access lump sum withdrawals tax free (from a taxed
  source).
This is a summary of some of the proposed changes that may impact members and we
encourage you to seek professional financial advice if you think you may be affected.

Further information
If you would like more information about these changes please contact your financial adviser or
visit the ATO website www.ato.gov.au or Treasury website www.treasury.gov.au. For further
information in respect of your investments in the Fund please call Client Services on 800 806 03.




                                                                                                      2
    MARKET WRAP

    The financial year ending 30 June 2006 saw most asset classes posting strong returns,
    continuing the positive momentum from the previous year.

    Economic indicators were generally stronger through the year, with the strongest returns
    achieved on Australian equity and property assets.

    The following information may be applicable to those investment strategies with exposure to
    the following asset classes:

    Australian shares
    Over the 2005/06 financial year, the Australian share market trended upwards. The benchmark
    S&P/ASX 300 Accumulation Index performed strongly, with a total return of +24.0%. This is the
    third consecutive year of annual return in excess of +20.0%. Small caps (+25.5%) outperformed
    large caps (+23.9%) over the year. A standout feature of last year’s return was the significant
    outperformance of the resources sector (+54.0%) compared to industrials (+7.2%). The
    strong demand for Australian commodities has been upheld by China’s solid growth.

    International shares
    International sharemarkets were generally stronger over the year, with the hedged broad
    market index (MSCI World ex-Australia Index) returning +5.0% and the unhedged index
    returning +9.9% for the year.

    Of the major world sharemarkets, returns in the US were modest (S&P500 +6.6%, Dow Jones
    Industrial Average +8.5% and NASDAQ +5.6%). European markets were solid (UK +4.%,
    and Germany +23.9%), and Asian markets were positive over the year (Japan +33.8%, Hong
    Kong +4.6%).

    Australian property
    Listed property trusts (as measured by the S&P/ASX 200 Property Trusts Accumulation Index)
    posted a total return of +8.0% for the year, representing the seventh successive year of
    double-digit returns.

    By property sub sector, the industrial (+40.0%) and diversified (+27.%) sub-sectors performed
    best, with the retail sub-sector (+7.9%) the principal underperformer.




3
Fixed interest
Australian bond yields rose over the year in response to inflationary concerns. The Australian
broad industry benchmark (UBS Composite All Maturities Bond Index) returned only +3.4% for
the year. By comparison, the UBS Bank Bill Index, a widely accepted ‘risk free’ proxy yielded
+5.8% over the same period. The key indicator bond yields, being the 3-year Government Bond
and 0-year Government Bond, moved +0.69% and +0.68% respectively over the year to both
finish at 5.79%.

There was one increase in the official cash rate over the 2005/06 year, rising from 5.50% to
5.75% in May 2006.

The international broader bond market benchmark (JP Morgan World Government Bond Index
ex-Australia, hedged in $A) returned +0.9% for the year, with most long-term bond yields
increasing sharply (US +.23% to 5.4%, Europe +0.82% to 4.07%, and Japan +0.76% to
.92%).

The ‘Market Wrap’ is provided as general information only. It does not take into account your
individual objectives, financial situation or needs. We recommend you speak to your financial
adviser regarding your own particular circumstances.




                                                                                                 4
    INVESTMENT STRATEGIES

    The Fund aims to provide members with a choice of investment strategies across a multitude
    of asset classes and investment managers to enable members to tailor a portfolio around their
    own personal needs and objectives.

    Prior to compiling the list of investment strategies, the Approved Trustee undertakes a formal
    process to ensure, amongst other things, that the investment strategies offered are rated
    investment grade by reputable research professionals, are true to label (the manager adheres
    to its own stated investment disciplines) and have a proven track record. The Approved Trustee
    also takes into consideration market changes, sentiment and investment trends with the aim of
    providing investors with a broad selection of investment strategies.

    The investment strategies available through the Fund are based on the following categories:


     Investment                                                       Indicative     Suggested
     category              Objective                                   risk level    timeframe

     Cash/Interest         Generally aim to provide a level of           Low         0 – 3 years
     Bearing               return commensurate with cash rates
                           and a high level of capital security.
     Mortgages             Generally aim to provide a level of          Low -        2 – 4 years
                           return above cash rates.                    medium
     Australian Fixed      Generally aim to provide higher              Low -        2 – 4 years
     Interest              income returns than cash over time          medium
                           with low to moderate volatility.
     International Fixed   Generally aim to provide higher              Low -        2 – 4 years
     Interest              income returns than cash over time          medium
                           with low to moderate volatility.
     Diversified           Generally aim to provide a stable           Medium        3 – 5 years
     Conservative          income stream and some capital
                           growth with low to moderate
                           volatility.
     Diversified           Generally aim to provide a                  Medium        3 – 5 years
     Balanced              combination of income and capital
                           growth over the long term with
                           moderate volatility.
     Diversified Growth    Generally aim to provide moderate to        Medium       More than 5
                           high capital growth over the long term       - high        years
                           with some income.




5
 Investment                           Objective                   Indicative    Suggested
 category                                                          risk level   timeframe

 Diversified            Generally aim to provide capital             High       More than 5
 Aggressive             growth over the long term.                                years
 Australian Shares      Generally aim to provide strong capital      High       More than 5
 – Diversified          growth over the long term through                         years
                        investments in Australian shares.
 Australian Shares      Generally aim to provide strong capital      High       More than 5
 – Emerging             growth over the long term through                         years
 Companies              investments in smaller Australian
                        shares with significant growth
                        0potential.
 International Shares   Generally aim to provide strong capital      High       More than 5
                        growth over the long term through                         years
                        investments in international shares.
 Property Securities    Generally aim to provide a                 Medium       More than 5
                        combination of capital growth and           - high        years
                        income over the long term through
                        investments in property trusts.
 Direct Property        Generally aim to provide income with       Medium       More than 5
                        some capital growth over the longer         - high        years
                        term through investment in direct
                        property.

Returns for the investment strategies available under each of the investment categories are
shown on pages 8 to 2.




                                                                                              6
    INVESTMENT MANAGERS

    Investment Managers as at 30 June 2006
    The investment managers currently available through the Fund as at 30 June 2006 are:


     Investment Manager

     ABN AMRO Asset Management (Australia) Limited
     AMP Capital Investors Limited
     Australian Unity Funds Management Limited
     Australian Unity Property Limited
     Barclays Global Investors Australia Limited
     Colonial First State Investments Limited
     Credit Suisse Asset Management (Australia) Limited
     ING Funds Management Limited
     IOOF Investment Management Limited
     Legg Mason Asset Management Australia Limited
     Maple-Brown Abbott Limited
     Merrill Lynch Investment Managers Limited
     Perpetual Investment Management Limited
     Schroder Investment Managment Australia Limited
     UBS Global Asset Management (Australia) Limited
     Vanguard Investments Australia Limited




    CHANGES TO INVESTMENT MENU
    The following investment strategy is not available for further investments from  July 2006:


     Investment Strategy

     Australian Unity Wholesale Leaders Imputation Trust




7
    INVESTMENTS PERFORMANCE
    Investment menu as at 30 June 2006

    The table below outlines the investment performance for the full range of managed fund strategies that were offered through the Fund


                                                                                                            Annualised Performance at
                                                                  Actual performance as at 30 June
                                                                                                                  30 June 2006
     Managed fund strategies
                                                                                                             1 yr     3 yr      5 yr
                                                         2002         2003     2004      2005        2006
                                                                                                              %       % pa      % pa

     Cash/Interest Bearing
     Cash Account                                         4.3          4.5      4.9       5.2        5.4      5.4      5.       4.8
     Mortgages
     Australian Unity Wholesale Mortgage Income               -         -       6.0       6.        6.0      6.0      6.0           -
     Trust
     Australian Unity Wholesale High Yield Mortgage           -         -           -         -      8.3      8.3          -         -
     Trust
     Australian Fixed Interest
     Australian Unity Wholesale Defined Income Trust      5.6          7.9      3.0       6.        4.5      4.5      4.5       5.4
     Credit Suisse Australian Fixed Interest Fund         6.          9.5      3.2       8.0        3.9      3.9      5.0       6.
     UBS Australian Bond Fund                             6.5          9.7      2.4       7.5        3.5      3.5      4.4       5.8
     Vanguard Australian Fixed Interest Index Fund        6.0          9.8      2.2       7.8        3.3      3.3      4.4       5.8
     (Wholesale)
     International Fixed Interest
     UBS International Bond Fund                        8.5         .4      4.2       9.7       .5       .5      5.       6.7
     Vanguard International Fixed Interest Index Fund   7.8         .9      3.4       2.0      0.8       0.8      5.3       7.
     (Wholesale - Hedged)




8
9
                                                                                                         Annualised Performance at
                                                               Actual performance as at 30 June
                                                                                                               30 June 2006
    Managed fund strategies
                                                                                                          1 yr     3 yr     5 yr
                                                       2002        2003     2004      2005        2006
                                                                                                           %       % pa     % pa

    Diversified Multi-Sector

    Australian Unity Conservative Growth Portfolio     3.5          4.9      9.7      9.3         0.6    0.6      9.9      7.5
    Australian Unity Balanced Growth Portfolio         0.2          2.8      5.7     .8        9.0    9.0     5.5      9.7
    Australian Unity High Growth Portfolio             -3.9       -9.3      20.0     9.0         23.7    23.7     7.4      4.8
    Diversified Conservative
    Colonial First State Wholesale Conservative Fund   2.2          2.6      8.      9.5         0.6    0.6      9.4      6.5
    Credit Suisse Capital Stable Fund                  0.0          4.2      8.8      8.9         0.6    0.6      9.3      6.3
    Diversified Balanced
    Colonial First State Wholesale Balanced Fund       0.          .9      8.6      0.9        2.8    2.8     0.8      6.7
    Legg Mason Tactical Allocation Trust               3.4          2.7      5.5     5.        5.9      5.9     2.0      8.3
    Diversified Growth
    AMP Capital Investors Sustainable Future           -8.2        -6.3      5.7     0.5        9.0    9.0     5.0      5.5
    Balanced Growth Fund – Class A
    Barclays Managed Investment Funds                  -3.3         .4      5.5     4.5        7.2    7.2     5.7      8.6
    – Diversified Growth Fund
    Credit Suisse Capital Growth Fund                  -8.4        -3.0      3.4     .2        7.4    7.4     4.0      5.6
    Maple-Brown Abbott Pooled Superannuation           2.3         -0.      5.6     2.0        2.0    2.0     3.2      8.2
    Trust
    UBS Balanced Investment Fund                       .7          0.3      3.9     4.5        4.4    4.4     4.3      8.7
                                                                                                        Annualised Performance at
                                                              Actual performance as at 30 June
                                                                                                              30 June 2006
     Managed fund strategies
                                                                                                         1 yr     3 yr     5 yr
                                                      2002        2003     2004      2005        2006
                                                                                                          %       % pa     % pa

     Australian Shares-Diversified
     Australian Unity Wholesale Leaders Imputation    -5.2        -4.6      2.7     24.5        24.5    24.5     23.6     .3
     Trust*
     AMP Capital Investors Sustainable Future         -.8         0.6      23.4     24.3        30.6    30.6     26.     4.6
     Australian Share Fund – Class A
     Colonial First State Wholesale Imputation Fund   -5.5        -2.6      5.8     27.7        24.9    24.9     22.7     .2
     ING Wholesale Australian Share Trust             -4.9        -3.5      9.3     30.6        23.4    23.4     24.     2.0
     IOOF Perennial Value Shares Trust                9.7          .6      22.     27.        9.9    9.9     23.0     5.7
     Merrill Lynch Wholesale Australian Share Fund    -0.0       -6.5      20.9     28.2        29.2    29.2     26.0     0.6
     Perpetual’s Wholesale Industrial Fund            6.3          3.9      20.8     2.3        5.4    5.4     9.     3.3
     UBS Australian Share Fund                        -.8        -2.4      20.7     26.0        23.3    23.3     23.3     2.4
     *Closed to new investments from  July 2006.




0

                                                                                                          Annualised Performance at
                                                                Actual performance as at 30 June
                                                                                                                30 June 2006
     Managed fund strategies
                                                                                                           1 yr     3 yr     5 yr
                                                        2002        2003     2004      2005        2006
                                                                                                            %       % pa     % pa
     Australian Shares – Emerging Companies
     Australian Unity’s Acorn Capital Wholesale         2.4         6.0      35.     23.0        30.6    30.6     29.4     22.8
     Microcap Trust
     International Shares
     Australian Unity Intech High Opportunities Trust     -           -        -         -          -        -        -        -
     – Wholesale Units
     ABN AMRO Global Equity Fund                        -29.       -2.3     2.5     -0.        6.5    6.5      9.4     -6.
     Credit Suisse International Shares Fund            -2.6       -3.7     20.6     -2.6        22.5    22.5     2.9     -0.5
     Schroders Asia Pacific Fund                        -0.7        -9.     20.8     6.8        32.5    32.5     23.2      8.7
     UBS International Share Fund                       -4.7       -7.6     4.9      .        4.9    4.9     0.     -.3
     Property Securities
     Australian Unity Property Securities Fund          22.4        5.5      28.2     27.3        26.0    26.0     27.2     23.8
     (Growth Units)
     Credit Suisse Property Fund                        7.        2.8      8.     9.        5.3    5.3     7.7     6.6
     UBS Property Securities Fund                       22.9        2.6      7.9     24.6        8.    8.     20.     9.
     Vanguard Property Securities Index Fund            5.0        2.3      7.2     8.7        7.5    7.5     7.8     6.
     (Wholesale)
                                                                                                                   Annualised Performance at
                                                                     Actual performance as at 30 June
                                                                                                                         30 June 2006
      Managed fund strategies
                                                                                                                      1 yr      3 yr       5 yr
                                                              2002       2003       2004       2005       2006
                                                                                                                       %        % pa       % pa
      Direct Property
      Australian Unity Property Income Fund                   .        5.       3.       .7       2.5       2.5       2.4       0.7
      – Wholesale Units
      Australian Unity Geared Property Income Fund               -          -          -          -       4.2       4.2         -          -
      – Wholesale Units

     Source:   Australian Unity funds – Australian Unity Investments.
               All other funds – Assirt.

     Notes on all returns
     The Approved Trustee has made every reasonable attempt to ensure the accuracy of this information and has relied upon information
     provided by third parties. As such no guarantee can be given as to the accuracy of the information provided by third parties. A ‘-‘ appearing
     in a return column means that the fund has not been in operation for the relevant period or a return value is not available for the period. The
     investment performance figures on pages 8 to 2 are generally net of fund managers’ fees and expenses and assume the reinvestment
     of all distributions. You should note that past performance is not a reliable indicator of future performance.

     The returns do not take into account tax and the Approved Trustee’s fees and charges.

     The information contained in this Report does not constitute investment advice or a recommendation. It is recommended that you seek
     independent financial advice to discuss your particular individual circumstances before acting on any of the information contained in this
     report.




2
     LEGISLATIVE UPDATE

     In addition to recent changes, the Federal Government has proposed significant changes to
     superannuation, which are also detailed in the following paragraphs.

     For further information regarding superannuation, please contact the Australian Taxation Office
     (ATO) information line on 3 0 20 or visit www.ato.gov.au/super.

     Superannuation Contributions
     Maximum tax deductions for employer contributions
     For 2006-07, the maximum deductible contributions (‘MDCs’) for employers are:
      Under 35           $5,260 pa
      35 to 49           $42,385 pa
      50 and over        $05,3 pa

     The Government has proposed that the age-based limits for deductible contributions be
     replaced with a limit of $50,000 pa (including salary sacrifice contributions) for all employees
     from  July 2007. As the current MDC for people aged 50 and over is greater than the $50,000
     pa cap, a transitional period where a MDC of $00,000 pa would apply to those aged 50 and
     over until 30 June 202.

     Any amounts that exceed the $50,000 pa threshold (and $00,000 pa for those over age 50)
     may be subject to tax effectively at the highest marginal rate.

     Contributions for self employed and unsupported people
     Under current legislation, self employed and unsupported people receive a tax deduction of 00
     per cent of the first $5,000 plus 75 percent above $5,000 up to their MDC on superannuation
     contributions.

     The proposed changes from  July 2007 would allow self employed and unsupported people up
     to age 75 to claim a 00 percent tax deduction for superannuation contributions up to $50,000
     pa. Self employed and unsupported people aged 50 and over would also have a transitional
     period where they can claim a 00 percent tax deduction for contributions up to $00,000 pa
     until 30 June 202.

     Any amounts that exceed the $50,000 pa threshold (and $00,000 pa for those over age 50)
     may be subject to tax effectively at the highest marginal rate.

     Personal undeducted contributions
     The Government has proposed that from  July 2007, personal undeducted contributions
     would be limited to a cap of $50,000 pa. The Government would also allow members under
     age 65 to bring forward two years of personal undeducted contributions. This means that
     members under age 65 can make undeducted contributions of up to $450,000 in a single year,
     however they would not be able to make further undeducted contributions for the next two
     financial years.


3
Members aged 63 and 64 would not be required to meet work tests for future years should
they utilise the $450,000 contribution limit in a single year. Those members aged 65 and over
and eligible to make superannuation contributions (i.e. those who satisfy the work test) would
be limited to the $50,000 pa cap only.

The Government has also proposed a transitional cap of $,000,000 in personal undeducted
contributions from 0 May 2006 to 30 June 2007. Note that any personal undeducted
contributions made prior to 0 May 2006 would not be subject to any limits.

Co-contribution
The Super Co-contribution is a Government initiative designed to assist eligible individuals to
save for their retirement. If you make personal superannuation contributions and are eligible
to receive the Super Co-contribution, the Government will match your contributions with a
Super Co-contribution up to specified limits. Spouse contributions do not qualify for the Super
Co-contribution.

If you earn $28,000 or less a year, the Government will put in $.50 for every $.00 of personal
contributions you deposit into superannuation, up to a maximum Super Co-contribution of
$,500 per year. If you earn more than $28,000 but less than $58,000 a year, your Super Co-
contribution will be adjusted based on your income and how much you contribute personally.

The Government has proposed changes to the Super Co-contribution to include self-employed
and unsupported people from  July 2007.

Superannuation Contribution Splitting
Superannuation Contribution Splitting legislation came into effect as of  January 2006, and
generally allows individuals to split superannuation contributions with their spouse, providing
that it is offered by the superannuation fund. Please note that the Approved Trustee does not
provide this to members.

Reasonable Benefit Limits
The Reasonable Benefit Limits (‘RBLs’) for 2006-07 for lump sum and pension payments
(where at least 50% of the total benefit is taken as a complying pension) are:
 $678,49 – Lump Sum RBL, and
 $,356,29 – Pension RBL.

In this year’s Budget announcement, the Government has proposed that RBL’s be abolished
from  July 2007. This would remove any restrictions on superannuation benefits that receive
concessional tax treatment.




                                                                                                   4
     Eligible Termination Payments
     The Government has proposed that from  July 2007, Eligible Termination Payments (‘ETPs’)
     for lump sum withdrawals comprise of two components, the exempt component and taxable
     component.

     The exempt component would be tax free upon withdrawal and comprised of the:
      Pre July 983 component;
      CGT exempt component;
      Post June 994 invalidity component
      Concessional component; and
      Undeducted contribution.

     The taxable component would be comprised of the:
      Post June 983 component; and
      Non-qualifying component.

     Note that there would be no excessive component as RBLs would be abolished under the
     proposals.

     The tax treatment of the taxable component is summarised in the table below:


                         Under 55                   Age 55-59                 Age 60 and over

      Tax Payable     Maximum rate of     Tax free up to $40,000, taxed          Tax free
                           20%              at a maximum rate of 5%
                                                    thereafter.

     Payment of Benefits
     Under the proposal, the existing requirement to compulsorily cash a member’s benefit if they
     are over age 65 and do not meet the work test or upon reaching age 75 will be removed from
     0 May 2006. This would allow members to retain benefits within superannuation for as long
     as they wish.

     Death Benefit Eligible Termination Payments
     Under current legislation, lump sum death benefits paid to a dependant are tax free up to the
     Pension RBL threshold (i.e. up to $,356,29 based on 2006-07 RBL amounts). As RBLs are
     proposed to be abolished from  July 2007, it follows that all lump sum death benefits are tax
     free if paid to a dependant.

     Lump sum death benefits for non-dependants would be taxed in the same manner as a normal
     ETP to a person age 55-59, with the entire taxable component taxed at 5%.


5
FINANCIAL REPORT

The following abridged financial information has been taken from the Fund’s Audited Financial
Report. Copies of the full Financial Report (including the audited accounts and auditor’s report)
are available on request free of charge.
Statement of financial performance for the year ended 30 June 2006

 Investment revenue                                                   2006             2005
                                                                        $                $
 Interest                                                           ,360,283        ,65,30
 Dividends                                                          ,0,02        ,06,253
 Trust distributions                                               ,844,375        6,055,43
 Net property income                                                   33,9           50,86
 Changes in net market values of investments                        5,047,6        5,203,676
 Other income                                                                -        (284,368)
 Net investment income                                             19,295,929       13,206,488
 Contributions revenue
 Employer contributions                                            0,293,24        8,485,583
 Member contributions                                               2,320,346        4,304,96
 Transfers in from other funds                                     4,5,330       7,793,68
 Total contributions                                               26,728,891       30,583,460
 Other revenue
 Proceeds from Group life insurance policies                          2,247           95,376

 Total revenue                                                     46,236,068       43,885,324
 General administration expenses
 Group life insurance                                                 56,09          45,73
 Trustee and administration fees                                    2,28,603        ,887,864
 Other expenses                                                         ,955             2,843
 Superannuation Contributions Surcharge                                68,894          8,546
 Total Expenses                                                     2,715,473        2,487,426
 Benefits Accrued as a result of operations before income tax      43,520,594       41,397,898
 Income tax expense                                                 2,907,344        ,840,934
 Benefits Accrued as a result of operations after income tax       40,613,250       39,556,964




                                                                                                    6
     Statement of financial position for the year ended 30 June 2006

      Investments                                              2006         2005
                                                                $             $
      Listed Equities                                         8,988,727     7,752,334
      Pooled superannuation trusts                            5,683,686     6,97,965
      Managed investments                                    96,758,802    82,65,896
      Property investments                                      630,000      408,625
      Total investments                                     112,061,215    96,524,820
      Other assets
      Cash and cash equivalents                              3,55,68    2,600,82
      Investment income receivable                           0,250,575     5,50,55
      GST receivable                                             64,974       67,732
      Deferred tax assets                                       03,752      9,982
      Net recoverables                                          43,796      50,299
      Total other assets                                     24,290,064    18,448,980
      Total assets                                          136,351,266   114,973,800
      Liabilities
      Group life insurance payable                               72,877       78,806
      Other payables                                             77,66       85,27
      Income tax payable                                      ,668,933     ,056,79
      Deferred tax liabilities                                ,257,05      872,057
      Total liabilities                                       3,252,330     2,092,169
      Net assets available to pay benefits                  133,098,949   112,881,631
      Represented by:
      Liability for accrued benefits
      Allocated to members’ accounts                        33,098,949   2,88,63




7
Fund investments of greater than 5% of the total Fund value as at 30 June 2006


 Investment strategy                              % of total Fund value at 30 June 2006

 Australian Unity Balanced Growth Portfolio                      20.73
 Cash Account                                                    0.79
 Platinum International Fund*                                     5.74
 Perpetual’s Wholesale Industrial Fund                            5.48

*Not available to members of Australian Unity Total Super.




                                                                                          8
     ADDITIONAL INFORMATION

     Registrable Superannuation Entity (RSE) Licence
     During the period  July 2005 to 30 June 2006, the Approved Trustee was granted a Registrable
     Superannuation Entity (RSE) Licence from the Australian Prudential Regulation Authority
     (APRA).

     The RSE Licence Number is L0002882.

     Reduced fees for small account balances
     If your total account balance is $,000 or less, we are required to ensure that administration
     costs will not be greater than the investment returns that are credited to your account. Tax and
     insurance premiums however, are still deducted in full.

     Taxation
     Any income tax payable on earnings and tax or superannuation contributions surcharge payable
     on contributions are deducted from members’ accounts by the Fund when due.

     Preservation rules
     Employer Sponsored Superannuation Plan Members
     Preservation rules are specified by federal legislation and apply to all Fund members. The
     ‘Member Benefit Statement’ reflects the preserved and non-preserved portions of your
     superannuation account.

     All contributions made, and investment earnings credited to your account after  July 999,
     must be preserved until a specific condition of release is met.

     You may access your preserved superannuation benefit in any of the following circumstances:

      reaching age 65;
      reaching age 60 and leaving your employer;
      permanently retiring on, or after, attaining the preservation age applicable to you;
      commencing a complying non-commutable income stream on, or after attaining the
       preservation age applicable;
      death (benefits will normally be paid to your dependants or legal personal representative);
      severe financial hardship (subject to the satisfaction of the Trustee and up to a maximum of
       $0,000 gross in a 2 month period);
      compassionate grounds as approved by the Australian Prudential Regulation Authority;
      if we are satisfied that you are permanently disabled;
      permanent departure from Australia (subject to conditions); or
      on complying with any other condition of release specified in superannuation law.

     For more information please contact the Fund’s information line on 800 806 03
     or visit www.freedomofchoice.com.au.

9
Preserved benefits
Superannuation is a long-term investment and the Government has placed restrictions on when
you can gain access to benefits. In general, benefits cannot be withdrawn and paid until you
have reached age 65, or have reached the preservation age and retired. However, you can
transfer these benefits to another complying superannuation fund on request to the Trustee.

All contributions made, and investment income and gains earned, after  July 999 are classified
as preserved benefits (except non-preserved benefits that existed as at 30 June 999) and are
subject to withdrawal restrictions.

Restricted non-preserved benefits
Restricted non-preserved benefits can be accessed subject to satisfying the above conditions
or the termination of gainful employment with an employer who had at any time made
contributions to the Fund in relation to you.

Unrestricted non-preserved benefits
Unrestricted non-preserved benefits can be accessed at any time without having to satisfy any
release conditions.

Please speak to your financial adviser if you require further information about restricted non-
preserved and unrestricted non-preserved benefits.

Policy committees
If there are more than 50 people participating in your employer’s Australian Unity Total Super
Plan, we ask your employer to establish a policy committee. The policy committee consists
of an equal number of employer and employee representatives, and assists us to monitor
investments and administrative matters. We can also establish policy committees for employers
that employ between 5 and 50 people if requested by the employee members.

Professional indemnity insurance
To help protect your interests, the Approved Trustee has had professional indemnity insurance
cover in place for the year ended 30 June 2006.

Earnings
Earnings from distributions, dividends or interest from your Cash Account are credited to your
account when received. The investment income received and capital growth will depend on the
performance of the investments you choose and the amount of money invested.

Derivatives
The Fund’s policy toward the use of derivative securities for the year ended 30 June 2006, is
that it does not invest directly in derivatives. However, the underlying fund managers of the
managed investment available through the Fund may have done so.

Reserves
The Fund did not maintain reserves during the year ending 30 June 2006.
                                                                                                   20
     Use of your personal information - Privacy
     The privacy of your information is important to us.

     It will not be shared with unrelated parties (other than as disclosed in this section) without your
     consent and will only be used to:
      fulfil our obligations in providing services to you;
      develop products and services; and
      allow the Australian Unity Group to market products and services (subject to your right to
       opt-out of receiving various direct marketing materials at any time).

     In managing your account, we may need to disclose your personal information to your financial
     adviser either directly or through other service providers which we may have arrangements
     with.

     You are entitled to request reasonable access to information we have about you. You should
     notify us immediately if any of the information we hold about you changes, so that we may
     ensure that your information is always complete, accurate and current.

     Our privacy policy can be found at: www.australianunity.com.au

     If you have any complaints or questions about the privacy of your personal information, please
     contact our Privacy Officer by writing to:
     Australian Unity Privacy Officer
     4 Albert Road
     South Melbourne VIC 3205

     If your complaint is not resolved by us to your satisfaction, you may write to the Privacy
     Commissioner at:
     Office of the Federal Privacy Commission
     GPO Box 528
     Sydney NSW 042.

     Penalties imposed
     No penalties were imposed on the Approved Trustee during the reporting period under the
     Superannuation Industry (Supervision) (‘SIS’) Act.

     Lost members and Eligible Rollover Funds
     From time to time, some of our members unfortunately become ‘lost’. A ‘lost’ member is
     generally someone who:
      we have never had an address for;
      we have written to, but the mail has been returned unclaimed;
      has not made a contribution or rollover in the past two years; or
      was a ‘lost’ member in a previous fund before joining this Fund.

2
If you become a ‘lost’ member, we may decide to hold your benefit in the Fund. Alternatively,
your benefit may be transferred to:
The AON Eligible Rollover Fund
Level , 440 Collins Street
Melbourne VIC 3000
Telephone: 300 880 588

This means you will no longer be a member of the Fund, and you will no longer receive regular
reports. The Eligible Rollover Fund may have a different investment strategy and different
management costs applied, which could have an adverse impact on your investment. To avoid
becoming ‘lost’, we encourage you to let us know if you change address.

We may also decide to rollover benefits that are subject to Member Protection into the AON
Eligible Rollover Fund.




QUESTIONS ABOUT YOUR INVESTMENT

You are welcome to call or write to us at any time about your investment. In most cases you
can have your questions answered by calling your financial adviser, Client Services on 800 806
03, emailing or writing to us (see the back cover for details).

What if you have a complaint?
We have established a formal procedure for members who wish to lodge a complaint about the
operation or management of the Fund.

All complaints should be directed in writing to:
The Superannuation Administration Manager
Australian Unity Total Super
4 Albert Road
South Melbourne VIC 3205

If we fail to deal with your complaint within 90 days or you are not satisfied with the result,
you may direct your complaint to the Superannuation Complaints Tribunal (‘SCT’). The SCT
was established by the Government and provides an independent forum for the resolution of
disputes between trustees and members of superannuation and rollover funds. However, the
SCT will not hear a complaint unless it has first gone through the Fund’s internal complaints
handling mechanism. The SCT can be contacted toll free on 300 780 808 Australia-wide,
through their website at www.sct.gov.au, or in writing to:
Superannuation Complaints Tribunal
Locked Bag 3060
GPO Melbourne VIC 300

                                                                                                  22
     The contact details for the Fund are as follows:

     Approved Trustee                                    Trustee Contact Details Telephone:
     Australian Unity Funds Management Limited           800 806 03
     ABN 60 07 497 5                                  Facsimile: (03) 9697 0975
     AFS Licence No. 234454
     4 Albert Road
     South Melbourne VIC 3205

     Auditor                                             Website
     Ernst & Young                                       www.australianunity.com.au/super
     20 Collins Street
     Melbourne VIC 3000                                  Email
                                                         enquiries@freedomofchoice.com.au




     Directors of the Approved Trustee
     The directors of the Approved Trustee during the reporting period are:
     Leonard Hickey (Chairman)
     Rohan Mead (Group Managing Director)
     Murray Campbell (Non-Executive Director)
     Alan Castleman (Non-Executive Director)
     Ian Ferres (Non-Executive Director)
     Stephen Maitland (Non-Executive Director)
     Bruce Siney (Non-Executive Director)
     Warren Stretton (Non-Executive Director)
     David Bryant (Group Executive - Investments)
     Anthony Connon (Chief Financial Officer)




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Description: Australian Unity Total Super