YMCA Super Annual Report

YMCA SuperReport for the year ended 30 June 2011

Trustee: AUSTYMCA Nominees Pty LtdRSE Licence L0001274 Fund Registration R1004533

YMCA SUPERWe build strong futures.

Report for year ended 30 June 201102


YMCA SuperDirectorsRichard Edwards (Chair)Alan BrayRod EbsworthIan HeraudAdrian LombardoJo PowellSathy SappanyMark Sargent

Company SecretaryRon Mell

StaffAnthony De Fazio, Superannuation ManagerPetro Boutsikaris, Administration ManagerKim Campbell, Fund AdministratorIna Budiono, Fund Administrator

Report contents

Important Member information 03YMCA Super Information 05Your Investments 05Investment Performance 07Growth Investment Strategy 08What are YMCA Super’s historical returns? 09How do YMCA Super’s returns compare over a longer time frame? 10Cash Plus Investment Strategy 11Interim Crediting Rate 12Financial statements 12Other information 15

The Trustee of YMCA Super is pleased to present the report to members for the year ended 30 June 2011.

This Annual Report to Members is designed to provide you with important information about the operation of your Fund, YMCA Super. The Report highlights the financial position and investment performance results of YMCA Super, and alerts you to changes occurring in the Fund.

Thank you for taking the time to read our Annual Report.If you have any comments or questions please contact the super staff directly on 9693 9726.

Richard EdwardsChairmanYMCA Super

A message from the Chairman

Contact the super staffYou can contact the superannuation team either by:

• Telephone 03 9693 9726• Fax 03 9690 2835• Email [email protected]• Mail to:

YMCA Super Level 1, 88 Market St South Melbourne 3205


Important Member information

Board of DirectorsYMCA Super is managed by a board of eight Directors. Half the Board is employer appointed and the other half is appointed via an election process where members are given the opportunity to vote for their preferred candidate.

Ed Ferguson retired from the Board at the end of March 2011. The remaining member representative directors unanimously appointed Jo Powell to replace him. Ms Powell’s term will expire in May 2013.

Information about the requirements of the role of a member representative Director is included on our website www.ymca.org.au/super under Fund Elections.

Investment Choice YMCA Super offers investment choice based on two strategies; a Growth investment strategy and a Cash Plus investment strategy. Members are able to choose a blend of the two strategies to create an investment strategy which suits their own individual circumstances and risk profile.

Members are able to change their investment strategy quarterly.

Information about investment choice in YMCA Super is available on our website www.ymca.org.au/super under Investment Choice. Alternatively if you would like information sent to you please contact us.

Estate Planning

YMCA Super members may make either ‘non-binding’ or ‘binding’ nominations as to the distribution of their benefit in the event of their death.

Non-binding nominations tell the Trustee who your preferred beneficiaries are, but the Trustee will make the final decision as to how and to whom your benefit is paid. The Trustee will consider your preferred nomination but will not be bound by it. The Trustee will exercise a discretion to allocate your benefit among the potential recipients who you nominate.

Binding nominations provide greater certainty about who receives your benefit in the event of your death, as your nomination binds the Trustee to pay your Death benefit to a specified person(s) provided that the correct procedure has been followed.

Binding Death NominationsIf you would like to provide specific instructions to the Trustee about the distribution of your superannuation benefit in the event of your death you should complete a Binding Death Benefit Nomination. The Trustee is obliged to follow the instructions in your Binding Nomination provided it is valid at the time of your death. Binding death nominations expire after three years. If you would like further information please contact YMCA Super.

Nominated BeneficiariesIn the event a death benefit is payable the Trustee will refer to your nomination and be guided by it when determining how to distribute your benefit. Please take this opportunity to review your

Nominated Beneficiaries and update the nomination if appropriate. Refer to page 2 of your latest Annual Review Statement for a list of your current Beneficiaries.

Superannuation Guarantee ContributionWhere an employee’s gross income exceeds $450 per month, their employer must pay a minimum of 9% of the employee’s income into superannuation.

This means that the minimum contribution paid on your behalf in any month will be $40.50 if you have earned $450 or more in a month.

If you have questions about the contributions paid into YMCA Super by your employer please contact your payroll centre.

Your Tax File NumberPlease ensure that we have recorded your Tax File Number (TFN) to avoid unnecessary additional tax on your contributions or your benefit.

Refer to the right hand side of the Personal Details box on the first page of your latest Annual Statement to check whether we have your Tax File Number.

If we have received employer contributions on your behalf and we do not have your TFN your employer contributions may be subject to an additional 31.5% tax. This means you will be paying a total of 46.5% tax on your employer contributions. Your Annual Review Statement will illustrate any additional tax within the Full



Transaction Statement beginning on page 3. Extra tax will be shown as an Income Tax Expense.

You should also be aware we are unable to accept any member contributions from you if we do not have your TFN. Member contributions are the contributions which are considered when determining your eligibility for government co-contributions.

If we do not have your TFN and you would like to provide it to us please contact YMCA Super.

Superannuation information Contribution LimitsConcessional contributions are employer contributions, including salary sacrifice contributions.The concessional contributions caps for individuals are:

Age 1 July 2011 – 30 June 2012

1 July 2012 onwards

Under 50 $25,000 $25,000

50 or more with more than $500,000 in superannuation

$25,000 $25,000

50 or more with less than $500,000 in superannuation

$50,000 $25,000 (plus the cap currently $25,000)

When the standard concessional cap (currently $25,000) increases, the cap for individuals over age 50, will increase by the same dollar amount.Contributions above the caps will be taxed an additional 31.5%, equaling a tax rate of 46.5%.

Member ContributionsPersonal member contributions made by you from your after tax salary should not exceed $150,000. Normally no contribution tax applies to these contributions. If you exceed the limit your contributions will be taxed at 46.5%

If you are less than 65 years you can make a lump sum contribution of up to 3 years member contributions, $450,000, at one time. You will not be able to make a further contribution until the three year time period has elapsed.

If you think you have made excess contributions please contact us.

Superannuation Co-Contribution For every $1 of eligible personal member contributions you make the government will contribute $1 up to a maximum of $1,000. If you earn up to $31,920 in assessable income and reportable fringe benefits you are eligible for the full co-contribution of $1,000. Earnings in excess of this amount gradually reduce the amount of co-contribution until it phases out to $0 for incomes of $61,920 or above.

The co-contribution income thresholds will remain at their current levels - $31,920 for the lower threshold and $61,920 for the upper, for the 2011/2012 and the 2012/2013 financial year.

Minimum Pension DrawdownOver the past three years the Government has halved the minimum pension drawdown percentages applying to account based pensions. The reduction to the minimums was designed to help the recovery of pension account balances after the negative impact of the GFC.The Government has announced that the minimum payment amounts for account based pensions will be reduced by 25% for the 2011/2012 year. There will be no reductions to the minimum from 2012/2013 onwards.

Age Minimum % withdrawal from 1 July 2010 – 30 June 2011

Minimum % withdrawal from 1 July 2011 – 30 June 2012

Minimum % withdrawal from 1 July 2012 – 30 June 2013 an onwards

Under 65

2 % 3 % 4 %

65 - 74

2.5 % 3.75 % 5 %

75 – 79

3 % 4.5 % 6 %

80 – 84

3.5% 5.25% 7%

85 – 89

4.5% 6.75% 9%

90 – 94

5.5% 8.25% 11%

95 or more

7% 10.5% 14%

Your InvestmentsYMCA Super Information

MembershipYMCA Super was made up of 15,633 members at 30 June 2011. Membership is open to all current YMCA employees, and their spouses, in Australia and to former employees who retain their benefit in the Fund. During the reporting period the Trustee transferred 495 inactive accounts with balances of $200.00 or less to AUSFund Eligible Rollover Fund.

AdministrationThe Trustee has a service agreement with the National Council of the YMCAs of Australia to provide administration services for YMCA Super. This 3 year agreement was reviewed and renewed commencing 1 July 2009.

WebsiteOur website aims to provide you with specific information about your fund, YMCA Super as well as general current information about superannuation. It is an important resource for our members. If you have not already visited our website please go to www.ymca.org.au/super.

We welcome your feedback about our website. Feedback may be forwarded to [email protected].

Your InvestmentsFrom 1 July 2009 YMCA Super has offered choice based on two major investment strategies:• aGrowthstrategy,and• aCashPlusstrategy

Members may choose to be entirely inonestrategyortheother,oramixofthetwo,aslongasthetotalpercentage in each option equals 100%.Forexample,60%Growthand40%CashPlus.

Further information about investment choice in YMCA Super is available on ourwebsitewww.ymca.org.au/super,under Investment Choice.

Investment ManagementThe Investment Sub-Committee manages the investments of the Fund.The members of the Investment Sub-Committee are:Ian Heraud (Chair of the Sub-Committee)Rod EbsworthRichard EdwardsAdrian Lombardo

The Trustee is grateful for the asset consulting advice provided by ShadforthFinancialGrouptotheInvestment Sub-Committee.



Asset MixAs at 30 June 2011 the asset mix was:

Fund policy toward derivative securitiesThe use of derivatives in the investment portfolio is limited. A derivative is a financial contract whose value is derived from the associated share value. Derivative transactions include such instruments as futures, options, share ratios, warrants, swaps and other composites.

The market value of the following investments exceeds 5% of the total market value of the Fund’s assets:

5.30% Aviva Investors High Growth Shares Trust

5.35% Vanguard Australian Property Securities Index Fund

6.99% Goldman Sachs JB Were Deposit Notes Account

9.64% Vanguard Australian Shares Index Fund

9.03% BlackRock Wholesale Indexed International Equity Fund

Combined assets invested with a fund manager which exceeds 5% of the total market value of the Fund’s assets:

Total Percentage Fund Manager

5.09% PM Capital split between the Australian Opportunities Fund and the Absolute Performance Fund.

7.94% Dimensional split between Strategic Australian Equity and Strategic International Equity Trust.

9.00% Platinum split across the Asia, European, International and Japan Funds.

14.99% Vanguard split across the Australian Shares Index Fund and Australian Property Securities Index Fund.

7.05%0.06%

Cash

Private Equity

Interest BearingSecurities

Property

International Shares

Australian Shares37.96%

27.37%

9.32%

18.24%

0.06%

7.05%

18.24%

9.32%

27.37%

37.96%

4.79%0.10%


YMCA Super is pleased to advise members that the Growth investment strategy achieved solid positive returns for the year ended 30 June 2011. At the same time the Cash Plus investment strategy achieved a return which exceeds the annual Consumer Price Index (CPI) by greater than 1 per cent.

YMCA Super declared a set of quarterly crediting rates for each investment strategy during the year.

The quarterly crediting rates, applied for a full year, produce the following results for the year ended 30 June 2011:

Accumulation Accounts

8.5% p.a. for amounts invested in the

Growth investment strategy, and

4.97% p.a. for amounts invested in

the Cash Plus investment strategy.

Pension Accounts


the Growth investment strategy, and


the Cash Plus strategy.

Investment Performance Year Ended 30 June 2011

Fund PerformanceInvestment markets started the 2011 financial year with consistent positive returns. However the combined impact of a range of events has created a period of uncertainty and volatility in investment markets around the world during the second half of the financial year:• Earthquake, tsunami, and nuclear

disaster in Japan,• îPolitical instability in the Middle

East and North Africa,• The European sovereign debt

crisis, and• Ongoing slow economic recovery

and debt issues in the US.

Despite the market volatility the YMCA Super Growth strategy has benefited from a diversified investment portfolio and provided a solid return for the period.

The YMCA Super Growth strategy had a benchmark of 80% growth assets, comprised of Australian shares, international shares and property, which was revised down to 70% from September 2010 to reduce volatility. During times of volatility these assets can and will suffer short term losses from time to time. When markets fall, short-term investment performance returns can be significantly impacted. Over the longer term the diversity of investments help to minimise the impact of volatility in specific investment classes.

As an active superannuation investor you should be aware that long-term performance numbers of around 5 to 10 years provide a good guide of a super fund’s performance.

Longer-term historical data is useful in assessing the relevance of current year returns to your retirement savings goals, and provides you with some perspective on individual years of over-performance or under-performance.

ReservesAs at 30 June 2011 YMCA Super held a reserve of 1.68%. The reserve is an allowance for tax provisions on asset valuations, and for operational risk. Reserves are invested in accordance with the Growth investment strategy. No allowance for smoothing is made.



Growth Investment Strategy

The Growth Investment strategy has a benchmark mix of 70% allocation to growth assets such as shares and property, and 30% in more defensive fixed interest assets such as cash, longer dated Government securities and hybrid investments.

The objective of the Growth Investment strategy is to provide returns which exceed inflation by 3 – 4.5% per year over the long term, 6 to 10 years.

How do YMCA Super returns compare in the short term?YMCA Super’s annual performance for the year ended 30 June 2011 is competitive when compared to industry performance as published by a number of industry research agencies. The graph of annual returns illustrates YMCA Super’s performance for the year ended 30 June 2011 compared to the median figures published by:

Chant West publishes the performance of a range of funds with a growth investment option where growth assets represent between 61 and 80 percent of investments. Chant West is a specialist superannuation research and consultancy firm. Established in 1997, the firm is independent and wholly owned by its two principals, Warren Chant and Andrea West. In addition to its commercial activities, Chant West contributes extensively to the development of better practices with the aim of leading to better and fairer superannuation for all.

Selecting Super publishes the performance of a range of industry, corporate and government funds with growth investment options where growth assets represent more than 75% of investments. SelectingSuper is an up-to-date interactive resource that provides information about, and links directly with superannuation funds. It also provides calculators, online fund comparisons and lists of the top funds as well as background information to assist in making the right decision when selecting a Super Fund.

Growth Investment StrategyAnnual Returns for year ended 30 June 2011

YMCA Super’s annual performance outperforms the median return reported in the Selecting Super data, and is competitive with the Chant West survey group.

A further survey group which publishes the performance of Funds with a growth investment option which you may refer to is SuperRatings. The SuperRatings website www.superratings.com.au publishes the latest results, and historical information under media releases. The growth investment option result is the SR50 Growth Index.

0%

3%

6%

9%

12%

15%

Chant West Median Return

Selecting Super Median Return

YMCA Super


What are YMCA Super’s historical returns?

Growth Investment Strategy

Cash Plus Investment Strategy

The graphs below illustrates the historical annual declared crediting rate over a period of 5 years.

0%

1%

2%

3%

4%

5%Pension Rate p.a.

Accumulation Rate p.a.

year end 30 June 2011

20102009

20082007

n/a n/a n/a

6%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Pension Rate p.a.Accumulation Rate p.a.

year end 30 June

20112010

20092008

2007



YMCA Super performance figures show that the average net investment return over the five years to 30 June 2011 was 2.17 per cent p.a. Over this same five year period inflation was 2.95 per cent p.a.

Taking a longer term perspective, over the last 10 years YMCA Super achieved a compound average of 5.74 per cent p.a., whilst inflation over the same period averaged at 2.93 per cent p.a.

The graph below presents YMCA Super’s compound annual return performance over a five and ten year period compared to the compound median long term return figures published by the research agencies outlined above.

YMCA Super’s performance over the long term is competitive and in particular exceeds the 10 year performance median return published by each research agency, including SuperRatings.

How do YMCA Super returns compare over a longer time frame?

Growth Investment StrategyLong Term Compound Returns to 30 June 2011

**Note that Chant West does not publish a 10 year return figure.

0%

1%

2%

3%

4%

5%

6%

Chant West**

Selecting Super

YMCA Super

Inflation

10yr5yr 10yr5yr 10yr5yr 5yr

011


YMCA Super has offered a Cash Plus investment strategy since 1 July 2009.

The Cash Plus strategy provides a conservative investment strategy predominantly invested in interest bearing assets. The objective of the Cash Plus strategy is to provide stable returns over a shorter timeframe, and which will keep pace with inflation over the short to medium term, such as one to three years.

The Cash Plus strategy achieved a similar result last year, with returns exceeding inflation by 1.22 per cent.

Cash Plus Investment Strategy

Cash Plus Investment StrategyAnnual Returns for year ended 30 June 2011

How has the YMCA Super Cash Plus Strategy performed?

YMCA Super’s annual result for the Cash Plus investment strategy illustrates that the annual return of 4.97% exceeds inflation for the year to 30 June 2011 of 3.6% by 1.37%.

Inflation

YMCA Super

0%

1%

2%

3%

4%

5%



Interim Crediting Rate – From 1 July 2011

An abridged set of the Fund’s audited financial accounts for the 12 months ended 30 June 2011 are presented for your consideration. A full set of the audited accounts and Auditor’s report are available on request to the Fund Administrator.

Statement of Financial Position at30 June

2011$’000

2010$’000

Investments Australian Shares International SharesPropertyDiversifiedfixedincome CashOther Assets

32,34123,1247,90613,3167,8431,375

31,28517,5187,33313,9663,4591,837

Total Assets 85,905 75,398

Less liabilities Income tax payableProvisionfordeferredincometax

77814

77315

Total Liabilities 792 788

Net assets available to pay benefits 85,113 74,610

Represented by:Liabilityforaccruedbenefits Unallocated reserves

83,3981,715

72,4422,168

Total 85,113 74,610

Financial statements

The latest interim rates are located on our website www.ymca.org.au/super under Investment Returns. Interim rates are continually monitored and updated regulary to reflect market performance.

DeductionsFees and charges YMCA SUPER charges no Trustee fees because all Directors volunteer their services to the Fund.

Entry to the Fund is free and members are charged an annual administration fee of $60. If your account balance at 30 June 2011 is $1,000 or less, the fee is calculated on the value of interest your account balance has earned, subject to maximum of $60.

Members who have insurance cover for death or disablement and for ill health have the premium deducted directly from their account balance.

The benefit payment fee is currently set at $50 per payment.

Government taxesThe Government’s 15% contribution tax and any surcharge taxes are deducted directly from your contribution account and paid to the Australian Taxation Office.


Operating Statement of the Year Ended 30 June2011$’000

2010$’000

Net assets available to pay benefits at the beginning of the period 74,610 60,230

Plus Net Investment revenue Contributions revenue

• Employer• Member• Transfers in from other schemes

Other Income

6,648

11,363761

1,830100

7,554

10,740651

1,523200

Total Revenue 20,702 20,672

LessBenefitspaid Operating expenses Income tax expenses

6,4941,3352,370

5,2041,287(199)

Total benefits, expenses and tax 10,199 6,292

Net assets available to pay benefits at the end of the period 85,113 74,610

TrusteeThe Trustee of YMCA Super is AUSTYMCA Nominees Pty Ltd (ACN 004 428 960). Ron Mell is the Chief Executive Officer of YMCA Australia and the Company Secretary of the Trust Company.

The company is managed by a Board of voluntary Directors which consists of an equal number of National Council appointed and member elected Directors. The Directors operate for the benefit of all Members and are responsible for the management of the YMCA SUPER in accordance with the Trust Deed and

governing legislation. The Trustee has taken out indemnity insurance. Indemnity insurance provides protection to the assets of the Fund in the event of legal action involving the Directors.

The Trustee Board meets formally each quarter and has appointed an Investment Sub-Committee to manage the investments of the Fund on a day to day basis. The Investment Sub-Committee forwards a monthly report to all Directors and reports to the Board at each quarterly meeting.

As at 30 June 2011, the Board of Directors consisted of:

Member Elected Directors

Director Date Appointed Comment

AlanBray

27/04/2011

AlaniscurrentlytheChiefExecutiveOfficeroftheYMCAofBrisbaneandY-Care(South East Queensland) Inc. and is a State Council Director. Alan has served with the YMCA for over 20 years in a number of senior management positions. He also has roles as a member of the National Leadership Team and IT Steering Committee andhisqualificationsincludepostgraduatestudyinfinance,economicsandbusiness management.

JoPowell

05/04/2011

Jo is currently the Shared Services Manager of the YMCA of Ballarat and is a MemberofCPAAustralia.JohasservedtheYMCAfor6yearsinanumberofroles,bothasaCommitteeofManagementMemberandEmployeeandhasakeeninterestinsuperannuation,investingandfinancialmanagement.

SathySappany

22/02/2002

Sathy is a Fellow of the Chartered Institute of Management Accountants and a MemberoftheInstituteofAccountants.Hehasover15yearsofadministrationandseniormanagementexperienceintheareasoffinancialcontrol,riskmanagement,advance budgeting and costing techniques. In addition he has experience auditing local and multi national organizations.

MarkSargent

27/04/2011

MarkisalongtermemployeewiththeYMCA,havingservedformorethan22yearsinvaryingmanagerialroles,bothatstateandnationallevels.MarkpreviouslyservedasaDirectorofthefundintheearlypartofthedecade,andtodayleadstheroleaschiefExecutiveOfficerofYMCAEstorePtyLtd.Markhasakeeninterestinfinancialmanagement,investmentandthesharemarket,aswellasqualificationsinrecreationandmarketing.

National Council Appointed

Director Date Appointed Comment

RodEbsworth

19/11/2010

RodisaPortfolioManagerwithAgoraAssetManagement,aboutiqueAbsoluteReturnFund.Rodhas28yearsfinancialmarketsexperiencewithUBS(24years),Citi(1year)andAgora(3years).Rodservedasanemployerappointeddirector of the UBS Staff Superannuation Fund from 1991 until 2007 and has a Bachelor of Economics from Monash University.

IanHeraud

26/05/2007

IanisaFellowandlifememberoftheFinancialPlanningAssociationofAustralia(FPA)andisadirectorofShadforthFinancialGroup.Hehaspractisedfinancialplanningforover25yearsandhasservedasadirectoroftheFPAandtheinternationalFinancialPlanningStandardsBoard.Ianhasco-authoredtwobooksonsuperannuationandfinancialplanningandwasthefinanceexpertonABCMelbourne’sSaturdaymorningfinancetalkbackshow.

Adrian Lombardo

19/12/2002

Adrianhasbeeninvolvedinthefinancialservicesindustryformorethan22yearsfollowingasuccessfulmilitarycareer.HeisaSeniorVicePresident–WealthManagementatMorganStanleySmithBarney,andapastMelbourneBranchManagerofthiscompany,whichisalargeprivateclientwealthmanagementfirm.PriortojoiningMorganStanleySmithBarney,AdrianworkedatDeutscheBankasaninvestmentadvisor,andasaDirectorforPotterWarburgSecurities,SydneyandBrisbaneoffices.Hehasalsohadseveralyearsexperienceasaportfolioandinvestmentmanagerinthefundsmanagementindustry.AdrianisanAffiliateofthe Securities Institute of Australia.

RichardEdwards

30/11/2001

Richard is a Fellow of the Institute of Chartered Accountants and has over 30 years of experience in firms ofCharteredAccountantswithNational and InternationalAffiliations.HeisaPastPresidentandcurrentlyaDirectoroftheNationalCouncilof the YMCAs of Australia and the YMCA of Brisbane. He was awarded a medal of TheOrderofAustraliaintheGeneralDivisionontheQueen’sBirthday2001honourlist for service to the community.


Eligible Rollover Fund (ERF)When your employment with the YMCA ceases we provide you with an estimate of your benefit entitlement from YMCA Super. If your benefit entitlement at this time is less than $200 you may receive your benefit in cash simply by filling in the forms provided with your quote.

If you do not complete the forms and return them to us within 90 days we will automatically transfer your benefit to the Unclaimed Super Fund (AUSfund). If we transfer your benefit to AUSfund you cease to be a member of YMCA Super.

The contact details for AUSfund are:

Phone: 1300 361 798(for the cost of a local call)Fax: 1300 366 233(for the cost of a local call)Post: P O Box 2468KENT TOWN SA 5071Hours: 8.30am to 5.00pmMonday to FridayWeb: www.unclaimedsuper.com.auEmail: [email protected]

Other information

Member Fees• $10 per member per year or

part-year.

• Responsible Entity operation cost of 0.27%.

• Investment management fees of 0.53%.

• As an ERF, all AUSfund accounts are protected from being eroded by administration fees.

• Member with an account balance below $50 are not charged the administration fee and do receive interest.

Trustee: AUSTYMCA Nominees Pty LtdYMCA Australia Level 1, 88 Market Street South Melbourne 3205

Ph: 03 9693 9726 Fax: 03 9690 2835email: [email protected] web: www.ymca.org.au/super

RSE Licence L0001274 Fund Registration R1004533

YMCA Super Annual Report

Documents

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