annual report 30 june 2018
TRANSCRIPT
WF and LS Annual Report 2017Annual Report 30 June 2018 ClearView
WealthFoundations Super and Pension ClearView LifeSolutions Super
ClearView LifeSolutions Super Rollover
Issued by ClearView Life Nominees Pty Limited ABN 37 003 682 175 AFSL 227683 RSE Licence No L0000802 as trustee for the ClearView Retirement Plan ABN 45 828 721 007 RSE Registration No R1001624
3Introduction
4Investment strategies and objectives
7Investment performance information
16General information
16Investment option
18Legislative Update
18Reduction of Division 293 income threshold to $250,000
18Superannuation Guarantee rate increasing to 12%
18Minimum pension payments
18Changes to fees and costs disclosure from 29 September 2017
19New super reforms that commenced from 1 July 2018
19New proposed super reforms
21Cyber fraud
22Privacy
Page 2
Introduction ClearView Life Nominees Pty Limited as Trustee for the ClearView Retirement Plan (ClearView Plan) is pleased to present you with the Annual Report for the 2017/18 financial year. In this report ClearView Life Nominees Pty Limited is referred to as ‘we’, ‘us’, ‘our’ or ‘the Trustee’.
As at 30 June 2018, the ClearView Plan had three sub-plans (and included the following products):
1. ‘ClearView sub-plan’:
2. ‘ClearView traditional sub-plan’:
3. ‘ClearView WealthSolutions sub-plan’:
ClearView WealthSolutions Superannuation (USI: 45 828 721 007 001); and ClearView WealthSolutions Retirement Income (USI: 45 828 721 007 001).
Changes were made to the above sub-plans in September 2014. These changes introduced the ClearView traditional sub-plan and transferred the ClearView Pension Plan and ClearView Superannuation and Roll-overs into that sub-plan. In addition, ClearView WealthFoundations Super and Pension were introduced into the ClearView sub-plan. Information prior to this date relates to the previous sub-plan structure.
The assets of each sub-plan are segregated and separately managed by the Trustee, such that there is no cross-subsidisation between the three sub-plans.
We have prepared three separate Annual Reports, one for each sub-plan. This is the ClearView sub-plan Annual Report.
‘ClearView Life’ means ClearView Life Assurance Limited ABN 12 000 021 581, AFS Licence No 227682 who we have appointed to carry out the day-to-day administration for the ClearView sub-plan. In addition, we invest contributions, transfers and rollovers in life investment policies that are issued by ClearView Life. ClearView Financial Management Limited (CFML) ABN 99 067 544 549 AFS Licence No 227667 has been appointed by ClearView Life to manage the investment options. The Trustee, ClearView Life and CFML are ultimately subsidiaries of ClearView Wealth Limited ABN 83 106 248 248.
The Trustee has taken out indemnity insurance.
The ClearView Plan is governed by a Trust Deed dated 19 January 1989 (as amended). The provisions of the Policy Documents issued by ClearView Life regulate the terms of the Trustee’s investments and member insurance arrangements in the ClearView sub-plan. Copies of the Trust Deed and the Policy Documents are available upon request.
As the benefits paid to each member of the ClearView sub-plan are wholly determined by reference to life investment policies, in accordance with the Corporations Act and the Corporations Regulations, the Trustee is not required to provide certain investment and financial information including abridged financial statements, a statement of assets and information about investments with a value of more than 5% of the total assets of the ClearView sub-plan.
The information provided in the Annual Report is general information only and does not take account of your personal objectives, financial situation or needs. You should consider the appropriateness of the information in this Annual Report having regard to your personal objectives, financial situation and needs before acting on the information in this Annual Report.
Further information is available by calling us on 132 977. Alternatively, you may wish to visit our website at www.clearview.com.au.
Page 3
ClearView WealthFoundations Super and Pension Investment strategies and objectives
Investment performance and asset allocation for each investment option as at 30 June 2018 are shown on the following pages. The actual asset allocation at any particular time will generally remain within the ranges specified for each investment option. The neutral asset allocation detailed for each investment option is ClearView Life’s default asset allocation position within the stated asset allocation range.
Our Investment Portfolio Service (IPS) Strategies let members focus on the types of assets they like to invest in (known as asset classes) for their risk profile and appetite. Our team of investment specialists put together a mix of investments to suit the goals and objectives of each IPS Strategy and monitor them on a regular basis. When changes need to be made to investments or asset allocations we manage this for members and keep them informed via their Quarterly Investment Reports. We also rebalance a member's Investment Pool regularly, as required.
Each of the IPS Strategies and Guaranteed Cash have a range of levels of risk and potential levels of return which means members along with their financial adviser can select the mix that best suits their needs. They can also nominate the LifeStages Strategy and we’ll adapt their portfolio mix as they move through stages of life from early investing focused on growth through to retirement when their need for income increases.
More information about all available IPS Strategies and the Guaranteed Cash investment option can be found in the Investment Options List available at www.clearview.com.au/ tools/pds-and-brochures.
Guaranteed Cash
A portfolio of cash and short term securities designed to provide security of capital with some capital protection.
Product summary
For investors looking for high security for their capital.Investor profile
To provide a high level of security of capital by investing in cash and other highly liquid investments.
Investment return objective
IPS Dynamic 30
A portfolio of actively managed assets designed to achieve stable returns over the short to medium term.
Product summary
For investors who regard security and stability as more important than the level of returns.
Investor profile
To earn relatively stable returns over the short to medium term.Investment return objective
IPS Dynamic 50
A portfolio of actively managed assets designed to achieve moderate returns over the medium term.
Product summary
For investors who seek capital growth and are willing to accept some volatility.Investor profile
To earn moderate returns over the medium term.Investment return objective
IPS Dynamic 70
A portfolio of actively managed assets designed to achieve high returns over the long term.
Product summary
For investors who desire the potential for higher returns and are comfortable with higher risks.
Investor profile
To earn relatively high returns over the long term.Investment return objective
Page 4
IPS Dynamic 90
A portfolio of actively managed assets designed to achieve significant returns over the long term.
Product summary
For investors who seek to maximise their return and are prepared to accept a higher level of risk on their investment.
Investor profile
To earn significant returns over the long term.Investment return objective
IPS Enhanced Index 30
A portfolio of actively managed assets designed to achieve stable returns over the short to medium term.
Product summary
For investors who regard security and stability as more important than the level of returns.
Investor profile
To earn relatively stable returns over the short to medium term.Investment return objective
IPS Enhanced Index 50
A portfolio of actively managed assets designed to achieve moderate returns over the medium term.
Product summary
For investors who seek capital growth and are willing to accept some volatility.Investor profile
To earn moderate returns over the medium term.Investment return objective
IPS Enhanced Index 70
A portfolio of actively managed assets designed to achieve high returns over the long term.
Product summary
For investors who desire the potential for higher returns and are comfortable with higher risks.
Investor profile
To earn relatively high returns over the long term.Investment return objective
IPS Enhanced Index 90
A portfolio of actively managed assets designed to achieve significant returns over the long term.
Product summary
For investors who seek to maximise their return and are prepared to accept a higher level of risk on their investment.
Investor profile
To earn significant returns over the long term.Investment return objective
IPS Active Australian Shares
An actively managed portfolio whose underlying investments are Australian shares.Product summary
For investors who seek to maximise their return and are prepared to accept a higher level of risk on their investment.
Investor profile
To earn significant returns over the long term.Investment return objective
IPS Active International Shares
An actively managed portfolio whose underlying investments are international shares.Product summary
For investors who seek to maximise their return and are prepared to accept a higher level of risk on their investment.
Investor profile
To earn significant returns over the long term.Investment return objective
Page 5
A portfolio whose underlying investments consist of both domestic and international shares.
Product summary
For investors who seek to maximise their return and are prepared to accept a higher level of risk on their investment.
Investor profile
To earn significant returns over the long term.Investment return objective
IPS Conservative Growth
An actively managed portfolio of shares from what could be more defensive sectors of the share market such as infrastructure and property.
Product summary
For investors who wish to invest in the potentially more defensive sectors of the share market.
Investor profile
To earn relatively high returns over the long term.Investment return objective
IPS Income
A portfolio of fixed interest investments.Product summary
For investors who regard security and stability as more important than the level of returns.
Investor profile
To earn relatively stable returns over the short to medium term.Investment return objective
IPS Cash
An investment in 100% cash.Product summary
Very risk adverse investors and/or those with a short investment time frame.Investor profile
To earn cash returns.Investment return objective
Use of Derivatives
Financial derivatives such as futures and options contracts may be used for hedging or as an alternative to buying physical securities and to manage risk. They are not used for material speculative or gearing purposes. ClearView does not trade in derivatives directly, but may in the future. Derivatives are currently undertaken by certain underlying investment managers.
Reserves
The Trustee is required to maintain an Operational Risk Financial Requirement (ORFR) as determined in accordance with Superannuation Prudential Standard 114 (SPS 114). SPS 114 requires that the Trustee maintains adequate financial resources to address losses arising from the operational risks that may affect the ClearView Plan.
The ORFR reserves are maintained by the Trustee outside the ClearView Plan, backed by the shareholder capital and retained earnings of the Trustee. No ORFR reserves or other reserves are maintained within the ClearView Plan.
How investment earnings are allocated in member accounts Each IPS strategy is made up of one or more underlying investment options which are divided into notional units. A notional unit represents a proportion of an underlying investment option.
The price of a unit is calculated by dividing the net market value of the assets of an underlying investment option by the number of units issued in the underlying investment option.
The gross market value of the assets of an underlying investment option includes provision for the relevant investment expenses (which includes indirect costs, any applicable tax provisions, transaction costs and government duties and charges) before the unit price is declared. Therefore these allowances are indirectly borne by all investors in each underlying investment option. The gross market value less these investment expenses equals the net market value.
The number of units allocated to an account will be dependent on the amount invested and the unit price on the date of investment.
The latest unit prices are available at www.clearview.com.au/ superannuation-investments-retirement/unit-prices or by calling us on 132 977.
Page 6
Investment performance information The investment performance for each Investment Strategy can be found in the next section. For information about your investment option performance, refer to your Member Benefit Statement that is received annually. Your Member Benefit Statement shows the specific investment options your WealthFoundations account was invested in as at 30 June 2018 and their performance. It is important to note that past performance should not be taken as an indication of future performance.
Product updates July 2017
On 1 July 2017, the current tax exemption on earnings generated from a transition to retirement (TTR) pension account was removed. The tax rate on earnings is now 15%, which reflects the tax on earnings within a super account. The tax treatment of income payments received from a TTR pension account has not changed (eg. tax free income for those aged 60 and over).
September 2017
On 29 September 2017, MFS Investment Management was replaced with Stewart Investors within the underlying investment option ‘MFS International Shares Fund’. The investment option was renamed the 'Stewart Investors Worldwide Sustainability Fund'.
On 29 September 2017, we also updated our disclosure documents to include the enhanced fee and cost disclosure requirements introduced by ASIC in Regulatory Guide 97 - Disclosing fees and costs in PDSs and periodic statements (RG 97). The main impact of RG 97 was a re-classification of fees and costs required to be disclosed in product disclosure statements. It is important to note that under the enhanced disclosure requirements, there were no extra fees or costs to you but rather, the disclosure now includes certain fees and costs that would normally be charged to you in the ordinary course of investing (such as transactional and operational costs).
December 2017
From 5 December 2017, to help make the process of comparing fees and costs easier, we updated our disclosure documents to include the following changes:
1. unbundling the Indirect Cost Ratio (ICR) to break down the individual costs that form part of the overall ICR;
2. disclosing the underlying buy-sell spread; and 3. consistent tax treatment of fees and charges between
Super and Pension. This means our Super and Pension fees and costs are now the same, however a tax benefit/deduction will still apply for Super and TTR accounts, effectively reducing those fees by 15%.
It’s important to note that the total fees charged to you did not change. Previously, the WealthFoundations ICRs were a combined total of:
investment fees; administration fees; and indirect costs (including transactional and operational costs)
From 5 December 2017, these fees and costs are now shown separately (aligning us with most other super providers in our market).
January 2018
On 23 January 2018, the ClearView Investment Research team recommended a reduction in exposure to Australian Listed Property, and a reallocation to International Equities and Emerging Markets within certain Investment Strategies. This change impacted the following investment options: IPS Dynamic 70, IPS Dynamic 90, IPS Enhanced Index 70 and IPS Enhanced Index 90.
July 2018
Listed infrastructure, in both developed and emerging economies, was reallocated to (unhedged) international equities on 23 July 2018 by moving from the RARE Emerging Markets and CFS Infrastructure funds into the Antipodes Global and Stewart Investors Worldwide Sustainability funds.
Page 7
Underlying Investment Option
Guaranteed Cash 100%
Growth Assets 0%
IPS Dynamic 30 Current underlying investment option allocations
Underlying Investment Option
Stewart Investors Worldwide Sustainability Fund 3%
RARE Emerging Markets Fund 7.5%
CLAL Cash Fund 15%
Listed Infrastructure 12.5%
Australian Shares 10%
International Shares 10%
Emerging Markets 7.5%
Growth Assets 40%
Stewart Investors Worldwide Sustainability Fund 5%
RARE Emerging Markets Fund 12%
CLAL Cash Fund 10%
Listed Infrastructure 15%
Australian Shares 15%
International Shares 18%
Emerging Markets 12%
Growth Assets 60%
Stewart Investors Worldwide Sustainability Fund 2%
RARE Emerging Markets Fund 4%
CLAL Cash Fund 25%
Listed Infrastructure 5%
Australian Shares 8%
International Shares 8%
Emerging Markets 4%
Growth Assets 25%
IPS Dynamic 50 Current underlying investment option allocations
Performance
IPS Dynamic 70 Current underlying investment option allocations
Performance
1.1% 1.7% 1.1% 4.3% 5.0% 5.8%
* The return for periods of one year or longer are annualised.
Page 8
Plato Australian Shares Fund 8%
SSGA International Shares Fund 8%
Vanguard Emerging Markets Shares Index Fund 4%
CLAL Cash Fund 25%
Listed Infrastructure 5%
Australian Shares 8%
International Shares 8%
Emerging Markets 4%
Growth Assets 25%
Plato Australian Shares Fund 10%
SSGA International Shares Fund 10%
Vanguard Emerging Markets Shares Index Fund 7.5%
CLAL Cash Fund 15%
Listed Infrastructure 12.5%
Australian Shares 10%
International Shares 10%
Emerging Markets 7.5%
Growth Assets 40%
CFS Infrastructure Fund 17.5%
Stewart Investors Worldwide Sustainability Fund 7.5%
RARE Emerging Markets Fund 14.5%
CLAL Cash Fund 5%
Property 5%
Fixed Interest 15%
Defensive Assets 20%
* The return for periods of one year or longer are annualised.
IPS Dynamic 90 Current underlying investment option allocations
Performance
IPS Enhanced Index 30 Current underlying investment option allocations
Performance
IPS Enhanced Index 50 Current underlying investment option allocations
Performance
Underlying Investment Option
Plato Australian Shares Fund 15%
SSGA International Shares Fund 18%
Vanguard Emerging Markets Shares Index Fund 12%
CLAL Cash Fund 10%
Listed Infrastructure 15%
Australian Shares 15%
International Shares 18%
Emerging Markets 12%
Growth Assets 60%
Performance
Page 9
* The return for periods of one year or longer are annualised.
Underlying Investment Option
Vanguard Global Infrastructure Index Fund 17.5%
Plato Australian Shares Fund 20%
SSGA International Shares Fund 23%
Vanguard Emerging Markets Shares Index Fund 14.5%
CLAL Cash Fund 5%
Property 5%
Australian Shares 100%
Growth Assets 100%
Defensive Assets 0%
Performance
IPS Active Australian Shares Current underlying investment option allocations
Performance
Underlying Investment Option
Vanguard Emerging Markets Shares Index Fund 33%
Australian Shares 33%
International Shares 34%
Emerging Markets 33%
Growth Assets 100%
Defensive Assets 0%
International Shares 67%
Emerging Markets 33%
Growth Assets 100%
Defensive Assets 0%
Underlying Investment Option
Stewart Investors Worldwide Sustainability Fund 34%
RARE Emerging Markets Fund 33%
Performance
IPS Enhanced Index Shares Current underlying investment option allocations
Performance
Page 10
* The return for periods of one year or longer are annualised.
Underlying Investment Option
CFS Infrastructure Fund 40%
Property 40%
Performance
Underlying Investment Option
Growth Assets 0%
Fixed Interest 100%
Defensive Assets 100%
Performance
IPS Cash Current underlying investment option allocations
Performance
Page 11
Underlying Investment Option
Guaranteed Cash 100%
Growth Assets 0%
IPS Dynamic 30 Current underlying investment option allocations
Underlying Investment Option
Stewart Investors Worldwide Sustainability Fund 3%
RARE Emerging Markets Fund 7.5%
CLAL Cash Fund 15%
Listed Infrastructure 12.5%
Australian Shares 10%
International Shares 10%
Emerging Markets 7.5%
Growth Assets 40%
Stewart Investors Worldwide Sustainability Fund 5%
RARE Emerging Markets Fund 12%
CLAL Cash Fund 10%
Listed Infrastructure 15%
Australian Shares 15%
International Shares 18%
Emerging Markets 12%
Growth Assets 60%
Stewart Investors Worldwide Sustainability Fund 2%
RARE Emerging Markets Fund 4%
CLAL Cash Fund 25%
Listed Infrastructure 5%
Australian Shares 8%
International Shares 8%
Emerging Markets 4%
Growth Assets 25%
IPS Dynamic 50 Current underlying investment option allocations
Performance
IPS Dynamic 70 Current underlying investment option allocations
Performance
1.2% 1.8% 1.2% 5.0% 5.9% 6.8%
* The return for periods of one year or longer are annualised.
Page 12
Plato Australian Shares Fund 8%
SSGA International Shares Fund 8%
Vanguard Emerging Markets Shares Index Fund 4%
CLAL Cash Fund 25%
Listed Infrastructure 5%
Australian Shares 8%
International Shares 8%
Emerging Markets 4%
Growth Assets 25%
Plato Australian Shares Fund 10%
SSGA International Shares Fund 10%
Vanguard Emerging Markets Shares Index Fund 7.5%
CLAL Cash Fund 15%
Listed Infrastructure 12.5%
Australian Shares 10%
International Shares 10%
Emerging Markets 7.5%
Growth Assets 40%
CFS Infrastructure Fund 17.5%
Stewart Investors Worldwide Sustainability Fund 7.5%
RARE Emerging Markets Fund 14.5%
CLAL Cash Fund 5%
Property 5%
Performance
IPS Enhanced Index 30 Current underlying investment option allocations
Performance
IPS Enhanced Index 50 Current underlying investment option allocations
Performance
Underlying Investment Option
Plato Australian Shares Fund 15%
SSGA International Shares Fund 18%
Vanguard Emerging Markets Shares Index Fund 12%
CLAL Cash Fund 10%
Listed Infrastructure 15%
Australian Shares 15%
International Shares 18%
Emerging Markets 12%
Growth Assets 60%
Performance
1.3% 3.0% 2.3% 7.4% 6.1% 7.3%
* The return for periods of one year or longer are annualised.
Page 13
Vanguard Global Infrastructure Index Fund 17.5%
Plato Australian Shares Fund 20%
SSGA International Shares Fund 23%
Vanguard Emerging Markets Shares Index Fund 14.5%
CLAL Cash Fund 5%
Property 5%
Australian Shares 100%
Growth Assets 100%
Defensive Assets 0%
Performance
IPS Active Australian Shares Current underlying investment option allocations
Performance
Underlying Investment Option
Vanguard Emerging Markets Shares Index Fund 33%
Australian Shares 33%
International Shares 34%
Emerging Markets 33%
Growth Assets 100%
Defensive Assets 0%
International Shares 67%
Emerging Markets 33%
Growth Assets 100%
Defensive Assets 0%
Underlying Investment Option
Stewart Investors Worldwide Sustainability Fund 34%
RARE Emerging Markets Fund 33%
Performance
IPS Enhanced Index Shares Current underlying investment option allocations
Performance
1.1% 2.9% 3.0% 13.0% 8.4% 10.4%
* The return for periods of one year or longer are annualised.
Page 14
* The return for periods of one year or longer are annualised.
Underlying Investment Option
CFS Infrastructure Fund 40%
Property 40%
Performance
Underlying Investment Option
Growth Assets 0%
Fixed Interest 100%
Defensive Assets 100%
Performance
IPS Cash Current underlying investment option allocations
Performance
Page 15
ClearView LifeSolutions Super and ClearView LifeSolutions Super Rollover
General information This section of the report is relevant if you hold a ClearView LifeSolutions Super interest in the ClearView Plan under which you may be covered for Life, Accidental Death, Total and Permanent Disability (TPD), Accidental TPD, Income Protection, Income Protection Plus or Accidental Income Protection Cover. Premiums for ClearView LifeSolutions Super are payable monthly or annually. You may pay your annual premium via a tax paid rollover from a complying superannuation fund. In order to do this, you must have a ClearView LifeSolutions Super Rollover interest in the ClearView Plan.
Investment option ClearView LifeSolutions Super Rollover provides only one investment option being a cash investment option, the ClearView Life Super Cash Fund.
Your monies are invested in a life investment policy which issues notional units in the ClearView Life Super Cash Fund. The life investment policies are issued to us by ClearView Life.
ClearView Life Super Cash Fund
A very low risk strategy classification which generally provides exposure to cash and other highly liquid investments.
Description
Investors who are looking for high security and have an investment timeframe of at least one year.
Designed for
To earn returns that match headline CPI increases over rolling one-year periods.
Investment return objective
Funds offered will typically benchmark with reference to the UBSWA Bank Bill Index.
Strategy benchmark
(Defensive)
30/06/1830/06/17Annual investment performance % 0.120.55
While past performance is not an indicator of future performance investment history has shown:
investments with potentially higher long term returns tend to have more variable returns and have a greater chance of negative returns in the short term; and investments that provide more stable returns, with less chance of negative returns, have tended to produce lower returns over the long term and would expect less fluctuation in returns and less chance of capital loss.
The ClearView Life Super Cash Fund invests 100% in cash and short term securities. This is a unitised investment option and ClearView Life guarantees the capital (money) that you invest less net withdrawals which include tax, fees and premiums paid for life insurance cover. This guarantee is provided from the assets of the ClearView Life Statutory Fund No.2. No part of your investment return is guaranteed.
You should consider the likely investment return, risk and your investment timeframe when deciding whether to apply for ClearView LifeSolutions Super Rollover. We may change the investment option in the future. If this occurs we will notify you.
We do not take labour standards or environmental, social or ethical considerations into account in the selection, retention or realisation of investments in relation to ClearView LifeSolutions Super Rollover.
How investment earnings are allocated in member accounts Each investment option is divided into notional units. A unit represents a proportion of an investment option.
The price of a unit is calculated by dividing the net market value of the assets of an investment option by the number of units issued in the investment option.
The gross market value of the assets of an investment option includes provision for the relevant investment expenses (which includes indirect costs, any applicable tax provisions, transaction costs and government duties and charges) before the unit price is declared. Therefore these allowances are indirectly borne by all investors in each investment option. The gross market value less these investment expenses equals the net market value.
The number of units you will be allocated will be dependent on the amount you have to invest and the unit price on the date of investment.
Page 16
The number of units allocated to your account will change with each transaction performed on your account.
Unit prices fluctuate on a daily basis, in line with changes in the market value of the assets held in the investment option. The value of your investment in an investment option will also fluctuate. Redemption unit prices are however guaranteed not to fall.
Except as otherwise specifically stated, neither we nor ClearView Life guarantees the repayment of capital or any particular rate of return.
For more information on how unit prices are calculated, please see the Product Disclosure Document and Additional Information Brochure available at https://www.clearview.com.au/Tools/pds-and-brochures.
For simplicity ClearView Life currently uses a single unit price for all transactions (for each effective date). ClearView Life may introduce Application and Redemption prices in the future.
The latest unit prices are available at www.clearview.com.au or by calling us on 132 977.
Page 17
Concessional and non-concessional contributions cap The concessional and non-concessional caps for the 2018/19 financial year are outlined in the following table.
There have been no changes from the 2017/18 financial year.
Cap for 2018/19Type of contribution
$25,000 (for all ages)Concessional contributions
$100,000Non-concessional contributions1
$300,000Non-concessional contributions – bring-forward option2
1 Non-concessional contributions cannot be made if a person's total super balance on 30 June in the previous financial year is $1.6 million or more.
2 The bring-forward option is available where the person is age 64 or less at 1 July in the year of contribution. This is the maximum contribution amount over a 3-year period noting that further restrictions are placed on those with a total super balance approaching $1.6 million.
Reduction of Division 293 income threshold to $250,000 Previously individuals with income and concessional super contributions in excess of $300,000 triggered a Division 293 assessment.
Effective 1 July 2017, the Government lowered the Division 293 income threshold to $250,000 for the 2017/18 and future financial years. An individual with income and concessional super contributions exceeding the $250,000 threshold will have an additional 15% tax imposed on the amount over the threshold, up to the total amount of concessional contributions not exceeding their concessional contributions cap.
The intent of this change is to better target tax concessions to ensure the superannuation system is equitable and sustainable.
Superannuation Guarantee rate increasing to 12% The Superannuation Guarantee rate for each financial year is:
Superannuation Guarantee rate
Minimum pension payments The minimum pension percentages have remained constant for the 2018/19 year as follows:
Standard % for 2018/19
4%under 65
5%65 – 74
6%75 – 79
7%80 – 84
9%85 – 89
11%90 – 94
14%95 plus
Changes to fees and costs disclosure from 29 September 2017 Enhanced fee and cost disclosure requirements were introduced industry-wide. These changes are reflected in your Member Benefit Statement for the 2017/18 financial year and onwards.
To improve and simplify this disclosure, regulators commissioned a report to review the disclosure of fees and costs in PDSs and periodic statements. The report was released in July 2018 and is currently being reviewed by the regulator.
Page 18
New super reforms that commenced from 1 July 2018 Downsizer Contributions
From 1 July 2018, ClearView has been able to accept downsizer contributions. If you are aged 65 years or older and sell your principal home on or after 1 July 2018 you may be able to use the sale proceeds to make a downsizer contribution of up to $300,000 (or $600,000 combined for a couple) into your superannuation account.
You need to make all contributions within 90 days of receiving the proceeds of sale, usually the date of settlement, unless you have been granted an extension.
Downsizer contributions are tax free when received by your fund and are not subject to normal contribution eligibility criteria. However, other eligibility criteria apply and once made the contributions will count towards your total superannuation balance on 30 June at the end of the financial year. Downsizer contributions used to commence retirement phase income streams (e.g. account based pensions) also count towards your $1.6 million transfer balance cap.
First Home Super Saver (FHSS) Scheme
From 1 July 2017, you have been able to make voluntary concessional (before-tax) and non-concessional (after-tax) contributions to super to save for your first home. You can contribute up to $15,000 each financial year ($30,000 in total) in voluntary contributions under the FHSS Scheme.
From 1 July 2018, you can apply to withdraw the contributed amounts (less 15% contributions tax on your before-tax concessional contributions) plus a deemed earnings amount. This withdrawal request is to be undertaken via the ATO who will then instruct your chosen super fund to release the specified amount. You can also request a determination from the ATO to confirm the maximum FHSS release amount that applies to you.
You must meet certain eligibility requirements to apply for the release of these amounts or you may be liable to pay additional tax. Amounts withdrawn (excluding after-tax non-concessional contributions) form part of your assessable income but provide you with a 30% non-refundable tax offset.
New proposed super reforms Below we outline a few of the proposed superannuation changes which were announced in the 2018/19 May Federal Budget. Please note the changes below are not yet law and are subject to change.
Work test delayed for one year
Effective 1 July, 2019
Currently, to be eligible to make voluntary contributions to super from age 65 onwards, a work test must be met (that is, 40 hours of work in 30 consecutive days in the year of contribution).
Under this proposal, eligible retirees aged 65 to 74 will be able to make voluntary super contributions for an additional 12 months from the end of the financial year when they last met the work test.
To qualify, a client’s total super balance at the start of the relevant year must be less than $300,000 but there is no requirement to retain a balance under $300,000 for the remainder of that year.
Under this exemption, the standard $100,000 non-concessional and $25,000 concessional caps continue to apply. Importantly, this work test exemption can be used to access any unused concessional cap that has been carried forward from previous years.
Opt-in for life insurance inside superannuation for some members
From 1 July 2019, some super fund members will be offered life insurance inside super on an ‘opt-in’ basis as opposed to the current automatic acceptance model.
Clients who may be impacted by this change include:
new members under the age of 25; existing members with an account balance under $6,000; and existing members who have not contributed to the fund in 13 months and are considered inactive.
These changes aim to provide greater flexibility and cost efficiency for members, particularly young workers, by enabling them to stop paying for cover they don’t need or want and can’t claim on. It also aims to prevent the erosion of small super balances due to fees and charges.
These changes do not stop members from holding insurance inside superannuation, they simply require affected members to opt-in for cover.
Restrictions on super fees
From 1 July 2019, exit fees on all super accounts will be banned.
Additionally, a 3% maximum fee cap will apply to accounts with balances below $6,000.
Page 19
Automatic combining of lost or inactive superannuation accounts
The ATO will also receive additional funding to expand its data matching capabilities to help workers consolidate small, inactive accounts with existing active accounts.
Pension Work Bonus increase
The Pension Work Bonus currently allows age pensioners who also do some work as employees to disregard the first $250 per fortnight of employment income when calculating pension entitlements.
Two changes regarding the Pension Work Bonus have been proposed to commence from 1 July 2019.
Firstly, the amount of employment income that is exempt from pension calculations will increase from $250 per fortnight to $300 per fortnight (or $7,800 per year each).
Secondly, self-employed workers will be eligible for the work bonus, a benefit that has previously only been available to employees.
Pension loans scheme extended
The Pension Loans Scheme (PLS) is a Government sponsored initiative where the equity in your home is used to fund additional fortnightly income. Currently, your combined Age Pension entitlement plus any income from the PLS cannot exceed the maximum rate of pension.
The Government proposes to expand eligibility of the PLS from 1 July 2019 to all Australians of Age Pension age including maximum rate age pensioners and also increase the maximum allowable combined Age Pension and PLS income stream to 150% of the maximum Age Pension rate.
Income payments under the PLS are non-taxable and generally not means tested unless the additional income is not spent and accumulates, in which case it will be counted as an assessable asset and deemed.
Medicare levy
Plans to increase the Medicare Levy by an additional 0.5% to 2.5% on 1 July 2019 to the fund the National Disability Insurance Scheme (NDIS) have been discarded.
For the 2017/18 financial year, individuals with taxable incomes of less than $21,980 pay no Medicare Levy, while individuals with taxable incomes above $27,476 do not qualify for the Medicare Levy Reduction. Seniors and Pensioners entitled to the Senior and Pensioners Tax Offset pay no Medicare Levy if their taxable income is less than $34,758, while the same individuals with incomes above $43,448 do not qualify for the Medicare Levy Reduction.
Taxpayers who have a spouse, or are sole parents, and total family income of less than $46,361 pay no Medicare Levy. Seniors and Pensioners who have a spouse and are entitled to the Senior and Pensioners Tax Offset pay no Medicare Levy if their family income is less than $60,481. These amounts are increased by $4,257 for each dependent child.
Concessional contributions for high income earners
All employers are currently required to contribute a minimum of 9.5% of earnings to super on behalf of employees up to a maximum earnings base of $52,760 per quarter.
However, where a client has two or more employers all contributing the minimum super guarantee (SG) rate, the $25,000 concessional cap may be unintentionally breached.
The Government had proposed that from 1 July 2018, high income employees with multiple employers will have the ability to opt out of SG obligations to avoid breaching the cap and instead have the potential to negotiate additional income from their employer. However, this has not yet passed.
More information For more information on the above and other announcements from the 2018/19 May Federal Budget, see our 2018/19 Federal Budget Technical Bulletin.
If you would like to know more about these changes and how they may impact you, talk to your financial adviser. More information on these changes is also available at www.ato.gov.au/Individuals/Super/Super-changes.
Page 20
Important Information If you have a complaint At ClearView, we're never satisfied when it comes to doing better and our customers are very important to us. If something goes wrong, we're determined to make it right again. If you had an experience with ClearView that you are not satisfied with, we're here to resolve the issue.
If you have a complaint, please call us on 132 977 or write to the following address:
Complaints Manager ClearView Reply Paid 4232 Sydney NSW 2001
You can also email us - [email protected].
Before 1 November 2018, we will address your complaint within 90 days or (or within any extended period you approve).
On or after 1 November 2018, we will address your complaint within 45 days (or within any extended period you approve).
If you are not satisfied with how we respond to your enquiry or complaint, or we have not dealt with your complaint within 90 days (or within any extended period you approve), you may contact the Superannuation Complaints Tribunal (SCT) on 1300 884 114 between 9am and 5pm (Melbourne time) Monday to Friday on or before the 31 October 2018 .
Alternatively, you may visit their website at www.sct.gov.au or write to them at the address below.
The Manager Superannuation Complaints Tribunal Locked Bag 3060 Melbourne VIC 3001
The Superannuation Complaints Tribunal is an independent dispute resolution body which offers a free, user-friendly alternative to the court system.
If you make a complaint on or after 1 November 2018, you may take your complaint to the Australian Financial Complaints Authority (AFCA). AFCA is the new external dispute resolution scheme for financial services complaints. AFCA provides fair and independent financial services complaint resolution that is free to consumers.
Website: www.afca.org.au Email: [email protected] Telephone: 1800 931 678 (free call) In writing to: Australian Financial Complaints Authority, GPO Box 3, Melbourne VIC 3001
Cyber fraud Cybercrime is an issue which continues to impact the lives of many Australians. It involves the use of internet and digital technology to obtain fraudulent access to your information, perform identity theft and steal money.
Due to the ever changing IT environment, cybercriminals continue to evolve and often have powerful tools and techniques to undertake their attacks. As a result, there is an increased risk that weaknesses in technology, processes and people, may be used by cybercriminals to perform fraud.
The best tool however is prevention so, if at any time you suspect you are falling victim to a cybercriminal, please inform us or your financial adviser as soon as possible.
Transfers to the Eligible Rollover Fund (ERF) Your account balance may be transferred to another superannuation fund, called an ERF if we are unable to contact you or we otherwise determine that you have become a lost member. That is, we have written to you at least twice and had this correspondence returned unclaimed or you do not have a financial adviser appointed to your account.
We will notify you of the transfer, to an ERF, at your last known address.
The ERF that we have selected and their contact details are:
SuperTrace Eligible Rollover Fund ABN 73 703 878 235 Locked Bag 5429 Parramatta NSW 2124 1300 788 750
Being transferred to the ERF will affect your superannuation benefits as follows:
you will cease to be a member of the ClearView plan; Your investments and fees will change; you will no longer receive reports from ClearView; any rights against us in relation to your benefit will cease; and the ERF does not accept ongoing contributions.
You can contact the ERF to obtain a copy of its PDS to obtain further information about the fund, including the:
governing rules; fees structure; and investment strategy.
If you are a lost member we may be required to pay the balance to the ATO in certain circumstances.
Page 21
Privacy We are committed to handling your personal information and sensitive information in a secure manner and in accordance with the Privacy Act 1988 (Cth). For a copy of our Information Handling Policy, please visit www.clearview.com.au.
Temporary residents If you are a temporary Australian resident, you can only receive a superannuation benefit in limited circumstances. If you have not requested a Departing Australia Superannuation Payment (DASP) benefit and it's been at least six months since you left Australia and your visa expired, we are required to pay your unclaimed superannuation account balance to the ATO.
In these circumstances you will no longer be a member of the ClearView Plan. You can claim the unclaimed superannuation transferred to the ATO by making an application to the Commissioner of Taxation.
We rely on ASIC relief to the effect that we are not obliged to meet certain disclosure requirements, including to notify or give an exit statement to a non-resident in circumstances where we pay unclaimed superannuation to the Commissioner of Taxation. More information is available at www.ato.gov.au/individuals.
Please speak to your financial adviser about the tax that may apply to your superannuation benefits and for further information.
Superannuation Contributions Surcharge The superannuation surcharge has been abolished for contributions made after 1 July 2005, however the superannuation surcharge still applies to contributions made in previous years and these amounts will continue to be assessed by the Australian Taxation Office (ATO).
If you are liable for superannuation contribution surcharge the amount will be deducted from your account.
Page 22
This page has been left blank intentionally.
ClearView Service Centre GPO Box 4232 Sydney NSW 2001 132 977 Wealth: [email protected], Life: [email protected]
www.clearview.com.au
Investment strategies and objectives
Investment performance information
General information
Investment option
Legislative Update
Reduction of Division 293 income threshold to $250,000
Superannuation Guarantee rate increasing to 12%
Minimum pension payments
Changes to fees and costs disclosure from 29 September 2017
New super reforms that commenced from 1 July 2018
Downsizer Contributions
New proposed super reforms
Opt-in for life insurance inside superannuation for some members
Restrictions on super fees
Pension Work Bonus increase
Pension loans scheme extended
More information
Important Information
Cyber fraud
Privacy
Issued by ClearView Life Nominees Pty Limited ABN 37 003 682 175 AFSL 227683 RSE Licence No L0000802 as trustee for the ClearView Retirement Plan ABN 45 828 721 007 RSE Registration No R1001624
3Introduction
4Investment strategies and objectives
7Investment performance information
16General information
16Investment option
18Legislative Update
18Reduction of Division 293 income threshold to $250,000
18Superannuation Guarantee rate increasing to 12%
18Minimum pension payments
18Changes to fees and costs disclosure from 29 September 2017
19New super reforms that commenced from 1 July 2018
19New proposed super reforms
21Cyber fraud
22Privacy
Page 2
Introduction ClearView Life Nominees Pty Limited as Trustee for the ClearView Retirement Plan (ClearView Plan) is pleased to present you with the Annual Report for the 2017/18 financial year. In this report ClearView Life Nominees Pty Limited is referred to as ‘we’, ‘us’, ‘our’ or ‘the Trustee’.
As at 30 June 2018, the ClearView Plan had three sub-plans (and included the following products):
1. ‘ClearView sub-plan’:
2. ‘ClearView traditional sub-plan’:
3. ‘ClearView WealthSolutions sub-plan’:
ClearView WealthSolutions Superannuation (USI: 45 828 721 007 001); and ClearView WealthSolutions Retirement Income (USI: 45 828 721 007 001).
Changes were made to the above sub-plans in September 2014. These changes introduced the ClearView traditional sub-plan and transferred the ClearView Pension Plan and ClearView Superannuation and Roll-overs into that sub-plan. In addition, ClearView WealthFoundations Super and Pension were introduced into the ClearView sub-plan. Information prior to this date relates to the previous sub-plan structure.
The assets of each sub-plan are segregated and separately managed by the Trustee, such that there is no cross-subsidisation between the three sub-plans.
We have prepared three separate Annual Reports, one for each sub-plan. This is the ClearView sub-plan Annual Report.
‘ClearView Life’ means ClearView Life Assurance Limited ABN 12 000 021 581, AFS Licence No 227682 who we have appointed to carry out the day-to-day administration for the ClearView sub-plan. In addition, we invest contributions, transfers and rollovers in life investment policies that are issued by ClearView Life. ClearView Financial Management Limited (CFML) ABN 99 067 544 549 AFS Licence No 227667 has been appointed by ClearView Life to manage the investment options. The Trustee, ClearView Life and CFML are ultimately subsidiaries of ClearView Wealth Limited ABN 83 106 248 248.
The Trustee has taken out indemnity insurance.
The ClearView Plan is governed by a Trust Deed dated 19 January 1989 (as amended). The provisions of the Policy Documents issued by ClearView Life regulate the terms of the Trustee’s investments and member insurance arrangements in the ClearView sub-plan. Copies of the Trust Deed and the Policy Documents are available upon request.
As the benefits paid to each member of the ClearView sub-plan are wholly determined by reference to life investment policies, in accordance with the Corporations Act and the Corporations Regulations, the Trustee is not required to provide certain investment and financial information including abridged financial statements, a statement of assets and information about investments with a value of more than 5% of the total assets of the ClearView sub-plan.
The information provided in the Annual Report is general information only and does not take account of your personal objectives, financial situation or needs. You should consider the appropriateness of the information in this Annual Report having regard to your personal objectives, financial situation and needs before acting on the information in this Annual Report.
Further information is available by calling us on 132 977. Alternatively, you may wish to visit our website at www.clearview.com.au.
Page 3
ClearView WealthFoundations Super and Pension Investment strategies and objectives
Investment performance and asset allocation for each investment option as at 30 June 2018 are shown on the following pages. The actual asset allocation at any particular time will generally remain within the ranges specified for each investment option. The neutral asset allocation detailed for each investment option is ClearView Life’s default asset allocation position within the stated asset allocation range.
Our Investment Portfolio Service (IPS) Strategies let members focus on the types of assets they like to invest in (known as asset classes) for their risk profile and appetite. Our team of investment specialists put together a mix of investments to suit the goals and objectives of each IPS Strategy and monitor them on a regular basis. When changes need to be made to investments or asset allocations we manage this for members and keep them informed via their Quarterly Investment Reports. We also rebalance a member's Investment Pool regularly, as required.
Each of the IPS Strategies and Guaranteed Cash have a range of levels of risk and potential levels of return which means members along with their financial adviser can select the mix that best suits their needs. They can also nominate the LifeStages Strategy and we’ll adapt their portfolio mix as they move through stages of life from early investing focused on growth through to retirement when their need for income increases.
More information about all available IPS Strategies and the Guaranteed Cash investment option can be found in the Investment Options List available at www.clearview.com.au/ tools/pds-and-brochures.
Guaranteed Cash
A portfolio of cash and short term securities designed to provide security of capital with some capital protection.
Product summary
For investors looking for high security for their capital.Investor profile
To provide a high level of security of capital by investing in cash and other highly liquid investments.
Investment return objective
IPS Dynamic 30
A portfolio of actively managed assets designed to achieve stable returns over the short to medium term.
Product summary
For investors who regard security and stability as more important than the level of returns.
Investor profile
To earn relatively stable returns over the short to medium term.Investment return objective
IPS Dynamic 50
A portfolio of actively managed assets designed to achieve moderate returns over the medium term.
Product summary
For investors who seek capital growth and are willing to accept some volatility.Investor profile
To earn moderate returns over the medium term.Investment return objective
IPS Dynamic 70
A portfolio of actively managed assets designed to achieve high returns over the long term.
Product summary
For investors who desire the potential for higher returns and are comfortable with higher risks.
Investor profile
To earn relatively high returns over the long term.Investment return objective
Page 4
IPS Dynamic 90
A portfolio of actively managed assets designed to achieve significant returns over the long term.
Product summary
For investors who seek to maximise their return and are prepared to accept a higher level of risk on their investment.
Investor profile
To earn significant returns over the long term.Investment return objective
IPS Enhanced Index 30
A portfolio of actively managed assets designed to achieve stable returns over the short to medium term.
Product summary
For investors who regard security and stability as more important than the level of returns.
Investor profile
To earn relatively stable returns over the short to medium term.Investment return objective
IPS Enhanced Index 50
A portfolio of actively managed assets designed to achieve moderate returns over the medium term.
Product summary
For investors who seek capital growth and are willing to accept some volatility.Investor profile
To earn moderate returns over the medium term.Investment return objective
IPS Enhanced Index 70
A portfolio of actively managed assets designed to achieve high returns over the long term.
Product summary
For investors who desire the potential for higher returns and are comfortable with higher risks.
Investor profile
To earn relatively high returns over the long term.Investment return objective
IPS Enhanced Index 90
A portfolio of actively managed assets designed to achieve significant returns over the long term.
Product summary
For investors who seek to maximise their return and are prepared to accept a higher level of risk on their investment.
Investor profile
To earn significant returns over the long term.Investment return objective
IPS Active Australian Shares
An actively managed portfolio whose underlying investments are Australian shares.Product summary
For investors who seek to maximise their return and are prepared to accept a higher level of risk on their investment.
Investor profile
To earn significant returns over the long term.Investment return objective
IPS Active International Shares
An actively managed portfolio whose underlying investments are international shares.Product summary
For investors who seek to maximise their return and are prepared to accept a higher level of risk on their investment.
Investor profile
To earn significant returns over the long term.Investment return objective
Page 5
A portfolio whose underlying investments consist of both domestic and international shares.
Product summary
For investors who seek to maximise their return and are prepared to accept a higher level of risk on their investment.
Investor profile
To earn significant returns over the long term.Investment return objective
IPS Conservative Growth
An actively managed portfolio of shares from what could be more defensive sectors of the share market such as infrastructure and property.
Product summary
For investors who wish to invest in the potentially more defensive sectors of the share market.
Investor profile
To earn relatively high returns over the long term.Investment return objective
IPS Income
A portfolio of fixed interest investments.Product summary
For investors who regard security and stability as more important than the level of returns.
Investor profile
To earn relatively stable returns over the short to medium term.Investment return objective
IPS Cash
An investment in 100% cash.Product summary
Very risk adverse investors and/or those with a short investment time frame.Investor profile
To earn cash returns.Investment return objective
Use of Derivatives
Financial derivatives such as futures and options contracts may be used for hedging or as an alternative to buying physical securities and to manage risk. They are not used for material speculative or gearing purposes. ClearView does not trade in derivatives directly, but may in the future. Derivatives are currently undertaken by certain underlying investment managers.
Reserves
The Trustee is required to maintain an Operational Risk Financial Requirement (ORFR) as determined in accordance with Superannuation Prudential Standard 114 (SPS 114). SPS 114 requires that the Trustee maintains adequate financial resources to address losses arising from the operational risks that may affect the ClearView Plan.
The ORFR reserves are maintained by the Trustee outside the ClearView Plan, backed by the shareholder capital and retained earnings of the Trustee. No ORFR reserves or other reserves are maintained within the ClearView Plan.
How investment earnings are allocated in member accounts Each IPS strategy is made up of one or more underlying investment options which are divided into notional units. A notional unit represents a proportion of an underlying investment option.
The price of a unit is calculated by dividing the net market value of the assets of an underlying investment option by the number of units issued in the underlying investment option.
The gross market value of the assets of an underlying investment option includes provision for the relevant investment expenses (which includes indirect costs, any applicable tax provisions, transaction costs and government duties and charges) before the unit price is declared. Therefore these allowances are indirectly borne by all investors in each underlying investment option. The gross market value less these investment expenses equals the net market value.
The number of units allocated to an account will be dependent on the amount invested and the unit price on the date of investment.
The latest unit prices are available at www.clearview.com.au/ superannuation-investments-retirement/unit-prices or by calling us on 132 977.
Page 6
Investment performance information The investment performance for each Investment Strategy can be found in the next section. For information about your investment option performance, refer to your Member Benefit Statement that is received annually. Your Member Benefit Statement shows the specific investment options your WealthFoundations account was invested in as at 30 June 2018 and their performance. It is important to note that past performance should not be taken as an indication of future performance.
Product updates July 2017
On 1 July 2017, the current tax exemption on earnings generated from a transition to retirement (TTR) pension account was removed. The tax rate on earnings is now 15%, which reflects the tax on earnings within a super account. The tax treatment of income payments received from a TTR pension account has not changed (eg. tax free income for those aged 60 and over).
September 2017
On 29 September 2017, MFS Investment Management was replaced with Stewart Investors within the underlying investment option ‘MFS International Shares Fund’. The investment option was renamed the 'Stewart Investors Worldwide Sustainability Fund'.
On 29 September 2017, we also updated our disclosure documents to include the enhanced fee and cost disclosure requirements introduced by ASIC in Regulatory Guide 97 - Disclosing fees and costs in PDSs and periodic statements (RG 97). The main impact of RG 97 was a re-classification of fees and costs required to be disclosed in product disclosure statements. It is important to note that under the enhanced disclosure requirements, there were no extra fees or costs to you but rather, the disclosure now includes certain fees and costs that would normally be charged to you in the ordinary course of investing (such as transactional and operational costs).
December 2017
From 5 December 2017, to help make the process of comparing fees and costs easier, we updated our disclosure documents to include the following changes:
1. unbundling the Indirect Cost Ratio (ICR) to break down the individual costs that form part of the overall ICR;
2. disclosing the underlying buy-sell spread; and 3. consistent tax treatment of fees and charges between
Super and Pension. This means our Super and Pension fees and costs are now the same, however a tax benefit/deduction will still apply for Super and TTR accounts, effectively reducing those fees by 15%.
It’s important to note that the total fees charged to you did not change. Previously, the WealthFoundations ICRs were a combined total of:
investment fees; administration fees; and indirect costs (including transactional and operational costs)
From 5 December 2017, these fees and costs are now shown separately (aligning us with most other super providers in our market).
January 2018
On 23 January 2018, the ClearView Investment Research team recommended a reduction in exposure to Australian Listed Property, and a reallocation to International Equities and Emerging Markets within certain Investment Strategies. This change impacted the following investment options: IPS Dynamic 70, IPS Dynamic 90, IPS Enhanced Index 70 and IPS Enhanced Index 90.
July 2018
Listed infrastructure, in both developed and emerging economies, was reallocated to (unhedged) international equities on 23 July 2018 by moving from the RARE Emerging Markets and CFS Infrastructure funds into the Antipodes Global and Stewart Investors Worldwide Sustainability funds.
Page 7
Underlying Investment Option
Guaranteed Cash 100%
Growth Assets 0%
IPS Dynamic 30 Current underlying investment option allocations
Underlying Investment Option
Stewart Investors Worldwide Sustainability Fund 3%
RARE Emerging Markets Fund 7.5%
CLAL Cash Fund 15%
Listed Infrastructure 12.5%
Australian Shares 10%
International Shares 10%
Emerging Markets 7.5%
Growth Assets 40%
Stewart Investors Worldwide Sustainability Fund 5%
RARE Emerging Markets Fund 12%
CLAL Cash Fund 10%
Listed Infrastructure 15%
Australian Shares 15%
International Shares 18%
Emerging Markets 12%
Growth Assets 60%
Stewart Investors Worldwide Sustainability Fund 2%
RARE Emerging Markets Fund 4%
CLAL Cash Fund 25%
Listed Infrastructure 5%
Australian Shares 8%
International Shares 8%
Emerging Markets 4%
Growth Assets 25%
IPS Dynamic 50 Current underlying investment option allocations
Performance
IPS Dynamic 70 Current underlying investment option allocations
Performance
1.1% 1.7% 1.1% 4.3% 5.0% 5.8%
* The return for periods of one year or longer are annualised.
Page 8
Plato Australian Shares Fund 8%
SSGA International Shares Fund 8%
Vanguard Emerging Markets Shares Index Fund 4%
CLAL Cash Fund 25%
Listed Infrastructure 5%
Australian Shares 8%
International Shares 8%
Emerging Markets 4%
Growth Assets 25%
Plato Australian Shares Fund 10%
SSGA International Shares Fund 10%
Vanguard Emerging Markets Shares Index Fund 7.5%
CLAL Cash Fund 15%
Listed Infrastructure 12.5%
Australian Shares 10%
International Shares 10%
Emerging Markets 7.5%
Growth Assets 40%
CFS Infrastructure Fund 17.5%
Stewart Investors Worldwide Sustainability Fund 7.5%
RARE Emerging Markets Fund 14.5%
CLAL Cash Fund 5%
Property 5%
Fixed Interest 15%
Defensive Assets 20%
* The return for periods of one year or longer are annualised.
IPS Dynamic 90 Current underlying investment option allocations
Performance
IPS Enhanced Index 30 Current underlying investment option allocations
Performance
IPS Enhanced Index 50 Current underlying investment option allocations
Performance
Underlying Investment Option
Plato Australian Shares Fund 15%
SSGA International Shares Fund 18%
Vanguard Emerging Markets Shares Index Fund 12%
CLAL Cash Fund 10%
Listed Infrastructure 15%
Australian Shares 15%
International Shares 18%
Emerging Markets 12%
Growth Assets 60%
Performance
Page 9
* The return for periods of one year or longer are annualised.
Underlying Investment Option
Vanguard Global Infrastructure Index Fund 17.5%
Plato Australian Shares Fund 20%
SSGA International Shares Fund 23%
Vanguard Emerging Markets Shares Index Fund 14.5%
CLAL Cash Fund 5%
Property 5%
Australian Shares 100%
Growth Assets 100%
Defensive Assets 0%
Performance
IPS Active Australian Shares Current underlying investment option allocations
Performance
Underlying Investment Option
Vanguard Emerging Markets Shares Index Fund 33%
Australian Shares 33%
International Shares 34%
Emerging Markets 33%
Growth Assets 100%
Defensive Assets 0%
International Shares 67%
Emerging Markets 33%
Growth Assets 100%
Defensive Assets 0%
Underlying Investment Option
Stewart Investors Worldwide Sustainability Fund 34%
RARE Emerging Markets Fund 33%
Performance
IPS Enhanced Index Shares Current underlying investment option allocations
Performance
Page 10
* The return for periods of one year or longer are annualised.
Underlying Investment Option
CFS Infrastructure Fund 40%
Property 40%
Performance
Underlying Investment Option
Growth Assets 0%
Fixed Interest 100%
Defensive Assets 100%
Performance
IPS Cash Current underlying investment option allocations
Performance
Page 11
Underlying Investment Option
Guaranteed Cash 100%
Growth Assets 0%
IPS Dynamic 30 Current underlying investment option allocations
Underlying Investment Option
Stewart Investors Worldwide Sustainability Fund 3%
RARE Emerging Markets Fund 7.5%
CLAL Cash Fund 15%
Listed Infrastructure 12.5%
Australian Shares 10%
International Shares 10%
Emerging Markets 7.5%
Growth Assets 40%
Stewart Investors Worldwide Sustainability Fund 5%
RARE Emerging Markets Fund 12%
CLAL Cash Fund 10%
Listed Infrastructure 15%
Australian Shares 15%
International Shares 18%
Emerging Markets 12%
Growth Assets 60%
Stewart Investors Worldwide Sustainability Fund 2%
RARE Emerging Markets Fund 4%
CLAL Cash Fund 25%
Listed Infrastructure 5%
Australian Shares 8%
International Shares 8%
Emerging Markets 4%
Growth Assets 25%
IPS Dynamic 50 Current underlying investment option allocations
Performance
IPS Dynamic 70 Current underlying investment option allocations
Performance
1.2% 1.8% 1.2% 5.0% 5.9% 6.8%
* The return for periods of one year or longer are annualised.
Page 12
Plato Australian Shares Fund 8%
SSGA International Shares Fund 8%
Vanguard Emerging Markets Shares Index Fund 4%
CLAL Cash Fund 25%
Listed Infrastructure 5%
Australian Shares 8%
International Shares 8%
Emerging Markets 4%
Growth Assets 25%
Plato Australian Shares Fund 10%
SSGA International Shares Fund 10%
Vanguard Emerging Markets Shares Index Fund 7.5%
CLAL Cash Fund 15%
Listed Infrastructure 12.5%
Australian Shares 10%
International Shares 10%
Emerging Markets 7.5%
Growth Assets 40%
CFS Infrastructure Fund 17.5%
Stewart Investors Worldwide Sustainability Fund 7.5%
RARE Emerging Markets Fund 14.5%
CLAL Cash Fund 5%
Property 5%
Performance
IPS Enhanced Index 30 Current underlying investment option allocations
Performance
IPS Enhanced Index 50 Current underlying investment option allocations
Performance
Underlying Investment Option
Plato Australian Shares Fund 15%
SSGA International Shares Fund 18%
Vanguard Emerging Markets Shares Index Fund 12%
CLAL Cash Fund 10%
Listed Infrastructure 15%
Australian Shares 15%
International Shares 18%
Emerging Markets 12%
Growth Assets 60%
Performance
1.3% 3.0% 2.3% 7.4% 6.1% 7.3%
* The return for periods of one year or longer are annualised.
Page 13
Vanguard Global Infrastructure Index Fund 17.5%
Plato Australian Shares Fund 20%
SSGA International Shares Fund 23%
Vanguard Emerging Markets Shares Index Fund 14.5%
CLAL Cash Fund 5%
Property 5%
Australian Shares 100%
Growth Assets 100%
Defensive Assets 0%
Performance
IPS Active Australian Shares Current underlying investment option allocations
Performance
Underlying Investment Option
Vanguard Emerging Markets Shares Index Fund 33%
Australian Shares 33%
International Shares 34%
Emerging Markets 33%
Growth Assets 100%
Defensive Assets 0%
International Shares 67%
Emerging Markets 33%
Growth Assets 100%
Defensive Assets 0%
Underlying Investment Option
Stewart Investors Worldwide Sustainability Fund 34%
RARE Emerging Markets Fund 33%
Performance
IPS Enhanced Index Shares Current underlying investment option allocations
Performance
1.1% 2.9% 3.0% 13.0% 8.4% 10.4%
* The return for periods of one year or longer are annualised.
Page 14
* The return for periods of one year or longer are annualised.
Underlying Investment Option
CFS Infrastructure Fund 40%
Property 40%
Performance
Underlying Investment Option
Growth Assets 0%
Fixed Interest 100%
Defensive Assets 100%
Performance
IPS Cash Current underlying investment option allocations
Performance
Page 15
ClearView LifeSolutions Super and ClearView LifeSolutions Super Rollover
General information This section of the report is relevant if you hold a ClearView LifeSolutions Super interest in the ClearView Plan under which you may be covered for Life, Accidental Death, Total and Permanent Disability (TPD), Accidental TPD, Income Protection, Income Protection Plus or Accidental Income Protection Cover. Premiums for ClearView LifeSolutions Super are payable monthly or annually. You may pay your annual premium via a tax paid rollover from a complying superannuation fund. In order to do this, you must have a ClearView LifeSolutions Super Rollover interest in the ClearView Plan.
Investment option ClearView LifeSolutions Super Rollover provides only one investment option being a cash investment option, the ClearView Life Super Cash Fund.
Your monies are invested in a life investment policy which issues notional units in the ClearView Life Super Cash Fund. The life investment policies are issued to us by ClearView Life.
ClearView Life Super Cash Fund
A very low risk strategy classification which generally provides exposure to cash and other highly liquid investments.
Description
Investors who are looking for high security and have an investment timeframe of at least one year.
Designed for
To earn returns that match headline CPI increases over rolling one-year periods.
Investment return objective
Funds offered will typically benchmark with reference to the UBSWA Bank Bill Index.
Strategy benchmark
(Defensive)
30/06/1830/06/17Annual investment performance % 0.120.55
While past performance is not an indicator of future performance investment history has shown:
investments with potentially higher long term returns tend to have more variable returns and have a greater chance of negative returns in the short term; and investments that provide more stable returns, with less chance of negative returns, have tended to produce lower returns over the long term and would expect less fluctuation in returns and less chance of capital loss.
The ClearView Life Super Cash Fund invests 100% in cash and short term securities. This is a unitised investment option and ClearView Life guarantees the capital (money) that you invest less net withdrawals which include tax, fees and premiums paid for life insurance cover. This guarantee is provided from the assets of the ClearView Life Statutory Fund No.2. No part of your investment return is guaranteed.
You should consider the likely investment return, risk and your investment timeframe when deciding whether to apply for ClearView LifeSolutions Super Rollover. We may change the investment option in the future. If this occurs we will notify you.
We do not take labour standards or environmental, social or ethical considerations into account in the selection, retention or realisation of investments in relation to ClearView LifeSolutions Super Rollover.
How investment earnings are allocated in member accounts Each investment option is divided into notional units. A unit represents a proportion of an investment option.
The price of a unit is calculated by dividing the net market value of the assets of an investment option by the number of units issued in the investment option.
The gross market value of the assets of an investment option includes provision for the relevant investment expenses (which includes indirect costs, any applicable tax provisions, transaction costs and government duties and charges) before the unit price is declared. Therefore these allowances are indirectly borne by all investors in each investment option. The gross market value less these investment expenses equals the net market value.
The number of units you will be allocated will be dependent on the amount you have to invest and the unit price on the date of investment.
Page 16
The number of units allocated to your account will change with each transaction performed on your account.
Unit prices fluctuate on a daily basis, in line with changes in the market value of the assets held in the investment option. The value of your investment in an investment option will also fluctuate. Redemption unit prices are however guaranteed not to fall.
Except as otherwise specifically stated, neither we nor ClearView Life guarantees the repayment of capital or any particular rate of return.
For more information on how unit prices are calculated, please see the Product Disclosure Document and Additional Information Brochure available at https://www.clearview.com.au/Tools/pds-and-brochures.
For simplicity ClearView Life currently uses a single unit price for all transactions (for each effective date). ClearView Life may introduce Application and Redemption prices in the future.
The latest unit prices are available at www.clearview.com.au or by calling us on 132 977.
Page 17
Concessional and non-concessional contributions cap The concessional and non-concessional caps for the 2018/19 financial year are outlined in the following table.
There have been no changes from the 2017/18 financial year.
Cap for 2018/19Type of contribution
$25,000 (for all ages)Concessional contributions
$100,000Non-concessional contributions1
$300,000Non-concessional contributions – bring-forward option2
1 Non-concessional contributions cannot be made if a person's total super balance on 30 June in the previous financial year is $1.6 million or more.
2 The bring-forward option is available where the person is age 64 or less at 1 July in the year of contribution. This is the maximum contribution amount over a 3-year period noting that further restrictions are placed on those with a total super balance approaching $1.6 million.
Reduction of Division 293 income threshold to $250,000 Previously individuals with income and concessional super contributions in excess of $300,000 triggered a Division 293 assessment.
Effective 1 July 2017, the Government lowered the Division 293 income threshold to $250,000 for the 2017/18 and future financial years. An individual with income and concessional super contributions exceeding the $250,000 threshold will have an additional 15% tax imposed on the amount over the threshold, up to the total amount of concessional contributions not exceeding their concessional contributions cap.
The intent of this change is to better target tax concessions to ensure the superannuation system is equitable and sustainable.
Superannuation Guarantee rate increasing to 12% The Superannuation Guarantee rate for each financial year is:
Superannuation Guarantee rate
Minimum pension payments The minimum pension percentages have remained constant for the 2018/19 year as follows:
Standard % for 2018/19
4%under 65
5%65 – 74
6%75 – 79
7%80 – 84
9%85 – 89
11%90 – 94
14%95 plus
Changes to fees and costs disclosure from 29 September 2017 Enhanced fee and cost disclosure requirements were introduced industry-wide. These changes are reflected in your Member Benefit Statement for the 2017/18 financial year and onwards.
To improve and simplify this disclosure, regulators commissioned a report to review the disclosure of fees and costs in PDSs and periodic statements. The report was released in July 2018 and is currently being reviewed by the regulator.
Page 18
New super reforms that commenced from 1 July 2018 Downsizer Contributions
From 1 July 2018, ClearView has been able to accept downsizer contributions. If you are aged 65 years or older and sell your principal home on or after 1 July 2018 you may be able to use the sale proceeds to make a downsizer contribution of up to $300,000 (or $600,000 combined for a couple) into your superannuation account.
You need to make all contributions within 90 days of receiving the proceeds of sale, usually the date of settlement, unless you have been granted an extension.
Downsizer contributions are tax free when received by your fund and are not subject to normal contribution eligibility criteria. However, other eligibility criteria apply and once made the contributions will count towards your total superannuation balance on 30 June at the end of the financial year. Downsizer contributions used to commence retirement phase income streams (e.g. account based pensions) also count towards your $1.6 million transfer balance cap.
First Home Super Saver (FHSS) Scheme
From 1 July 2017, you have been able to make voluntary concessional (before-tax) and non-concessional (after-tax) contributions to super to save for your first home. You can contribute up to $15,000 each financial year ($30,000 in total) in voluntary contributions under the FHSS Scheme.
From 1 July 2018, you can apply to withdraw the contributed amounts (less 15% contributions tax on your before-tax concessional contributions) plus a deemed earnings amount. This withdrawal request is to be undertaken via the ATO who will then instruct your chosen super fund to release the specified amount. You can also request a determination from the ATO to confirm the maximum FHSS release amount that applies to you.
You must meet certain eligibility requirements to apply for the release of these amounts or you may be liable to pay additional tax. Amounts withdrawn (excluding after-tax non-concessional contributions) form part of your assessable income but provide you with a 30% non-refundable tax offset.
New proposed super reforms Below we outline a few of the proposed superannuation changes which were announced in the 2018/19 May Federal Budget. Please note the changes below are not yet law and are subject to change.
Work test delayed for one year
Effective 1 July, 2019
Currently, to be eligible to make voluntary contributions to super from age 65 onwards, a work test must be met (that is, 40 hours of work in 30 consecutive days in the year of contribution).
Under this proposal, eligible retirees aged 65 to 74 will be able to make voluntary super contributions for an additional 12 months from the end of the financial year when they last met the work test.
To qualify, a client’s total super balance at the start of the relevant year must be less than $300,000 but there is no requirement to retain a balance under $300,000 for the remainder of that year.
Under this exemption, the standard $100,000 non-concessional and $25,000 concessional caps continue to apply. Importantly, this work test exemption can be used to access any unused concessional cap that has been carried forward from previous years.
Opt-in for life insurance inside superannuation for some members
From 1 July 2019, some super fund members will be offered life insurance inside super on an ‘opt-in’ basis as opposed to the current automatic acceptance model.
Clients who may be impacted by this change include:
new members under the age of 25; existing members with an account balance under $6,000; and existing members who have not contributed to the fund in 13 months and are considered inactive.
These changes aim to provide greater flexibility and cost efficiency for members, particularly young workers, by enabling them to stop paying for cover they don’t need or want and can’t claim on. It also aims to prevent the erosion of small super balances due to fees and charges.
These changes do not stop members from holding insurance inside superannuation, they simply require affected members to opt-in for cover.
Restrictions on super fees
From 1 July 2019, exit fees on all super accounts will be banned.
Additionally, a 3% maximum fee cap will apply to accounts with balances below $6,000.
Page 19
Automatic combining of lost or inactive superannuation accounts
The ATO will also receive additional funding to expand its data matching capabilities to help workers consolidate small, inactive accounts with existing active accounts.
Pension Work Bonus increase
The Pension Work Bonus currently allows age pensioners who also do some work as employees to disregard the first $250 per fortnight of employment income when calculating pension entitlements.
Two changes regarding the Pension Work Bonus have been proposed to commence from 1 July 2019.
Firstly, the amount of employment income that is exempt from pension calculations will increase from $250 per fortnight to $300 per fortnight (or $7,800 per year each).
Secondly, self-employed workers will be eligible for the work bonus, a benefit that has previously only been available to employees.
Pension loans scheme extended
The Pension Loans Scheme (PLS) is a Government sponsored initiative where the equity in your home is used to fund additional fortnightly income. Currently, your combined Age Pension entitlement plus any income from the PLS cannot exceed the maximum rate of pension.
The Government proposes to expand eligibility of the PLS from 1 July 2019 to all Australians of Age Pension age including maximum rate age pensioners and also increase the maximum allowable combined Age Pension and PLS income stream to 150% of the maximum Age Pension rate.
Income payments under the PLS are non-taxable and generally not means tested unless the additional income is not spent and accumulates, in which case it will be counted as an assessable asset and deemed.
Medicare levy
Plans to increase the Medicare Levy by an additional 0.5% to 2.5% on 1 July 2019 to the fund the National Disability Insurance Scheme (NDIS) have been discarded.
For the 2017/18 financial year, individuals with taxable incomes of less than $21,980 pay no Medicare Levy, while individuals with taxable incomes above $27,476 do not qualify for the Medicare Levy Reduction. Seniors and Pensioners entitled to the Senior and Pensioners Tax Offset pay no Medicare Levy if their taxable income is less than $34,758, while the same individuals with incomes above $43,448 do not qualify for the Medicare Levy Reduction.
Taxpayers who have a spouse, or are sole parents, and total family income of less than $46,361 pay no Medicare Levy. Seniors and Pensioners who have a spouse and are entitled to the Senior and Pensioners Tax Offset pay no Medicare Levy if their family income is less than $60,481. These amounts are increased by $4,257 for each dependent child.
Concessional contributions for high income earners
All employers are currently required to contribute a minimum of 9.5% of earnings to super on behalf of employees up to a maximum earnings base of $52,760 per quarter.
However, where a client has two or more employers all contributing the minimum super guarantee (SG) rate, the $25,000 concessional cap may be unintentionally breached.
The Government had proposed that from 1 July 2018, high income employees with multiple employers will have the ability to opt out of SG obligations to avoid breaching the cap and instead have the potential to negotiate additional income from their employer. However, this has not yet passed.
More information For more information on the above and other announcements from the 2018/19 May Federal Budget, see our 2018/19 Federal Budget Technical Bulletin.
If you would like to know more about these changes and how they may impact you, talk to your financial adviser. More information on these changes is also available at www.ato.gov.au/Individuals/Super/Super-changes.
Page 20
Important Information If you have a complaint At ClearView, we're never satisfied when it comes to doing better and our customers are very important to us. If something goes wrong, we're determined to make it right again. If you had an experience with ClearView that you are not satisfied with, we're here to resolve the issue.
If you have a complaint, please call us on 132 977 or write to the following address:
Complaints Manager ClearView Reply Paid 4232 Sydney NSW 2001
You can also email us - [email protected].
Before 1 November 2018, we will address your complaint within 90 days or (or within any extended period you approve).
On or after 1 November 2018, we will address your complaint within 45 days (or within any extended period you approve).
If you are not satisfied with how we respond to your enquiry or complaint, or we have not dealt with your complaint within 90 days (or within any extended period you approve), you may contact the Superannuation Complaints Tribunal (SCT) on 1300 884 114 between 9am and 5pm (Melbourne time) Monday to Friday on or before the 31 October 2018 .
Alternatively, you may visit their website at www.sct.gov.au or write to them at the address below.
The Manager Superannuation Complaints Tribunal Locked Bag 3060 Melbourne VIC 3001
The Superannuation Complaints Tribunal is an independent dispute resolution body which offers a free, user-friendly alternative to the court system.
If you make a complaint on or after 1 November 2018, you may take your complaint to the Australian Financial Complaints Authority (AFCA). AFCA is the new external dispute resolution scheme for financial services complaints. AFCA provides fair and independent financial services complaint resolution that is free to consumers.
Website: www.afca.org.au Email: [email protected] Telephone: 1800 931 678 (free call) In writing to: Australian Financial Complaints Authority, GPO Box 3, Melbourne VIC 3001
Cyber fraud Cybercrime is an issue which continues to impact the lives of many Australians. It involves the use of internet and digital technology to obtain fraudulent access to your information, perform identity theft and steal money.
Due to the ever changing IT environment, cybercriminals continue to evolve and often have powerful tools and techniques to undertake their attacks. As a result, there is an increased risk that weaknesses in technology, processes and people, may be used by cybercriminals to perform fraud.
The best tool however is prevention so, if at any time you suspect you are falling victim to a cybercriminal, please inform us or your financial adviser as soon as possible.
Transfers to the Eligible Rollover Fund (ERF) Your account balance may be transferred to another superannuation fund, called an ERF if we are unable to contact you or we otherwise determine that you have become a lost member. That is, we have written to you at least twice and had this correspondence returned unclaimed or you do not have a financial adviser appointed to your account.
We will notify you of the transfer, to an ERF, at your last known address.
The ERF that we have selected and their contact details are:
SuperTrace Eligible Rollover Fund ABN 73 703 878 235 Locked Bag 5429 Parramatta NSW 2124 1300 788 750
Being transferred to the ERF will affect your superannuation benefits as follows:
you will cease to be a member of the ClearView plan; Your investments and fees will change; you will no longer receive reports from ClearView; any rights against us in relation to your benefit will cease; and the ERF does not accept ongoing contributions.
You can contact the ERF to obtain a copy of its PDS to obtain further information about the fund, including the:
governing rules; fees structure; and investment strategy.
If you are a lost member we may be required to pay the balance to the ATO in certain circumstances.
Page 21
Privacy We are committed to handling your personal information and sensitive information in a secure manner and in accordance with the Privacy Act 1988 (Cth). For a copy of our Information Handling Policy, please visit www.clearview.com.au.
Temporary residents If you are a temporary Australian resident, you can only receive a superannuation benefit in limited circumstances. If you have not requested a Departing Australia Superannuation Payment (DASP) benefit and it's been at least six months since you left Australia and your visa expired, we are required to pay your unclaimed superannuation account balance to the ATO.
In these circumstances you will no longer be a member of the ClearView Plan. You can claim the unclaimed superannuation transferred to the ATO by making an application to the Commissioner of Taxation.
We rely on ASIC relief to the effect that we are not obliged to meet certain disclosure requirements, including to notify or give an exit statement to a non-resident in circumstances where we pay unclaimed superannuation to the Commissioner of Taxation. More information is available at www.ato.gov.au/individuals.
Please speak to your financial adviser about the tax that may apply to your superannuation benefits and for further information.
Superannuation Contributions Surcharge The superannuation surcharge has been abolished for contributions made after 1 July 2005, however the superannuation surcharge still applies to contributions made in previous years and these amounts will continue to be assessed by the Australian Taxation Office (ATO).
If you are liable for superannuation contribution surcharge the amount will be deducted from your account.
Page 22
This page has been left blank intentionally.
ClearView Service Centre GPO Box 4232 Sydney NSW 2001 132 977 Wealth: [email protected], Life: [email protected]
www.clearview.com.au
Investment strategies and objectives
Investment performance information
General information
Investment option
Legislative Update
Reduction of Division 293 income threshold to $250,000
Superannuation Guarantee rate increasing to 12%
Minimum pension payments
Changes to fees and costs disclosure from 29 September 2017
New super reforms that commenced from 1 July 2018
Downsizer Contributions
New proposed super reforms
Opt-in for life insurance inside superannuation for some members
Restrictions on super fees
Pension Work Bonus increase
Pension loans scheme extended
More information
Important Information
Cyber fraud
Privacy