Macquarie Super and Pension Manager Macquarie Super Accumulator Macquarie Super and Pension Manager Macquarie Super Accumulator Annual report to investors Year ended 30 June 2009 Macquarie Superannuation Plan Smart administration solutions made simple Macquarie Investment Management Limited ABN 66 002 867 003 AFSL 237492 RSEL L0001281
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Macquarie S
uper and Pension M
anager M
acquarie Super A
ccumulator
Macquarie Super and Pension Manager
Macquarie Super AccumulatorAnnual report to investors Year ended 30 June 2009
Macquarie Superannuation Plan Smart administration solutions made simple
46 Notes to and forming part of the financial statements
54 Trustee’s statement
55 Independent report by approved auditor to trustee and members
Macquarie Super and Pension Manager (Super and Pension Manager) together with Macquarie Super Accumulator (Super Accumulator) form part of a superannuation fund known as the Macquarie Superannuation Plan RSE R1004496. The trustee for the superannuation fund is Macquarie Investment Management Limited ABN 66 002 867 003 AFSL 237 492 RSEL L0001281 (MIML, Macquarie, the trustee, we, us).
MIML has appointed Bond Street Custodians Limited (BSCL) ABN 57 008 607 065 AFSL 237 489 to hold the fund’s investments in custody. BSCL and MIML are wholly owned subsidiaries of Macquarie Bank Limited ABN 46 008 583 542.
MIML is not an authorised deposit-taking institution for the purposes of the Banking Act (Cth) 1959, and MIML’s obligations do not represent deposits or other liabilities of Macquarie Bank Limited. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of MIML.Investments in Super and Pension Manager and Super Accumulator are not deposits with or other liabilities of Macquarie Bank Limited or of any Macquarie Group company, and are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Neither Macquarie Bank Limited, MIML, Macquarie Life Limited ABN 56 003 963 773 AFSL 237 497, Macquarie Equities Limited ABN 41 002 574 923, any other investment managers referred to in this annual report, nor any other member company of the Macquarie Group guarantees the performance of Super and Pension Manager or Super Accumulator or the repayment of capital from Super and Pension Manager or Super Accumulator.The information contained in this annual report is dated 15 December 2009 and is general information only. We have not taken into account your objectives, financial situation or needs. You should consider the appropriateness of this information, taking into account your objectives, financial situation and needs and the applicable PDS available from us or your adviser, before acting on any of the information in this annual report.
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Welcome
15 December 2009
Dear Investor,
Welcome to the annual report for the Super and Pension Manager and Super Accumulator for the year ended 30 June 2009.
The 2008 – 2009 financial year has seen unprecedented levels of market volatility.
Although there has been an overall decline in the global economy throughout 2009 the outlook has been more positive for Australia. A resilient labour market coupled with an upswing in consumer and business confidence has helped Australia’s economy to remain strong throughout the crisis, with positive growth predictions of over three per cent forecast for 2010.
Although the challenges may not be over yet, I feel 2010 can be approached with more optimism. Favourable economic prospects have led to increasingly positive predictions of global economic growth, while favourable domestic conditions should continue to fuel positive sentiment, and may see a reverse in some of the losses made in 2009.
If you have any questions about this annual report or Super and Pension Manager or Super Accumulator in general, please contact your adviser.
Yours sincerely,
Neil Roderick Executive Director
Macquarie Investment Management Limited
This annual report includes information on:
Super Manager■■ and Super Accumulator, accumulation superannuation products
Pension Manager■■ , a retirement income solution incorporating an account based pension and Term Allocated Pension.
References to Pension Manager can be interpreted as references to both Pension Manager and Term Allocated Pension Manager.
The financial statements relate to the entire Macquarie Superannuation Plan which includes Macquarie Super and Pension Manager, Macquarie Super Accumulator, Macquarie SuperOptions and FutureWise Super – a risk only superannuation fund.
2
The past year has seen significant changes for financial markets and economic activity around the globe.
In the wake of the ‘sub-prime’ crisis, financial commentators hypothesised that the weaknesses in financial markets would continue for the remainder of 2009, perpetuating a downturn of historic proportions. Their predictions, however, didn’t adequately take account of the massive financial stimulus packages that were implemented around the globe. As this stimulus gained traction, the global economic outlook brightened and this was quickly reflected in improved financial markets.
The global economic outlookGlobal growth has fallen over the past year as volatility in financial markets spilled over into the real economy. A rapid collapse in housing market and consumer activity in the advanced economies of North America and Europe prompted a spike in unemployment, precipitating further declines in confidence and spending. This contributed to significant weakness in demand for emerging market exports. Global output contracted by around 1% in the 2009 financial year.
However, we are now seeing widespread upgrades for global growth forecasts for the year ahead.
Australian economic outlook The Australian economy has performed strongly through the global downturn. The resilience of the labour market has helped generate a sharp upswing in consumer and business confidence. Significant policy stimulus has also seen a resurgence in housing market activity, which will drive strong construction growth in the year ahead.
This stronger than expected domestic activity has put inflation back on the policymakers’ agenda. The Reserve Bank of Australia (RBA) was one of the first central banks in the world to begin tightening monetary policy since the onset of the global financial crisis when it raised rates in October. The RBA is expected to continue lessening the stimulus provided by monetary policy, bringing rates back to a neutral level (around 4.5%) over 2010.
Asset class performance The financial unrest of the global financial crisis had a considerable impact on asset returns over the past year. Falling asset values were severe and uniform, and this was most evident in global and domestic equity markets. From highs in November 2007 to lows in March 2009, the value of both the Australian (ASX 200) and international stock (MSCI International, ex Australia) indices fell by around 50%.
The most dramatic declines came in the six months following September 2008. Since March 2009, the ASX 200 has posted significant gains, as confidence in financial markets slowly returned. During the financial year, the ASX 200 had risen by more than 50% since its lowest point in March 2009, and international stocks were also up about 50% from their lows, leaving both markets around 30% below their late-2007 peaks.
The asset class hit most heavily by the downturn was the listed property sector. Excessive debt levels and concerns about the sustainability of dividend payments and the ability to refinance debt saw Real Estate Investment Trusts (REITs) forced to sell down property holdings and undertake capital raisings, causing a very weak performance. Australian REITs declined 71% from peak (October 2007) to trough (May 2009). Similarly to equities, during the financial year REITs had since risen 55% from their lows, but remained down 55% from their previous peak.
The one asset class to outperform in an environment of severe risk aversion was fixed interest products. Australian bank bills and bonds rose strongly as investors sought a safe haven in which to place their funds in the environment of falling interest rates. As consumer confidence grows and appetite for risk gradually rebuilds, the performance of fixed interest securities has steadied and equity markets continue to edge higher once again.
The financial year in review
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2010Certainly 2010 will not be without its challenges, but the outlook is refreshingly positive. Market forecasts for global growth have been the subject of significant upgrades in recent months, highlighting the improvement in economic prospects. As activity begins to improve, the task for policymakers will be the timing and speed with which they can begin to remove the significant degree of stimulus in their respective economies.
The expected strength in the developing Asian region is a key component of the positive outlook for Australia. Demand for Australian minerals and energy is driving the resurgence in business investment, which was previously expected to be the weak point of the domestic economy in the coming year. At the same time, a rebound in building approvals will see residential construction improve, whilst stronger than expected employment conditions and improved consumer sentiment will help generate continued gains in consumer spending.
Improved sentiment is evident not only in spending, but amongst investors as well, which is likely to help equity markets in retracing more of the losses recorded over the previous 12 months.
GlossaryEmerging Market – countries which are in a period of rapid growth or industrialisation.
ASX 200 – stock market index of Australian stocks listed on the Australian Securities Exchange. Its value reflects the total value of all the stocks at that date.
MSCI International, ex Australia – Morgan Stanley Capital International Equity Indices. A market-capitalisation-weighted index designed to provide a broad measure of stock performance throughout the world, with the exception of Australian companies. Includes both emerging and world markets.
Real Estate Investment Trusts – a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages.
The information provided in this Annual Report is based on information as at 30 June 2009, and is derived from sources that are believed to be reliable at that time.
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Investment returns to 30 June 2009
Investment name APIR Available in Super
Accumulator
Available in Super and Pension Manager
12 months to 30/6/09
(%)
12 months to 30/6/08
(%)
12 months to 30/6/07
(%)
12 months to 30/6/06
(%)
12 months to 30/6/05
(%)
5 year compound to 30/6/09
(% p.a.)
Since inception
to 30/6/09 (% p.a.)
Abacus Diversified Income Fund II ABA0008AU No Yes 8.50% 7.00% n/a n/a n/a n/a 7.75% p.a.
Aberdeen Australian Equities Fund MGL0114AU No No -15.08% -8.66% 23.07% 22.68% 28.31% 8.48% p.a. 8.72% p.a.
Aberdeen Australian Fixed Income Fund
CRS0004AU No No 11.39% 1.29% 3.80% 3.95% 7.96% 5.62% p.a. 7.24% p.a.
Aberdeen Australian Small Companies Fund
MGL0001AU No No -7.33% -20.27% 32.78% 23.50% 32.38% n/a 17.36% p.a.
Aberdeen Capital Growth Fund CRS0002AU Yes Yes -9.71% -10.30% 14.12% 18.31% 12.00% 4.14% p.a. 7.45% p.a.
Aberdeen Cash Fund CRS0009AU No Yes 5.57% -6.89% -6.33% -5.92% -5.74% -6.09% p.a. -5.84% p.a.
Aberdeen Cash Plus Fund MGL0101AU Yes Yes -6.59% 1.81% 6.26% 5.94% 6.07% 2.57% p.a. 4.00% p.a.
Aberdeen China Opportunities Fund ETL0031AU Yes Yes 3.65% -7.76% 24.52% 20.50% 11.67% 9.89% p.a. 9.88% p.a.
* On 29 May 2008, the underlying investment of the Cash Account was transitioned from the Macquarie Treasury Fund to a wholesale deposit with Macquarie Bank Limited. For performance figures prior to 29 May 2008, refer to the Macquarie Treasury Fund above on this page.
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Investment name APIR Available in Super
Accumulator
Available in Super and Pension Manager
12 months to 30/6/09
(%)
12 months to 30/6/08
(%)
12 months to 30/6/07
(%)
12 months to 30/6/06
(%)
12 months to 30/6/05
(%)
5 year compound to 30/6/09
(% p.a.)
Since inception
to 30/6/09 (% p.a.)
MMC Australian Share Fund MMC0100AU Yes Yes -5.84% -21.98% 13.56% 7.54% 18.41% 3.91% p.a. 6.60% p.a.
MMC Small Companies Fund AMS0100AU No No -31.20% -36.71% 20.59% 11.81% 23.09% -1.16% p.a. 12.33% p.a.
How the returns are calculatedThe investment returns for each investment option have been calculated and provided directly by the investment managers.
Returns are annualised, based on the change in withdrawal prices of each investment option and assume the reinvestment of distributions. Returns are net of ongoing investment management fees and gross of tax and other fees that may be charged directly to your account.
Past performance is no indication of future performance. The value of your investment may rise or fall. Your investment is not guaranteed. Information on the individual investment options can be found in the current Product Disclosure Statements available on ClientView or from your adviser. You should consider the current Product Disclosure Statements before deciding to invest in, or switch between, investment options.
n/a – Information for these options is not available
How the asset allocation is determinedThe asset allocation for each investment option is determined by the investment managers and provided directly by the investment managers.
Asset allocations can vary over time within ranges specified by the individual product issuers. Information on the asset allocation ranges for the individual investment options can be found in the Product Disclosure Statements available on ClientView or from your adviser. You should consider the Product Disclosure Statements before deciding to invest in, or switch between, investment options.
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Investment strategies
Super and Pension Manager and Super Accumulator allow you to spread your super or pension account across many investment strategies, choosing from a range of investment options and product issuers. Generally, these strategies fall into one of the following categories:
The combination of investments you choose will be based on your individual circumstances. Information on the individual investment options can be found in the Product Disclosure Statements available on ClientView or from your adviser. You should consider the Product Disclosure Statements before deciding to invest in, or switch between, investment options.
Objective Stable returns over the short term with a high level of capital security.
Higher returns than cash over the short to medium term predominantly via income.
Higher returns than traditional fixed interest investments over the medium term predominantly via income.
Strategy Short term money market securities and fixed interest securities with maturities of less than 12 months. Enhanced cash investments may hold securities with maturities greater than 12 months.
Government, semi-government, corporate, inflation-linked bonds and money market securities. Exposure to emerging markets, high yield debt and mortgages is also permissible. Diversified investments may hold a range of Australian and international securities. Mortgage investments primarily hold mortgage backed securities.
Subordinated corporate debt, high yield corporate bonds, convertible notes, convertible preference shares, mezzanine and emerging markets debt.
Potential return Low Moderate Moderate/high
Potential risk Low Moderate Moderate/high
Suggested minimum timeframe
No minimum 3 years 5 years
Key risks Returns may fluctuate, but capital security is high. The value of cash investments may be eroded by inflation over the long term. Securities with longer dated maturities increase the chance of negative returns in the short term.
Returns may be volatile in the short term. Over the long term inflation may erode the value of fixed interest investments. Emerging markets, high yield debt and mortgage securities increase the chance of negative returns in the short term.
Returns may be volatile in the medium term. Hybrid securities are generally of lesser credit quality and are more likely to default. There is a high risk of negative returns over the short term, resulting from a revaluation of securities.
Sub-category1 Cash■■
Enhanced■■
Australian■■
International■■
Diversified■■
Mortgages■■
Term deposits■■
Not applicable■■
1 These refer to the sub-categories into which the trustee has divided the investment menu, designed to assist you and your adviser select the appropriate investment option.
39
Investment strategy Property Australian shares International shares
Objective Returns consistently higher than inflation via income and capital growth.
High returns over the long term, via income and capital growth.
High returns over the long term, predominantly via capital growth.
Strategy Property trusts and property related securities listed on the ASX. Investments may also include unlisted property securities and direct property investments.
Shares and other securities primarily listed on the ASX. Investments may focus on specific sectors such as small companies or infrastructure assets. Leveraged investments use gearing to enhance returns. Specialist investments adopt differentiated strategies.
Shares and other securities primarily listed on stock exchanges across the globe including USA, Japan, Europe, Asia and emerging markets. Investments may focus on specific sectors, themes or geographical regions. Leveraged investments use gearing to enhance returns. Specialist investments adopt differentiated strategies. Exposure to foreign currency may be hedged or unhedged.
Potential return Moderate/high High High
Potential risk High High High
Suggested minimum timeframe
5 years 6 years 8 years
Key risks Returns may be volatile in the medium term. Unlisted and direct property investments are more volatile because reduced liquidity, investment gearing and limited diversification increase risk.
Returns may be volatile. Sector specific, leveraged and specialist investments are more volatile because limited diversification. Gearing and specialist investment strategies increase risk.
Returns may be volatile. Currency fluctuations further increase volatility for unhedged investments. Regional, sector specific, leveraged and specialist investments are more volatile because of limited diversification. Gearing and specialist strategies increase risk.
Sub-category Australian■■
International■■
Diversified■■
Industrial and resources■■
Small companies■■
Leveraged■■
Specialist■■
Global■■
Regional■■
Sector specific■■
Leveraged■■
Specialist■■
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Investment strategy Conservative Balanced Growth
Objective Stable returns over the short to medium term via income and capital growth.
Moderate returns over the medium to long term via income and capital growth.
High returns over the long term via income and capital growth.
Strategy A diversified mix of income assets such as money market, fixed interest securities, and growth assets such as property and shares. The weighting to growth assets will generally not exceed 33%. May include absolute return, private equity and other alternative investments.
A diversified mix of income assets such as money market, fixed interest securities, and growth assets such as property and shares. The weighting to growth assets will generally fall between 33% and 67%. May include absolute return, private equity and other alternative investments.
A diversified mix of income assets such as money market, fixed interest securities, and growth assets such as property and shares. The weighting to growth assets will generally exceed 67%. May include absolute return, private equity and other alternative investments.
Potential return Moderate Moderate/high High
Potential risk Moderate Moderate/high High
Suggested minimum timeframe
3 years 5 years 7 years
Key risks Returns may be volatile in the short term. Over the long term inflation may erode the value of conservative investments. The higher the exposure to growth assets the higher the risk.
Returns may be volatile in the medium term. The higher the exposure to growth assets the higher the risk.
Returns may be volatile in the long term. The higher the exposure to growth assets the higher the risk.
Sub-category Not applicable■■ Not applicable■■ Not applicable■■
Objective Returns not correlated with traditional investment benchmarks.
High returns over the long term via income and capital growth.
Strategy Different absolute return investments adopt different strategies. Common strategies include the use of financial derivatives, gearing, security arbitrage, event driven investments and macroeconomic themes. Security selection will depend on the strategy, or combination of strategies, adopted by each investment manager.
Securities listed on the ASX, including shares, trusts, listed investment companies, exchange traded funds and instalment warrants.
Potential return High Very high
Potential risk High Very high
Suggested minimum timeframe
8 years 9 years
Key risks Returns may be volatile in the long term. Even though absolute return investments target consistent returns they are generally less regulated than other managed investments and more dependent upon the skill of individuals.
Returns may be volatile. Even though ASX listed securities may produce high long term returns, the returns of individual securities can vary significantly from the performance of the market as a whole. Limited diversification and investments in small companies and derivative securities can further increase risk.
Sub-category Not applicable■■ Not applicable■■
41
Legislative updatesDuring the course of the 2008-09 financial year, the Parliament enacted legislation that:
changed certain income tests to take account of salary ■■
sacrifice and certain other employer super contributions. Examples of tests affected include the Government’s super co-contribution and the ‘10% test’ for personal deductible super contributions. The changes are effective from 1 July 2009. For further information about how they may affect you, we recommend you speak to your adviser.
reduced the maximum co-contribution rate from 150% ■■
to 100% for personal contributions made in the 2009-10, 2010-11 and 2011-12 financial years. In 2012-13 and 2013-14, the matching rate will increase to 125% and in 2014-15 and beyond, it will return to 150%.
halved the annual concessional contribution cap with ■■
effect from 1 July 2009. This change means that the concessional cap is now $25,000 per year and the transitional concessional contribution cap (available until the financial year ending 30 June 2012 to those aged 50 or more in a financial year) is $50,000 per year.
changed the treatment of superannuation for ■■
temporary residents and former temporary residents from 1 April 2009, including:
higher tax rates when super is withdrawn on permanent ■■
departure from Australiaincreased restrictions on accessing super benefits ■■
a requirement to transfer accounts to the ATO ■■
as unclaimed money after 6 months following permanent departure.
halved the minimum required pension payment amount ■■
for account based, allocated and term allocated income streams for the 2008-09 and 2009-10 financial years.
The Government has announced the following changes which, at the time this report was prepared, have not yet become law:
A requirement for super funds pay the balances of certain ■■
lost and small balance accounts to the ATO as unclaimed money, the first payment of which would be required in the 2010-11 financial year.
The establishment of a trans-Tasman portability scheme ■■
to allow Australians and New Zealanders to transfer their retirement savings across the Tasman when they move.
Transitional relief to allow superannuation funds to ■■
continue claiming a full deduction for total and permanent disablement (TPD) insurance premiums for policies held within super. From 1 July 2011 when the transitional relief will end, TPD premiums will only be tax deductible to funds to the extent that they relate to the fund’s liability to pay a disability superannuation benefit as defined in tax legislation.
Important informationRecent changes to Super and Pension Manager and Super Accumulator
LiquidityCertain investments may be difficult to purchase or sell, preventing closing out a position or rebalancing within a timely period and at a fair price. Choosing an investment that has low liquidity or is not priced on a daily basis may affect your investments’ capacity to pay your pension or the timeframe within which we can process any future request from you to roll over or transfer part or all of your benefit. It is important that you understand this consequence before you select this type of investment. While an investment may be liquid at the time of purchase, there is a risk that the investment may become illiquid at a point in the future. Refer to the underlying PDS for each investment option for further details on the funds liquidity. For term deposits, liquidity risk is the risk of not being able to access your investment in a term deposit prior to the maturity date. There are restrictions on breaking a term deposit held in your account and this is outlined in the Super and Pension Manager PDS.
Suspended and closed fundsOver the past year, extraordinary market conditions and actions by Government bodies have forced Product Issuers to suspend a large number of managed investments to applications and redemptions. The mortgage sector was the first to experience a large number of redemptions due to the introduction of the guarantee on bank deposits and subsequent actions by other parties which incited uncertainty in the market. The global credit crisis began to have a strong negative impact on property markets and hedge fund managers. Growing pressure on valuations forced a number of direct property managers to experience liquidity issues and falling asset values in equity and fixed income markets made it difficult for hedge fund managers to trade and therefore a need to suspend managed investments to redemptions. These events have heightened the issues the industry is now facing in terms of investor concern over the loss of wealth and the lack of access to liquidity.
Trustee and fund management informationDuring the 2008~2009 financial year, the Fund held the following assets directly or indirectly with a value of greater than 5% of the Fund’s total assets:
the combined investments in all trusts for which ■■
Macquarie Investment Management Limited acts as responsible entity ($1.843b)
the combined investments in Macquarie Wrap Solutions ■■
Cash Account ($1.439b)
the combined investments in Macquarie Life Limited ■■
($0.577b) and
the combined investments in Dimensional Funds Australia ■■
Limited ($1.026b).
42
Should your benefit be transferred to the Super Safeguard Eligible Rollover Fund:
your interest in the Fund, including your insurance cover, ■■
will cease
you will become a member of the Super Safeguard Eligible ■■
Rollover Fund and will be subject to its governing rules
your account will be invested according to the investment ■■
strategy of the Super Safeguard Eligible Rollover Fund
the Super Safeguard Eligible Rollover Fund may charge ■■
fees to your account and
you may not be offered insurance cover.■■
You should refer to the Product Disclosure Statement for the Super Safeguard Eligible Rollover Fund for more information.
We reserve the right to change the chosen ERF without notice to you.
If you have a complaintWe have arrangements for dealing with your enquiries and complaints. If you have a complaint:
contact your adviser and discuss your enquiry or ■■
complaint with them
if you are not satisfied with the result, you may telephone ■■
us on 1800 025 063 or
it may then be necessary to write to us. We will ordinarily ■■
respond to your written enquiry or complaint within 45 days of receipt.
If you are still not satisfied with our response after 90 days, you may wish to refer the matter to the Superannuation Complaints Tribunal, an independent body set up by the Federal Government to review trustee decisions relating to individual members. You can contact the tribunal by telephoning 1300 780 808.
Use of derivativesSuper and Pension Manager and Super Accumulator invest in a number of collective investments. These collective investments are managed by Macquarie and external investment managers. Some of these collective investments invest in derivatives.
Derivatives used by the collective investments are outlined in each PDS.
External investment managers employed by Macquarie have provided their own Derivative Risk Management Statement (DRMS) documents or equivalent information to Macquarie. Should you require further information, a copy of the Macquarie Collective Investment DRMS is available free of charge from your adviser or from Macquarie.
Derivatives used by the external investment managers of the collective investments are set out in the DRMS (Part B) supplied by each of the individual investment managers. A file containing these DRMS’ is available from Macquarie on request.
Macquarie is satisfied that the DRMSs do not reveal any material inconsistencies with the investment strategies of Macquarie Super and Pension Manager and Macquarie Super Accumulator.
Subject to the trustees limits referred to in the PDS, where the trustee is satisfied that they meet the applicable investment strategy, the trustee may effect investments in instalment warrants or other derivatives.
Eligible Rollover FundThe trustee has elected to pay all accounts with a balance under $10,000 (for Super Manager) or $1,200 (for Super Accumulator) to an Eligible Rollover Fund (ERF), which accepts and protects small amounts. The ERF chosen is called the Super Safeguard Eligible Rollover Fund.
The Super Safeguard Eligible Rollover Fund is administered by Primary Superannuation Services Limited ABN 32361309012 AFSL 238827. APRA has approved the Super Safeguard Eligible Rollover Fund to operate as an ERF. The trustee is Trust Company Superannuation Services Limited ABN 49006421638 AFSL 235153.
Trust Company Superannuation Services Limited will protect your benefits from erosion due to fees and charges under member benefit protection rules. Should your benefit be transferred to the Super Safeguard Eligible Rollover Fund all subsequent enquiries relating to your benefit should be directed to:
Super Safeguard Eligible Rollover Fund GPO Box 3426 Melbourne Victoria 3001
Financial statements of the Macquarie Superannuation Plan
Operating statement for the year ended 30 June 2009
Note 2009 $’000
2008 $’000
Investment revenue
Changes in the net market value of investments 10 (1,244,072) (1,603,380)
Distributions from unit trusts 312,098 535,596
Dividends 57,969 58,466
Interest 5,440 –
Total investment revenue (868,565) (1,009,318)
Contributions revenue
Employer contributions 215,637 201,073
Members’ contributions 363,731 619,352
Transfers from other Funds 637,534 1,183,902
Total contributions revenue 1,216,902 2,004,327
Total revenue from ordinary activities 348,337 995,009
Expenses from ordinary activities
Other costs 5 88,694 99,449
Superannuation contributions surcharge 182 720
Total expenses from ordinary activities 88,876 100,169
Benefits accrued as a result of operations before income tax 259,461 894,840
Income tax (benefit)/expense 4 18,633 (74,459)
Benefits accrued as a result of operations 240,828 969,299
The above operating statement should be read in conjunction with the accompanying notes.
44
Statement of financial position as at 30 June 2009
Note 2009 $’000
2008 $’000
Investments 6 7,408,899 7,938,431
Other assets
Cash 60 118
Debtors 45,468 101,293
Current tax asset 4 14,219 17,761
Deferred tax asset 4 47,997 36,557
Total other assets 107,744 155,729
Total assets 7,516,643 8,094,160
Trade and other payables
Creditors 16,464 8,491
Total liabilities 16,464 8,491
Net assets available to pay benefits 7,500,179 8,085,669
Represented by:
Liability for accrued benefits
Allocated to members' accounts 7 7,500,179 8,085,669
The above statement of financial position should be read in conjunction with the accompanying notes.
45
Statement of cash flows for the year ended 30 June 2009
Note 2009 $’000
Inflows/ (Outflows)
2008 $’000
Inflows/ (Outflows)
Cash flows from operating activities
Contributions and transfers from other Funds 1,216,466 2,004,118
Benefit payments (808,864) (1,006,435)
Other unitholder transactions paid (106,930) (113,597)
Dividends and distributions received 439,671 609,220
Tax paid (13,484) (56,635)
Net cash inflow from operating activities 13 726,859 1,436,671
Cash flows from investing activities
Payments for purchase of investments (5,500,349) (7,584,777)
Proceeds from sales of investments 4,773,432 6,146,274
Net cash outflow from investing activities (726,917) (1,438,003)
Net increase/(decrease) in cash held (58) (1,332)
Cash at the beginning of the financial year 118 1,450
Cash at the end of the financial year 13 60 118
The above statement of cash flows should be read in conjunction with the accompanying notes.
46
1. Summary of significant accounting policies
The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2009 and the comparative information presented in these financial statements for the year ended 30 June 2008.
(a) Statement of compliance
The financial statements are general purpose statements which have been drawn up in accordance with applicable Australian accounting standards including AAS25 “Financial Reporting by Superannuation Funds” (“AAS25”) as amended by AASB 2005-13 “Amendments to Australian Accounting Standards [AAS 25]”, the Superannuation Industry (Supervision) Act 1993 and Regulations and the provisions of the Trust Deed.
Compliance with IFRS
Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards. Since AAS25 is the principal standard that applies to the financial statements, other standards, including AIFRS, are also applied where necessary except to the extent that they differ from AAS25.
Unless otherwise stated, the accounting policies adopted are consistent with those of the previous year. Comparative information is reclassified where appropriate to ensure comparability.
New accounting standards and interpretations
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2009 reporting periods. The Trustee’s assessment of the impact of these new standards (to the extent relevant to the Fund) and interpretations is set out below:
(i) AASB 8 Operating Segments and AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5, AASB6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038]
AASB 8 and AASB 2007-3 are applicable to annual reporting periods beginning on or after 1 January 2009. The Fund has not adopted these standards early. Application of these standards will not affect any of the amounts recognised in the financial statements, but may affect the segment disclosures.
(ii) AASB 101 Presentation of Financial Statements (Revised)
AASB 101 (Revised) is applicable to annual reporting period beginning on or after 1 January 2009. The Fund has not adopted this standard early. Application of this standard will not affect any of the amounts recognised in the financial statements.
(iii) AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments (effective for annual periods beginning on or after 1 January 2009).
In April 2009, the AASB published amendments to AASB 7 Financial Instruments: Disclosures to improve the information that entitles report about their liquidity risk and the fair value of their financial instruments. The amendments require fair value measurement disclosures to be classified into a new three-level-hierarchy and additional disclosures for items whose fair value is determined by valuation techniques rather than observable market values. The AASB also clarified and enhanced the existing requirements for the disclosure of liquidity risk of derivatives. The Fund has not early adopted the amendments. The amendments will not affect any of the amounts recognised in the financial statements but may affect certain disclosures.
(b) Functional and presentation currency
The financial statements are presented in Australian dollars, which is the functional currency of the Fund. Amounts have been rounded to the nearest thousand dollars except where otherwise noted.
(c) Use of estimates and judgements
In the application of Accounting Standards, including AIFRS, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of Accounting Standards that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements.
Accounting policies are selected and applied in a manner, which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or the other events is reported.
(d) Investments
Investments in listed equities are stated at net market ■■
value and are valued by reference to the relevant market quotation at the reporting date.
Notes to and forming part of the financial statements for the year ended 30 June 2009
47
Investments in unlisted unit trusts are valued by reference ■■
to the prevailing redemption prices at the reporting date.
Investments in the life policy issued by Macquarie ■■
Life Limited are valued by reference to the prevailing redemption prices as at the balance sheet date.
The fair value of investments approximates the net market value.
(e) Revenue
Unit trust distributions are brought to account on an accrual basis. Contributions and transfers from other funds are brought to account when received. Dividends are recognised in the accounts of the Fund on the announced ex-dividend date. Changes in the net market value of investments are recognised in the operating statement in the periods in which they occur.
(f) Liability for accrued benefits
The liability for accrued benefits is the Fund’s present obligation to pay benefits to members and beneficiaries and has been calculated as the difference between the carrying amounts of the assets and the carrying amount of the sundry liabilities and income tax liabilities as at the reporting date.
(g) Income tax
The Fund is a complying superannuation fund within the provisions of the Income Tax Assessment Act. Accordingly, the concessional tax rate of 15% has been applied on net investment earnings from unit trusts and equities, employer contributions and capital gains, with deductions allowable for administration and certain other expenses.
Deferred income tax is provided on temporary differences at the balance date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except where the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised, except where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or a liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor the taxable profit or loss.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised and the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance date.
(h) Goods and Services Tax (GST)
Where applicable, GST incurred by the Fund that is not recoverable from the Australian Taxation Office, has been recognised as part of the expense to which it applies. Receivables and payables are stated with any applicable GST included in their carrying amounts.
The amount of any GST recoverable from, or payable to, the Australian Taxation Office is included as an asset or liability in the statement of financial position.
(i) Other Debtors and Creditors
Other debtors are recognised at the amounts receivable, which approximate net fair value. Other creditors represent liabilities for goods and services provided to the fund prior to the end of the financial year and which are unpaid. The amounts are unsecured. Other debtors and creditors are subject to normal trade credit terms.
j) Superannuation contributions surcharge
Prior to 1 July 2005, under the Superannuation Contributions Tax (Assessment and Collection) Act 1997, the holder of surchargeable contributions for the financial year is liable to pay the superannuation contributions surcharge. The surcharge is levied on surchargeable contributions depending on the individual member’s Adjusted Taxable Income. The Fund has recognised the surcharge as an expense and liability when the assessment is received from the Australian Taxation Office. No assessed surcharge liability remains unpaid at year end.
With effect from 1 July 2005, the Superannuation Contributions Surcharge has been abolished. This means that a surcharge will not be issued in respect of any surchargeable contributions made or received from 1 July 2005.
No additional superannuation contributions surcharge liability in respect of surchargeable contributions made prior to 1 July 2005, has been recognised at year end as the Trustee considers that it cannot be reliably measured. There is insufficient information to provide a reliable indication of the future surcharge expense at year end due to various factors such as that the member’s taxable income is unknown, and the number and turnover of members varies from year to year.
48
(k) Cash
For the purpose of the cash flow statement, cash includes cash deposits that are readily convertible to cash on hand and which are used in the cash management function on a day-to-day basis.
2. Nature of the Fund and funding arrangements
Macquarie Superannuation (“the Fund”) is a defined contribution fund which provides benefits to its members under a Trust Deed dated 29 May 1992. Contributions to the Fund by employers and members are made in accordance with the terms of the Trust Deed.
Wrap Superannuation Division – Wrap Super Manager/■■
Wrap Pension Manager
Wrap Division Super Accumulator – Macquarie ■■
Super Accumulator
FutureWise Super Division.■■
3. Financial Risk Management
(a) Strategy in using financial instruments
The Fund’s activities expose it to a variety of financial risks (including currency risk, interest rate risk and price risk), credit risk and liquidity risk.
The Fund’s overall risk management programme focuses on ensuring compliance with the Fund’s Product Disclosure Statement and seeks to maximise the returns derived for the level of risk to which the Fund is exposed.
Investments within the Wrap product of the Fund are member-directed based on member-selected financial advisors.
(b) Market Risk
(i) Price risk
The Fund’s investments are susceptible to market price risk. The Fund trades in financial instruments, taking positions in unlisted trusts, ASX listed securities and bank term deposits.
For investors through Macquarie Wrap products, the Trustee moderates this risk through a delegated committee that reviews new investments, and through the application of specified trustee limits on those investments at the time a member seeks to acquire an interest in those investments. When determining whether a member’s proposed investment is within the trustee limits, the most up to date price available for that investment is used. The maximum risk resulting from financial instruments is determined by the net market value of the financial instruments. For investors through
Macquarie SuperOptions, the Trustee ensures that price risk is consistent with the disclosure in the Fund’s Product Disclosure Statement by ensuring that the Fund is fully invested in underlying trusts.
Price sensitivity is calculated on a consolidated basis. At 30 June 2009, the Fund’s market risk is affected by changes in market prices. If the relevant indices (including the S&P/ASX 200 Accumulation index, the MSCI World ex Aus Index, the UBS Composite Bond Index, the UBS Bank Bill index and the S&P/ASX 200 GICS Property Accumulation Index) at 30 June 2009 had increased by 15% (2008: 15%) with all other variables held constant, this would have increased net assets attributable to members by approximately $1,087,868,000 (2008: $1,205,959,000). Conversely, if the relevant indices (including the S&P/ASX 200 Accumulation index, the MSCI World ex Aus Index, the UBS Composite Bond Index, the UBS Bank Bill index and the S&P/ASX 200 GICS Property Accumulation Index) at 30 June 2009 had decreased by 15% with all other variables held constant, this would have decreased net assets attributable to members by approximately $1,087,868,000 2008: $1,205,959,000).
The reasonably possible movements in the risk variables have been determined based on the Trustee’s best estimates, having regard to the average absolute annual returns of the relevant indices in local terms.
(ii) Foreign exchange risk
The Fund is not directly exposed to foreign exchange risk as all assets are denominated in Australian dollars.
Investments of the Fund in unlisted trusts and ASX listed equities may be indirectly exposed to foreign exchange risk, where the value of underlying assets and liabilities within these entities may be subject to fluctuation as a result of foreign currency movements.
(iii) Interest rate risk
The Fund directly invests in term deposits, and these are not subject to significant amounts of interest risk due to the fixed interest nature of the investment and the relatively short duration of these assets.
Investments in the other cash accounts will have their interest payments fluctuate in accordance with the prevailing levels of short term market interest rates.
Investments of the Fund in unlisted trusts and ASX listed equities may be indirectly exposed to interest rate risk, where the value of underlying assets and liabilities within these entities may be subject to fluctuation as a result of fluctuations in prevailing interest rates.
49
(c) Credit risk
Credit risk arises from the Fund’s direct investment in bank term deposits. This is considered to be low risk due to the credit rating of the selected institution. None of these assets are impaired nor past due but not impaired.
Investments in unlisted trusts and ASX listed equities may be indirectly exposed to credit risk, where the value of underlying assets within these securities may fluctuate as a result of changes in the credit worthiness of financial assets held.
The Fund does not have any significant exposure to any individual counterparty or industry.
(d) Liquidity risk
The Fund is exposed to daily cash payments of member benefits. The majority of its investments are in assets that can be readily disposed of. The total liabilities for vested benefits of $7,500,179,000 (2008: $8,085,669,000) has a contractual maturity of less than 1 month. This is the earliest date on which the Fund can be required to pay members’ vested benefits. However members may not necessarily call upon amounts vested to them during this time.
Member investments however are exposed to the risk that they may not be able to redeem their investments in the event that an unlisted trust places a restriction on redemptions, or an ASX listed security is suspended and/or there is insufficient liquidity in the ASX market. As with price risk, the trustee moderates this risk by the application of trustee limits on specific asset types at the time a member seeks to invest in an asset.
(e) Fair value estimation
The carrying amounts of the Fund’s assets and liabilities at the balance sheet date approximate their fair values.
Refer to note 1 for the methods and assumptions adopted in determining the values of investments and other assets and liabilities.
4. Income tax
(a) Major components of tax expense
2009 $’000
2008 $’000
Current tax 28,232 10,831
Adjustment to current tax for prior periods
1,841 2,873
Deferred tax income relating to the origination and reversal of temporary differences
(88,163) (29,759)
Income tax (benefit)/expense 18,633 (74,459)
(b) A reconciliation of income tax expense and benefits accrued as a result of operations
2009 $’000
2008 $’000
Benefits accrued as a result of operations before tax
259,461 894,840
Prima facie income tax on net income calculated at 15%
38,919 134,226
Tax effect of income that is not assessable in determining taxable income
Non (assessable) ■■
deductible (revenue)/loss*39,314 10,575
Exempt loss/(income)**■■ 66,872 74,481
Member contributions■■ (54,560) (92,903)
Transfers from other funds■■ (95,630) (177,585)
Franking credits■■ (18,215) (31,726)
Tax effect of expenses that are not deductible in determining taxable income
Non deductible expenses■■ 4,842 5,492
Superannuation ■■
contributions surcharge26 108
Tax effect of other adjustments
Unrecognised tax losses■■ 35,224 –
Under/(Over) provision ■■
prior periods1,841 2,873
Income tax (benefit)/expense 18,633 (74,459)
* This includes income tax on income earned on the investment held as part of the life policy with Macquarie Life Limited and is paid by Macquarie Life Limited.
** Pension Fund is tax exempt on investment earnings.
(c) Deferred tax assets
2009 $’000
2008 $’000
The amount of deferred tax asset recognised in the Statement of Financial Position:
Unrealised/realised capital losses 47,997 36,557
1 For administrative purposes, units have been reported as valued at 1 cent per unit from 1 October 2007.
50
5. Expenses of the fund
2009 $’000
2008 $’000
Management fees 33,867 36,394
Adviser fees 54,762 62,941
Other 65 114
88,694 99,449
In addition to the above management fee, a management fee has been calculated and deducted by Macquarie Life Limited from the carrying value of the Fund’s investment in life insurance policies issued by Macquarie Life Limited. This management fee is deducted against the Fund’s investments in insurance policies issued by Macquarie Life Limited in accordance with the trust deed and the policy document. This amounted to $11,056,258 in the current year (2008: $13,805,331).
For all investment options with the exception of the deposit fund, a fee of up to 3.5% is deducted from each premium payment paid by Macquarie Superannuation to Macquarie Life Limited.
Investment options offered by Macquarie Super/Pension Manager**
■ unlisted unit trusts 3,630,857 4,318,612
■ related unit trusts managed by Macquarie Investment Management Limited
1,843,622 1,758,093
■ listed equities 1,155,147 1,160,471
7,408,899 7,938,431
* Macquarie SuperOptions Super/Pension invest into life insurance policies issued by Macquarie Life Limited.
** Macquarie Wrap Super Manager and Macquarie Wrap Pension Manager invest into unlisted unit trusts and listed equities.
7. Liability for accrued benefits
2009 $’000
2008 $’000
Changes in the liability for accrued benefits:
Liability for accrued benefits at the beginning of the financial year
8,085,669 8,136,992
Plus: benefits accrued as a result of operations
8,136,992 969,299
Less: benefits paid (808,864) (1,006,435)
Other unitholders transactions (17,454) (14,187)
Liability for accrued benefits at the end of the financial year
7,500,179 8,085,669
Represented by:
Macquarie Wrap Super Manager* 3,383,920 3,624,206
Macquarie Wrap Pension Manager
3,540,654 3,763,113
SuperOptions Superannuation 331,821 387,911
SuperOptions Pension 243,784 310,439
8,085,669 8,136,992
* includes Macquarie Super Accumulator
8. Vested benefits
Vested benefits are benefits which are not conditional upon continued membership of the Fund (or any other factor other than resignation from the Fund) and include benefits which members were entitled to receive had they terminated their Fund membership as at the reporting date.
2009 $’000
2008 $’000
Vested benefits 7,500,179 8,085,669
9. Guaranteed benefits
No guarantees have been made in respect of any part of the liability for accrued benefits.
10. Changes in the net market value of investments
2009 $’000
2008 $’000
Investments held at year end (1,024,685) (1,524,791)
Investments realised during the period
(219,387) (78,589)
(1,244,072) (1,603,380)
51
11. Segment information
The Fund operates solely in the investment management industry in Australia. While the Fund’s direct investments are Australian based, these investments may from time to time expose the Fund indirectly to investments based outside Australia.
12. Related parties
The Trustee of the Fund is Macquarie Investment Management Limited (MIML) ABN 66 002 867 003. The following persons held office as directors of Macquarie Investment Management Limited during the year or since the end of the year and up to the date of this report:
B N Terry N Roderick P Maher (resigned 05/05/2009) R Cartwright V Malley B Bruck (resigned 18/08/2008) C Vignes (appointed 18/08/2008) M Rady (appointed 13/10/2008)
The related party investments below are member-directed based on member-selected financial advisors.
There were no transactions between the trustee and the Fund or the directors of the trustee and the Fund, except as follows:
(a) The Fund enters into transactions with related parties through the units held in life policies issued by Macquarie Life Limited, a related entity of the trustee and shares held in Macquarie Bank Limited. These transactions are entered into with Macquarie Bank Limited or entities it controls on normal commercial terms and include the payment of management fees as described in note 5.
The trustee is the manager of investment assets held by Macquarie Life Limited. Full details of the Fund’s investments are set out in note 6.
(b) The Fund also maintains a cash account with Macquarie Bank Limited, the intermediate parent entity of the trustee. The balance in this cash account at year end is $201,913,187 (2008: $14,073,842).
(c) The Trustee has appointed Bond Street Custodians Limited (BSCL) ABN 57 008 607 065 to hold the Fund’s investments in custody. BSCL is a wholly owned subsidiary of Macquarie Bank Limited.
(d) The Fund invests into the following trusts for which Macquarie Investment Management Limited acts as responsible entity:
2009 $’000
2008 $’000
Arrowstreet Global Equity 668 707
Arrowstreet Emerging Markets Fund 2,723 1,700
CSL Active Commodities Fund – 802
EII Global Property Fund 3,020 3,543
Macquarie Lazard Master Global Equity Fund
1,034 792
Macquarie Active Plus Equities Fund 35 47
Macquarie Asian Alpha Fund 2,669 –
Macquarie Australian Equity Income Fund
239 –
Macquarie Australian Small Companies Fund
2,821 5,383
Macquarie Concord Australian Equity Fund
5,592 6,910
Macquarie Diversified Equity Fund – 1,698 1,683
Accumulated (2003 Series) 952 1,044
Macquarie Diversified Equity Fund – 610 643
Accumulated (2004 Series) 748 851
Macquarie Diversified Equity Fund – 3 18
Pension (2003 Series) 132 147
Macquarie Global Infrastructure Trust 3 3
Macquarie Global Infrastructure Trust II 1,709 1,988
Macquarie Global Private Equity Fund 41 284
Macquarie Global Property Securities Fund (hedged)
14 49
Macquarie Globalis BRIC Adv Hedged
1,785 2,029
Macquarie Globalis BRIC Adv Unhedged
703 932
Macquarie Income Opportunities Fund 2,578 501
Macquarie Index-Linked Property Securities Fund
3,482 2,694
Macquarie Master Alpha Plus Fund 13 28
Macquarie Master Balanced Fund 1,746 2,235
Macquarie Master Capital Stable Fund 1,121 1,385
Macquarie Master Cash Fund 31,999 36,050
Macquarie Master Cash Plus Fund 553 646
Macquarie Master Diversified Fixed Interest Fund
22,804 21,672
Macquarie Master Fixed Interest Fund 3,323 4,735
Macquarie Master Geared Growth Fund
119 289
continued on next page
52
2009 $’000
2008 $’000
Macquarie Master Imputation Fund 34 68
Macquarie Master Property Securities Fund
2,956 6,552
Macquarie Master Small Companies Fund
104 198
Morgan Stanley Global Franchise 19,482 29,272
Macquarie Special Events Fund 184 –
Premium China Fund 29,786 24,683
Macquarie Wrap Solutions Cash Account
1,439,906 1,293,683
Macquarie True Index Australian Fixed Interest Fund
46,795 56,608
Macquarie True Index Australian Shares Fund
18,793 28,099
Macquarie True Index Global Bond Fund
3,140 3,557
Macquarie True Index Linked Australian Shares
2,270 702
Macquarie True Index Listed Property Fund
4,232 9,413
Macquarie Walter Scott Global Equity Fund
24,646 28,923
Macquarie Winton Global Alpha Fund 13,761 1,653
Macquarie International Infrastructure Securities Fund
9,507 14,881
Van Eyk Blueprint Australian Shares Fund
16,605 16,198
Van Eyk Blueprint International Shares Fund
10,625 14,275
Van Eyk Blueprint Alternatives Fund 1,383 15,816
Van Eyk Blueprint Balanced Fund 62,158 81,222
Van Eyk Blueprint Capital Stable Fund
11,669 12,105
Van Eyk Blueprint Diversified Income 2,937 –
Van Eyk Blueprint Gold Bullion 407 –
Van Eyk Blueprint High Growth Fund
20,827 22,681
Walter Scott Global Equity Fund (Hedged)
8,790 58
1,843,623 1,758,093
The Fund also has $6,553,000 (2008: $10,665,000) in debtors for the above funds in respect of distributions receivable at year end.
(e) The Fund invests into the following shares which are related parties to the Fund:
2009 $’000
2008 $’000
Macquarie Group Limited 31,867 23,227
Macquarie Winton Global Opportunities Trust
1,112 1,354
European Investors Global Property Trust
– 856
Macquarie Capital Protected ALPS 299 313
Macquarie Capital Protected ALPS Series 2
186 213
Macquarie Airports 4,666 4,323
Macquarie Airports TICKETS 2,665 1,063
Macquarie Income Securities 2,181 2,806
Macquarie Communications Infrastructure Group
3,445 3,813
Macquarie Capital Alliance Group – 1,145
Macquarie Countrywide Trust 871 1,320
Macquarie DDR Trust 145 287
Macquarie Fortress Australia Notes Trust
458 489
Macquarie Infrastructure Group 4,547 7,138
Macquarie Leisure Trust 512 478
Macquarie Media Group 749 2,631
Macquarie Office Trust 1,815 4,553
Macquarie CPS Trust 9,981 607
65,499 56,616
(f) The Fund invests into the following term deposits with Macquarie Bank Limited:
2009 $’000
2008 $’000
Macquarie Term Deposit 201,913 14,074
201,913 14,074
53
13. Cash flow notes
a) Reconciliation of net cash flows from operating activities to benefits accrued as a result of operations
2009 $’000
2008 $’000
Benefits accrued as a result of operations
240,828 969,299
(Profit)/losses on investments 1,244,072 1,603,380
Benefits paid (808,864) (1,006,435)
Other unit holder transactions (17,454) (14,187)
Increase in creditors 7,973 879
Decrease in receivables 55,825 15,102
Increase/(decrease) in tax provisions
4,479 (131,367)
Net cash inflows from operating activities
726,859 1,436,671
b) Components of cash
2009 $’000
2008 $’000
Cash at the end of the financial year as shown in the cash flow statements is reconciled to the statement of financial position as follows:
Cash at bank 60 118
15. Remuneration of auditors
2009 $’000
2008 $’000
Remuneration for audit of financial report, APRA returns,compliance with SIS and APRA licence.
66,851 72,482
Fees for the audit were paid by Macquarie Investment Management Limited. The auditors, PricewaterhouseCoopers, did not provide any other services to the Fund.
15. Commitments and contingent liabilities
There are no commitments as at 30 June 2009 (2008: $Nil). There are no contingent liabilities as at 30 June 2009 (2008: $Nil).
16. Events subsequent to balance date
There have been no significant events that have occurred after the reporting date that affects the interpretation of the financial information contained in these financial statements.
54
In the opinion of the Directors of the Trustee Company, Macquarie Investment Management Limited, of Macquarie Superannuation:
i) the financial statements set out on pages 3 to 22 are drawn up so as to present fairly in accordance with applicable Accounting Standards and other mandatory professional reporting requirements the financial position of the Macquarie Superannuation as at 30 June 2009 and the benefits accrued as a result of its operations and its cash flows for the year then ended;
ii) the financial statements have been prepared in accordance with the full provisions of Australian Accounting Standards AAS 25, Financial Reporting by Superannuation Funds, other relevant Australian General Accepted Accounting Principles, Australian Equivalents to International Financial Reporting Standards, the provisions of the Trust Deed, and relevant legislative requirements; and
iii) the Fund has complied with the requirements of the Trust Deed dated 29 May 1992, as amended, and with the applicable provisions of the Superannuation Industry (Supervision) Act 1993 and Regulations, and the Corporations Act 2001 and Regulations and Guidelines during the year ended 30 June 2009.
This statement is made in accordance with the resolution of the directors of the trustee company.
B.N. Terry N. Roderick Director Director
Sydney 28 October, 2009
Trustee’s statement
55
Independent report by approved auditor to the trustee and members
(A) Financial Statements
I have audited the financial statements of Macquarie Superannuation or the year ended 30 June 2009 comprising:
Statement of Financial Position■■
Operating Statement■■
Statement of Cash Flows■■
Notes to and forming part of the Financial Statements ■■
Trustee’s Responsibility for the Financial Statements
The superannuation entity’s trustee is responsible for the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the requirements of the SIS Act and the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations). The trustee’s responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error, and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
My responsibility is to express an opinion on the financial statements based on my audit. I have conducted an independent audit of the financial statements in order to express an opinion on them to the trustee and members of the Macquarie Superannuation.
My audit has been conducted in accordance with Australian Auditing Standards. These Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the trustee’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the trustee’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the trustee, as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
In my opinion, the financial statements present fairly, in all material respects, in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations).
(B) Compliance
Trustee’s Responsibility for Compliance
The superannuation entity’s trustee is responsible for complying with the requirements of the SIS Act, SIS Regulations, the Reporting Standards made under s. 13 of the Financial Sector (Collection of Data) Act 2001 (FSCODA Reporting Standards), the Corporations Act 2001 (Corporations Act) and Corporation Regulations 2001 (Corporation Regulations).
Auditor’s Responsibility
My responsibility is to express an opinion on the trustee’s compliance with the requirements of the SIS Act, SIS Regulations, FSCODA Reporting Standards, Corporations Act and Corporation Regulations based on the audit. My audit has been conducted in accordance with applicable Standards on Assurance Engagements. These Standards require that I comply with fundamental ethical requirements and plan and perform the audit to obtain reasonable assurance whether the trustee of the Macquarie Superannuation has, in all material respects for the year ended 30 June 2009:
a) complied with the relevant requirements of the following provisions (to the extent applicable) of the SIS Act and SIS Regulations:
b) complied with the FSCODA Reporting Standards that are subject to audit (to the extent applicable); and
c) complied with the relevant requirements of the following provisions of the Corporations Act and Corporations Regulations (to the extent applicable):
d) complied with the requirement to prepare the respective forms comprising the APRA Annual Return; and
e) complied with the requirements of Section 155(2) of the SIS Act in that the trustee has appropriate processes in place to identify and resolve s.155 cases, and has adhered to those processes in determining issue and redemption prices.
My procedures with respect to SIS regulation 6.17 included testing whether amounts identified by the trustee as preserved and restricted non-preserved have been cashed or transferred only in accordance with the requirements of Part 6 of the SIS regulations. These procedures did not include testing of the calculation of the preserved and restricted non-preserved amounts beyond a broad assessment of the apparent reasonableness of the calculations.
My procedures included examination, on a test basis, of evidence supporting compliance with those requirements of the SIS Act, SIS Regulations, FSCODA Reporting Standards, Corporations Act and Corporations Regulations.
These tests have not been performed continuously throughout the period, were not designed to detect all instances of non-compliance, and have not covered any other provisions of the SIS Act and SIS Regulations, FSCODA Reporting Standards, Corporations Act and Corporations Regulations apart from those specified. The superannuation entity’s trustee is responsible for complying with the SIS Act and SIS Regulations, FSCODA Reporting Standards, Corporations Act and Corporations Regulations.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Auditors opinionIn my opinion the trustee of Macquarie Superannuation has complied, in all material respects, with the requirements of the SIS Act and SIS Regulations, FSCODA Reporting Standards, Corporations Act and Corporations Regulations for the year ended 30 June 2009.
PricewaterhouseCoopers
S J Smith Sydney Partner 28 October 2009
New South Wales
1 Shelley Street Sydney NSW 2000
Macquarie Investment Management Limited PO Box 192 Australia Square NSW 1215
Macquarie Investment Management Limited GPO Box 663 Adelaide SA 5001
Western Australia
Level 27, Allendale Square 77 St Georges Terrace Perth WA 6000
Macquarie Investment Management Limited PO Box 7306 Cloisters Square Perth WA 6850
Contacts
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How to contact Macquarie
Financial Advisers
1800 025 063
Existing investors
Your adviser is your main point of contact for your portfolio, so if you have any queries about your Macquarie Super and Pension Manager account, please talk to your financial adviser.
Macquarie can be contacted at: Macquarie Wrap PO Box N498 Grosvenor Place NSW 1220