In this edition: • Bring your super with you

• LUCRF tackles market volatility

• Getting behind Queensland communities

• LUCRF goes Platinum again

Summer 2013

CasualsSuperNews

Did you know your LUCRF Super account is transportable?

When you change jobs, you can take your LUCRF Super account with you. It’s easy and means that you’re making the most of your super by keeping it all in the one place.

Changing jobs regularly could mean that over time you accumulate a number of super accounts.

Indeed, many workplaces have default super providers stipulated in their Awards, so chances are you’re one of the many Australians holding super accounts with more than one fund.

Next time you change employers, give them your LUCRF account details to ensure all your super stays together. Your fees will be lower and you’ll be taking advantage of the compounding benefits of a larger super balance.

Do you know where all your super is?

We can help you bring all your super together into your LUCRF account and get it working effectively for you.

Simply provide us with your consent and we will use your Tax File Number to locate your super accounts.

It’s easy – you can provide your consent to us by phone, email or by selecting the Super Search Consent tick box in your Members Online account.

Alternatively, complete a Super Search Consent Form available via our website and well take care of the rest.

Bring your super with you

Make your money work for youDid you know you that LUCRF provides a full financial advice service to members?Our team of professional Financial Advisers are just a phone call away. They can assist you in making informed decisions about your finances and investments.

Our advisers are not sales driven and don’t receive bonuses or incentives.

So whether you are saving to buy a house, planning for your children’s education or want to maximise your savings and minimise tax, talking to a professional can help you make the right choices to suit your individual needs.

Advice regarding super and pensions is generally free of charge for LUCRF members. Call us today.

This information has been prepared without taking into account your personal financial situation, objectives or needs.

For the fifth consecutive year, LUCRF has been awarded SuperRatings’ coveted ‘Platinum’ product rating for its Super and Pension accounts (Balanced (default) option).

SuperRatings is Australia’s most respected super research company and utilises a broad assessment criteria to rate funds based on their investment performance, fees, governance and customer education.

Both LUCRF’s Super and Pension accounts were particularly noteworthy for the quality of their advice, education and administration, achieving a string of ‘excellent’ ratings, considered well above the benchmark.

Tellingly, LUCRF received the best possible rating in the area of fees and charges, with the lack of commissions and entry fees considered particular strengths.

“LUCRF (has) a genuinely low fee structure across all account balances, with all profits generated by the fund being returned to members,” the report concluded.

MySuper is comingA simple cost-effective super product is on its way.

Ever found the number of different super options overwhelming? New legislation has been introduced and from 1 July 2013, all Australians will have access to a simple super option – ‘MySuper’.

MySuper is a cost-effective, no frills super account which will replace all existing ‘default’ super accounts – including LUCRF Super’s current Balanced (default) investment option.

Members will see minimal changes because LUCRF Balanced (default) investment option already meets the requirements outlined by the new legislation.

MySuper will enable consumers and analysts alike to easily compare different super funds, based on a few key differences. As MySuper is a no-frills product, consumers won’t inadvertently pay for services they don’t need or use. Of course should you prefer to choose your investment option, you will still have the ability to do so.

Further details about MySuper will be available in the coming months. In the meantime, check our website to keep up to date with all things super.

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LUCRF goes Platinum again

LUCRF Community Partnership Trust launches in Queensland.

Since its inception in 2010, the LUCRF Community Partnership Trust – a superannuation industry-first initiative – has supported a diverse range of grassroots projects, helping disadvantaged people in Victoria and New South Wales.

Community and industry leaders came together for the recent Queensland launch of the LUCRF Community Partnership Trust (CPT) at Suncorp Stadium in Brisbane.

Key speaker Senator Claire Moore proudly announced the Trust’s inaugural Queensland grant recipients – Operation Smile Australia and the Romero Centre – bringing the number of community partners the Trust has supported to 14.

Operation Smile Australia

Operation Smile Australia is a medical services organisation offering free corrective surgery in developing countries to children and young adults born with facial deformities. The CPT is supporting a team of Australian medical volunteers on an international mission to the Philippines to deliver craniofacial surgery.

Romero Centre

The Romero Centre is Mercy Family Services’ Multicultural Community Centre, delivering settlement services and social and practical support and education to new refugees.

This year, the CPT partnered with the Romero Centre and Police Citizens Youth Club to support the Community Shield Soccer Tournament in Brisbane.

The tournament is Australia’s largest multicultural sporting event, bringing together over a thousand young people from various ethnic backgrounds. The tournament, now in its fourth year, attracted more than 60 teams. Importantly, it helps to build harmony among young people and positive relationships with law enforcement agencies.

CEO of LUCRF Super, Greg Sword AM said, “By supporting these worthy community organisations we are making a real difference in people’s lives and we are actively encouraging and inspiring others to do the same.”

“It is so important because there are many people in our community who need a helping hand.”

The CPT provides LUCRF Super with a unique opportunity to engage with the communities in which its members live and work. Through the CPT, LUCRF partners with its employers, members and employees, who pledge their support through workplace giving programs and via one-off donations.

Mr Sword was excited about growing the initiative in Queensland, “Through the Community Partnership Trust, LUCRF Super can further develop positive and sustainable relationships with the community, which extend beyond a transactional nature.”

The Community Partnership Trust’s support will extend to include South Australia in the New Year.

Getting behind Queensland communities

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Pictured L–R: Steven King, Greg Sword AM,

Sue Lewandowski, Shane Stefanutto,

Hon. Monica Gould and Sen. Claire Moore.2012 Community Shield winners

Operation Smile Australia

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LUCRF’s newest investment choice tackles market volatilityLUCRF’s new investment choice combines lower volatility with opportunities for growth.Our newest investment option – Targeted Return – is now available and is designed to provide strong, above inflation returns and lower levels of volatility.

The Targeted Return option invests in a broad range of asset classes with a variety of different return streams in order to provide after inflation growth potential, coupled with lower volatility than traditional balanced portfolios.

It is designed to have a smaller range of returns than the typical balanced fund, resulting in a less volatile investment experience.

What makes this option different?The Targeted Return option is constructed in a way that will provide investment growth, capturing a large percentage of the market upswing. At the same time it will provide greater protection against the downside of the market than traditional balanced portfolios.

Who is this for?The Targeted Return option is ideal if you’re looking to grow your investments but have a lower appetite for risk than our Balanced (default) option provides. So if you still want your super working hard for you but want comparatively lower levels of volatility, this might be an option for you.

This is the first of several innovative new investment options we’re developing as part of our commitment to providing you with greater freedom in managing your LUCRF investments.

It’s important to seek financial advice to ensure you select the investment option that best suits your individual circumstances.

We offer free financial advice covering all aspects of managing your super and pension accounts.

Call us today to speak with one of our qualified Financial Advisors.

Former RBA Chief headlines LUCRF investment dayOne of Australia’s foremost economic minds recently spoke to LUCRF directors about key economic matters. Addressing LUCRF’s investment day, former Governor of the Reserve Bank Ian Macfarlane analysed both the local and world economy and their impact on the super industry.

In wide-ranging speech, he touched on a number of themes for the directors to consider, including issues pertaining to the post GFC recovery, the residential housing market and infrastructure investment.

Macfarlane, who was Governor of the RBA for a decade from 1996, now sits on the Board of Woolworths, ANZ Banking Group Ltd and Leighton Holdings Ltd, as well as being an international adviser to Goldman Sachs. In 2004, he was awarded a Companion of the Order of Australia, “for services to the stabilisation of the Australian financial system.”

Ian McFarlane with Fund Deputy Chairman

John Carlile.

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LUCRF’s investment performanceDespite continuing difficult investment conditions, global markets saw a first half rally.

The first half of the 2012/13 financial year began with ongoing concern around the state of European markets, particularly that of Spain.

However, markets responded positively to comments made in July by European Central Bank (ECB) President Mario Draghi, that the ECB was prepared to do “whatever it takes to preserve the Euro.” This gave some reassurance to investors and lead to a rally on global markets in the first quarter.

Off the back of the rally, LUCRF’s Balanced (default) investment option responded well to the conditions, recording a 4.95% return for the period 1 July 2012 to 30 November 2012. It also outperformed the Master Trust (Retail Funds) Median over the rolling three year period.

Despite the recent rally on global markets, investors remain relatively pessimistic and pricing of investments reflects a view that developed world economies will experience weak growth, low inflation, high unemployment and moderate profits in the years to come. In the current climate, even moderately good news coming out of global markets is likely to have a quite a positive effect on local investment prices.

The LUCRF investment team has worked hard to prepare resilient investment options which provide value to members at the same time as withstanding some volatility in the market. They preserve more capital than more risky portfolios would, in order to protect investments should market conditions prove worse than anticipated.

Hence, LUCRF’s Balanced option is designed to profit in times like those of the first quarter 2012/13 and be more resilient during times of volatility.

Super accounts

Option name FYTDRolling 1 year

Rolling 3 year

LUCRF Super – Balanced

5.22% 8.86% 5.32%

Not for Profit Fund Median

5.57% 9.55% 5.33%

Master Trust (Retail Funds) Median

6.05% 10.53% 4.42%

Source: SuperRatings Fund Crediting Rate Survey – SR50 Balanced (60-76) Index, November 2012. Note: past performance is not a reliable indicator of future investment returns.

What’s changed at work?In 1984, just 15 per cent of Australia’s workforce was engaged in casual work. However in the years since, the landscape has significantly changed and casual workers now account for 40 per cent of the Australian workforce.

It used to be that when you got a job, it was a job you could count on, but over the last 30 years, job security has changed and the economic risk of employment which was once the liability of employers, has now been shifted to workers. Hence, the reason more and more workers are feeling insecure in their jobs. Australia today has the highest number of individual workers without proper employment protections.

What does it mean for casual, labour-hire and contract workers?Casual employees cannot depend on sick pay, do not receive paid annual leave for holidays and some do not receive superannuation contributions if they have more than one casual job. This rise in job insecurity threatens the ability of permanent workers to have a decent standard of living for themselves and their families. This is seen in the growing number of people who are unable to pay their rent, apply for a loan to buy a house or a car, or to properly care for their family. Crucially, their ability to save money for retirement is almost impossible. <what do you want to say here?>

This phenomenon, dubbed the ‘casualisation of the workforce’ brings with it a lack of job security and has a number of social implications, not least of which is the impact unsocial working hours has on the broader community. Working in traditional recreation time can detract from time which would otherwise be spent with family and friends, undertaking sports and hobbies or participating in the local community.

LUCRF recognises that casual workers play and important role in the workplaces it covers and supports the issues casuals face. LUCRF prides itself on being the super fund that you can take with you from your first job, throughout your working life and into retirement.

Every worker countsThe shifting sands of the Australian workforce landscape are having a big impact on everyday Australians.

LUCRF supports casual workersIt used to be that if you had a job, it was for life. But the workplace landscape is changing fast and the numbers of casual and contract roles are on the increase.

Contact LUCRF Super

1300 130 780Web: www.lucrf.com.auE-mail: mypartner@lucrf.com.auPost: PO Box 211 North Melbourne VIC 3051Fax: (03) 9326 6907 LU

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An award-winning fund

This newsletter is issued January 2013 by LUCRF Pty Ltd ABN 18 005 502 090 AFSL 258481, as Trustee for LUCRF Super ABN 26 382 680 883. It is general in nature and has been prepared without taking into account your personal financial situation, objectives or needs. Ratings (awards) are only one factor to be taken into account when deciding whether to join LUCRF Super. These ratings were current at the time of publication and may change. You should assess your personal financial situation before making a decision about LUCRF Super. To help you decide we recommend you read our current Super Member Guide Product Disclosure Statement, Super Member Essentials (Additional Information and Financial Services Guide) and awards available from our website or by calling us.

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