Welcome

The Autumn 2010 edition of Employer Super Update delivers more insights and invaluable information to you. First up, we’ll give you an update on the financial markets, which includes a review of the year just passed and how we view the year ahead. We’ll explain the changes to the Multi Manager performance structure and the importance of it to your employees.
We’ll tell you about the Asgard Benefits Program and the great discounts and exclusive offers that are available to your employees, plus we’ll give you a refresher on Policy Committees.

The markets, investment and superannuation – one year on

March 2010 marks one year from the low point of the Global Financial Crisis (GFC). And if you were to compare newspaper headlines from a year ago to the front pages of today’s papers, you might be surprised at the change in focus for news about investment markets and superannuation. Front pages that used to tell us about the despair of share markets and the demise of super balances now carry stories on the market recovery, the rise in commodity prices and speculation on the next interest rate rise. What a difference twelve months can make!

Looking back
If the 2008/09 financial year was all about the falls in investment markets and super, then 2009/10 should continue to be about the bounce. Since 1 July 2009, the Australian share market has gained around 27%, international shares have risen 25%, and Australian Listed Property is up around 22%¹. The bounce might feel remote, but for anyone whose super is spread across a wide range of assets, there’s a good chance the balance has increased. When 30 June rolls around this year, you and your employees can expect to see some better numbers in your super statement.

On the flip side, the cash rate was cut steadily from 7.25% to around 3.00% and is now sitting at 4.25%. The cut in rates might have been good news for mortgage holders but it wasn’t good for anyone who switched their super into cash. In fact, anyone who made the decision to switch their super from shares to a cash investment might have done more damage than good. New research from ratings house Chant West suggests that anyone who switched to cash after October 2008 and hasn’t switched back has probably fared worse than an investor who rode out the GFC.

As Warren Chant, principal at Chant West, says: “The reality is that most of the people who did switch left it too late. They probably got their 2008 statements in September, fretted about them and made their decision late that year or early 2009. Not only did they bear the worst of the negative returns, they also missed out on the best of the positive returns when markets turned back up.²

Looking ahead – our view
The markets have certainly turned, and while we can never be sure of what’s ahead, we’re confident of a general upward trend in share markets. Even though the dust is only just settling after the GFC, the recovery in Australia is gaining momentum and we have moved into a relatively strong position compared to the rest of the world. This is largely due to three reasons: we have a strong banking system that needed little government intervention throughout the GFC, ours is a land full of natural resources demanded by some of the fastest growing nations, and our government and central bank have shown a commitment to keep the economy ticking along. As a result, Australia should continue to strengthen, particularly in comparison to some of our bigger trading partners.

As the economy does recover, many economists, believe we are also likely to see interest rates continue to move higher, largely as a measure to halt rising inflation. While incremental rises from the record low of 3.00% may not feel too significant, every rate rise will add a little extra pressure. On the other hand, acknowledging that inflation is a concern is a clear sign we’re well on the road to recovery. It’s a problem other countries might happily take on.

¹_As measured by the S&P/ASX 200 Accumulation Index (Australian shares), the MSCI World Index ex Australia and net dividends, and the S&P/ASX200 Property Trusts Accumulation Index, current as at 31 March 2010.
²_Chant West media release, “Staying the course pays off”, March 2010.

Asgard Product Enhancements – making investing even easier

At Asgard, we’re regularly engaging with advisers to test our thinking about product initiatives so we can work together on designing the best solutions for your employees. This has led to a significant program of product development as well as continuous enhancements, which are currently in progress.

We’re pleased to announce that, as of 15 March 2010, the following product enhancements went live in the Asgard Employee Super Account:

1. New auto-rebalancing schedule
2. A facility for your employees to set cash levels

Please read on to learn how these product enhancements work:

1. New auto-rebalancing schedule

It is now easier for your employees to keep their portfolios on track.

We’ve changed the months for auto-rebalancing*. The new schedule now closely follows the times when most fund managers pay distributions and when end-of-year super contributions are made.

With these changes, your employees’ accounts should remain closer to their chosen investment profiles without having to make additional changes.

2. A facility to set your employees' cash levels
Your employees now have more control of their cash and investments.

We’ve made it possible for members, with the help of their financial adviser, to set their own limits on cash balances or be able to switch off the automatic investment of excess cash so they can store funds in the cash account until they're ready to invest. Two enhancements have been made to the Asgard Employee Super Account so our customers have greater control of their cash accounts. 

i. You choose the cash level
Your employees can now set different cash levels to suit their own needs. Set a dollar or percentage limit for the cash balance at any amount above the current default amount.
 
ii. You control excess cash
For members who want to build up cash, simply 'switch off' automatic investment of cash when it exceeds the required $1,000 balance. They can also nominate a minimum amount to invest above the $1,000 default amount.

*Auto-rebalancing excludes members who hold Asgard Separately Managed Accounts – Funds.

Please click here to view the Supplementary Product Disclosure Statement (SPDS).

Watch this space
These enhancements are just the start. You can look forward to seeing more product enhancements rolled out throughout the year.

Do you have any questions or need further information?
If you have any questions, or would like further information on any of these product enhancements, contact your financial adviser, your Asgard Corporate Super Consultant or Corporate Account Manager or our Business Super team on 1800 005 740.

Our service level commitment to you in 2010

Late last year Asgard invested in a new back-office workflow system as part of our longer-term plan to improve the overall service experience for you and your employees. Our Customer Service Delivery team processes and monitors up to 1,500 transactions on behalf of investors, employers and advisers every business day. This new system will help us manage work processes more efficiently so we can provide you with a more consistent standard of service in the coming year.

What are Asgard’s Service Level Standards?
Asgard’s Service Level Standards (SLSs) are our commitment to you that we’ll complete transactions within certain timeframes. As a minimum, we are committed to:

• completing 80% of all transactions within the published timeframes, and
• completing 95% of all transactions within ten business days after the published timeframes.

Smoother, faster transactions
We aim to process all your transactions as quickly as possible. However, if the documentation
we receive is incomplete or incorrect, it will lead to delays. This is because we need to obtain
the missing or incomplete information from you or your employee before we can proceed with
your request.

• If documentation is incomplete, we’ll contact you to get the missing information. We’ll still aim to process the transaction within our SLSs once we have all the required documents.
• If a transaction is delayed beyond this point, we’ll continue to work with you to obtain the required information, or alternatively, if it can’t be completed, close the transaction.

The benefits of transacting electronically through Employer Online Transact
Take advantage of our electronic contribution processing capability through Employer Online Transact. Submitting contributions and employee details electronically provides you and your employees with a number of benefits, including:

• Fewer delays caused by missing information as employee details and other data are validated as you enter it.
• Faster processing as electronic contributions to your Asgard members are processed through our systems overnight, which removes the delays so often encountered by ‘snail mail’ and ensures the fastest possible processing of your transactions.

Asgard member benefits – nothing to sneeze at!

With the colder months fast approaching, your employees might be thinking about ways to avoid the winter blues. With that in mind, now is the perfect time to remind them about the great deals and exclusive offers available through the “Asgard Benefits” program.

These include:

• Health and wellbeing discounts – including a discount of up to 11.26% on your private health insurance with MBF
• Travel and accommodation offers – including Big Red Holidays, Avis Car Hire and Australian Theme Parks
• Retail and entertainment savings – including Roses Only and Movie Tickets

Your employees might be considering joining the gym to become fighting fit to help ward off those dreaded winter bugs, dreaming about escaping to a warm and sunny holiday destination or even planning that ski trip, or maybe just enjoying the latest release at the cinema and some value-for-money shopping to revamp the winter wardrobe. They can do all this and more, and enjoy the savings, with Asgard Benefits.
With no qualifying periods, no complicated terms and conditions and no unnecessary paperwork, Asgard Benefits is about simple, worthwhile and genuine savings.
It’s easy to make the most of all the things Asgard Benefits offers your employees.
For a full list of discounts and exclusive offers, and instructions on how to take advantage of them, all your employees need to do is simply logon to Investor Online with their investor number and PIN, click on Asgard Benefits and follow the link.

Policy Committee requirements for your superannuation plan

The Policy Committee must meet at least once a year, and must also consist of an equal number of employer-appointed and member-elected representatives.

It serves as an avenue for your employees to ask the Trustee for specific information and lodge complaints or enquiries about the operation or management of your super plan.

Information about how to establish a policy committee will be sent to all members if your super plan has 50 or more members. For plans with between 5 and 49 members, a policy committee must be established if requested by at least 5 members in writing.

Please refer to your Annual Super Statement for details about the relevant policy committee (if any) and details of the names of the committee members at the end of the reporting period.

If you have any questions please contact the Business Super team on 1800 998 185 or email GroupEmployerInsuranceQueries@asgardwealthsolutions.com.au

How do I contact Asgard?

Call us toll free on 1800 005 740 from 7:00am to 5:00pm WST Monday through Friday.

Fax us on 08 9321 4739.

Email us at client.support@asgard.com.au

Write to us at Asgard Business Super, PO Box 7461, Cloisters Square, Perth WA 6850.

Important information

Material contained in and attached to this email is a summary only and is based on information believed to be reliable and received from sources within the market. It is not our intention that this publication be used by you as the primary source of information but as an adjunct to your own resources and training. No representation is given, warranty made or responsibility taken as to the accuracy, timeliness or completeness of any information or recommendation contained in this publication and we will not be liable to you in contract or tort (including for negligence) or otherwise for any loss or damage arising as a result of you relying on any such information or recommendation (except in so far as any statutory liability cannot be excluded). The information and general advice provided do not take into account your personal objectives, financial situation or needs. Because of that, when reading the material forwarded, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.

In deciding whether to open, or to continue to hold, an Asgard account, use Employer Online or Asgard’s superannuation clearing house services, you should consider the relevant Product Disclosure Statement or Financial Services Guide for that account issued by us. Copies can be obtained from us or your financial adviser. Information about the relationships between Asgard and other St George Group companies and the remuneration (including commission) or other benefits that they and any other person can receive in respect of, or that is attributable to, the financial services they provide is set out in the general Financial Services Guide issued by Asgard.
An investment in an Asgard account is not a deposit or liability of St.George Bank Limited ABN 92 055 513 070 (St.George) AFSL 240997. Asgard accounts and the investments you select are subject to investment risk, including possible delays in repayment and the loss of income and capital invested. Neither Asgard, Asgard Wealth Solutions Limited ABN 28 009 143 597, or St.George, nor any member of the St.George Bank Group, in any way stands behind or guarantees the capital value and/or the performance of the specific investments you select or Asgard accounts generally.

Privacy laws protect your privacy. Please read our privacy brochure for more information. A copy can be obtained from Asgard Investor Services on 1800 998 185.

Marketing information

From time to time we provide you with marketing information on products and services which may be supplied by us, our related companies or by other suppliers which may be of interest to you. If you do not wish to receive such information in future, please contact Asgard Investor Services on 1800 998 185 or write to us at PO Box 7490, Cloisters Square, PERTH WA 6850.

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