The AvSuper Team and Trustee extend our sympathies to the Japanese people who are dealing with the catastrophic events of the last week under extremely difficult conditions.

As the world continues to experience what seems like an unabating stream of natural disasters in recent months, we are receiving member requests for more information about the likely economic impact of these disasters, including on their super.

While investment markets in Australia and globally have reacted very negatively to these events this week, AvSuper’s overall exposure to Japanese investment assets is relatively small, currently less than 3% of the Fund overall. The majority of this exposure is currency, equities and bonds with a very small property exposure and we hold no long term concerns at this stage for individual holdings. While some of our  fund managers’ teams live or work in Japan to manage these assets for us, we have been able to ascertain that none have been significantly disrupted as they were not located in the worst affected areas.

Clearly, the pricing volatility in global markets seen this week demonstrates current uncertainty regarding the extent of the risks posed by Japan’s disaster. The AvSuper Investment Committee continues to watch the situation carefully and expects that as the situation and the economic outlook becomes clearer, market volatility will subside.

If you have any queries about AvSuper’s investments in general or our Japanese exposure in particular, please contact us on 1800 805 088.

Michelle

Michelle Griffiths,
CEO

Happy International Women’s Day!

Would you be surprised to hear that the average woman retires with only $63,000 in super? Given national guidelines of $20,981 a year to fund a modest single lifestyle, it’s likely that many women will not have financial independence after retirement.

At AvSuper, we are committed to helping people prepare for retirement and want to help change this situation for women. During March we are focussing on providing information to help women build their super. You will find targeted fact sheets have been added to our site on our AvSuper and women page.

The Federal Government has proposed maintaining the higher concessional contributions cap for members over 50 years with a total super balance under $500,000. This should be a great outcome for many AvSuper members who want to put more into their super savings, however the legislation is yet to get through the current Parliament. 

The current arrangement of a maximum concessional contribution per year of $50,000 for members over 50 is due to end on 30 June 2012, so this proposed adjustment effectively preserves the higher limit of concessional contributions for members over 50. There is no change to the annual limit for members under 50. Read the rest of this entry »

As part of our continuous development for members, we are pleased to announce the launch of part two of our Member Advice Solution.

AvSuper Calculator is an interactive website tool to help you see for yourself how making additional contributions and changing your investment options could make a big difference to your super (even if retirement still seems a long way off!) You can also use the calculator to help you review your insurance cover options.

Read the rest of this entry »

As the impact of the floods and cyclones across Queensland is still being felt and assessed, we can report to members that AvSuper property assets in Queensland are still in good condition with no material impact.

Less than 15% of our property portfolio was exposed to the floods and cyclones in Queensland, and fortunately no substantial damage was caused by either disaster to any of our assets.

All of our property holdings in Queensland were monitored and cared for to the best extent possible during each crisis, with only minor damage occurring for a small number. We are waiting for our eligible insurance claims to be assessed however we can easily recover from  the small amount of damage involved; in fact some minor repair work has already commenced.

While our thoughts and sympathy remain with our members and employers affected by these natural disasters, we continue to monitor all our investments in the best interest of all our members.

Michelle

Michelle Griffiths
CEO

Part of AvSuper’s commitment to members is to regularly review all our investments and investment managers to ensure they are benefiting members in an effective and prudent manner for the long term. A recent review has resulted in the appointment of Independent Franchise Partnership (IFP).

IFP is a global equities manager which aims to generate attractive investment returns while minimising business and valuation risk, using the purchase of franchise businesses as their tool. They seek strong business franchises with intangible assets that can’t be easily replicated with capital. The chosen franchises are positioned to meet customer needs for years or even generations.

The AvSuper Investment Committee believes that IFP’s portfolio of exceptionally high quality companies with a competitive advantage and a dominant intangible asset should earn good long-term returns with a below average absolute volatility.

IFP replaces Wellington as one of AvSuper’s international equities managers.

Michelle

Michelle Griffiths
CEO AvSuper

The news and images coming out of Queensland are terrible and everyone at AvSuper hopes the situation will soon start to improve for our members in such stricken areas.

For those members and aviation employers directly affected by the floods, we offer our sympathy and support.

If you are affected by the floods and believe AvSuper can help you, we will ensure your claim is prioritised and paid as promptly as possible. This includes income steam members requesting a lump sum payment and members who may be eligible for early release of super funds (please note the usual Government financial hardship rules currently still apply). You may also want to look to Centrelink for other financial assistance options.

As the floods are not directly affecting AvSuper, we will be available as usual throughout the flood crisis.

Michelle

Michelle Griffiths
CEO AvSuper

Happy New Year!

AvSuper is back at work building and protecting your super. Our resolution for 2011 is to continue to bring you information to help you understand your super and your financial decisions.

What is your new year super resolution?

Maybe you want to arrange regular personal contributions, learn about member investment choice or grow your super by a certain amount this year. Even small steps now can have a big impact on your final retirement savings, and our Member Advice Manager (Tim Ironside) may be able to help you implement your super resolutions.

For assistance with your AvSuper account or to make an appointment with Tim, please contact us.

Michelle

Michelle Griffiths
CEO, AvSuper

AvSuper has reduced hours over the Christmas/New Year holiday period, but Member Online is always available to members. We will also be checking for phone and email messages during office closures.

AvSuper closes at 5pm EDST 23 December 2010 and reopens 8.30am EDST 4 January 2011.

We wish to take this opportunity to wish you and your family a very Merry Christmas season and a safe, happy year in 2011.

The AvSuper Team 

The AvSuper Trustee Board consists of eight Directors, equally representing AvSuper members and employers.  On 15 October 2010 Mr Lawrie Cox was appointed as an member representative Trustee Director of AvSuper, nominated by the Australian Council of Trade Unions (ACTU).  Lawrie replaces Michael Fisher who resigned in July 2010.

Lawrie is currently the manager of industrial relations with the Australian Federation of Air Pilots (AFAP) and has 24 years of extensive experience and knowledge of the aviation industry. This will greatly benefit our members as Lawrie understands many of the key issues facing members and employers in the aviation industry. Read the rest of this entry »