2016

year in review

Message from the Chair and the CEO

While the 2015/16 financial year was an uncertain time for markets in Australia and overseas, it was still a big 12 months for Local Government Super.

Here we’ve put together just a few of the highlights including some key performance figures, a number of our achievements and a few of the awards we’ve received over the last financial year. You can also take a look at our annual report and all the numbers in our financial statements for 2015/16.

It’s our job is to help all our members enhance their retirement income so if you do have any questions or you need advice about your super investment, please don’t hesitate to contact us.

Regards

Craig Peate

Chair

Peter Lambert

Chief Executive Officer

KEY PERFORMANCE FIGURES

The 2015/16 financial year was very challenging for super funds and the market volatility was reflected in the returns of our investment options, particularly those options with a greater exposure to the shares.

KEY PERFORMANCE FIGURES

Looking back over the last three financial years, our annual compound returns for most our investment options have remained solid and well above the average rate of inflation.

KEY PERFORMANCE FIGURES

Despite the volatility in recent years, Local Government Super has also continued to steadily grow our total funds under management, reaching $9.314 billion at the end of June 2016.

Serving our members

Local Government Super has a team of client relationship managers located right across New South Wales. Their job to go out to councils, talk with members and help them to really make the most of their super investment.

During 2015/16 a record number of 7,726 local government employees attending our group information sessions at councils, a 144% increase on the previous financial year.

And our client relationship managers also met one-on-one with over 4,000 local government employees to talk about their super.

Client relationship managers met with

4,216

local government employees
Employees attending
group information sessions

Serving our members

We also provide professional and affordable financial advice and during 2015/16 our financial planners had more than 4,800 meetings with members across the state, up more than 10% on the previous financial year.

Employees attending
group information sessions

Serving our members

Many members prefer to manage their super online and in April 2016 we launched our new website making it easier for our members to access information, update their personal details, check the latest performance figures, and conduct transactions on their super account.

In fact, over the 2015/16 financial year, the number of people visiting our website increased by 4.6% to more than 127,000.

In addition, an average of more than 400 different members logged in to our Member Online each day to manage their super.

400

VISITORS A DAY

PEOPLE VISITING
LGSUPER.COM.AU

Serving our members

Responding to members is a key part of our service and our in-house Member Services team communicated with an average of almost 5,000 members each month during the financial year.

4500

PHONE CALLS

30

LETTERS

402

EMAILS

41

INTERVIEWS

Key business achievements

An increasingly competitive environment means we need to continually be more innovative, more efficient and provide our mebers with high quality products and services. We also need to provide our members with genuine value for money and this means effectively managing our costs.

Key business achievements

In July 2016, we launched two new guaranteed income products, offering our members more choice and more certainty about their income in retirement.

And for members who like to have more control over the way they invest their super, in February we expanded the range of exchange-traded funds available in our DIY investment option.

Key business achievements

We believe that good quality financial advice is the key to making the most of your super investment and planning for a great retirement.

Over the last 12 months, we undertook a project to ensure that all our planners are equipped to provide the highest quality advice and that all our financial planning documentation is clear and concise.

We want our members to have complete confidence in the quality of any financial advice they receive from Local Government Super.

Key business achievements

Over the last financial year, we took a close look at our Information Technology (IT) operating model. The aim was to reduce our costs, and create a flexible IT environment for the future.

As a result of this work, our Information Strategy Technology took out the Australian Institute of Superannuation Trustees (AIST) award for the Best Internal Project.

Key business achievements

During 2015/16 we also commenced an entity restructure project to simply our investment framework.

The project involved the harmonisation of some of our unit prices and the merging of two fund pools to form one superannuation entity ‘Local Government Super’.

The project will create a more streamline and competitive entity structure, minimising operational risk as well as reducing some of our fees and the cost of tax-related services.

Responsible and sustainable investment

In February, Local Government Super was certified as a responsible super fund by the Responsible Investment Association Australasia (RIAA), the peak industry body representing responsible and ethical investors across Australia and New Zealand.

We were one of the first super funds to receive the RIAA responsible investor trade mark for our whole super fund, endorsing our commitment to superior environmental, social and governance (ESG) performance as well as our ethical investment management and advice.

Responsible and sustainable investment

In December 2015, we were named Australia’s Best Green Super Fund for 2016 in the Money magazine ‘Best of the Best’ awards.

Winning the award for the fourth time confirmed our position as a genuine leader in sustainable and responsible investment.

Responsible and sustainable investment

Local Government Super was ranked No. 1 in Australia and No. 2 in the world by the Asset Owners Disclosure Project for the way we manage the risks and opportunities of climate change.

Responsible and sustainable investment

We currently have more than $700 million in low-carbon opportunities including investments in renewable energy generation, clean technology, waste and recycling processing and sustainable agriculture.

Responsible and sustainable investment

Our Sustainable Australian Shares investment option has rewarded members with the Accumulation Scheme option returning an average of more than 9% per annum over the last three financial years.

In August this year, we strengthened our investment restrictions for Sustainable Australian Shares to distinguish this option as the ‘deeper green’, more responsible and sustainable super investment alternative.

Responsible and sustainable investment

Local Government Super has one of the most sustainable direct property portfolios in Australia and during 2015/16 we conducted extensive energy audits to identify efficiency opportunities.

Our aim is to achieve our target of an average 5 star NABERS energy rating by June 2018 across our property portfolio.

We also introduced a new waste and recycling system across the commercial properties as well as MarketPlace Leichhardt in Sydney to maximise recycling and minimise the waste we send to landfill.

Rankings, ratings and awards

Local Government Super has been working hard over the last few years to continually improve the products, the service and ultimately, the value we offer our members.

We believe this is the best way for us to look after the long-term financial needs of our members and enhance their retirement incomes.

And over the 2015/2016 financial year, a lot of that hard work really paid off with recognition from our peers and a number of industry awards.

Rankings, ratings and awards

Offering genuine value for money is not about being the cheapest on the market, it’s about knowing what our members need, what they expect from us, and providing them with high quality products and services in the most cost-effective manner.

And in October 2015 we were recognised for the work we’d done to improve the value we offer members with the SuperRatings Rising Star award.

Rankings, ratings and awards

In March 2016 we were named the Super Fund of the Year in the medium-sized category of the 2016 Conexus Financial Superannuation Awards.

Rankings, ratings and awards

In May 2016 our Account-Based Pension Plan received CANSTAR’s highest rating for outstanding value for the third year in a row.

Rankings, ratings and awards

Local Government Super has had a long-standing commitment to genuine responsible and sustainable investment and this year we were one of a select group of super funds to be officially certified as a responsible super fund by the Responsible Investment Association of Australasia.

Rankings, ratings and awards

We were also ranked number one in Australia and number two globally by the 2016 Asset Owners Disclosure Project for the way we manage the risks and opportunities of climate change.

Rankings, ratings and awards

And that’s just another reason why we were named the Best Green Super Fund for the fourth time in Money magazine’s Best of the Best Awards 2016.