2014 Annual Report for the Worsley Alumina Superannuation Fundsuperau.bhpbilliton.com/content/dam/plumbhp... · for the Worsley Alumina Superannuation Fund ... challenges and global

2014 Annual Report for the Worsley Alumina Superannuation Fund Helping your super grow

This report is issued by PFS Nominees Pty Ltd ABN 16 082 026 480 AFSL 243357 (Trustee), the trustee of the Worsley Alumina Superannuation Fund ABN 51 469 547 458 (Fund).

The administrator of the Fund is Plum Financial Services Limited ABN 35 081 812 731 AFSL 243356 (Plum).

Preparation date: 22 September 2014

A year in review 2

Looking out for 3 your interests

Administering your 4 account

How your money 8 is invested

Investment option 11 profiles

Fund accounts 18

Fund assets by 20 underlying investment manager

How to contact us 21

ContentsWhat is covered in this report

1

2

On behalf of the Trustee, it is my pleasure to present this Annual Report for the Worsley Alumina Superannuation Fund (Fund) for the financial year ended 30 June 2014.

The 2014 financial year was another period of strong performance, particularly for share investors. Very low interest rates meant returns from cash and bonds weren’t as strong, but still solid. These robust returns were achieved despite economic challenges and global events that unsettled investment markets from time to time.

While the global economy generally improved, future developments in the global investment environment are uncertain.

We remain committed to giving you the choice and confidence to achieve your investment goals.

We continue to refine our investment menu, offering a range of investment options including multi-asset portfolios and single asset class funds managed by a range of investment managers.

With ongoing Government superannuation reforms, market fluctuations, the rising cost of living and increased life expectancy, it’s never been more important to regularly review your wealth strategy. This can help ensure you live comfortably now and into your retirement.

Remember, it’s never too late to make your super work for you, regardless of your age or current super balance. We’re here to help you grow your wealth and save for your retirement. For more information, go to superau.bhpbilliton.com

A year in review

Nicole Smith Chair PFS Nominees Pty Limited Trustee of the Worsley Alumina Superannuation Fund

3

The Trustee directors have a variety of work and life experiences which help them represent your interests.The Trustee is made up of executive and non-executive directors who are personally responsible for any decisions they make, their duties include:

• providing investment choice;• ensuring your interests are

maintained; and• keeping you informed of

any changes.

We have appointed Plum Financial Services Limited to carry out the day-to-day administration of the Worsley Alumina Superannuation Fund (Fund).

Meet the BoardThe directors are:

Nicole Smith – ChairBFA 1990, CA GAICD

Michael ClancyB Bus (Finance and Economics) 1992, CFA 1997

Michael FitzsimonsDiploma of Financial Services ANZIIF

Evelyn HortonB Economics, 1986, Master of Social Sciences (Economics), 1995 GAID

Terry McCreddenB Commerce (Honours), 1978

John Reid B Sc. Mathematical Physics 1971, FIA (UK and Australia)

Peggy O’NealBA (Virginia) 1973, JD (Virginia) 1976, Diploma of Superannuation Management (Macquarie) 1994, FAICD

Trevor HuntB Bus (Accounting and Economics) 1989

Trustee director movementsEvelyn Horton was appointed independent non-executive director effective 28 May 2014.

Terry McCredden was appointed independent non-executive director effective 28 May 2014.

Indemnity insuranceWe are entitled to be indemnified against all liabilities that may incur in the administration of the Fund, unless we have acted fraudulently, dishonestly, out of wilful misconduct or have breached a civil penalty provision under the relevant legislation or in other circumstances where an indemnity is not permitted at law.

We hold professional indemnity insurance in accordance with the provisions of the Corporations Act.

Deed of guaranteeWe are required by legislation to either maintain particular levels of capital or, to be entitled to the benefit of an approved guarantee.

To meet this requirement, we have been provided with a Deed of Guarantee by the National Australia Bank Limited. We are entitled to a guarantee of up to $5 million in respect of our duties as Trustee of the Fund and the Plum PST.

Operational risk reserve (ORR)As part of the Stronger Super reforms, the government introduced a new requirement for super funds to keep a financial reserve to cover any losses that members incur due to a breakdown in operations.

The ORR is invested in the investment option shown below.

Operational risk reserve investment strategy

Option Proportion (%)Moderate 100%

The balance of the ORR at the end of the last three financial years is summarised below:

Year ended 30 June

Plan reserve ($)

2014 $55,502

2013 n.a.

2012 n.a.

Looking out for your interests

4

Annual auditEach year we are audited by an independent company.

We’re pleased to report we’ve met all our obligations and received a clean audit report.

Policy CommitteeThe role of the Policy Committee is to raise matters of concern that relate to the Fund. This includes providing an avenue for members to enquire about the investment strategy and performance of the Fund and assisting us in dealing with complaints or enquiries about the operation of the Fund.

The members of the Policy Committee at 30 June 2014 are:

Member representatives

Employer representatives

Quentin Durber Iren Konovalova

Nathan Piacentini Paul Scurria

Wayne Tichbon Damien Papps

During the year a member election occurred for all three member representative positions. From 24 July 2013, the three new member elected representatives are Quentin Durber, Nathan Piacentini and Wayne Tichbon.

We have a set of rules for the appointment and removal of employer and member representatives of the Policy Committee. These rules provide for equal representation of member and employer representatives.

Member representatives are generally elected by members and are typically appointed for a period of three years.

Employer representatives are appointed by your employer for a period determined by your employer.

Trustee expensesWe may be reimbursed for costs and expenses relating to the establishment, operation, management, administration, investment and termination of the Fund including tax, insurance costs and any fees or charges imposed by, or paid by, the Fund.

We also have the right to be indemnified in certain circumstances for any liability incurred while acting as trustee.

Unpaid contributionsWe work with employers to assist them in understanding their superannuation obligations. While we do this to assist both employers and members, you should ensure that all expected contributions are credited to your member account. If you have any queries regarding a possible contribution shortfall, please contact your employer or us on 1300 22 2472.

Fund benefitsThere are two types of member in the Fund – Defined Benefit Division and Defined Contribution Division.

Defined Benefit DivisionIf you are a Defined Benefit Division member, at least part of your benefit is determined by a formula (generally based on your salary).

Your defined benefit is funded by your employer and (in some cases) by your own personal contributions. You are not able to choose how your defined benefit is invested.

If your benefit also consists of an accumulation account, you can choose how your account is invested from the investment options available in the Fund.

Defined Contribution DivisionIf you are a Defined Contribution Division member you are provided with an accumulation-type superannuation benefit. This means your benefit is the accumulation (with investment earnings) of concessional (before-tax) contributions, non-concessional (after-tax) contributions, transfers and rollovers from other funds. Your benefit will be less transfers and rollovers to other funds, fees (where applicable), insurance premiums (where applicable) and taxes (where applicable).

If you are unsure about your type of superannuation benefit, please contact us on 1300 22 2472 or refer to the Product Disclosure Statement or other document issued to you when you joined the Fund.

Administering your account

5

Allocation of earningsIf you have an account with investment choice available, the investment earnings (which may be positive or negative) are reflected daily in the unit price of your investment option(s) (so the price goes up with positive investment earnings and goes down if there are investment losses).

The unit price for an investment option reflects the total dollars held in that investment option divided by the number of units issued, and the value of your account depends on the value of the unit price and the number of units you hold.

If you have a defined benefit account, additional information regarding the allocation of earnings is contained in your Member benefit statement.

If the Fund has reserves, this will be stated in the Reserve section. We will invest the reserves in accordance with the investment strategy set out in the Defined benefit investment strategy section.

InsuranceThe insured benefits from the Fund are provided under a policy of insurance between us and TAL Limited.

The level of cover is subject to terms, conditions, restrictions, adjustments and offsets (if any) imposed under the policy by the insurer.

Contributions tax and surchargeMost types of concessional contributions made into a regulated superannuation fund are taxed at the rate of 15%. This includes employer contributions (including superannuation guarantee), before-tax member (salary sacrifice) contributions and any untaxed elements rolled over into the Fund. Contributions tax is calculated and deducted at 30 June, 30 September, 31 December and 31 March from your account through the sale of units.

The Government abolished the superannuation surcharge effective 1 July 2005 and as a result no surcharge is payable in respect of superannuation contributions made on or after 1 July 2005. However, assessments in relation to prior periods continue to be processed by the Australian Taxation Office (ATO) and any surcharge is payable after the Trustee receives an assessment from the ATO.

If you are an defined contribution member, the surcharge (when paid by us) is deducted from your account through the selling of units and reported in your six-monthly Member benefit statement.

If you are a defined benefit member, the surcharge will be paid on your behalf and recorded in a surcharge debt account established in your name (accruing interest as determined by us).

The total debt account held in the Fund will be deducted from your benefit when the benefit is paid from the Fund. The amount of any surcharge debt account (if applicable) will be shown on your six-monthly Member benefit statement.

Excess contributions taxContribution caps, or limits, apply to the total amount of superannuation contributions that you can make each financial year before additional tax is payable. As members are responsible for monitoring contributions made to all of their superannuation accounts it is important that you understand your contributory commitments and the tax consequences of exceeding the caps.

The ATO is responsible for determining whether you have exceeded the annual caps and will determine whether you have to pay excess contributions tax.

The ATO will issue an excess contributions tax assessment if you have exceeded the cap.

You can choose to withdraw excess contributions from your super account, plus earnings (if any). Any excess concessional contributions and earnings you withdraw will be taxed at your marginal tax rate, plus an interest charge.

Defined benefitsAs described in the Fund benefits section, your defined benefit may be partly funded by your own personal contributions and contributions made by your employer as determined by the Fund Actuary. The Fund Actuary will determine the level at which your employer needs to contribute towards the funding of these benefits.

The assets supporting defined benefits exist to meet benefit payments, fees and insurance premiums in respect of defined benefits. The assets are invested in an investment strategy determined by us in consultation with your employer.

6

Administering your account

The strategy for the investment of defined benefit assets in the investment options is shown below.

Defined benefit investment strategy

Asset class Actual asset allocation (%)

Growth assets

Australian shares 5.3

Overseas Equities (unhedged)

1.0

Overseas Equities (hedged)

1.1

Property – listed 2.3

Property – unlisted 1.5

Growth Alternatives 4.0

Defensive assets

Inflation-linked bonds (liquid)

80.7

Inflation-linked bonds (illiquid)

0.0

Fixed interest 3.6

Cash 0.5

ReserveA reserve exists within the Fund. The reserve may be used to meet defined benefit entitlements, fees and insurance premiums of Fund members, according to the governing rules of the Fund and in consultation with your employer.

The reserve is invested in the strategy described in Defined benefit investment strategy.

Year ended 30 June

Reserve ($)

2014 43,745,154

2013 44,873,448

2012 44,856.812

Financial position – defined benefitsThe Fund Actuary assessed the financial position of the Fund at 30 June 2014 and determined that the defined benefit assets of the Fund were in a satisfactory position.

The Fund’s financial position will continue to be monitored on a quarterly basis.

Use of derivativesDerivatives are an investment technique used in some investment options.

They are contracts that have a value derived from another source such as an asset market index or interest rate.

There are many types of derivatives including swap options and futures. They are a common tool used to manage risk or improve returns.

Some derivatives allow investment managers to earn large returns from small movements in the underlying asset’s price. However, they can lose large amounts if the price of the underlying asset moves against them.

We do not invest directly in derivatives. Investments in derivatives may be made by the investment managers appointed by us as Trustee of the Fund, for the purposes of managing their portfolio (investment options).

The investment managers are not permitted to use financial derivatives to leverage the performance of the portfolio beyond that which could be obtained if derivatives were not used.

We will obtain and consider a “Part B” Derivative Risk Statement from each of the investment managers who invest Worsley Alumina assets in derivatives.

At no time in the reporting period did our use of the derivative charge ratio exceed 5%.

Trust Deed amendmentsThere were no amendments to the Trust Deed during the reporting period.

SIS complianceNo penalty was imposed against us or any director under the Superannuation Industry (Supervision) (SIS) Act 1993 during the reporting period.

7

Eligible rollover funds (ERFs)ERFs are approved by the Australian Prudential Regulation Authority (APRA). They are designed to hold unclaimed money and generally have more conservative investments than other superannuation funds, which may result in lower returns.

If you are entitled to a benefit of less than $2,000, you will be given 90 days (from the date we write to you after your employer notifies us that you have left employment) to advise us where to transfer your benefit. If you do not advise an alternative fund, we will pay your benefit to the Trustee’s nominated ERF.

The ERF will hold your transferred benefit until you claim it. You will not have any claim against us once your benefit has been transferred to an ERF because your Fund membership will have ceased. Your insurance cover (if any) will cease. The rules of the ERF will govern your benefit once it has been transferred.

Our current ERF is the Australian Eligible Rollover Fund which can be contacted on 1800 677 424 or by writing to:

Australian Eligible Rollover Fund Locked Bag 5429 PARRAMATTA NSW 2124

If your benefit is transferred to an ERF and if we can provide the ERF with your contact details, the ERF will provide you with its current Product Disclosure Statement (PDS). Alternatively, you can contact the ERF for a copy of its PDS.

The ERF will apply a different fee structure than that of the Fund. Specifically, the ERF is required to protect your benefit. This means that, generally, administration charges cannot exceed investment earnings on your account in a reporting period. However, indirect management fees may be deducted from gross fund earnings. You should refer to the ERF’s PDS for circumstances in which fees may apply.

Temporary residentsIf you are a former temporary resident, your lump sum benefit is taken to be unclaimed super monies if:

• you held a temporary visa that has ceased to have effect and you have left Australia;

• it has been at least six months since the visa ceased to be in effect and/or you left Australia;

• the Fund has received a Temporary Resident Notification from the ATO instructing the monies be transferred;

• you are neither an Australian citizen nor a New Zealand citizen;

• you are not a permanent resident or currently the holder of a temporary, permanent or prescribed visa; and

• you do not have an undetermined application for a permanent visa.

If you are a former temporary resident who has left Australia and your visa has expired or been cancelled, you can claim your superannuation from the Fund as a Departing Australia Superannuation Payment (DASP). Contact us on 1300 22 2472 for further information on how to initiate a DASP.

However, if you do not claim your benefit within six months of becoming eligible to do so, we will pay your benefit to the ATO if we receive a written notice from the ATO directing payment to be made. In this event, you have a right to apply to the Commissioner of Taxation for payment of the DASP.

The Australian Securities and Investments Commission (ASIC) has provided relief to superannuation trustees to the effect that a trustee is not obliged to notify, or give an exit statement to, a former temporary resident where the trustee pays unclaimed superannuation to the ATO in accordance with the applicable legislation requirements. We wish to rely on this relief. Consequently, members who are departed former temporary residents will not be notified in the event of their benefits being transferred to the ATO in these circumstances.

8

How your money is invested

Investment strategyOur investment strategy is to make available a range of investment options with different risk, return, liquidity and diversification profiles and to encourage members to choose an investment option, or combination of options, that best suit their personal circumstances. We invest your superannuation monies in the investment options of your choice.

The investment options allow investments in a diverse range of asset classes including international and Australian shares, property securities, fixed interest securities and cash.

The information on the investment options starting on page 11 includes the investment objectives and investment returns returns for each investment option at 30 June 2014.

Diversify to reduce volatility and other risksDiversification – investing in a range of investments – is a good way to reduce short term volatility and help smooth returns. That’s because different types of investments perform well in different times and circumstances. When some are providing good returns others may not be.

You can diversify across different asset classes, industries and countries as well as across investment managers with different approaches.

The more you diversify the less impact any one investment can have on your returns.

One of the most effective ways of reducing volatility is to diversify across a range of asset classes.

Asset classes are groups of similar types of investments. Each class has its risks and benefits, and goes through its own market cycle. A market cycle can take a couple of years or many years, it’s different each time. You need to be prepared for all sorts of return outcomes when investing.

You can invest in options where the asset classes have already been diversified for you.

You can choose from a variety of single-sector investment options. These options invest in a single asset class.

You should carefully consider the risks of investing your entire account balance in a single-sector option and whether this represents adequate diversification.

Investment consultantWe have appointed JANA Investment Advisers Pty Ltd (JANA) to be our investment consultant. JANA is responsible for advising the Trustee on our entire investment menu, providing regular insight and updates on the performance of our investment options.

JANAJANA is an Australian Financial Services Licence Holder and is a wholly owned subsidiary of National Australia Bank Limited (NAB). JANA Investment Advisers was established in 1987 with the objective of providing high quality independent advice to institutional clients on all aspects of investments and asset management. The firm has since grown to become one of the leading investment consultants in Australia, with over A$252 billion funds under advice and A$48 billion funds under management (at 30 June 2014). JANA’s core business continues to be the provision of investment and asset consulting advice to institutional clients from its offices in Melbourne and Sydney. In December 2000, JANA became a fully-owned subsidiary of the National Australia Bank (‘NAB’).

9

JANA’s investment philosophy drives their capital markets and manager research programme. The key elements of that philosophy can be summarised as follows:

• JANA believes it is possible to reduce risk and outperform over the long term by taking advantage of occasional large divergences from fair value in investment markets.

• Through diligent hands-on research, their track record demonstrates that it is possible to select managers capable of outperforming over the long term. While above-average ability in security selection is a prerequisite in most asset classes, managers must also exhibit a disciplined process and style and this should be reflected in the qualities and mindset of its personnel.

• To be of real value, research needs to be implemented with full commitment and not sit on the fence.

Investment managers as at 30 June 2014

JANA Investment Advisers Pty Ltd

AMP Capital Investors Limited

Infrastructure Capital Group Limited

Lend Lease Corporation Limited

MLC Limited

Aberdeen Asset Management Ltd

10

Standard risk measureWe use the Standard Risk Measure (SRM) to help you compare the investment risk across the investment options we offer.

The SRM is the estimated number of negative annual returns in any 20 year period. Because it is an estimate, the actual number of negative returns may be different. The SRM is based on industry guidelines, however it isn’t a complete assessment of investment risk.

For example:

• it doesn’t capture the size of a possible negative return or the potential for sufficient positive returns to meet your objectives; and

• it doesn’t take into account the impact of fees and tax.

These would increase the chance of a negative return.

Risk band Risk label Estimate number of negative returns in any 20-year period

1 Very low Less than 0.5

2 Low 0.5 to less than 1

3 Low to medium 1 to less than 2

4 Medium 2 to less than 3

5 Medium to high 3 to less than 4

6 High 4 to less than 6

7 Very high 6 or greater

How your money is invested

Want to know more?For more information on how we calculate the Standard Risk Measure please go to superau.bhpbilliton.com

11

Investment option profiles

MySuper WASF Default option

MySuper WASF Default option

Investment objective To outperform inflation, measured by the Consumer Price Index, by 3% p.a. after fees and taxes, over any 10 year period.

About the investment option

Aims to invest proportionately more in growth assets than defensive assets to achieve medium-to-high long-term returns, with moderate to high volatility.

Single year returns to 30 June 20141 2014 2013 2012 2011 2010

Accumulation n.a. n.a. n.a. n.a. n.a.

Compound returns to 30 June 2014 (%p.a.)1 1yr 2yr 3yr 4yr 5yr


Estimated number of negative annual returns in 20 years

Between 3 and 4 years in 20

Risk Label2 Medium to High

1 The single year returns and compound returns are net of tax and ongoing management fees.2 For more information about this risk, please refer to the Standard risk measure section.Past performance is not a reliable indicator of future performance.

12

Diversified options


Conservative Cautious ModerateInvestment objective To outperform CPI plus 2% p.a. over

rolling 3 year periods.To outperform CPI plus 2.5% p.a. over rolling 3 year periods.

To outperform CPI plus 3% p.a. over rolling 5 year periods.


This option is a lower risk option that concentrates on fixed interest and cash investments. It aims to avoid negative returns, while achieving returns which exceed inflation in the long term. Suitable for investors who want exposure to mainly defensive assets and can tolerate a low level of risk.

This option is designed to provide investors with a diversified portfolio that is equally mixed between the traditionally more stable asset classes of cash and fixed interest and those assets which have traditionally provided higher levels of overall return, namely property and shares.

This is a balanced option with an orientation towards growth investments (such as shares and property), while maintaining a spread across all asset sectors. It aims to achieve moderate returns in the long term. Suitable for investors with a longer investment time frame and a higher tolerance for short term volatility.

Single year returns to 30 June 20141 2014 2013 2012 2011 2010 2014 2013 2012 2011 2010 2014 2013 2012 2011 2010

Accumulation 6.6 7.2 5.9 6.6 4.4 n.a. n.a. n.a. n.a. n.a. 10.5 11.3 3.7 10.1 10.9

Compound returns to 30 June 2014 (%p.a.)1 1yr 2yr 3yr 4yr 5yr 1yr 2yr 3yr 4yr 5yr 1yr 2yr 3yr 4yr 5yr

Accumulation 6.6 6.9 6.6 6.6 6.1 n.a. n.a. n.a. n.a. n.a. 10.5 10.9 8.5 8.9 9.3


Between 1 and 2 years in 20 Approximately 3 years in 20 Between 3 and 4 years in 20

Risk Label2 Low to Medium Medium Medium to High


13

Diversified options

Assertive AggressiveInvestment objective To outperform CPI plus 3.5% p.a. over

rolling 5 year periods.To outperform CPI plus 4.5% p.a. over rolling 5 year periods.


This is a diversified option that concentrates on share and property investments. It aims to achieve high returns over the long term by concentrating on growth assets. Suitable for investors who want exposure to mainly growth assets and can tolerate a medium to high level of volatility. There may be significant fluctuations in returns year to year.

The option invests 100% in growth assets. It has complete emphasis on growth assets comprising Australian and International shares and property and therefore carries more investment risk. Although there is the potential for a much higher investment return over the long term, the returns may fluctuate significantly in the short term.

Single year returns to 30 June 20141 2014 2013 2012 2011 2010 2014 2013 2012 2011 2010

Accumulation 12.8 13.9 2.1 11.6 13.8 14.6 21.5 -1.2 13.1 17.0

Compound returns to 30 June 2014 (%p.a.)1 1yr 2yr 3yr 4yr 5yr 1yr 2yr 3yr 4yr 5yr

Accumulation 12.8 13.3 9.5 10.0 10.8 14.6 18.0 11.2 11.7 12.7


Between 4 and 5 years in 20 Between 4 and 5 years in 20

Risk Label2 High High


14

Sector specific options


Cash Option

Australian Shares Option

Global Shares (unhedged) Option

Investment objective Aims to provide competitive returns relative to the Reserve Bank of Australia’s Cash Rate Target.

To provide long-term growth from an actively managed portfolio of Australian shares.

To provide long-term growth from an actively managed share portfolio selected from world share markets.


This option aims to provide security and liquidity and is invested totally in cash assets. Suitable for investors who want capital protection and who have no tolerance for volatility. Returns for this option are generally expected to be positive.

The option invests primarily in companies listed (or expected to be listed) on the Australian Securities Exchange, and is typically diversified across major listed industry groups. The Trust may have a small exposure to companies listed outside of Australia from time to time.

The option invests primarily in companies listed (or expected to be listed) on share markets anywhere around the world, and is typically diversified across major listed industry groups.

Foreign currency exposures will generally not be hedged to the Australian dollar.

Single year returns to 30 June 20141 2014 2013 2012 2011 2010 2014 2013 2012 2011 2010 2014 2013 2012 2011 2010

Accumulation 2.1 3.2 4.0 4.6 3.8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Compound returns to 30 June 2014 (%p.a.)1 1yr 2yr 3yr 4yr 5yr 1yr 2yr 3yr 4yr 5yr 1yr 2yr 3yr 4yr 5yr

Accumulation 2.1 2.6 3.1 3.5 3.5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.


Less then 1 year in 20 Approximately 6 years in 20 Between 5 and 6 years in 20

Risk Label2 Low High High


15


Global Shares (hedged) Option

Property Option

Investment objective To provide long-term growth from an actively managed share portfolio selected from world share markets, hedged into Australian dollars.

To provide growth over time through investments in property securities listed in Australia and globally.


The option invests primarily in companies listed (or expected to be listed) on share markets anywhere around the world, and is typically diversified across major listed industry groups.

Foreign currency exposures will generally be substantially hedged to the Australian dollar.

The option invests in Australian and Global property securities, including listed Real Estate Investment Trusts and companies across most major listed property sectors.

Single year returns to 30 June 20141 2014 2013 2012 2011 2010 2014 2013 2012 2011 2010

Accumulation n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Compound returns to 30 June 2014 (%p.a.)1 1yr 2yr 3yr 4yr 5yr 1yr 2yr 3yr 4yr 5yr

Accumulation n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.


Between 5 and 6 years in 20 Between 5 and 6 years in 20

Risk Label2 High High


16



Fixed Interest Option

Investment objective To provide returns higher than cash rates over time, through managing a portfolio of global and Australian debt assets and other assets where the overall risk profile of the portfolio is similar to debt.


The option is diversified across different types of fixed income securities in Australia and around the world. The securities are predominantly investment grade and typically longer dated. The average term to maturity is normally in the range of three to six years. Foreign currency exposures will generally be substantially hedged to the Australian dollar. As a result of capital restructures of bond issuers, the Fund may have an incidental exposure to shares from time to time.






Between 2 and 3 years in 20

Risk Label2 Medium


17

Long Term SecureInvestment objective This option is the most conservative investment choice

available because it only invests in cash investments and short-term money markets. It’s low risk so you can be relatively confident that your money will not loose value in the short term. However, you should not expect high returns.


To target a net rate of return of CPI + 1.0% p.a. over 1 year.


Accumulation 1.5 3.0 2.5 3.4 2.9


Accumulation 1.5 2.3 2.3 2.6 2.7


Approximately 2 years in 20

Risk Label2 Low to Medium

1 The single year returns and compound returns are net of tax and ongoing management fees.2 For more information about this risk, please refer to the Standard risk measure section.3 Closed investment option – This option is not available for new investment. The information is produced for reporting purposes only, for those members who have an investment in this option.

Past performance is not a reliable indicator of future performance.

Closed investment option3

18

The abridged Fund accounts provided below have been taken from the Fund’s Financial Report for the year ended 30 June 2014. A full copy of the Fund’s audited Financial Report, the auditor’s report and other relevant Fund information is available from us on request.

Fund accounts

Worsley Alumina Superannuation Fund

Statements of changes in net assets for the financial year ended 30 June 2014

1 July 2013 to 30 June 2014

(000’s)

1 July 2012 to 30 June 2013

(000’s)

Investment revenueInterestDistribution incomeOther investment incomeChanges in the net market values of investments

49

9,247262

13,972

218

10,662103

18,911

Net investment revenue 23,530 29,894

Contribution revenueEmployer contributionsMembers’ contributionsGovernment co-contributionsTransfers from other funds

31,159

590-

9,749

30,507

501

7,401

Total contribution revenue 41,498 37,959

Other incomeGroup life insurance proceedsOther revenue

29843

80031

Total other income 341 831

Total revenue 65,369 68,684

Benefits paid 23,975 36,938

ExpensesAdministration feesGroup life insurance premiumsOther general administration expensesDirect investment expenses Custody fees Other trustee fees

217

1,558117

-591

2

2421172845195

-

Total expenses 2,485 789

Change in net assets before income tax 38,909 30,957

Income tax expense 5,422 5,135

Change in net assets after income tax 33,487 25,822

Net assets available to pay benefits and reserves at the beginning of the year

246,471 220,649

Net assets available to pay benefits and reserves at the end of the year

279,958 246,471

19

Worsley Alumina Superannuation Fund

Statements of net assets as at 30 June 2014

1 July 2013 to 30 June 2014

(000’s)

1 July 2012 to 30 June 2013

(000’s)

AssetsCash and cash equivalents

4,107 1,767

InvestmentsLife policiesUnlisted unit trusts

89,637

182,18951,235

194,099

ReceivablesTrade and other receivables

6,133 3,294

OtherDeferred tax assets

119 2,079

Total assets 282,185 252,474

Liabilities Investment purchases payableBenefits payableCurrent tax liabilities

870172

1,185

4733,2692,261

Total liabilities (excluding net assets available to pay benefits)

2,227 6,003

Net assets available to pay benefits and reserves 279,958 246,471

Represented by: Net assets available to pay benefitsOperational risk reserve

279,902

56246,471

-

Net assets available to pay benefits and reserves

279,958 246,471

Fund accounts

20

Fund Opening market value at

1 July 2013 ($)

Closing market value at 30 June 2014

($)

BHP Tailored AMDD Unit - 23,157,882.52

BHP Tailored ILB Unit - 8,914,290.27

BHP Tailored SMDD Unit - 9,767,709.35

MySuper Default - 8,867,321.99

Fixed Interest Option - 6,739.83

Property Option - 6,810.07

MLC Cash Fund 6,073,867.90 6,143,764.56

MLC Inflation Linked Bonds 33,520,828.64 32,772,198.98

39,594,696.54 89,636,717.57

Schroder Australian Equity Fund 38,226,787.88 659.71

Cooper Investors Australian Equities Fund 38,801,329.68 654.42

Macquarie True Index Australian Fixed Interest Fund 16,030,844.82 302.56

Lend Lease Core Plus Fund 6,430,303.12 5,395,586.13

ICG Energy Infrastructure Trust 13,239,614.50 14,397,921.31

PIMCO EQT WS Global Credit 12,905,020.27 234.39

Aberdeen Fully Hedged International Equity 19,326,510.38 7,255.51

Aberdeen International Equity 20,414,073.55 6,932.58

Macquarie Index Tracking Global Bonds 11,602,863.03 209.89

AMP Capital Managed Treasury Fund 7,595,721.66 7,914,693.78

AMP Capital Structured High Yield 3,452,086.68 2,537,368.73

MLC The Passive Global Share Trust with currency hedged

- 7,264,896.13

MLC Australian Shares Passive Trust - 35,237,084.40

JANA Diversified Australian Shares Trust - 42,361,095.56

JANA Diversified Global Shares Trust - 25,549,649.59

JANA DIV GSTH - 4,748,449.42

MLC The Passive Global Share Trust - 30,887,917.65

JANA Global Property Trust - 3,180,545.85

Australian Shares Option - 7,965.27

Global Shares Option (unhedged) - 1,509.66

Global Shares Option (hedged) - 8,380.36

AMP Investment Linked Direct Property 4,811,891.84 5,124,070.39

AMP Secure Growth Plus 2,998,932.30 2,531,719.73

AMP Capital Listed Property Trusts 9,903,602.66 386.35

205,739,582.37 187,165,489.37

245,334,278.91 276,802,206.94

Fund assets by underlying investment manager

21

Call us on 1300 22 2472 between 8am and 7pm AEST (8pm daylight savings time), Monday to Friday if you have any queries or concerns about your superannuation.

More informationIf you would like more information or documents such as a PDS, Financial Report or Actuarial Report extracts or any other information about the Fund, please contact us on 1300 22 2472.

You can also write to us:Plum Financial Services Limited GPO Box 63 Melbourne VIC 3001

How to contact us

Prefer an email alert? Would you prefer to receive an email alert when your Member benefit statement is available to download from the website?

• simply log on to superau.bhpbilliton.com

• select Receive my bi-annual statements online.

or Phone us on 1300 22 2472 between 8am and 7pm AEST (8pm daylight savings time), Monday to Friday.

Important informationAn interest in the Worsley Alumina Superannuation Fund ABN 51 469 547 458 (Fund) is issued by PFS Nominees Pty Ltd ABN 16 082 026 480 AFSL 243357 (Trustee). The Fund Administrator is Plum Financial Services Limited ABN 35 081 812 731 AFSL 243356 (Administrator). This material has been prepared by the Administrator and it contains information that is general in nature. The information does not take into account your objectives, financial situation or needs. Before acting on the information you should consider whether it is appropriate having regard to your personal circumstances and seek professional advice. The Administrator recommends that you consider the Fund’s Product Disclosure Statement (PDS) before you make any decisions about your superannuation. To obtain a copy of the Fund’s PDS, please contact us on 1300 22 2472.

Neither the Administrator, the Trustee, nor any other company in the National Australia Group of companies accepts liability whatsoever for any decision that is made on the basis of or in reliance of the information contained in this material. Please note that the information contained in this material is current at 22 September 2014. Any changes in law or policy subsequent to this date have not been incorporated.

© 2014 Plum Financial Services Limited ABN 35 081 812 731 AFSL 243356 (Administrator)

PLR

D36

06 (1

0-14

)

Trustee: PFS Nominees Pty Ltd ABN 16 082 026 480 AFSL 243357

Level 4, 500 Bourke Street Melbourne Vic 3000

GPO Box 63 Melbourne Vic 3001

Telephone 1300 22 2472 Fax 1300 99 7586

Web superau.bhpbilliton.com

Administrator: Plum Financial Services Limited (Plum) ABN 35 081 812 731 AFSL 243356

Fund: Worsley Alumina Superannuation Fund ABN 51 469 547 458

Documents

2014 Annual Report for the Worsley Alumina Superannuation Fundsuperau.bhpbilliton.com/content/dam/plumbhp... · for the Worsley Alumina Superannuation Fund ... challenges and global