Annual report 2019/20 - AMP · – ‘AMP Life’ means AMP Life Limited (ABN 84 079 300 379, AFSL No. 233671) and is part of the Resolution Life Group – ‘Resolution Life Group’

Issued 7 December 2020

Annual report 2019/20Wealth Personal Superannuation and Pension Fund

Annual report 2019/20 Wealth Personal Superannuation and Pension Fund

About this document and the fundThis annual report is issued by N.M. Superannuation Proprietary Limited (NM Super) ABN 31 008 428 322, AFSL No. 234654, RSE Licence No. L0002523 the trustee of the Wealth Personal Superannuation and Pension Fund (the fund) ABN 92 381 911 598 for the period 1 July 2019 to 30 June 2020.

This year we have consolidated the annual report to include all products that fall under the Wealth Personal Superannuation and Pension Fund. This annual report is relevant to:

– MyNorth® Super and Pension (MyNorth) – North® Super and Pension (North) – Summit® Personal Super and Personal Pension (Summit) – Generations® Personal Super and Personal Pension

(Generations) – ipac iAccess® Personal Super and Allocated Pension (iAccess)– PortfolioCare® eWRAP Super and Pension,PortfolioCare

Super and Pension Service and PortfolioCare Elements Super and Pension (PortfolioCare), and

– WealthView® eWRAP Super and Pension (WealthView).

The administrator of MyNorth, North, Summit, Generations and iAccess is AWM Services Pty Limited (ABN 15 139 353 496, AFSL No. 366121) (AWM Services).

The administrator of PortfolioCare and WealthView is Asgard Capital Management Limited (ABN 92 009 279 592, AFSL No. 240695) (Asgard).

You can refer to your annual statement to confirm what product(s) you hold. It is recommended that you read this report in conjunction with your latest annual statement.

In this annual report unless specified otherwise: – ‘we’, ‘us’, ‘our’ and ‘the trustee’ mean NM Super – ‘AMP Bank’ means AMP Bank Limited (ABN 15 081 596 009,

AFSL and ACL Number 234517) – ‘AMP Capital’ means AMP Capital Investors Limited

(ABN 59 001 777 591, AFSL No. 232497) – ‘AMP Limited’ means AMP Limited (ABN 49 079 354 519) – ‘AWM Services’ means AWM Services Pty Limited

(ABN 15 139 353 496, AFSL No. 366121) – ‘NM Super’ means N.M. Superannuation Proprietary

Limited (ABN 31 008 428 322, AFSL No. 234654) – ‘NMMT’ means NMMT Limited (ABN 42 058 835 573,

AFSL No. 234653) – ‘NMFM’ means National Mutual Funds Management

Limited (ABN 32 006 787 720, AFSL No. 234652) – ‘AMP Life’ means AMP Life Limited (ABN 84 079 300 379,

AFSL No. 233671) and is part of the Resolution Life Group – ‘Resolution Life Group’ is the trading name of Resolution

Life Group Holdings LP, a Bermuda exempted limited partnership with registration number 53165

The information provided in this annual report is general information only and doesn’t take into account your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances.

Some of the information in this document is based on an interpretation of relevant laws as at 1 July 2020. No member or any other person should act on the basis of any statement in this report without first obtaining independent advice.

® MyNorth, North, Summit and Generations are registered trademarks of NMMT Limited ABN 42 058 835 573 AFSL No. 234653.

® iAccess is a registered trademark of ipac asset management limited ABN 22 003 257 225 AFSL No. 234655.

® PortfolioCare is a registered trademark of Hillross Financial Services Ltd ABN 77 003 323 055 AFSL No. 232705.

® WealthView is a registered trademark of AMP Financial Planning Pty Limited ABN 89 051 208 327 AFSL No. 232706.

Contents

About the AMP groupNM Super is a wholly owned subsidiary corporation within the AMP group of companies. AMP is a wealth management company with a growing retail banking business and an expanding international investment management business.

AMP Australia is a business unit within the AMP group that includes the Australian wealth management and the AMP Bank businesses.

AMP provides retail clients with financial advice and superannuation, retirement income, banking and investment products. AMP also provides corporate superannuation products and services for workplace super and self-managed superannuation funds (SMSFs).

NM Super has appointed AWM Services and Asgard to provide fund administration and investment services in relation to certain products within the fund.

NMMT is the responsible entity of various managed investment schemes, an operator of investor directed portfolio services and provider of other custodial and depository services. NMMT’s role as responsibility entity is separate to its role as service provider to NM Super in connection to the Wealth Fund.

AMP Bank provides clients with residential and investment property home loans, deposit and transaction accounts and SMSF products.

AMP Capital is a global investment manager servicing institutional and direct clients, including AMP.

The New Zealand wealth management business provides New Zealand clients with financial products and services, both directly and through a large network of financial advisers.

AMP’s insurance and mature products business, AMP Life, was sold to Resolution Life Group on 30 June 2020.

Welcome 4

About the fund 7

The year in review 9

Member outcomes 19

Risk management 21

People 23

Investment market update 26

Understanding your investment 29

Important information about the fund 36

Governance 39

Financial summary 50

4 Annual report 2019/20 Wealth Personal Superannuation and Pension Fund

Welcome

5Annual report 2019/20 Wealth Personal Superannuation and Pension Fund

I firstly want to recognise the challenges this year has thrown at society. From the catastrophic bushfires that swept through parts of the country in December and January, to the global COVID-19 pandemic which Australia, along with many other countries, is still grappling with and which

has had both significant health and economic impacts. As the trustee of the fund, it’s been of importance to us that the service we deliver has responded swiftly and decisively to support our members impacted by these events.

Beyond those challenges and the necessary pivots made to respond to these, we’re continuing to enhance member outcomes. This is being done by further simplifying our super business, introducing cost reductions where it’s sustainably sensible to do so, working with the regulators to remediate past issues and welcoming new non-executive directors to the trustee board.

Below are some of the highlights I’m particularly pleased with and would like to share with you.

Simplifying our super business

As part of our commitment to transform our business, we rationalised our range of super and pension products and reduced the number of funds we administer. This was done to deliver better value to members and pave the way for AMP group to complete the sale of its life insurance business, AMP Life, to Resolution Life Group at the end of June. This has also resulted in the need for only a single trustee board rather than two as was previously the situation.

The sale of AMP Life also enabled fund administration to be delivered via a single point of accountability. This more direct line of oversight and accountability enhances the trustee board’s autonomy and governance activities – now through AMP Australia and Lara Bourguignon as the Managing Director of Superannuation, Retirement and Platforms. This role is the single point of accountability to the trustee for AMP Australia’s delivery of the superannuation business, which includes oversight of the trustee’s direct investment holdings, the majority of which are managed by AMP Capital. Lara has also penned a letter to you where she shares AMP’s achievements and how it’s supported its people and its members.

Helping in times of need

The trustee supported AMP’s response to the unprecedented bushfires this past summer where a disaster relief package was quickly launched, including financial advice for those who were severely affected. This package saw AMP proactively reach out

to members in bushfire-affected postcodes to let them know directly about this offer and see what support they needed.

I’ve also been heartened to see how our funds have mobilised to support members who have suffered financial hardship as a result of COVID-19. We’ve supported the government’s early release of super scheme and have backed AMP’s approach to focus on providing additional resources, capacity and information to those of you who had questions.

An expanded trustee board

This year we also expanded our trustee board from four to seven members and welcomed Sarah Brennan, Kerrie Howard and Paul Scully as non-executive directors in late 2019. All highly accomplished in their own right, their sound judgement and extensive experience has already been of significant benefit to our trustee board deliberations of behalf of our members.

The trustee also established a number of board committees to assist in carrying out its responsibilities. The audit committee helps with the review and oversight of the financial reporting framework, internal audit function and the external audit of the trustee. The risk committee has oversight of the implementation and operation of the trustee’s risk management framework, and the investment committee assists with the establishment of the trustee’s investment strategy and implementation of that strategy. All committees were set up to enhance the trustee’s oversight and to provide additional accountability for these key areas.

Your feedback is welcome

As always, thank you for choosing us to help you achieve your financial goals. This year has been one of our busiest and most challenging to date, and I appreciate your support on this journey.

In this new-look annual report, we’ll share the work we’ve undertaken, examples of how we’ve helped our members, and provide some insight into where we’re heading. We also introduce our inaugural Annual Members’ Meeting which will take place via webcast in February 2021. Invites will be sent out towards the end of the year and I look forward to hearing from many of you on the day.

If you have any questions about your super account, please contact us on the numbers listed in the ‘Contact us’ section of this report.

Yours sincerely,

Tony Brain

Chair, N.M. Superannuation Proprietary Limited

Message from Tony Brain Chair, N.M. Superannuation Proprietary Limited


As we near the end of the year, it’s important to acknowledge how turbulent 2020 has been and the challenges it’s posed. Although this wasn’t the year we were expecting, we’ve continued to focus on our members’ outcomes, as well as our people, and together we’ve achieved some great things.

To me, these accomplishments demonstrate who we are as a company, and why we do what we do.

Looking after our members

In times of uncertainty, regular communications and extra support go a long way and so we’ve focused on both these things. As the impact of COVID-19 continues, we’ve seen it affect financial markets on a global scale. Closer to home, many Australians are personally feeling the pinch, with investment downturns affecting super balances and job and wage losses adding financial pressure.

Our long-standing focus on financial wellness remains, and in that spirit, we offered a range of support measures, including deferring life insurance premiums, and are continuing to offer payment freezes on mortgages. This is on top of the government’s early release of super scheme.

During the first round of the scheme, between 20 April and 28 June 2020, we fulfilled 96% of requests for the Wealth Personal Superannuation and Pension Fund members within five days (compared to the industry average of 95%). We’ve also focused on helping you rebuild your super savings if you’ve accessed super early as a result of COVID-19 financial hardship.

This follows our response earlier in the year to the catastrophic bushfires that ravaged much of the country. AMP launched a package of support for affected members that included information to help members navigate financially challenging situations, relief offers related to insurance and banking, and a pro bono financial advice offer delivered by volunteer advisers for those severely affected by the crisis.

Supporting our people

We’ve also focused on the physical and mental health of our people.

We’ve put our people’s safety first throughout COVID-19 by making sure our offices remain a safe place for employees who need to come in. We also quickly transitioned 95% of our workforce to remote working, and established training and support to enable them to do so.

Before this, AMP implemented a mentally healthy workplace strategy to support our employees. We trained 103 team members across Australia to become mental health first aid officers and introduced initiatives to help our people with resilience, wellbeing and mindfulness.

Celebrating our successes

This year also saw AMP complete the sale of its life insurance business, AMP Life, to Resolution Life Group. The sale, which was first announced in 2018, required the largest transfer of assets in Australian history and saw us consolidate the number of super funds and products we held to better position the business for the future.

We’ll continue to focus on simplifying our business and enhancing the products and services we provide. This is a key step towards providing you with better outcomes for your super.

As always, we’re continuing to look for new ways to support you and help you achieve your financial goals – whatever these may be.

Read on to find out what else the team’s achieved this year, and what’s in store for the year ahead.

Lara Bourguignon

Managing Director, Superannuation, Retirement and Platforms

Message from Lara BourguignonManaging Director, Superannuation, Retirement and Platforms, AMP Australia


About the fund


307,769Total number of

member accounts

for the period 20 April to 28 June 2020.

$45,854,178,000Total assets of the fund

Early release of super

We helped with the payment of

paid to members

$114 million

$149,000Average member account balance

Number of members by age

25 to 34 – 5%

35 to 44 – 13%

45 to 49 – 9%

50 to 54 – 9%

60 to 64 – 15%

65 to 69 – 16%

70 to 74 – 12%

75 to 84 – 10%

Over 85 – 1%

55 to 59 – 10%

applications received

Approx. 12,500

Death benefits

$197,686,000

Terminal Illness benefits

$10,107,000

Total and Permanent Disablement benefits

$22,465,000

processed within

5 business days96%

About the Wealth Personal Superannuation and Pension Fundas at 30 June 2020


The year in review


Over the past year, we’ve undertaken a number of initiatives to offer extra support to members and assist them through challenging times.

Simplifying our super business

As part of our commitment to transform our business, the number of trustees has been reduced. We’ve also reduced the number of super funds, products and product administration systems we operate.

This is an important step in futureproofing our business so we can continue to provide better value to members. The simpler structure will enable the Wealth Personal Superannuation and Pension Fund to focus more on member outcomes including product enhancements, more competitive pricing and member servicing improvements.

On 15 May 2020, we undertook one of the largest fund transfers in Australian history.

As a result, we consolidated:

Two trustees

NM Super trustee

Three funds

One fund

Three generic MySuper licences(plus additional tailored licences)

One generic MySuper licence(plus additional tailored licences)

17 products (including from older platforms)

11 products

Three product administration systems

Two platforms to reduce maintenance

and overheads

This was also a necessary step to finalise the sale of AMP group’s mature and insurance business, AMP Life, to Resolution Life Group, which completed on 30 June 2020.

These changes don’t directly affect products held within the Wealth Personal Superannuation and Pension Fund.

And as we approach 2021, we’ll continue to focus on simplifying our super offerings to deliver better value and outcomes to members.

Bushfire response

In response to the catastrophic bushfires that ravaged Australia late in 2019 and early in 2020, the AMP team developed a package of support for affected members.

This ranged from content resources aimed at helping members navigate a financially challenging situation, product relief offers related to insurance and banking, and a pro bono financial advice offer delivered by volunteer advisers for those severely affected by the crisis.

These services were offered to members across multiple platforms including by post, email and social media. Additional postcode-targeted communications were also sent to affected areas to make residents aware of the pro bono financial advice offer.

This package was promoted through the media, including via paid advertisements in newspapers, in order to reach as many members as possible.

COVID-19

In response to the COVID-19 coronavirus pandemic, we moved quickly to support members and advisers.

Early release of super

We’re supporting the Australian Government’s early release of super scheme, which was established to allow eligible Australians to access up to $20,000 of their super early, if they were facing financial hardship as a result of COVID-19.

For the first round of the scheme (from 20 April to 28 June 2020), we:

– received and granted approximately 12,500 member requests for early access to super

– paid a total of $114 million to members, who on average received $9,123 each, and

– fulfilled 96% of requests within five days (compared to the industry average of 95%).

Assisting advisers

Advisers and employers have also come under increasing pressure as a result of COVID-19. To assist them, additional marketing and content materials were provided to share with their clients.

This additional material assisted advisers to keep their actively-advised clients informed. AMP also created a suite of adviser-led webinars for clients, covering topics from retirement to budgeting, and early release of super to investment market updates.

How we’ve helped


Our contact centres

Our North Service Centre faced challenges over the first half of 2020 which required the team to mobilise quickly to provide additional support to members.

Ongoing market volatility and the Government’s early release of super scheme (for members facing financial hardship due to COVID-19) contributed to the significant increase in call volumes. At the same time, the team moved to a working-from-home environment and absorbed all work in progress from offshore partners which had to temporarily close due to lockdown restrictions.

The challenge of remote working and the increased workload did see service levels temporarily decrease. Achieving service standards continues to be challenging due to call volume pressures caused by recent changes which impacted some members. In addition to the recruitment of new staff, the North Service Centre is also embarking on a training program to upskill existing staff.

The Customer Relations team for both PortfolioCare and WealthView faced many of the same challenges and proactively responded to support its members.

Additional staff were employed to manage call volumes and a new team, named Resolve, was established to assist members with COVID-19 queries. The Resolve team also played a crucial role in assisting with member queries and triaging inbound calls.

The focus across both contact centres will be firmly on continuous improvement to ensure the centres remain on track to deliver an enhanced service offering moving forward.

AMP Customer Advocate

An advocate for our members

AMP is committed to acting with integrity and fairness – this means it’s passionate about finding the right solution, collaborating and working as one team to achieve the best result for members. One of the ways it promotes member fairness is through the role of the AMP Customer Advocate which was established in 2017.

The AMP Customer Advocate supports the trustee in delivering fair member outcomes, by being a champion for members in relation to their super accounts and across all products and services offered by AMP.

The AMP Customer Advocate supports members in the following ways:

– It champions fairness for members through AMP’s Fairness Principles. These put members at the heart of AMP’s decision-making; whether that be by resolving

member complaints, product development, process design, risk management, or any other decisions that impact members. The AMP Customer Advocate developed the Fairness Principles and works with teams to provide guidance and training on fair decision making.

– Members who are unhappy about the outcome of a complaint, investigated by the internal dispute resolution team, can ask the AMP Customer Advocate for a separate review. Using a team of specialists to review the member’s complaint, the AMP Customer Advocate may provide a new or enhanced outcome to the member where the original outcome was not fair and reasonable. The AMP Customer Advocate’s decisions are final and binding on AMP, but not on members, who are still free to go to an external dispute resolution body.

– The AMP Customer Advocate works collaboratively with business teams to help identify and fix the root cause of issues so they don’t recur, and to deliver fair remedies to members. Insights into these underlying root causes are also shared with management to enhance the development of technology, products and services, to create positive member experiences.

– AMP is actively committed to providing special care or additional assistance to members who may be experiencing vulnerability. The AMP Customer Advocate wants all members to feel they can share challenges or personal circumstances they may be experiencing and be confident that they will be treated with sensitivity, respect and compassion.

Intrafund consolidation

Intrafund consolidation aims to reduce the number of super accounts that members hold within the same fund, helping reduce the multiple sets of fees members pay. In line with legislative requirements, we will identify if members hold multiple super accounts within a super fund and merge these multiple accounts if we reasonably believe that it’s in the member’s best interest to do so. We will review members’ accounts on an annual basis and, where applicable, accounts will be consolidated unless the member opts out. There will be no cost to members for consolidating their accounts through intrafund consolidation.

If you’d like to know more about consolidating your super, please contact us on the numbers listed in the ‘Contact us’ section of this report.


Product news

The following product updates are relevant to MyNorth, North, Summit, iAccess and Generations super and pension accounts.

Changes to advice fees on super and pension accounts

From no later than 31 January 2021, we’ll make changes to the limits to the total amount of advice fees you may pay for financial advice, in response to proposed government legislation about advice fees paid on super and pension accounts.

The expected legislation says that as trustee, we’ll need to receive your written consent each year for advice fees being charged from your super or pension account.

What your consent covers

– The advice fees paid from your super or pension account must be for advice solely in relation to that account.

– The advice fee consent document must contain information about the advice services that you will be entitled to receive.

Your adviser will discuss this with you and once you’ve provided your written consent, they’ll provide it to us. We won’t pay any advice fees from your account until we receive your consent.

We’re also placing limits on the total amount of advice fees that can be deducted from your account (unless otherwise mutually agreed) so that:

– ongoing advice fees are automatically capped at 2.2% pa including GST (2.05% pa including GST, net of reduced input tax credit (RITC)) calculated monthly based on the account balance when the fee is charged each month.

– one-off advice fees are automatically capped at $5,500 including GST ($5,125 including GST, net of RITC) on your combined balances across all your MyNorth, North, Summit, Generations and iAccess Super and Pension accounts up to $500,000, and at $11,000 including GST ($10,250 including GST, net of RITC) on balances of $500,000 and over, and

– no advice fees are charged if the relevant balance is less than $10,000. This balance is based on:

– the account balance for ongoing fees, or

– your combined balances across all your MyNorth, North, Summit, Generations and iAccess Super and Pension account for one off fees.

We will communicate the final date that these changes will take effect on North Online via News and Announcements. Product disclosure statements (PDSs) will be updated on this date to reflect these changes.

Changes to adviser commissions

Since 1 June 2020, North has ceased paying some types of commissions to financial advisers. This is ahead of the requirement to remove these commissions across the financial services industry by 1 January 2021. We have ceased these payments for any product or insurance commissions. We will also rebate any commission back to members’ accounts for commissions charged by the fund manager from 1 June 2020 onwards.

Product Type of commissions ceased

Member benefit

North Superannuation and Pension (S&P)

Trail commission

Administration fee trail commission ceased

MyNorth (Synergy group insurance)

Synergy group insurance commission

Reduction in insurance premiums

Generations (S&P) Investment commission

Fund manager trail commission rebate

Generations (Group insurance)

Group insurance commission


iAccess – Investor Choice (S&P)

Trail commission


iAccess – (Group insurance)



iAccess – Pathways and Strategic Service (S&P)

Investment commission

Fund manager trail commission rebate

Summit (S&P) Trail commission


Summit (Group insurance)




New insurance providers

On 19 December 2019, two new insurers were introduced to the North platform to give you more choice. Members now have access to AIA Australia (ABN 79 004 837 861, AFSL No. 230043) and TAL insurance solutions (ABN 70 050 109 450, AFSL No. 237848). The following insurance options are offered:

– Life insurance (Super and Pension)

– Total and permanent disability insurance (Super only), and

– Income insurance (Super only).

These insurance options are now available for MyNorth, North, Summit, iAccess and Generations super and pension clients. For more information refer to northonline.com.au.

Insurance cover is provided under insurance policies issued by nominated insurers and held by the trustee.

Annual statement enhancements

In October 2020, super and pension annual statements were refreshed with a new look and feel to help you navigate your statement more easily. New features of the statements will help you track your account balance and performance over time and the new summary page will give you a snapshot of your account as well provide useful information tailored to your account. You will see these new changes in your next annual statement.

MyNorth Managed Portfolios

MyNorth Managed Portfolios continue to offer members a choice of investment managers and portfolios through a contemporary range of managed portfolios.

The investment managers include the AMP Research team, Zenith Investment Partners Pty Limited (ABN 27103 132 672, AFSL No. 226872), Quilla Consulting Pty Ltd (ABN 99 600 052 659, AFSL No. 511401), Lonsec Investment Solutions Pty Ltd (ABN 95 608 837 583, CAR No: 1236821 of AFSL No. 421445), InvestSense Pty Ltd (ABN 31 601 876 528, CAR No: 1006839 of AFSL No. 408800), and Pendal Institutional Limited (ABN 17 126 390 627, AFSL No. 316455).

These expertly constructed managed portfolios are designed to achieve different investment and risk objectives depending on if you’re seeking to save and accumulate, receive a regular income, or a combination of both.

The range of managed portfolios will continue to expand so refer to the MyNorth Managed Portfolios PDS (which is an underlying PDS available through our products) or contact your financial adviser or the North Service Centre on 1800 667 841 from 8.30am to 7pm (Sydney time), Monday to Friday.

New MyNorth Guarantees

On 23 November 2020 the new MyNorth Super and Pension Guarantee was launched, with applications being accepted from 28 November 2020.

The MyNorth Guarantees provide you with the ability to protect your retirement savings from falls in investment markets while allowing you to retain exposure to growth assets.

The new MyNorth Guarantees can be applied to selected investment options available to MyNorth Super and Pension members and can be held alongside other non-guaranteed investments in your account. You can apply a 5-year or 10-year term guarantee to your investments. The 5-year term guarantee also has an optional growth lock-in feature, whilst an optional vesting feature is available with the 10-year term.

Please refer to the MyNorth Super and Pension Guarantee PDS on North Online for the full details of the guarantees.

Applications for the guarantees described in the MyNorth Super and Pension Guarantee PDS – Part B dated 18 December 2019 closed on 27 November 2020. Members with guarantees under this disclosure may continue to hold their guarantee until the end of their nominated term.

If you’re interested to learn more about these changes, please contact your financial adviser or the North Service Centre on 1800 667 841 from 8.30am to 7pm (Sydney time), Monday to Friday.

https://www.northonline.com.au/


The following product updates are relevant to PortfolioCare eWRAP Super and Pension, PortfolioCare Super and Pension Service, PortfolioCare Elements Super and Pension and WealthView eWRAP Super and Pension accounts.

Changes to advice service fees on super and pension accounts

By 1 January 2021 we’re making changes to the way we collect member advice fee authorisations and limit the maximum amount of advice fees paid on super and pension accounts.

This means, we’ll need to receive your written consent each year for advice fees being charged from your super or pension account.

What your consent covers – The advice fee consent document must contain

information about the advice services that you will be entitled to receive. Your adviser will discuss this with you and once you’ve provided your written consent, they’ll provide it to us. We won’t pay any advice fees from your account until we receive your consent each year.

– The advice fees paid from your super or pension account balance must be for advice solely in relation to your interest in the fund.

We’re also placing limits on the total amount of advice fees that can be deducted from your account so that:

– ongoing percentage-based advice fees are capped at 2.2% pa including GST, calculated monthly on your total balance at the end of each month

– one-off advice fees are capped at $5,500 including GST on the total balance.

Changes to adviser commissions

Since 1 August 2020, we are no longer passing through product commissions where the adviser operates under a Hillross or AMP Financial Planning licence. While not being passed through to the adviser, these commissions, where applicable, will still be charged against a member’s account until 31 December 2020. Any product commissions paid for the July 2020 period onwards, will be refunded.

Where product commissions are payable to an adviser not operating under an AMP licence, these were removed from accounts in September 2020 and are no longer being paid.

By no later than 31 December 2020, the following commissions will cease.

Product Type of commissions ceased

Member benefit

PortfolioCare Super Service

Product commission

Standard Adviser Service Revenue ceased

PortfolioCare Super Service



PortfolioCare Employer Service

Product commission


PortfolioCare Employer Service



PortfolioCare Pension Service (including Term Pension)

Product commission


PortfolioCare Elements Super

Product commission


PortfolioCare Elements Super



PortfolioCare Elements Pension (including Term Pension)

Product commission


PortfolioCare eWRAP Super



WealthView eWRAP Super




Invalid binding nomination of beneficiary

In September 2019, beneficiary nominations across all PortfolioCare and WealthView Super/Pension products were reviewed and it was found that the allocation to beneficiaries for some binding nominations were made without using whole numbers in line with our requirements. For a nomination to be valid:

– the total allocation must equal 100% and must be in whole numbers

– you can only nominate a dependant and/or your estate/legal personal representative (LPR), and

– your nomination must be signed and dated in the presence of two witnesses who are over age 18 and who aren’t nominated beneficiaries.

Where it was found that a binding nomination was invalid, a letter was issued to those members informing them that their nomination will be changed to a discretionary nomination.

This means that we will consider the nomination provided by the client but has discretion to pay the death benefit to one or more dependants and/or the estate/LPR in proportions that we determine. The discretionary nomination will continue to apply until it is cancelled or the member makes a new nomination.

For more information on nomination of beneficiaries, refer to the PDS relevant to your product or contact your financial adviser.

Changes to InsuranceCare

There have been a number of important changes to InsuranceCare over the year to 30 June 2020. These are set out below.

Changes to terms and conditions

Effective 28 July 2019, the period in which we need to notify members of any changes to premium rates and charges changed from 90 days prior to 30 days prior.

Changes to the cost of insurance policies

Effective 1 September 2019, the insurer of the InsuranceCare policies, Westpac Life Insurance Services Limited (ABN 31 003 149 157, AFSL No. 233728), increased insurance premiums in InsuranceCare.

This was due to a number of factors such as the recent changes in government legislation around insurance in super and an increase in the number of insurance claim payments.

Premiums for InsuranceCare (employee super account) increased by:

– 50% for life protection insurance

– 50% for life protection and total and permanent disablement insurance

– 50% for salary continuance insurance (benefit period ‘to age 65’)

– 20% for salary continuance insurance (benefit period for two years).

Premiums for InsuranceCare (personal) increased by:

– 29% for life protection insurance

– 29% for life protection and total and permanent disablement insurance

– 29% for total and permanent disablement insurance

– 35% for salary continuance insurance (benefit period ‘to age 65’)

– 10% for salary continuance insurance (benefit period for two years).

If you have an InsuranceCare policy, you can access and review your insurance details through Investor Online (via investoronline.info) by clicking on Account > Insurance details or contact the Customer Relations team on 1800 646 234 from 8.30am to 6pm (Sydney time), Monday to Friday.


Over the past financial year, the following changes were implemented. These changes provide greater flexibility to contribute to super and to access super during hard times.

COVID-19 super measures

As part of the Government’s second economic response to COVID-19, it passed legislation on the following super measures:

Temporary early access to super

Under the temporary coronavirus compassionate grounds condition of release, people who meet certain eligibility criteria were able to access up to $10,000 of their super in 2019/20, and up to a further $10,000 between 1 July and 31 December 2020 (inclusive). Applications are made to the Australian Taxation Office (ATO) for approval, and the payment is tax free.

You’re eligible to apply for the early access if you meet one of the following criteria:

– you’re unemployed

– you’re eligible to receive a JobSeeker Payment, youth allowance for jobseekers, Parenting Payment (which includes the single and partnered payments), special benefit or farm household allowance, or

– your role was made redundant or you had your working hours reduced by 20% or more on or after 1 January 2020, or, if you’re a sole trader, your business was suspended or suffered a reduction in turnover of 20% or more.

Reduction to minimum pension drawdown amounts

For the 2020 and 2021 financial years, a temporary reduction of 50% applies to the minimum pension drawdown amount for super income streams. The table below shows the previous and reduced minimum pension rates.

Minimum pension payment

Age Standard minimum drawdown rates (%)

Reduced rates for 2019/20 and 2020/21

financial years (%)

Under 65 4 2

65–74 5 2.5

75–79 6 3

80–84 7 3.5

85–89 9 4.5

90–94 11 5.5

95 or over 14 7

This information is now displayed within the Additional Information Booklet for each product.

Greater flexibility for members aged 65 and 66 to contribute to super

Super contributions ‘work test’ to apply from age 67

From 1 July 2020, anyone under the age of 67 (increased from age 65) can contribute to super, or have contributions made on their behalf without needing to meet the work test requirements.

Contributing to super from age 67 and over

From age 67 through to age 74 (inclusive), you can only continue to make certain contributions to your super account if you either meet the work test or can use the work test exemption for the financial year the contributions are made. Meeting the work test means you’ve been gainfully employed for at least 40 hours within 30 consecutive days in the financial year the contributions are made.

To use the work test exemption, you must satisfy the following conditions:

– you’ve met the work test in the previous financial year

– you haven’t been, and don’t intend to be, gainfully employed for at least 40 hours within 30 consecutive days in the financial year the contributions are made

– your total super balance across all providers was below $300,000 as at 30 June of the previous financial year, and

– you haven’t previously made contributions to super using the work test exemption.

Increase in age limit for spouse super contributions

Prior to 1 July 2020, your spouse could only make contributions to your super account if you were aged 69 or under. From 1 July 2020, the maximum age limit for spousal super contributions has been increased from 69 to 74 years of age.

Super Guarantee (SG) opt out for high earners

From 1 January 2020, individuals with multiple employers who expect to have excess concessional contributions for a financial year are able to apply to the ATO for an exemption certificate to opt out of receiving SG from one or more of their employers, to avoid breaching their concessional contributions cap. SG contributions must continue to be made by at least one employer.

Legislative changes to support members


Super thresholds for the 2020/21 financial year

The following super and taxation threshold amounts apply during the 2020/21 financial year.

Threshold From 1 July 2020

Standard concessional contributions cap (per annum) $25,000

Non-concessional contributions cap: – Standard(i) (per annum) – Bring forward (over three years) before age 65(ii)

$100,000$300,000

SG maximum contribution base (per quarter) $57,090

Government co-contributions(iii) (per annum) – Lower income threshold – Higher income threshold

$39,837$54,837

Tax-free part of genuine redundancy and approved early retirement scheme payments (per payment) – Base limit – Plus for each completed year of service

$10,989$5,496

Low-rate cap amount (lifetime limit)

Applies to the taxable component of taxed super fund benefits for members aged preservation age to 59

$215,000

Untaxed plan cap amount

Applies to the taxable component of untaxed super fund benefits

$1,565,000

Employment termination payment (ETP) cap (per annum) $215,000

Capital gains tax (CGT) cap amount (lifetime limit) $1,565,000

Transfer balance caps $1,600,000

Defined benefit income cap $100,000

Maximum adjusted taxable income for the full government low income super tax offset (LISTO) $37,000

(i) The cap is nil for members with a total super balance of over $1.6 million (as at 30 June of the year prior to making the contribution).

(ii) There are restrictions on the ability to trigger bring forward rules for certain people with total super balances of more than $1.4 million (as at 30 June of the year prior to making the contribution).

(iii) The maximum entitlement remains at $500 and applies where at least $1,000 of non-concessional contributions have been made in the financial year and the person does not exceed the lower income threshold.

For more information about each of these thresholds, please refer to the relevant additional information booklet.


Insurance inside super

Throughout 2019 and 2020 new super laws were introduced to protect members’ super balances from insurance held within super, which they may not want or need.

Protecting Your Super (PYS)

The first phase of this legislation was implemented in 2019 with the introduction of the Protecting Your Super package. This required that where a member’s account was inactive (ie no contribution or rollover for 16 months), then that insurance must be cancelled, unless the member elects to keep it.

Educational content was created to help inform these members of the new laws and what to consider when deciding whether to retain their insurance. This content was made available through a dedicated support centre on amp.com.au.

Putting Members’ Interests First (PMIF)

The second part of the legislation was the Putting Members’ Interests First package. This included an initial audit component to identify and communicate to members who held less than $6,000 in their super account as at 1 November 2019. These members were informed that their insurance inside super would be cancelled if it did not reach $6,000 by 1 April 2020.

Members were contacted prior to 1 April and were provided with access to educational information which they could self-serve to make an informed decision about their super account.

Insurance cover during COVID-19

We are committed to supporting members through challenging times. In line with this, there’s no pandemic exclusion for insurance offered through the fund. If a member’s employment circumstances have been impacted as a result of COVID-19, they can still claim on their Death and Total and Permanent Disability (TPD) cover, but there may be impacts to Temporary Salary Continuance (TSC) cover.

You can visit amp.com.au/covid for more information and access regular updates to frequently asked questions.

Protecting your super from erosion

We have an obligation as a trustee to ensure the cost of members’ insurance doesn’t inappropriately erode retirement income. The super industry’s generally held view is that annual insurance premiums shouldn’t exceed 1% of a member’s annual salary. For example, someone earning $50,000 per year shouldn’t pay more than $500 per year for insurance.

Due to the increasing emphasis on erosion risk in recent years, enhanced frameworks are being put in place to monitor erosion. These enhancements include additional communications to members to remind them of the risk of erosion. From 1 June 2020, the fund contacted approximately 36,100 members to heighten members’ awareness of erosion.

You can visit amp.com.au/iis for more information about insurance inside super.

Insurance in Super – voluntary code of practice

A number of industry super bodies, including the Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees (AIST) and the Financial Services Council (FSC), have developed a voluntary code for insurance inside super. This sets standards that will provide greater understanding, clearer accountability and consistency of delivery for insurance benefits provided in super across the industry.

AMP is currently working towards complying with the code. We’ve commenced execution of a number of activities to support code compliance.

Changes to insurance

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https://amp.com.au/iis


Member outcomes


What are ‘member outcomes’ requirements?

A new ‘member outcomes’ framework imposes stronger obligations on super trustees to strengthen their focus on delivering quality outcomes for members:

– From 6 April 2019, trustees are required to conduct an annual outcomes assessment for most superannuation products to assess the appropriateness of their product offering in meeting members’ needs. For AMP, the first assessment will be in respect of the 2019/2020 financial year.

– Commencing 1 January 2020, APRA has set out new requirements for trustees to rigorously assess their performance against strategic objectives and to use the results of those reviews to improve their business operations to achieve quality outcomes for members. In addition, APRA requires trustees to ensure expenditure decisions are in the best interests of members.

What we’re doing

We are dedicated to acting in members’ best interests and our board closely monitors fund performance. In relation to the specific requirements set out above, we have defined strategic objectives to support the member outcomes we seek to deliver and set out how these objectives will be achieved in our business plan.

The results of our annual outcomes assessment for the year ended 30 June 2020 is targeted for completion early in 2021. We will publish our product-specific results on our trustee website and advise members and the general public of the assessment results via a media release.

What this means for members

Fund members will have access to a new suite of product-level reports (known as ‘product determinations and summaries’) which provide a snapshot of the trustee’s performance in promoting the financial interests of members. This will provide members with increased visibility on product-based factors such as performance, fees and costs, appropriateness of insurance design, and fund-based factors such as fund scale, all scored against benchmarks consistent with the outcomes we seek for members.

Member outcomes


Risk management


Promoting a strong risk management culture continues to be one of our key priorities. Over the past year, we have enhanced the Trustee Risk Appetite Statement (RAS), the Trustee Risk Management Strategy (RMS) and embedded a Risk Management Framework (RMF) throughout our business.

These initiatives provide clear guidance to AMP’s staff and business partners. They also enable decisions to be made that align with their purpose, principles, and most importantly, with members’ best interests in mind.

The RMF enables effective risk management across the business and its operational practices. It includes steps for operational oversight, how risks are monitored and controlled, and how AMP appropriately manages different types of risk, which may affect our obligations to members.

Our Risk Committee oversees the implementation and operation of the RMF and monitors the risk culture within AMP. The Board Audit Committee assists by providing an objective non-executive review of the effectiveness of the risk management framework.

AMP’s Enterprise Risk Management team is responsible for driving the RMF by designing, implementing, and monitoring risk practices and processes.

Key risk areas focused on in order to achieve better member outcomes include:

Trustee governance risk – implemented the Risk, Audit and Investment Committees

– enhanced monitoring and reporting to the trustee

– uplifted the Superannuation Trustee Office

– strengthened AMP’s three lines of defence model.

Operational risk – enhanced the risk management framework across our

operations teams

– improved member offers to provide more self-service opportunities and more channels, thereby automating and giving greater process visibility for members

– the sale of AMP Life and the closure of six complex legacy products enabled a reduction in administration systems, from three to two.

Investment governance risk – established the Member and Beneficiaries Strategy, which

forms the foundation of our business plan and initiatives to assist in the delivery of member outcomes and comply with its regulatory obligations

– enhanced measures to monitor the performance of each investment option and generally assess the investment capability and returns to members

– continuously monitored investment options and investment managers to ensure the investment option range continues to suit the needs of members

– enhanced investment monitoring as an outcome of the COVID-19 pandemic to monitor investment risk, liquidity risk and performance.

How we manage risk

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People


Supporting and developing people

AMP encourages a respectful, diverse and safe workplace that supports the physical and psychological safety of its people. It has implemented a mentally healthy workplace strategy to provide improved support to employees. This includes training 103 accredited mental health first aid officers throughout its Australian offices. AMP values differences and encourages a flexible and inclusive work environment where people can bring their whole selves to work. It also has gender targets in place for management positions. AMP acknowledges that it’s behind in its progress to meeting these targets but remains committed to these measurable objectives.

Strengthening risk management, culture and governance

In 2019, AMP conducted a company-wide risk survey to better understand its risk culture and how effectively it’s managing risk. Following this, AMP implemented a new Risk Culture Framework which describes how all employees should manage risk.

This focuses on:

1. Thinking client first: managing conduct risk through how employees deal with clients, how AMP’s products and advice offers are designed, and in its business practices.

2. Acting like an entrepreneur: actively seeking opportunities by taking desired risks and reducing undesired risks; focusing on making informed decisions and managing change and uncertainty.

3. Taking action and being accountable: taking ownership for the outcomes and management of risk such as following policies and procedures or calling out issues where something needs improvement.

These continue to be reinforced through a combination of online training modules, face-to-face training and broader educational videos and articles. AMP employees and advisers are required to complete a range of mandatory training modules annually which cover ethical and professional conduct and whistleblowing.

Employee completion rates

2020 H1 (%)

2019 (%)

2018 (%)

Whistleblowing training

94 98 95

Mandatory training (including code of conduct and ethics)

98 98 97

Diversity and inclusion


It also implemented a number of risk control strategies early in the crisis to ensure that its offices remained a safe place for vulnerable employees and essential workers, including:

enhanced cleaning protocols at all sites

communications to detail protocols for those returning from travel and/or displaying symptoms

establishment of risk response protocols for the early identification and response, and

clear signage to ensure social distancing and increased availability of hygiene products such as hand sanitiser.

How AMP responded to COVID-19

The physical and mental wellbeing of employees and advisers is integral to AMP’s ability to help clients reach their goals. Through COVID-19, AMP has prioritised its people’s safety by moving quickly to enable work from home for the vast majority of its workforce and running innovative programs to support this transition.

Due to COVID-19, 95% of AMP’s workforce quickly transitioned to remote working. To support them, AMP has provided working from home training, tools and support to ensure employees are well equipped.

The mental health and resilience of employees and advisers have remained a key priority for AMP through this period. It’s supported 50 employees each month on average, and has garnered 2,500 views of its ‘Be Well’ webinar series, on topics such as resilience and mindfulness.

– Advisers have been given access to a suite of special tools, including wellbeing coaching.

– Employees and their immediate families have ongoing access to AMP’s Employee Assistance Program, which is a confidential counselling, coaching and advice service that’s offered over the phone or face-to-face.

People metricsReported

76%

2017 2018

64% 68

2019 June 2020

74

Employee satisfaction score out of 100.

Employee engagement index measured as a percentage.

Annual report 2019/20 Wealth Personal Superannuation and Pension Fund26

Investment market update


The past financial year has proven to be one of the most challenging to navigate in recent memory. Whilst periods of significant market losses can be unsettling, it is most important during these times to remember that superannuation is a long-term investment, and decisions that you make with respect to your investment portfolio should continue to reflect your long-term investment strategy.

Investment market review

Global shares

The financial year to 30 June 2020 was challenging for investors. Global shares were extremely volatile, but the blow was softened by a strong rebound in the June quarter. Up until early this year, shares performed strongly with many markets reaching record highs, as recession fears faded against a backdrop of central bank easing and a truce in the US/China trade war. However, investor optimism quickly reversed, after the outbreak of COVID-19 saw the declaration of a global pandemic in early March. Share markets plunged as severe lockdowns drove sharp contractions in economic activity. Despite this, global shares returned 5.2% in Australian dollar terms over the financial year. This was led by the US share market which outperformed due to a heavy exposure to tech and healthcare, and relatively low exposure to cyclical shares and massive quantitative easing by the US Federal Reserve.

Australian shares

Along with its offshore counterparts, Australian shares were subject to significant volatility during the financial year, however, didn’t fare as well and ultimately fell by 7.7% on a total return basis. The period was a tale of two halves, with the market generally trending upward to a record high in February, despite devastating bushfires and a subdued growth outlook. However, fears around the COVID-19 virus and the likely sharp economic downturn saw large amounts of indiscriminate panic-selling. In this environment, the Reserve Bank of Australia (RBA) lent support, cutting the official cash rate to 0.25% and announcing low-cost funding for banks. From late March, shares staged a rebound, driven by unprecedented fiscal policy stimulus, a decline in new COVID-19 cases, economic reopening and improving economic data.

Global bonds and Australian bonds

Bonds delivered reasonable returns for the financial year as falling yields provided capital growth for investors. Global bonds delivered just over 5% (on a hedged basis, in Australian dollar terms) for the year, while Australian bonds delivered 4.2% (measured on a composite basis). Earlier in the period, from July into the early part of 2020, returns from government bonds were subdued against a backdrop which supported growth assets. Following this, yields subsequently exhibited heightened volatility at times. This included a sharp fall as the impact of COVID-19 deepened, giving way to an upward spike in early March amid fears of a liquidity crunch. In response, the RBA took emergency measures in March by cutting its cash rate to a record low of 0.25% and instituting a yield curve control policy whereby it targets the three-year bond yield at 0.25% as well.

Australian listed property

After recording the strongest performance of the major asset classes in the prior financial year, Australian listed property fell by over 21% on a total return basis for the year to 30 June 2020. This was despite the plunge in interest rates and bond yields, as the coronavirus-driven slump in economic activity pushed up vacancies and depressed rents in retail and office properties. In this highly uncertain environment, Australian listed real estate companies continued to withdraw their earnings and dividend guidance for 2019/20 financial year. Many companies also opportunistically raised capital or renewed and extended debt facilities to maintain liquidity, fund acquisitions and improve their balance sheets. The already struggling retail segment was hit particularly hard, whereas industrials outperformed, having benefited from the acceleration of structural changes with medium-term tailwinds, including e-commerce, data usage and higher inventory levels accelerating.

Environmental, Social and Governance (ESG)

We don’t currently have a position on ESG, and the approach of the underlying fund manager is adopted where applicable. The investment criteria used to assess investment options for inclusion or retention on the platform investment menu does not specifically incorporate ESG criteria, however ESG ratings are noted by the research team and may be addressed during review meetings with the investment manager.

Year in reviewLakshman Anantakrishnan, Chief Investment Officer, AMP Australia


Market outlook for major asset classes

Global shares

Given a lack of earnings visibility, AMP Capital believes investors in global shares should exercise some caution, particularly where prices have risen quickly. Amid changing consumer dynamics, many companies will likely struggle for some time, while stronger businesses are likely to emerge from the COVID-19 crisis with an increased market share. Pressure on global economies has however begun to ease as various lockdowns and restrictions have been lifted, while highly supportive monetary and fiscal policy continues to provide solid support. While second wave fears persist and are temperamentally traded on, thereby presenting potential market retracements and volatility in the short term, AMP Capital believes the longer-term market trend will remain to the upside.

Australian shares

Australian shares will likely continue to be primarily driven by global markets. Similar to global peers, Australia’s economic growth has slumped, although evidence of a rebound is already emerging. Domestically, a greater degree of government stimulus (relative to other countries) should help support Australian shares, however there are some near-term risks, such as souring trade relations with China and a lack of earnings visibility for many companies. Given large price rises since the March lows, AMP Capital believes investors should be selective and, as always, keep an eye on the longer term.

Global bonds and Australian bonds

The COVID-19 outbreak has likely triggered a global recession and policy makers are having to respond with dramatic levels of monetary and fiscal stimulus. The emergence of COVID-19 within an ongoing weak state of fundamentals and consistently low inflation, as well as the adoption of yield curve targeting and quantitative easing monetary programs, continues to argue for a bias towards long duration positions, although as global cases peak and the first wave is brought under control it’s expected there may be some risk asset retracement. In Australia, AMP Capital believes further stimulus measures will be required to maintain the economy’s productive capacity. Given structural issues around an indebted consumer, which will likely see monetary policy constant for an extended period of time, low volatility in Australian rates are expected to continue.

Australian listed property

Australian listed property will likely continue to be subject to near-term volatility, which is affecting all markets, due to the impact of extensive COVID-19 containment measures on economic activity. Social distancing will continue to impact the retail segment although foot traffic and consumer confidence are starting to improve as containment measures are lifted. Residential is likely to come under pressure over the near-term as employment becomes increasingly uncertain, however the Federal Government’s HomeBuilder scheme will likely limit falls and potentially shorten the duration of the downturn in the residential cycle. Offices should be more resilient as office leases are generally long term, however this could be disrupted as businesses choose to embrace technology for their requirements, allowing staff to work from home more. Industrials should remain robust, especially properties exposed to the expected increases in online shopping and data usage.

As always, while the near-term direction of markets is impossible to accurately predict, AMP Capital generally believes an adequately diversified portfolio will provide sound returns over the long term. Accordingly, it is important that members consider their investment portfolio in the context of their own long-term financial goals and appetite for risk, as well as their investment horizon.

Need more information?

‘Oliver’s Insights’ is a fortnightly article produced by AMP Capital Chief Economist Dr Shane Oliver, and provides key information relating to the latest economic and market developments to keep you up to date. You can find the latest version, as well as an array of other resources to help you manage your money, grow your investments and plan for your future, at amp.com.au/insights.

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Understanding your investment


The fund offers a wide range of investment options for each product managed by a diverse range of investment managers. Please refer to the Investment Options document for your product for the list of investment options available to you.

Aberdeen Asset Management Limited

Acadian Asset Management LLC

Acorn Capital Limited

Advance Asset Management Limited

Allan Gray Australia Proprietary Limited

AllianceBernstein Australia Limited

Alphinity Investment Management Proprietary Limited

AMP Bank Limited

AMP Capital Investors Limited

AMP Life Limited

Antares Capital Partners Limited

Antipodes Partners

APN Funds Management Limited

Ardea Investment Management

Armytage Private Limited

Arnhem Investment Management Proprietary Limited

Arrowstreet Capital Limited Partnership

Aspect Capital Limited

Aurora Funds Management Limited

Ausbil Investment Management Limited

Australia and New Zealand Banking Group

Australian Ethical Investment Limited

Australian Unity Funds Management Limited

AXA Investment Managers Asia Limited

Barrow Hanley Mewhinney & Strauss LLC

Bendigo and Adelaide Bank Limited

Bennelong Funds Management Limited

Bentham Asset Management Proprietary Limited

BlackRock Asset Management Australia Limited

BNP Paribas Asset Management (Australia) Limited

Bridgewater Associates LP

C WorldWide Asset Management

Capital International Inc

Challenger Limited

Charter Hall Holdings Proprietary Limited

Colchester Global Investors Limited

Colonial First State Investments Limited

Cromwell Asset Management

Dalton Nicol Reid

DDH Graham Limited

Dimensional Fund Advisor Australia Limited

Eley Griffiths Group Proprietary Limited

Ellerston Capital Limited

Fairview Equity Partners Proprietary Limited

Fidelity Investments Australia Limited

Firetrail Investments Proprietary Limited

First Sentier Investors

Franklin Templeton Investments Australia Limited

GMO Australia Limited

Goldman Sachs Australia Managed Funds Limited

Grant Samuel Fund Services Limited

Greencape Capital Proprietary Limited

Hyperion Asset Management Limited

Independent Franchise Partners, LLP

Integrity Investment Management

Invesco Asset Management Australia Limited

Investors Mutual Limited

ipac asset management limited

Ironbark Asset Management

Jamieson Coote Bonds Proprietary Limited

Janus Henderson Investors

JP Morgan Asset Management (Australia) Limited

K2 Asset Management Limited

Kapstream Capital Proprietary Limited

Kinetic Investment Partners Limited

L1 Capital

LaSalle Investment Management (Securities), L.P.

La Trobe Financial Asset Management Limited

Lazard Asset Management

Legg Mason Asset Management Australia

Lennox Capital Partners Proprietary Limited

Macquarie Investment Management Limited

Magellan Asset Management Limited

Man Investments Australia Limited

Maple-Brown Abbott Limited

Mercer Investment Nominees Limited

Investment managers


Merlon Capital Partners Proprietary Limited

MFS Investment Management

MHOR Asset Management

MLC Investments Limited

Montgomery Global Investment Management

National Mutual Funds Management Limited

Nikko Asset Management Australia Limited

NovaPort Capital Proprietary Limited

OC Funds Management

OnePath Funds Management Limited

OneVue RE Services Limited

Orbis Investment Management

Pan-Tribal Asset Management

Paradice Investment Management Proprietary Limited

Partners Group

Payden & Rygel Investment Management

Pendal Institutional Limited

Pengana Capital Limited

Perennial Value Management Limited

Perpetual Investment Management

PIMCO Australia Proprietary Limited

PineBridge Investments LLC

Platinum Asset Management

Plato Asset Management Limited

PM Capital Limited

Polaris Capital Management

Premium China Funds Management

Principal Global Investors (Australia) Limited

Putnam Investments

RARE Infrastructure Limited

Resolution Capital Limited

Robeco Hong Kong Limited

Russell Investments

Schroder Investment Management Australia

Select Asset Management

SG Hiscock & Company Limited

Solaris Investment Management Limited

Spheria Asset Management Proprietary Limited

State Street Global Advisors

Stewart Investors

T. Rowe Price International Limited

Talaria Asset Management

Templeton Asset Management Limited

Threadneedle Investments

UBS Global Asset Management (Australia)

Vanguard Investments Australia

Vertium Asset Management Proprietary Limited

Walter Scott & Partners Limited

Watermark Funds Management

WaveStone Capital Proprietary Limited

Winton Capital Management Limited

Yarra Capital Management

Zurich Investment Management Limited


Investment options

Over the course of the year, a number of investment options were closed or terminated.

We regularly monitor and review all investment options on menu, and may make changes to the status of an investment option in light of the outcome of those reviews. In some cases, underlying fund managers may also elect to no longer offer a particular strategy, which can also result in a closure or termination of an investment option.

For more information, please refer to the relevant product investment options document.

Soft-closed investment options

Over the course of the year, the following investment options were soft closed across all relevant products within the fund. This means that existing investors can continue to hold the assets and transact as normal, however the fund is not accepting applications from any new investors.

Investment option APIR code Effective date of change

Aberdeen Advantage Emerging Opportunities Fund AMP9144AU 27/03/2020

Aberdeen Standard Australian Fixed Income Fund CRS0004AU 27/05/2020

Aberdeen Standard Emerging Opportunities Fund ETL0032AU 27/05/2020

AMP Capital Advantage Core Infrastructure Fund AMP8292AU 31/08/2020

AMP Capital Advantage Corporate Bond Fund AMP7750AU 31/08/2020

AMP Capital Advantage Global Property Securities Fund AMP3259AU 31/08/2020

AMP Capital Australian Equity Fund AMP0445AU 8/07/2019

Antares High Growth Shares Fund PPL0106AU 16/09/2019

Australian Ethical Australian Shares Fund AUG0018AU 26/03/2020

Cromwell Direct Property Fund CRM0018AU 19/05/2020

Ironbark Copper Rock Emerging Markets Opportunities Fund MGL0019AU 2/07/2019

Macquarie Asia New Stars No.1 Fund MAQ0640AU 27/03/2020

NovaPort Microcap Fund HOW0027AU 1/04/2020

Pendal Core Global Share Fund RFA0821AU 19/02/2020

Pendal International Share Fund BTA0056AU 19/02/2020

Pengana Emerging Companies Fund PER0270AU 27/05/2020

Perpetual Wholesale Ethical SRI Fund PER0116AU 16/09/2019

Perpetual Wholesale Smaller Companies Fund PER0048AU 26/03/2020

Perpetual’s PST – Smaller Companies Share Option PER0062AU 26/03/2020

Schroders Asia Pacific Fund SCH0006AU 12/09/2019

SG Hiscock Property Fund CRS0007AU 27/05/2020

SG Hiscock Property Opportunities Fund HBC0008AU 6/12/2019

UBS Australian Small Companies Fund UBS0004AU 8/07/2019


Hard-closed investment options

Over the course of the year, the following investment options were hard closed across all relevant products within the fund. Similar to a soft closure, this means that existing members can continue to hold the assets, however the fund will no longer accept money from existing investors or applications from new investors.

Investment option APIR code Effective date of change

AB Advantage Dynamic Global Fixed Income Fund AMP2066AU 31/08/2020

Aberdeen Advantage Emerging Opportunities Fund AMP9144AU 31/08/2020

Alphinity Advantage Australian Share Fund AMP2072AU 31/08/2020

Antipodes Advantage Global Share Fund AMP9989AU 31/08/2020

Arrowstreet Advantage Global Equity Fund AMP8663AU 31/08/2020

Ausbil Advantage 130/30 Focus Fund AMP9620AU 31/08/2020

Bennelong Advantage ex-20 Australian Equities Fund AMP9163AU 31/08/2020

Bentham Advantage Global Income Fund AMP2068AU 31/08/2020

DNR Capital Advantage Australian Equities High Conviction Fund AMP2076AU 31/08/2020

Fidelity Advantage Australian Equities Fund AMP6702AU 31/08/2020

Grant Samuel Epoch Advantage Global Equity Shareholder Yield Fund AMP2078AU 31/08/2020

Invesco Advantage Wholesale Global Targeted Returns Fund AMP5581AU 31/08/2020

Ironbark Karara Advantage Australian Share Fund AMP2074AU 31/08/2020

Janus Henderson Advantage Tactical Income Fund AMP8287AU 31/08/2020

Kapstream Advantage Absolute Return Income Fund AMP8634AU 31/08/2020

La Trobe Australian Credit Fund LTC0002AU 24/06/2020

Lazard Advantage Global Listed Infrastructure Fund AMP5018AU 31/08/2020

Legg Mason Martin Currie Advantage Australian Real Income Fund AMP3087AU 31/08/2020

Legg Mason Martin Currie Advantage Equity Income Fund AMP2113AU 31/08/2020

Magellan Advantage Global Fund AMP2080AU 31/08/2020

Merlon Advantage Wholesale Australian Share Income Fund AMP8760AU 31/08/2020

NAM Advantage Australian Share Income Fund AMP6202AU 31/08/2020

Perennial Value Advantage Income Wealth Defender Fund AMP2084AU 31/08/2020

PIMCO Advantage Diversified Fixed Interest Fund AMP2082AU 31/08/2020

RARE Advantage Infrastructure Value Fund – Hedged AMP2070AU 31/08/2020

Schroder Advantage Australian Equity Fund AMP5683AU 31/08/2020

Schroder Advantage Fixed Income Fund AMP7635AU 31/08/2020

Walter Scott Advantage Global Equity Fund AMP5356AU 31/08/2020

Zurich Investment Advantage Global Growth Fund AMP5813AU 31/08/2020


Termination of investment options

The following investment options have been terminated either by the trustee or the underlying fund manager from the product which they were available.

Investment option APIR code Change Effective date of change

Advance International Fixed Interest Multi Blend Fund ADV0067AU Termination 26/07/2019

Advance International Sharemarket Fund ADV0047AU Termination 26/07/2019

Aberdeen Standard Active Index Income Fund CSA0130AU Termination 2/04/2020

Aberdeen Standard Inflation Linked Bond Fund CRS0008AU Termination 6/02/2020

AMP Capital Blue Chip AMP0695AU Termination 16/09/2019

AMP Capital Future Directions International Bond FundAMP0677AU and

AMP0676AUTermination 2/04/2020

AMP Capital Wholesale Global Equity Growth Fund NML0318AU Termination 5/06/2020

Cromwell Australian Property Fund CRM0020AU Termination 24/03/2020

Global All Weather Fund – Class B Units BPF0003AU Termination 11/10/2019

Global Pure Alpha Fund – Class B Units BPF0006AU Termination 11/10/2019

Invesco Wholesale Global Property Securities Fund (Hedged) GTU0041AU Termination 22/01/2020

ipac Pathways Australian Property Securities IPA0050AU Termination 22/01/2020

Ironbark Global Property Securities MGL0011AU Termination 22/01/2020

Ironbark LHP Global Long Short Fund HFL0108AU Termination 30/03/2020

K2 Australian Absolute Return Fund KAM0101AU Termination 1/11/2019

Kinetic Emerging Companies Fund HOW0036AU Termination 16/03/2020

Macquarie True Index Listed Property Fund MAQ0219AU Termination 17/01/2020

Mercer Diversified Alternatives Fund MIN0026AU Termination 11/10/2019

MHOR Australian Small Caps Fund ETL0030AU Termination 20/09/2019

Morningstar Aggressive Real Return Fund Class A INT0040AU Termination 29/07/2019

OnePath WS Super Capital Stable MMF0028AU Termination 25/05/2020

OnePath WS Super Managed Growth MMF0027AU Termination 5/06/2020

Pendal Asian Share Fund BTA0054AU Termination 30/03/2020

Pendal Wholesale Japanese Share Fund BTA0130AU Termination 30/03/2020

PIMCO Global Real Return Fund ETL0020AU Termination 18/12/2019

Premium China Fund MAQ0441AU Termination 30/03/2020

Russell Intl Property Securities $A Hedged Class A Fund RIM0031AU Termination 27/03/2020

SGH LaSalle Global Listed Property Securities Fund ETL0005AU Termination 22/01/2020

T.Rowe Price Asia ex-Japan Fund ETL0160AU Termination 3/06/2020

Templeton Global Equity Fund FRT0004AU Termination 30/03/2020

Watermark Market Neutral Trust WMF0001AU Termination 30/10/2019

Zurich Equity Income Fund ZUR0538AU Termination 8/11/2019


Asset holdings greater than 5%

As at 30 June 2020, no investments held over 5% of the funds assets.

Net earnings – rate of return

Earnings on investments are reflected by a change in capital value plus any distributions, dividends and interest. Income distributions are generally paid into the cash account. The wide choice of individual investments available to members means that earnings and performance vary from member to member. Please refer to your annual statement/investor report (as applicable) for information about the earnings and performance of your particular investments. For further information please contact your financial adviser.

Annual update to the underlying costs of investment options

Fund managers are required to review and, if necessary, update estimates of management costs and transactional and operational costs based on the last financial year of the fund.

Any revised estimates may include costs that haven’t previously been disclosed. In addition, estimates of costs that have previously been disclosed may have changed.

Fund managers also regularly review the fund’s buy/sell spreads. Depending on the investment option(s) you hold, the underlying fund’s buy/sell spreads may have changed.

For more detailed information about the fees and costs of a particular investment option, refer to the underlying investment option’s PDS. Visit the website set out in the back of this document for your relevant product, to obtain the most up-to-date copy of the PDS provided by the relevant fund manager, or contact your financial adviser.

Securities must satisfy the trustee’s approval criteria

With the expanded number of listed investment companies (LICs), listed investment trusts (LITs), exchange traded funds (ETFs), exchange traded managed funds, and listed bonds now on the market, we have now provided access to more types of securities for you to choose from. To ensure we meet our obligations under its investment policies and superannuation law, these securities (for example LICs and LITs) must satisfy our approval criteria before they can be offered on the products’ investment menus.

Please speak to your financial adviser for a list of the investment options available to you.

Account balances during the distribution period

Please be aware that if you hold managed funds, it’s common for some accounts to display a negative earning during fund distribution periods. This is caused by unit prices decreasing when a distribution has been declared by the fund manager as the net assets of the portfolio are reduced by the distribution amount.

Once the distribution is paid, the negative earnings will be offset by the distribution. Also note that unit prices do not update while distributions are being calculated by the fund managers.

Typically, distributions are paid by the last week of the month following the close of the distribution period.

Annual report 2019/20 Wealth Personal Superannuation and Pension Fund36

Important information about the fund


Important information about the fund

Transfers to AMP Eligible Rollover Fund

If we can’t locate you, or if your account has been closed and we need to make a compensation payment to you, we may establish an account in the AMP Eligible Rollover Fund for you in which to deposit these funds.

The AMP Eligible Rollover Fund is managed by AMP Life which is now owned by Resolution Life Group. Having an account created in the AMP Eligible Rollover Fund means:

– you’ll become a member of the AMP Eligible Rollover Fund and be subject to its governing rules

– your benefits will be invested in a capital guaranteed ‘participating’ life insurance policy issued to Equity Trustees Superannuation Limited by AMP Life

– your returns (by way of a crediting rate) are credited annually to your AMP Eligible Rollover Fund account based on your daily account balance and are guaranteed by AMP Life to never be negative. Crediting rates are determined after deducting fund expenses from the net investment returns allocated to the member. For the latest AMP Eligible Rollover Fund crediting rates visit amp.com.au/erf or call AMP Life on 133 731, and

– no insurance cover is available.

The PDS for the AMP Eligible Rollover Fund is issued by Equity Trustees Superannuation Limited. You can obtain a copy of the PDS by asking your financial adviser, visiting amp.com.au/erf or by calling AMP Life on 133 731.

If you have an account in the AMP Eligible Rollover Fund you’re advised to consider the PDS and to consult a financial adviser to determine how appropriate an investment in the product is to your objectives, financial situation and needs.

Contact details for AMP Eligible Rollover Fund are:

AMP Eligible Rollover Fund PO Box 300 PARRAMATTA NSW 2124

Phone: 133 731

Fax: 1300 301 267

Unclaimed super money

If an amount is payable to you or your dependant and we are unable to ensure that you or your dependants will receive it, we may be obliged to transfer the amount to the ATO.

If your super is transferred to the ATO, you, or your dependants where relevant, will be able to reclaim it from the ATO. The ATO may also transfer money it holds into your ‘active’ super accounts.

For more information on unclaimed super money, including lost members and inactive low balance members please refer to ato.gov.au or speak with your financial adviser.

Temporary residents

If you have entered Australia on an eligible temporary resident visa, you may withdraw your super benefits once you have permanently left Australia.

If you don’t withdraw your super benefits within six months of leaving Australia or your visa expiring, we may be required to pay your benefit to the ATO. You won’t receive notification or an exit statement from your super fund. If this has occurred, you can claim your super money from the ATO. For more information visit ato.gov.au.

This does not apply to Australian citizens, Australian residents or New Zealand residents and is limited to eligible visa holders.

Significant event notice register

This register provides a summary of significant event and material change notifications issued to members of the Wealth Personal Superannuation and Pension Fund on behalf of NM Super for the last two years. The register is provided for information purposes, as required by legislation. All affected members are contacted directly within the timeframe prescribed by legislation and provided with additional information, as appropriate. You can view this online at amp.com.au/trustee-information.

Indemnity insurance

We maintain indemnity insurance for protection against losses that may occur as a result of a claim against it for breach of professional duty.

https://amp.com.au/erf

https://amp.com.au/erf

https://www.ato.gov.au/

https://www.ato.gov.au/

https://amp.com.au/trustee-information


Complaints

Complaints are very important to us and we’re committed to resolving them as quickly as possible.

If you wish to make a complaint you can contact us in writing or by phone using the contact details on the back page of this document.

If you make a complaint, we’ll resolve it through our internal dispute resolution process within the required timeframe.

If you aren’t satisfied with the outcome, you can either:

– refer your complaint to the Australian Financial Complaints Authority (AFCA), or

– ask the AMP Customer Advocate for assistance. You don’t need to go to the AMP Customer Advocate first, you can go straight to AFCA if you prefer. Details about both options follow.

Australian Financial Complaints Authority (AFCA)

AFCA is an independent body that provides a fair and free complaint resolution service for financial complaints made by consumers and small businesses about financial firms. The contact details for AFCA are:

Australian Financial Complaints Authority GPO Box 3 MELBOURNE VIC 3001 AUSTRALIA

Phone: 1800 931 678

Email: [email protected]

Website: afca.org.au

There may be a time limit for referring your complaint to AFCA. You should contact them or visit their website for more details.

AMP Customer Advocate

The AMP Customer Advocate can review your complaint to ensure the outcome is fair and reasonable. You won’t be disadvantaged in any way if you ask the AMP Customer Advocate to review your complaint. The contact details for the Customer Advocate are:

AMP Customer Advocate Level 6, 33 Alfred Street SYDNEY NSW 2000

Email: [email protected]

You can still refer your complaint to AFCA if you aren’t satisfied with the outcome provided by the AMP Customer Advocate.

Enquiries

If you need additional information about the operation or management of your product, you can contact either your financial adviser or us, using the contact details that appear on the back page of this document.

https://www.afca.org.au/

Annual report 2019/20 Wealth Personal Superannuation and Pension Fund 39

Governance


The trustee

The trustee board

The role of the superannuation trustee

The fund is overseen by a board of directors, the trustee board, which is responsible for all aspects of the operation of the fund. This includes ensuring the fund is properly administered in accordance with the trust deed and policy documents, that the fund complies with relevant legislation, that all members’ benefits are calculated correctly, and that members are kept informed about the operations of the fund.

The trustee board comprises mostly of independent non-executive directors (not employees of AMP), who represent the ‘voice of the member’. The trustee company is N.M. Superannuation Proprietary Limited (NM Super).

Trustee obligations

We are subject to a range of legal and regulatory duties. These are primarily set out in:

– The trust deed of the fund

– SuperannuationIndustry(Supervision)Act1993 (SIS Act)

– CorporationsAct2001, and

– APRA Prudential Standards and Guidelines.

The trust deed

The trust deed sets out the governing rules for the operations of the fund. We may amend the trust deed following changes to super law or to introduce new features.

For a copy, please contact us, or download it from amp.com.au/trustee-information.

Board committees

The trustee board has established a number of board committees to assist it in carrying out its responsibilities. The board committees and their responsibilities are described below.

Audit committee

The audit committee assists the board with the review and oversight of the effectiveness of the financial reporting framework, the internal audit function, and the external audit of NM Super. It also has oversight of the adequacy and effectiveness of NM Super’s financial management frameworks including professional accounting and financial reporting systems, and internal controls.

Risk committee

The risk committee assists the board with the review and oversight of the implementation and operation of the risk management framework of NM Super. This includes overseeing the establishment, implementation and operation of NM Super’s risk management framework and strategy, and monitoring NM Super’s risk profile.

Investment committee

The investment committee assists the board in the selection, management and monitoring of investment service providers and investments. This includes the monitoring and management of investment risk that’s aligned with the best interests of members and beneficiaries, and our business plan and strategic objectives.



Our investment objectives

One of the main investment objectives is to achieve investment returns which meet or exceed stated targets for each specific investment option relating to a member’s interest in the fund. The SIS Act requires us to have an investment strategy in place in order to meet the investment objectives, taking into account issues such as investment risk and liquidity. Importantly, we must be able to demonstrate that the strategy is being followed.

The investment strategy for the fund is to offer a range of discretionary investments that members can select from in line with their attitudes towards risk. The discretionary investments are made up of managed funds, term deposits and listed securities. An investment committee reviews and approves all investment options offered through the fund.

Other than the Protected Investment and Protected Growth guarantees available on North and MyNorth, we do not invest directly in derivatives. The Protected Investment and Protected Growth guarantees selected by members are issued by National Mutual Funds Management Limited ABN 32 006 787 720 AFSL No. 234652 (NMFM). However, underlying fund managers may do so.

Derivatives are securities that derive their value from other assets or indices. Most derivatives are characterised by high leverage, which means large profits and losses can occur due to movements in the underlying asset’s price or index value. Examples of derivatives include futures, options and swaps.

Members are required to direct us to invest their total assets into the managed funds, term deposits and/or listed securities offered on each product. The options available for selection are available in each product’s disclosure documentation, available at the website set out in the contact details at the end of this document for your relevant product.

The specific investment objectives and strategies for each investment option offered by the fund is documented in the underlying fund manager’s PDS for the managed funds or in the direct security company disclosure document for each direct security.

Annual members’ meeting

We are excited to announce the inaugural Annual Members’ Meeting (AMM) will be held via webcast in February 2021. The AMM will provide an opportunity for all members to receive important updates about the fund and ask questions. You will receive an invitation in late 2020.

Further information

Further information about the trustee, including governing policies, can be found at amp.com.au/trustee-information.



Our strategy

Our purposeDeliver sustainable and

enhanced outcomes for members

Our visionTo operate with autonomy and objectivity in providing the best possible retirement

outcomes for members

Strategic objectives

Enhanced member outcomes and

experience

Competitive product and investment

outcomes

Autonomous and effective trustee

Operational excellence

Member-first culture and capability

Key member outcome priorities

– Simplified product and service offer to members which supports whole-of-life stages

– Improve member engagement and satisfaction

– Effective reduction and resolution of member complaints

– Improve insurance outcomes for members

– Improve risk-adjusted net investment performance for members

– Champion member outcomes and competitiveness in relation to benchmark and peers

– Enhance trustee capability and oversight to affect change and influence product decisions

– Improve member satisfaction and advocacy of the trustee’s role and value-add in delivering member outcomes

– Elevate the AMP brand and reputation in super and retirement across the community and industry

– Strengthen relationships and trust with key regulators

– Ensure a sustainable cost base to deliver targeted member outcomes

– Improve the control environment to reduce the number of issues, incidents and breaches

– Ensure a robust performance baseline to track and improve operational performance

– Strengthen board and trustee office capability to represent members’ interests

– Embed trustee-first culture as a super provider

– Enhance super business risk culture

AMP trustee board strategy

As the trustee of the fund where your super account is held, we’re responsible for developing and implementing strategies to manage members’ super savings. These strategies have to align with our purpose and our vision, and also be in the best interest of members as a whole.


Board meetings(i)

Audit committee meetings

Risk committee meetings

Trustee Investment Committee (TBIC) meetings

Director Number of meetings

held while a member

Number of meetings attended while a

member

Number of meetings

held while a member


member

Number of meetings

held while a member


member

Number of meetings

held while a member


member

Tony Brain Chair 44

44 (Interim

Chair)5 5 2

2 (1 Chair)

n/a n/a

Darryl Mackay Non-Executive Director

44 44 55

(Chair)n/a n/a n/a n/a

Stephen RobertsIndependent Non-Executive Director

43 43 n/a n/a n/a n/a 1514

(1 Chair)

Catherine McDowell Independent Non-Executive Director

43 36 n/a n/a 55

(4 Chair)n/a n/a

Paul Scully Independent Non-Executive Director

34 32 n/a n/a n/a n/a 1514

(Chair)

Kerrie Howard Independent Non-Executive Director

34 34 3 3 3 3 n/a n/a

Sarah Brennan Independent Non-Executive Director

34 34 n/a n/a 3 3 n/a n/a

Alex Wade Former Director (resigned August 2020)

27 25 n/a n/a n/a n/a 15 12

(i) A significant number of additional board meetings were held during the year to provide oversight to the activities associated with the fund transfer and the separation and subsequent sale of the AMP group’s mature and insurance business.

Board meetings


Directors of the board

QualificationsBachelor of CommerceChartered Accountant in Australia and New ZealandASFA Certificate IV SuperannuationGraduate of the Australian Institute of Company DirectorsFellow of the Australian Institute of Superannuation Trustees

MembershipsMember of the Council of Victoria UniversityMember of Finance & Investment Committee of Victoria UniversityMember of Company Auditors Disciplinary BoardMember of Finance, Audit & Business Risk Committee of The Alannah & Madeline FoundationMember of the Risk and Finance Committee of the Magistrates Court of VictoriaDirector of Monash Health (Victoria)

Tony was appointed as an Independent Director of N.M. Superannuation Proprietary Limited and AMP Superannuation Limited in September 2018. At the time of his appointment he also joined the Board Audit Committee for each of the trustee companies. Tony was appointed as Interim Chair of the boards in May 2019 and was subsequently appointed as Chair of the boards effective 1 November 2020.

ExperienceTony is a Chartered Accountant, with over 30 years’ experience in both Australia and the UK. This experience has included 28 years with Deloitte Touche Tohmatsu, 12 of which as Partner responsible for the provision of assurance and advisory services to various clients in the financial services industry. Following this, Tony was Head of Risk Management at AustralianSuper for nearly three years. He has various board-related experience including as the director of the trustee board of the Royal Australian College of General Practitioners Superannuation Fund, Chair of the trustee board of the Deloitte Superannuation Fund and Chair of a superannuation fund acting trustee through formal appointment by APRA.

Tony was appointed as a member of the Company Auditors Disciplinary Board in August 2017 and serves as a member of Victoria University’s Council, a member of its Finance and Investment Committee and an observer at its Compliance, Audit and Risk Committee.

He joined the Finance, Audit & Business Risk Committee of the Alannah & Madeline Foundation, which strives to keep children safe from violence, in October 2018.

QualificationsBachelor of ScienceFellow of the Institute of Actuaries Australia

MembershipsMember of the Australian Institute of Company Directors

Darryl remained on the board of directors as a director following his retirement from AMP Limited in July 2013. He joined AMP in March 2011 from AXA Asia Pacific Holdings Limited, as Head of Secretariat and Company Secretary for AMP Limited. Darryl, a qualified actuary with 38 years’ experience in the financial services industry, was appointed as a director of N.M. Superannuation Proprietary Limited in April 1995 and as a director of AMP Superannuation Limited in April 2012.

ExperienceIn his 33 years at AXA, Darryl held a range of senior roles, including Company Secretary and General Manager in the Group Chief Executive’s office, General Manager Group Human Resources, Deputy Chief Executive International and as a director of various subsidiaries.

Tony BrainChair

Darryl MackayNon-Executive Director



Qualifications

Bachelor of BusinessMaster of Business AdministrationChartered AccountantGraduate of the Australian Institute of Company Directors

Stephen was appointed as an independent director of N.M. Superannuation Proprietary Limited and AMP Superannuation Limited in July 2019.

ExperienceStephen is a highly regarded CEO and senior executive having been a highly successful business lead with 25 years’ experience in leadership roles across investment management, super and financial services companies. He has a proven track record of successfully leading people and organisations through transformational periods of exceptional growth and change. He also has extensive product, brand and commercial experience in globally-recognised blue chip organisations which put the customer first.

Qualifications

Bachelor of Arts with HonoursDiploma of Management

Catherine was appointed as an independent director of N.M. Superannuation Proprietary Limited and AMP Superannuation Limited in July 2019.

ExperienceIn addition to her board positions with AMP, Catherine currently sits on the boards of Todd Family Office in New Zealand, and Collection House in Australia, where she chairs the Remuneration and Nomination Committee. She is a career banker with specific expertise and experience in international asset management, trusts and super, and private and institutional banking. She has over 30 years of senior executive experience internationally, across USA, Europe, Africa, UK, Australia, and New Zealand, and 15 years of board experience with listed, non-listed and not-for-profit organisations in the UK, Australia and New Zealand.

Her knowledge is both broad and deep across many disciplines including asset and super management in a regulated environment, trustee management, audit and risk management, financial management, change management, and strategy. She has chaired the National Provident Superannuation Fund, the Investment Committee, and been a member of risk and audit committees, and appointment and remuneration committees. Her particular interest and expertise is in super and asset management, and private wealth.

Stephen RobertsIndependent Non-Executive Director

Catherine McDowellIndependent Non-Executive Director



Qualifications

Bachelor of Actuarial StudiesFellow of the Institute of Actuaries AustraliaFellow of the Australian Institute of Company Directors

Paul was appointed as an independent director of N.M. Superannuation Proprietary Limited and AMP Superannuation Limited in November 2019.

ExperiencePaul is a highly-accomplished financial services professional with experience as a non-executive director, CEO and general manager, covering investments, super, insurance, actuarial and broader risk management.

Paul has a deep understanding of the super sector and the fiduciary responsibilities involved in the oversight of funds management and super. From 2004 to 2015, he was a director of SAS Trustees. He was also a director of StatePlus Group (formerly State Super Financial Services Pty Ltd), the financial planning entity for the NSW State Superannuation Fund. From 1996 to 2003, Paul was the CEO and Managing Director of ING Investment Management Asia Pacific. In addition to this, Paul has held various other directorships, been a member of a number of investment, audit, risk and other committees, undertaken consulting assignments, and taught investment management at Macquarie University.

Qualifications

Bachelor of ArtsBachelor of LawsMaster of Business Administration

Memberships

Member of Companies Auditors Disciplinary Board

Kerrie was appointed as an independent director of N.M. Superannuation Proprietary Limited and AMP Superannuation Limited in November 2019.

ExperienceKerrie has extensive senior executive and non-executive director experience in financial services, funds management and super. She specialises in governance, provision of legal advisory services, company secretarial, investments and operational risk and compliance.

As a senior governance consultant for VicSuper, she examined the governance implications for VicSuper of the Banking and Financial Services Royal Commission and the APRA panel review of CBA. Kerrie is a highly experienced General Counsel and Company Secretary and was the General Counsel and Corporation Secretary for Victorian Funds Management Corporation from 2007 to 2017. Before that, she was the General Counsel and Company Secretary for BlackRock Investment Management Australia from 1993 to 2007.

Paul ScullyIndependent Non-Executive Director

Kerrie HowardIndependent Non-Executive Director



Shaune EganDirector, Wrap Products

Responsible for defining and developing the strategic direction of AMP’s wrap platform products and for working across the business to implement and deliver this plan.

The management teamThe AMP management team is responsible for implementing the policies and strategies set by the board, and running the general operations and financial business of the company.

Qualifications

Bachelor of BusinessGraduate of the Australian Institute of Company Directors

Sarah was appointed as an independent director of N.M. Superannuation Proprietary Limited and AMP Superannuation Limited in November 2019.

ExperienceSarah has over 25 years of experience in the financial services industry. She has held senior executive, director and consultant roles in a career covering financial planning, asset management, platforms and super funds, private clients, equity lending, insurance and investment banking.

In 2002, she founded, and was made the managing partner of Comparator Business Benchmarking, a leading provider of benchmarking to Australian financial services markets. Sarah sold Comparator to CoreLogic in 2014, remaining a director until late 2015. Before founding Comparator, Sarah held senior roles in Deutsche Bank, MLC and Citibank. Sarah has held various executive and non-executive directorships and been a member of various board committees, including compliance, audit and risk management and investment committees.

Lara BourguignonManaging Director, Superannuation, Retirement and Platforms

Responsible for defining and delivering AMP’s strategy and propositions for super, retirement and investment customers.

Accountable to the trustee board for the end-to-end super business.

Sarah BrennanIndependent Non-Executive Director


The management team

David ClarkDirector, Master Trust Products

Responsible for defining and developing the strategic direction of AMP’s master trust products and for working across the business to implement and deliver this plan.

Nicole MahanDirector, Wealth Distribution

Responsible for leading the growth and retention of AMP’s wealth portfolio through advisers driving our whole of wealth and retirement propositions.

Ilaine AndersonManaging Director, Workplace Super

Responsible for leading the Workplace Super business and for delivering best-of-breed super and wealth solutions to approximately 30,000 employers and their employees. We are privileged to be of service to 400,000 members and manage $30 billion of their super savings.

Julia PryorChief Risk Officer, Superannuation, Retirement and Platforms

Responsible for driving the key risk initiatives and risk management framework in the Superannuation, Retirement and Platforms business.

Lindsey StewartHead of Wealth Transformation

Responsible for the delivery of all projects and programs impacting the Superannuation, Retirement and Platforms business bringing together regulatory change, growth, cost out and strategic initiatives.


The management team

Lakshman AnantakrishnanChief Investment Officer

Responsible for providing investment management services. This includes investment services to the super trustee under delegation as well as supporting the advice licensees with investment research and portfolio management.

Adrian UrquhartChief Financial Officer

Responsible for aligning AMP’s financial support services, in addition to leading client services, risk and investment governance teams to support the trustee and the fund.

Steve VaidDirector, Client Services

Accountable for delivering support services to over 1.6 million clients and advisers. The teams process over 5 million transactions per year and handle over 1 million customer calls from bases in Parramatta, Sydney, Melbourne, Pune and Bangalore.

Ant DureauChief Client Officer

Responsible for developing the client experience and client value propositions, and creating a centre of excellence for marketing, digital and client analytics.


Super legislation allows us to provide you with abridged financial statements relating to the accounts in this annual report. The following statements have been extracted from the audited accounts of the fund.

A copy of the complete financial statements and auditor’s report may be obtained by contacting us on the numbers listed in the ‘Contact us’ section of this report.

Financial summary


Statement of financial position

The financial position of the fund is that it is able to pay benefits to, or in respect of, members in accordance with the superannuation law.

30 June 2019 $’000 30 June 2020 $’000

Assets

Investments

Investments in equities 2,943,488 2,740,626

Term deposits 1,174,126 950,092

Investments in managed schemes 38,691,454 39,012,431

Other investments 338 18

Total investments 42,809,406 42,703,167

Other assets

Cash and cash equivalents 2,501,979 2,967,448

Receivables 6,272 4,670

Guarantee income receivable 8 382

Other financial assets 108,176 178,511

Total other assets 2,616,435 3,151,011

Total assets 45,425,841 45,854,178

Liabilities

Tax liabilities

Current tax liability 51,180 49,736

Deferred tax liability 152,628 13,772

Total tax liabilities 203,808 63,508

Accounts payable 57,126 52,133

Total liabilities excluding member benefits 260,934 115,641

Net assets available for member benefits 45,164,907 45,738,537

Member benefits

Allocated to members 45,164,907 45,738,537

Total member liabilities 45,164,907 45,738,537

Total net assets - -

Total equity - -


Income statement

30 June 2019 $’000 30 June 2020 $’000

Super activities

Dividends 119,830 77,188

Interest 65,558 48,528

Distributions from managed investment schemes 1,968,279 1,769,707

Changes in assets measured at fair value 913,717 (2,949,564)

Guarantee income 655 1,892

Net gains on other financial assets 32,010 70,336

Other income 6,469 20,993

Total super activities income 3,106,518 (960,920)

General administration expenses

Operating expenses (421,970) (442,311)

Guarantee expenses (25,524) (23,567)

Total expenses (447,494) (465,878)

Net result from super activities 2,659,024 (1,426,798)

Profit from operating activities 2,659,024 (1,426,798)

Less: Net benefits allocated to members' accounts (2,682,357) 1,155,392

Loss before income tax (23,333) (271,406)

Income tax benefit 23,333 271,406

Net profit / (loss) - -


Statement of changes in members’ benefits

30 June 2019 $’000 30 June 2020 $’000

Opening balance of member benefits 42,085,098 45,164,907

Employer contributions 639,356 693,680

Member contributions 1,193,858 1,210,252

Transfers from other super plans 4,345,717 5,538,743

Income tax on contributions (104,467) (128,512)

Net after tax contributions 6,074,464 7,314,163

Benefits to members / beneficiaries (2,793,755) (3,001,189)

Transfers to other super plans (2,778,299) (2,522,833)

Insurance proceeds received from insurer 42,430 68,644

Insurance premiums charged to members' accounts (147,388) (129,763)

Net benefits allocated to members' accounts, comprising:

Net investment income 3,106,518 (689,515)

Administration fees (424,161) (465,878)

Closing balance of member benefits 45,164,907 45,738,537


30 June 2019 $’000 30 June 2020 $’000

Cash flows from operating activities

Dividends and distributions from managed investment schemes received 2,079,602 1,640,004

Interest received 63,492 157,995

Guarantee income received 648 1,518

Operating expenses paid (413,431) (444,964)

Guarantee expenses paid (25,651) (23,886)

Other income received 6,483 20,954

Income tax refund 73,256 119,824

Net cash inflows from operating activities 1,784,399 1,471,445

Cash flows from investing activities

Proceeds from sale of investments 9,245,935 9,798,736

Payments for purchase of investments (11,305,078) (12,492,372)

Net cash outflows from investing activities (2,059,143) (2,693,636)

Cash flows from financing activities

Employer contributions received 639,356 693,680

Member contributions received 1,113,050 1,127,773

Transfer from other super plans received 4,284,680 5,450,221

Benefits paid to members / Transfers to other super plans (5,475,730) (5,404,742)

Income tax paid on contributions received (96,508) (117,168)

Insurance premiums paid (147,424) (130,748)

Insurance proceeds received 42,430 68,644

Net cash inflows from financing activities 359,854 1,687,660

Net increase in cash held 85,110 465,469

Cash and cash equivalents at the beginning of period 2,416,869 2,501,979

Cash and cash equivalents at the end of period 2,501,979 2,967,448

Statement of cash flows


2949

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Contact us

North Service Centre

phone 1800 667 841 from 8.30am to 7pm (Sydney time), Monday to Friday

web northonline.com.auemail [email protected] North Service Centre

GPO Box 2915 MELBOURNE VIC 3001

PortfolioCare


web amp.com.au/portfoliocareemail [email protected] PortfolioCare

PO Box 7229 PERTH CLOISTERS SQUARE WA 6000

WealthView


web amp.com.au/wealthviewemail [email protected] WealthView c/- Asgard

GPO Box C113 PERTH WA 6839

https://www.northonline.com.au/

https://amp.com.au/portfoliocare

https://www.amp.com.au/wealthview

Documents

Annual report 2019/20 - AMP · – ‘AMP Life’ means AMP Life Limited (ABN 84 079 300 379, AFSL No. 233671) and is part of the Resolution Life Group – ‘Resolution Life Group’