Viewpoint February 2017 (1) - test.clearview.com.au

Viewpoint Edition 1, 2017 1

Make this year a good oneWelcome to the first edition of Viewpoint for 2017. To help you get the year off to a great start we have some valuable insights and guidance in the selection of articles inside.

Superannuation has been in the news recently with many rule changes ahead, but nothing changes the fundamental importance of super to your financial planning. With that in mind, our article on how key life events can impact your super highlights the importance of being pro-active in planning for retirement and being engaged with your financial adviser.

Similarly, our story on the stages of financial life highlights the general priorities and opportunities that we need to respond to as we move through life.

Buying insurance can be complex, but our article on the key questions you should be asking before you buy will hopefully help make things clearer.

If you are looking to be more organised this year, take a look at our article on time management and pick up some valuable tips on making the most of every day.

I hope the year will be a successful and fulfilling one for you.

ViewpointAdvice. Life. Investments. Superannuation and Retirement. Edition 1, 2017

Simon SwansonMANAGING DIRECTOR

This newsletter is intended to provide factual and general information only. The information has been prepared without taking into account any particular person’s objectives, financial situation or needs. Before acting on such information, you should consider the appropriateness of the information having regard to your personal objectives, financial situation or needs. ClearView recommends that you obtain personal financial advice and read the relevant Product Disclosure Statement before making any decision about a product. This information does not in any way constitute tax or legal advice and before relying on this information, you should seek independent expert advice. While we have taken all care to ensure the information in this newsletter is accurate and reliable, to the extent the law permits we will not assume liability to any person for any error or omission in the newsletter however caused.

Taking out cover can be a difficult and confusing experience given the plethora of products available. Here are some tips on how to avoid common traps and pitfalls.

Buying Insurance: Mistakes to avoid

Continued page 2

2 Viewpoint Edition 1, 2017

Buying insurance

Whether it’s home, car, health or life insurance, ‘one size doesn’t fit all’. Matching your needs to the right type of cover can be a complex business, so it pays to go in with eyes wide open and seek professional advice.

How do you know how much coverage you need?

Before you begin to compare policy benefits and costs, first make a realistic assessment of how much coverage you need. Underestimating cover is a common mistake that leaves many people in a lot of trouble in the unfortunate event of a claim.

In the case of home insurance, underestimating the right amount of cover to replace your belongings or the building may actually mean that you are unable to claim for the full value of any loss. For example, if your home value is $500,000 and you’re only insured for $250,000 (ie 50% of real value), then your insurer can only pay out a maximum of 50% of the amount you potentially need.

Making a proper assessment is particularly vital when it comes to your personal life and disability insurance, since the amounts of cover required can often be a lot higher than you think and the risks of leaving yourself short can have disastrous consequences on the livelihood and financial security of your family. Some may think that a couple of hundred thousand in life cover sounds like a lot, but if there is a $300,000 mortgage, two kids in school and $3,000 in monthly living expenses involved, then $200,000 could be inadequate if the breadwinner can no longer provide an income.

Questions to ask before buying a policy

Do you really know what you are purchasing when you buy insurance? A few simple questions can be very revealing. You should reconsider buying a policy if the answers to these questions do not satisfy you.

• What are the exact circumstances that will qualify for a claim?

• What events are specifically excluded from making a claim?

• What are the specifics on definitions – for example, on an income protection policy, how is “Total Disability” defined?

• Is renewability guaranteed, or does the insurer have discretion to arbitrarily withdraw cover at any time?

• What additional benefits are available apart from the main benefit? To use the example of income protection again - are there additional benefits paid for rehabilitation expenses, hospitalisation, specific injuries or waiver of premiums during claim?

• Are cover increases offered regularly or are benefits indexed to inflation?

Never shop on price alone

As the list above may suggest, the old adage that ‘you get what you pay for’ is especially true when it comes to insurance. A

‘too good to be true’ price may mean there are limitations and exclusions on cover that may only be discovered when you come to claim. There is a big difference between comparing the cost of a policy and its actual value.

A classic example can be found in the area of income protection where policies often known as “sickness and accident” or “personal accident” may have low premiums, but will have no guarantee of renewability if your health or occupation changes. Beware also of a limitation of perhaps two years on benefit payments and severely restrictive claim definitions.

Professional help removes the worry

When it comes to your personal life and disability insurances, enlisting an adviser to help assess your cover requirements and the relative merits and costs of different policies can be an invaluable advantage. The experience and research capability of a ClearView financial adviser can take all the worry out of the process and ensure you achieve the dual goals of maximising quality of cover, while minimising costs.

Life Insurance

Continued from page 1

Talk to your ClearView financial adviser today to help put in place an insurance protection strategy to suit you or call us on 132 977.


Market Update

There have been no shortage of unexpected events in 2016. For example, Britain decided that national sovereignty was more important than European economic union, and chose to leave Europe via “Brexit” and America decided it needed a president with a very different agenda to make changes to its political system.

Financial markets had some pretty big swings throughout the year, partly because of political upheaval, but overall it ended the year on a high note.

In investing we have charted a fairly steady course over the past 12 months. There have been some changes, particularly to the fixed income portion of our portfolios, which were beneficial for performance. Otherwise the portfolios have remained fairly stable.

Looking forward we see the key issue being the delicate balancing act between the good news in a strongly recovering US economy; and the challenge that share markets may face (particularly in the US) as interest rates start to rise.

We intend to continue to focus on managing risks, as well as seeking return, when investing your portfolio in the coming year.

Justin McLaughlin

CHIEF INVESTMENT OFFICER

Talk to your financial adviser today to see how the current market may affect you.

Charting a steady course


Financial Advice

Setting out the characteristics of various life stages can be a useful way to help highlight financial issues and priorities. Of course this will vary from person to person, but the general foundation this provides is something we can all build upon.

Early yearnings

During our twenties and into our thirties most of us will experience many firsts, which will all have a profound impact on our financial future and will require a planned response if we are to take full advantage. Our early employment brings with it the chance to establish some sound savings habits that can last a lifetime and can fuel wealth creation.

Finding a life partner brings greater responsibilities and expenses along with increased income and assets. This requires a higher level of financial planning so that life, income protection and disability insurances are put in place to help protect each other’s livelihoods and savings plans are put in place to build toward major goals, such as buying a home or travelling.

Starting a family and buying a home in this phase will also require protection plans to be well established as a priority.

From an investment standpoint, your early years are an opportunity to incorporate growth assets such as shares and property into your wealth creation strategy, given the amount of time you will have to take advantage of their greater growth long term growth potential (assuming this also fits your personal risk profile).

Middle aged consolidation

Hopefully your income will be increasing, but your expenses may also be burgeoning as children grow, education costs escalate and perhaps the family home is upscaled. This puts an increased emphasis on budgeting so that debts and expenses are kept in check and a longer term savings and investment plan is in place.

Superannuation needs to be given adequate attention too, as your super assets will likely be growing and thus giving you more scope to diversify the way they are invested.

Protection needs during this stage will peak, to cover the growing of family expenses and mortgage commitments. Neglecting this important aspect of financial planning could result in financial catastrophe if breadwinners and homemakers are not adequately insured.

The financial stages of lifeWhile no two people will have identical life experiences, it is possible to follow some general guidelines on how our financial lives will progress through different stages.


Cresting the hill

Assumedly, the nest will begin to empty, mortgage expenses will reduce and insurance needs will begin to taper. These factors can create an increase in discretionary income and an opportunity to supercharge important investments. This could include loading your superannuation to maximise concessional limits and expanding your property, share and managed fund portfolios, so that dreams of financial independence can start to become reality.

This is also a time when we should be looking at positioning our assets to take full advantage of the tax opportunities that present themselves in the run up to retirement.

Relishing retirement

Stepping into retirement should hopefully be stress-free if you’ve planned carefully. You should ideally enjoy the well-earned fruits of your labour but this requires careful structuring of your portfolio, using a combination of growth and income based investments and income stream plans, as well as planning the liquidity needed for major purchases and lifestyle experiences. At the same time your social security position needs to be considered, so that you can take full advantage of entitlements. Passing on your estate to beneficiaries needs due consideration too, so that the wealth you have built is preserved in accordance with your wishes and for the maximum benefit of those who will inherit it.

Why advice is so important

Each life stage has its challenges and complexities and this is where some experienced, professional advice can make all the difference. Your ClearView financial adviser is ready to guide, coach and support you on every twist and turn, so that you can be confident and secure along every stage of the journey.

Financial Advice

Your financial life stages

Retirement

Investment income

Expenses contained

Lifestyle developed

Estate planned

Talk to a ClearView financial adviser today to explore the possibilities for your future or contact us on 132 977.

Empty nest

Discretionary income lift

Expenses tapering

Consolidation

Income rising

Expenses peaking

Growth

Income established

Expenses developed


A summary of the main reforms is provided below comparing the current situation in the 2016/17 financial year with the superannuation laws after 1 July 2017.

Concessional (before tax) Contributions

Concessional cap

Now

$30,000pa or $35,000pa if turning 50 or more this year

1 July 2017

$25,000pa for everyone

30% Contributions Tax

Now

Total income greater than $300,000 pa

1 July 2017

Income greater than $250,000 pa

Deduction for personal contributions

Now

Only self-employed/retired can claim

1 July 2017

Everyone can claim deduction irrespective of employment

Additionally, if your super balance is less than $500,000, you will have the opportunity to carry forward any unused concessional contribution cap into future years commencing 1 July 2018.

Super Reforms

Superannuation reforms become law

As outlined in the last edition of Viewpoint, the Government has announced a range of superannuation reforms impacting super contributions, retirement income streams and transition to retirement pensions. These changes have now become law and most are set to commence from 1 July 2017.


Super Reforms

If you would like to know more about these changes and how they will impact you, talk to your ClearView financial adviser or contact us today on 132 977.

Non-concessional (after tax) contributions

1 July 2017

$100,000 pa or up to $300,000 if under 65

Now

$180,000 pa or up to $540,000 if under 65

Non-concessional cap

Non-concessional contributions can only be made if your total super balance including pension accounts is less than $1.6 million.

Spouse contributions

1 July 2017

Tax offset available if spouse income less than $40,000

Now

Tax offset available if spouse income less than $13,800

Tax benefits for spouse contributions

$1.6 million limit on transferring superannuation to a retirement income account Currently, there is no limit on the amount that can be held in retirement income accounts where there is no tax on the earnings. From 1 July 2017, the maximum amount of superannuation that can be transferred to these accounts will be $1.6m. Those with existing retirement income accounts exceeding $1.6m will be required to transfer the excess amount back to superannuation or withdraw the funds by 1 July 2017.

The current tax exemption on earnings generated from transition to retirement pensions will be removed. Instead, the tax rate on earnings will be 15%.

$2,000,000

superannuation

at retirement

$1,600,000 pension where

earnings tax free

$400,000 remains in super where

15% tax


Plan ahead

It might sound like a no-brainer but it is surprising how many of us never bother to plan the day ahead and wait until the day is upon them before deciding what they will do. Inevitably ‘stuff’ happens and we end up being reactive, rather than allocating time effectively. Planning the day ahead the night before will give you the distance to be objective about time use and eliminate time wastage.

Get in control of your social media

The great modern day time guzzlers of Facebook and Twitter can sap our energy and brain space, so stop hopping on to casually fill in time and allocate specific time for its use instead. Email can also chew up unnecessary hours, so allocate time to attend to it during the day, rather than making it your first port of call.

“Me time”

Whether it is walking the dog, taking a nap or playing a musical instrument, find out what it is that “refuels” your energy levels and gives you mental breathing space and then make sure you schedule that “me time” as a priority in every day.

Consolidate housekeeping tasks

Busy lifestyles can often mean that tasks such as shopping, cooking and cleaning happen in an ad hoc fashion. Consolidating such activities can reap you hours every week, so why not shop once a week instead of daily, cook meals that can be batched and frozen and set aside a specific time of the week for all the cleaning chores.

Lifestyle

Time management tips

Feeling stressed about not having enough hours in the day to get things done? Try these quick tips to get back in control.


Superannuation

Getting married

Tying the knot can change a lot of things in our finances. Budgeting, saving, spending and buying insurance are all issues that we will tend to reappraise as a couple, but super is often left out of calculations. Issues such as the amount of insurance cover you both have in super and beneficiary nominations are critical to avoid surprises later on.

While it is not possible to combine your super funds, it is important that you discuss and coordinate your investment strategies and consider your retirement goals as a couple. This ensures you are on the same page in terms of your expectations of retirement lifestyle and can fund it appropriately.

Having children

If one partner eventually decides to leave work to raise children then this may cause a significant interruption to your super accumulation that should be dealt with. Extra expenses and less income may mean you need to cut back on contributions for a while, but you should plan how this shortfall will be made up by boosting contributions in future years when circumstances allow.

You should also take advantage of any government assistance available on your super, such as the spouse contribution scheme. If your spouse is earning very little or nothing at all, then you may qualify for a rebate of up to $540 p.a. on any contributions you make to their super. Talk to your ClearView financial adviser for further information.

Redundancy

Redundancy is something that many people will unfortunately deal with in an increasingly economically rational world. How you plan your spending and make decisions, regarding employment will likely be top of mind when this occurs, but super should not be left out of the decision making process.

Payments made to you on redundancy can be quite complex to deal with and can have serious taxation consequences. There may be opportunities in relation to using part of your redundancy payment to make super contributions and there may also be issues to deal with in relation to any insurance cover you had in your employer’s super fund.

Life events can impact your super

Superannuation is often a part of our financial planning that is left in the background, but certain life events may mean you need to make some fundamental decisions about it. Here are some key tips on what you may need to consider.

To help deal with all of these issues and to avoid making mistakes, it is important to get sound advice from your ClearView financial adviser or call us on 132 9777.


Performance Tables

Your investment optionsA look at how your investment options have recently performed, organised by investment option and identified by product. For more details contact your financial adviser.

ConservativeAsset Allocation (by %) Products Total Performance Returns (% p.a.)

1 year 2 years 3 years 5 years 10 years

CLEARVIEW PENSION PLAN Start date: 1 Feb 02 Unit price: $1.8094 Fund size: $22.23 mill 3.60 2.35 3.78 4.52 3.72

CLEARVIEW SUPERANNUATION AND ROLL-OVERS Start date: 1 Feb 02 Unit price: $1.5882 Fund size: $5.16 mill 2.67 1.76 3.18 3.73 2.69

CautiousAsset Allocation (by %) Products Total Performance Returns (% p.a.)



CLEARVIEW MANAGED INVESTMENTS Start date: 16 Jan 02 Unit price: $0.9667 Fund size: $8.25 mill 4.64 3.03 4.77 6.14 3.75


PrudentAsset Allocation (by %) Products Total Performance Returns (% p.a.)





5%

7%

5%

5%

8.5%

6.5%

25%

5%5%

40%

5%

35%

15%

5%10%

10%

10%

42.5%

30.5%

4% 4%3%

3%3%

10%15%


Performance Tables

AssertiveAsset Allocation (by %) Products Total Performance Returns (% p.a.)





International EquitiesAustralian EquitiesListed PropertyInternational Fixed InterestAustralian Fixed InterestListed InfrastructureEmerging MarketsCash and Short Term Securities

Asset AllocationPerformance information as at 31 December 2016. Past performance is not an indication of future performance. The value of an investment may rise and fall. ClearView Pension Plan previously known as ClearView Allocated Pension. The asset allocations shown are the target allocations for each fund. Due to market movement and timing of rebalances the actual allocation at any point in time may be up to 2% above or below those displayed.

* Closed to additional/new investments and inward switches.

** Closed to additional/new investments.

^ ClearView Life Assurance Limited guarantees that the price of Guaranteed Cash Units will not fall.

AggressiveAsset Allocation (by %) Products Total Performance Returns (% p.a.)





Guaranteed CashAsset Allocation (by %) Products Total Performance Returns (% p.a.)


CLEARVIEW PENSION PLAN ^ Start date: 24 Jul 95 Unit price: $2.0778 Fund size: $13.83 mill 0.71 0.83 1.00 1.46 2.75

CLEARVIEW SUPERANNUATION AND ROLL-OVERS ^ Start date: 31 Mar 89 Unit price: $3.2950 Fund size: $43.53 mill 0.38 0.48 0.63 1.02 2.18

CLEARVIEW ROLL-OVER BOND **^ Start date: 2 Jul 87 Unit price: $3.7531 Fund size: $2.64 mill 0.38 0.48 0.62 1.01 2.16

15%

5%

25%

17.5%

12.5%

15%

5%

10%

25%

20%

10%

22.5%

100%

17.5%


Performance Tables

Monthly PaymentAsset Allocation (by %) Products Total Performance Returns (% p.a.)


CLEARVIEW MANAGED INVESTMENTS Start date: 24 Jul 95 Unit price: $1.1415 Fund size: $3.67 mill 4.45 3.01 4.65 5.77 4.26

Diversified BalancedAsset Allocation (by %) Products Total Performance Returns (% p.a.)


CLEARVIEW PENSION PLAN * Start date: 5 Aug 97 Unit price: $3.0646 Fund size: $14.59 mill 6.88 4.53 6.24 8.96 4.22


CLEARVIEW SUPERANNUATION AND ROLL-OVERS * Start date: 5 Aug 97 Unit price: $2.5265 Fund size: $29.01 mill 5.37 3.73 5.44 7.93 3.36

CLEARVIEW ROLL-OVER BOND ** Start date: 13 Apr 98 Unit price: $2.4664 Fund size: $0.92 mill 5.81 3.94 5.60 8.01 3.40

Managed GrowthAsset Allocation (by %) Products Total Performance Returns (% p.a.)


CLEARVIEW PENSION PLAN * Start date: 24 Jul 95 Unit price: $4.1522 Fund size: $0.88 mill 7.26 4.80 6.48 9.23 4.48

Managed IncomeAsset Allocation (by %) Products Total Performance Returns (% p.a.)


CLEARVIEW PENSION PLAN * Start date: 24 Jul 95 Unit price: $3.7068 Fund size: $0.43 mill 5.35 3.72 5.60 7.35 4.67

5%

40%

10%

10%

5%5%

50%5%

5%

25%

5%5%

20%

30%15%

10%

10%

5%

10%5%

15% 30%

10%

10%

25%

5%

20%

10%


Performance Tables

Performance information as at 31 December 2016. Past performance is not an indication of future performance. The value of an investment may rise and fall. ClearView Pension Plan previously known as ClearView Allocated Pension. The asset allocations shown are the target allocations for each fund. Due to market movement and timing of rebalances the actual allocation at any point in time may be up to 2% above or below those displayed.* Closed to additional/new investments and inward switches. ** Closed to additional/new investments.^ ClearView Life Assurance Limited guarantees that the price of Guaranteed Cash Units will not fall.

Pre-retirementAsset Allocation (by %) Products Total Performance Returns (% p.a.)


CLEARVIEW SUPERANNUATION AND ROLL-OVERS Start date: 1 Feb 02 Unit price: $1.8050 - - 0.01 2.98 4.03

Australian Shares GrowthAsset Allocation (by %) Products Total Performance Returns (% p.a.)






GuaranteedAsset Allocation (by %) Products Total Performance Returns (% p.a.)


CLEARVIEW SAVINGS BOND *^ Start date: 12 Apr 86 Unit price: $3.0578 Fund size: $1.70 mill 0.07 0.09 0.18 0.47 1.43


Asset Allocation

100%

5% 95%

100%


Performance Tables

Performance information as at 31 December 2016. Past performance is not an indication of future performance. The value of an investment may rise and fall. ClearView Pension Plan previously known as ClearView Allocated Pension. The asset allocations shown are the target allocations for each fund. Due to market movement and timing of rebalances the actual allocation at any point in time may be up to 2% above or below those displayed.

* Closed to additional/new investments and inward switches.

** Closed to additional/new investments.

ManagedAsset Allocation (by %) Products Total Performance Returns (% p.a.)


CLEARVIEW SAVINGS BOND * Start date: 12 Apr 86 Unit price: $10.4209 Fund size: $24.47 mill 4.56 2.90 4.18 6.05 3.12

CLEARVIEW SUPERANNUATION AND ROLL-OVERS * Start date: 31 Mar 89 Unit price: $9.6943 Fund size: $26.27 mill 6.33 4.45 6.11 8.55 3.91

CLEARVIEW ROLL-OVER BOND ** Start date: 2 Jul 87 Unit price: $16.2990 Fund size: $35.12 mill 5.99 4.40 6.09 8.51 3.88

Diversified GrowthAsset Allocation (by %) Products Total Performance Returns (% p.a.)



CLEARVIEW MANAGED INVESTMENTS Start date: 1 May 98 Unit price: $0.9795 Fund size: $11.55 mill 8.47 5.22 7.29 10.97 3.13



Diversified StableAsset Allocation (by %) Products Total Performance Returns (% p.a.)






5%

15%

30%

5%


Asset Allocation

5%

5%

20%

40%

5%

10%

25%

10%

15%

5%5%

15%

25%

15%

10%5%

15%30%

10%

10%

20%


Performance Tables

Investors please note: Past performance is not a basis for assessing future performance. Future performance is not guaranteed by the Responsible Entity, Manager or the Trustee, as applicable. The unit prices used for determining performance calculations are based on exit prices. Performance figures are net of ongoing management fees and applicable government taxes or duties, and do not include entry or exit fees. Performance figures for the ClearView Managed Investments assume the reinvestment of distributions. Unit prices do not take into account any entry or exit fees applicable to the product. Unit prices are dependent on economic conditions, investment management, future taxation and management charges. ClearView Life Assurance Limited, trading as ClearView Life, guarantees that the price of Guaranteed Cash units will not fall. The value of other types of units may rise and fall. ClearView Superannuation and Roll-overs and ClearView Pension Plans are issued by ClearView Life Nominees Pty Limited as Trustee of the ClearView Retirement Plan. ClearView Managed Investments are issued by ClearView Financial Management Limited as the responsible entity. Full details for the above products and their terms and conditions are described in the relevant Product Disclosure Statements (PDS). You should consider the relevant PDS in making a decision whether to buy or continue to hold the product. You can obtain a PDS for a product by calling ClearView on 132 977. The ClearView Savings Bond and ClearView Roll-over Bond are closed to further investment and are issued by ClearView Life Assurance Limited trading as ClearView Life. ClearView Financial Management Limited ABN 99 067 544 549 AFS Licence No. 227677. ClearView Life Nominees Pty Limited ABN 37 003 682 175 AFS Licence No. 227683 RSE Licence No. L0000802. ClearView Life Assurance Limited ABN 12 000 021 581 AFS Licence No. 227682, which also trades as ClearView Life.

CashThe Reserve Bank of Australia (RBA) left the overnight cash rate at 1.5% at its final meeting for 2016 in December. Meetings are not held in January. In the first meeting of 2017, held February 7th (RBA meetings are always held on the first Tuesday of each month) the RBA again elected to make no change to interest rates. Market expectations are that the RBA continues to sit pat throughout 2017.

BondsThe sharp move in bond yields in November moderated in December, capping losses (bond prices move in the opposite direction to yields, an increase in yields sees bond prices decline and bond investors sustain an (unrealised) capital loss).

The movement of bond yields over the course of 2016 was quite remarkable.

Yields defied expectations and continued to get even lower in the first half of the year. The Australian 10 year government bond got to a low of 1.8% in early August. It then rocketed up by more than a full percentage point to 2.9% just before Christmas.

Most of this move can be put down to Australian bonds being pulled along by the US market. The US 10 year hit a low of 1.4% in early August and then climbed to a year high of 2.6% in mid-December. Having said this, the spread (that is the extra yield investors demand to hold Australian bonds over US bonds) continued to tighten, as it has been doing for several years now. Three years ago the spread between the Australian and US 10 years was 1.3%. This has now shrunk to 0.28%.

In this way the bond market is recognising the contrasting circumstances of the Australian economy (adjusting to the end of the biggest mining boom) and that of the US (at full employment with the prospect of pro cyclical fiscal stimulus to add fuel to the fire) are in.

How have the different asset classes fared?Asset Class Returns as at 31 December 2016

Asset Class 10 Yr % p.a.

5 Yr % p.a.

3 Yr % p.a.

1 Yr %

YTD % p.a.

6 Mo %

3 Mo %

1 Mo %

Cash1 4.1 2.8 2.4 2.1 2.1 0.9 0.4 0.1

Australian Bonds2 6.2 5.0 5.1 2.9 2.9 -2.0 -2.9 -0.2

International Bonds3 7.4 6.1 6.3 5.2 5.2 -1.4 -2.2 0.4

Australian Shares4 4.5 11.6 6.8 11.6 11.6 9.9 4.4 4.2

International Shares Unhedged5 4.7 18.6 11.5 7.9 7.9 9.8 7.7 4.5

International Shares Hedged6 6.5 15.5 9.2 10.6 10.6 10.6 5.3 2.9

Emerging Markets Unhedged7 2.7 8.6 4.6 11.7 11.7 7.4 1.3 2.3

Listed Infrastructure Unhedged8 N/A 16.7 13.6 11.2 11.2 -0.2 1.6 5.0

Australian Listed Property9 0.3 18.5 18.0 13.2 13.2 -2.6 -0.7 6.8

International Listed Property Unhedged10 N/A 17.5 16.5 5.9 5.9 -2.6 0.2 6.21Bloomberg AusBond Bank 0+Y TR AUD, 2Bloomberg AusBond Composite 0+Y TR AUD, 3JPM GBI Global Ex Australia TR Hdg AUD, 4S&P/ASX All Ordinaries TR, 5MSCI World Ex Australia NR AUD, 6Vanguard Intl Shares Index Hdg AUD TR, 7MSCI EM NR AUD, 8S&P Global Infrastructure NR AUD, 9S&P/ASX 300 AREIT TR, 10FTSE EPRA/NAREIT Global REITs NR AUD

ClearView Managed Investments distributions*The distributions shown below are for 30 June 2016. Depending on the distribution frequency this distribution may relate to the month, quarter, half year or year. For more information please contact your financial adviser.

Investment Option Distribution Cents Per Unit

Reinvestment Price

Cautious 3.1708 0.9585

Prudent 3.3047 0.9153

Assertive 2.7804 0.8774

Aggressive 2.1544 0.7858

* Please note some options may distribute more than once a year. Your Annual Statement includes information on all distributions for the financial year. You may also access the information by logging on to your account online. Contact us on 132 977 if you require assistance or would like more information.

Investment Option Distribution Cents Per Unit

Reinvestment Price

Monthly Payment 3.3431 1.1359

Diversified Stable 4.1741 1.1170

Diversified Balanced 3.5826 1.2001

Diversified Growth 3.2028 0.9419

Australian Shares Growth 1.8373 0.9042

Asset Class Returns

Continued overleaf


Q I have recently sold an investment property and would like to contribute some of the sale

proceeds into superannuation. I was planning to contribute $400,000 before the end of the financial year however I’m unsure if this can be done now that the Government has changed the rules. Please confirm.

ASeveral factors determine what limits apply when contributing funds to super and I strongly recommend

you seek professional advice.

With regard to the Government reforms, if you are able to contribute the funds to superannuation before 1 July 2017, the existing rules apply where a maximum non-concessional contribution of up to $540,000 is available if you are 64 or less on 1 July 2016. Other factors apply including the level

of super contributions you have made in the previous two years.

If you are unable to make the contribution before 1 July 2017, you will be limited to a maximum non-concessional contribution of $300,000. Depending on your circumstances, you may also be eligible to claim a tax deduction for some of your contributions.

QI am 56 and have permanently retired because of a back injury. I receive a Disability Support

Pension from Centrelink and earn some interest from bank accounts and a term deposit plus I have a superannuation account. I need to make a withdrawal from my superannuation to cover expenses and would like to know if this withdrawal will have an impact on my Disability Support Pension.

A Lump sum withdrawals from superannuation are not counted as assessable income by Centrelink

when calculating your Disability Support Pension entitlement.

If you place the super withdrawal into your bank account and leave the funds there, the withdrawal amount will be included as a part of your total assets and Centrelink will also assume the funds are earning a set rate of income (known as the deeming rate). In this case, there could be an impact on your Disability Support Pension.

However, as you plan to spend the super withdrawal on expenses and these funds will no longer be in your cash account, your Disability Support Pension should be unaffected.

Continued from page 15

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Ask Mel

ClearView’s Technical Manager Melinda Bendeich answers your financial questions.

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.Australian Equities Australian equities jumped by over 4% in December, giving a healthy 11.6% return for 2016. As well as the general revival of Keynesian “animal spirits”, Australian shares were driven by developments in China.

The Chinese authorities, spooked by a sharp slowdown in growth, hit the stimulus lever in late 2015. This saw a revival in both infrastructure and residential property construction in 2016; and a subsequent rally in commodities like Australia’s key export of iron ore.

In addition, an environmentally driven clampdown on domestic coal producers saw the two coals (coking and thermal) rally.

Finally, much of the extreme move in iron ore prices (going from USD39.51 a tonne at the start of 2016 to a high for the year of 83.58 on the 12th of December) cannot be explained by fundamentals. Indeed, iron ore stockpiles in China by the close of the year were back to 2014 levels Supply also continues to come

online. Gina Reinhardt’s Roy Hill project, Anglo American’s Minas Rio and Vale’s S11D along with others will see 686 million metric tons added to seaborne iron ore supply in the first half of 2017. To put that in perspective the total seaborne iron ore market was 1,328 million tons in 2014.

International SharesDeveloped market equities continued their push upwards, adding another 4.5% in December. The US dollar continued to strengthen against all currencies including the Australian dollar (but not nearly to the same extent as other currencies due to the elevated price of hard commodities as discussed above), resulting in currency hedged international shares underperforming unhedged

Emerging markets stocks recovered over the December quarter, following the initial post Trump sell off on fears of protectionism and rising US interest rates. Brazilian shares gave up -3% in December, but still remained one of the best performing markets globally for the year with 37% in local currency terms and an eye watering 67% in USD.

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Viewpoint February 2017 (1) - test.clearview.com.au