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2018 Annual ReportMunich Holdings of Australasia Pty Ltd Superannuation Scheme

Focusing on your future

2 Munich Holdings of Australasia Pty Ltd Superannuation Scheme

Reflecting on 2018 3

Review our performance 4

How we invest your super 5

Your super investment options 7

Running the Scheme 13

Financials 15

Contact us Back cover

Read more

Your Scheme at a glance The Scheme provides superannuation benefits to the employees of Munich Holdings of Australasia Pty Ltd (MHA) with the aim of providing a greater degree of financial security in retirement. Your Scheme has many great features:

¨ No ongoing administration fees – MHA generously covers the ongoing administration costs of the Scheme, which frees up your money to work harder for you.

¨ Company contributions – MHA may make a higher contribution on your behalf than the Government requires. You may also have a choice about the level of additional contributions.

¨ Personal contributions – you can make voluntary contributions either from your before-tax or after-tax salary to help grow your super.

¨ Investment choice – the Scheme offers you five investment options for your Accumulation accounts (see pages 7 to 11 for more information) so you can choose the option that best meets your needs.

¨ Protecting you and your loved ones – the Scheme provides a benefit if you die or become totally and permanently disabled, and gives eligible members the flexibility of buying more insurance cover. You are also provided with a benefit if you leave employment with MHA because of a terminal illness. See the Product Disclosure Statement available from the Scheme’s website at https://super.towerswatson.com/mha for more details.

¨ Choice in nominating beneficiaries – the Scheme gives you the ability to make binding or non-binding nominations for your super entitlement if you die. Refer to the Product Disclosure Statement available from the Scheme’s website at https://super.towerswatson.com/mha for more details.

¨ Rollovers – it is easy to roll over money from your previous superannuation funds into the Scheme. The Scheme does not charge any fees for doing this, although you may incur exit fees from your previous funds.

¨ Split your super with your spouse – you can split your own before-tax contributions with your spouse if you wish. These contributions need to go into an account with another complying super fund.

¨ Access to the Scheme website at https://super.towerswatson.com/mha – you can manage your account online, learn more about your superannuation and download publications and forms.

The information in this document is general information only and does not take into account your particular objectives, financial circumstances or needs. It is not personal or tax advice. Any examples included are for illustration only and are not intended to be recommendations or preferred courses of action. You should consider obtaining professional advice about your particular circumstances before making any financial or investment decisions based on the information contained in this document. Information on tax and superannuation legislation is current as at 11 March 2019 and may change.

Issued by Towers Watson Superannuation Pty Ltd (ABN 56 098 527 256, AFSL 236049), as Trustee of the Munich Holdings of Australasia Pty Ltd Superannuation Scheme (ABN 74 882 880 734). Preparation of this Annual Report was completed on 19 March 2019.

2018 Annual Report 3

Welcome to the Annual Report for members of the Munich Holdings of Australasia Pty Ltd Superannuation Scheme (ABN 74 882 880 734). We are focused on achieving good retirement outcomes for our members. We provide you with the tools and resources to plan for the future and build your retirement savings.

Should you have any questions about your super you can contact the helpline on 1800 127 953.

Reflecting on 2018

Financial strength

The Scheme’s net assets are $56.8 million

Focused on you

We are helping 179 Scheme members save for the future.

Find planning tools

Our website is easy to navigate https://super.towerswatson.com/mha

2018 performance

Past performance is not necessarily a reliable indicator of future performance.Investment option 2018 Five-year compound average

net return (per year)10-year compound average

net return (per year)

Diversified Shares -4.1% 6.3% 9.1%

High Growth -2.8% 6.0% 8.9%

Balanced -1.0% 5.2% 8.1%

Conservative 1.0% 4.2% 6.3%

Cash 1.6% 1.8% 2.5%

Defined Benefit * 1.6% 3.8% 6.4%

Note: Investment returns are net of tax and investment fees, for periods ending 31 December 2018.

* Prior to 1 May 2011, the Defined Benefit assets were invested in the Balanced option. This includes Company and member contributions used to fund the Defined Benefit and Defined Benefit members’ Surcharge Accounts.


The table below shows the Scheme’s investment returns for the period to 31 December. Remember though, that how your super performs will vary from year to year. Super returns can be positive or negative depending on investment markets. In most cases, super is a long-term investment. This means that returns over a longer timeframe (such as ten years, rather than one or two years) are likely to be a better indicator of your super’s performance.

Returns are also shown on your Member Statement and the most recent returns are on the website at https://super.towerswatson.com/mha.

Investment returns to 31 December Past performance is not necessarily a reliable indicator of future performance.

Investment option 2018 2017 2016 2015 2014 Five-year compound average net return

(per year)

10-year compound average net return

(per year)

Diversified Shares -4.1% 13.7% 10.7% 3.6% 8.3% 6.3% 9.1%

High Growth -2.8% 10.7% 8.9% 3.7% 10.0% 6.0% 8.9%

Balanced -1.0% 8.2% 6.8% 3.1% 9.3% 5.2% 8.1%

Conservative 1.0% 5.2% 4.4% 2.5% 8.3% 4.2% 6.3%

Cash 1.6% 1.5% 1.7% 2.0% 2.3% 1.8% 2.5%

Defined Benefit * 1.6% 4.5% 3.7% 1.8% 7.4% 3.8% 6.4%

Consumer Price Index (CPI) 1.8% 1.9% 1.5% 1.7% 1.7% 1.7% 2.1%

Note: Investment returns are net of tax and investment fees.

* Prior to 1 May 2011, the Defined Benefit assets were invested in the Balanced option. This includes Company and member contributions used to fund the Defined Benefit and Defined Benefit members’ Surcharge Accounts.

Review our performance

Returns on your accounts Accumulation membersYour accounts receive the actual investment return for your chosen option, after allowing for tax and investment fees, and cash flow during the year, including contributions and rollovers from the date they occur. Note that superannuation surcharge payments (if any) are deducted from your accounts in the Scheme.

Defined Benefit membersYour retirement benefit is generally not affected by investment returns. This benefit is instead linked to your salary. However, if you have Superannuation Guarantee (SG) contributions on incentive bonus payments, voluntary contributions to the Scheme or have rolled money into the Scheme, your accounts will be invested according to your chosen investment option and receive the net investment return for that option. Note that superannuation surcharge payments (if any) are added to your Surcharge Account. Your Surcharge Account (if any) will receive the return of the Scheme’s Defined Benefit assets and the balance is deducted from your benefit when you leave the Scheme.

If you leave during the yearInvestment returns are calculated each month. If your super needs to be paid out or if you switch investment options before the investment returns have been calculated, an interim earning rate will be used. This will cover the period from the previous month that investment returns were calculated until the date your benefit is paid to you.

The interim earning rate for Accumulation account balances is based on the estimated monthly net investment return of your chosen investment option. Your Accumulation benefit will therefore increase with positive returns or decrease with negative returns until it is paid from the Scheme.

For Defined Benefit members, the interim earning rate that applies to your Surcharge Account up to the date you leave service is the estimated monthly net investment return of the Scheme’s Defined Benefit assets. From the date you leave service to the date of payment, the interim earning rate that applies to your Defined Benefit lump sum, including Surcharge Account (if any), is the estimated monthly net investment return of the Scheme’s Cash option.


One of the Trustee’s roles is to set investment objectives for the performance of the Scheme, and a strategy for achieving those objectives. Professional investment managers help the Trustee to manage the Scheme’s investments.

As a Scheme member, you can choose from five different investment options, each with different investment objectives and strategy. Defined Benefit members only have choice for their Accumulation accounts, (i.e. for any SG contributions on incentive bonus payments, voluntary contributions or rollovers). Member Investment Choice does not apply to Company and member contributions used to fund your Defined Benefit or to Surcharge Accounts. Investment choice is not applicable to Pension members.

Finding the most appropriate investment choice for your circumstances is very important. If you wish to change how your super is invested, you should complete a Member Investment Choice form, available from the Scheme’s website at https://super.towerswatson.com/mha, the Scheme Administrator or HR. See pages 7 to 11 to read about the investment objectives and strategy of each option. Details of the Scheme’s investment managers are below.

How we invest your super

Investment objectives Investment objectives are specific goals that the Trustee sets for the performance of the Scheme and each investment option. They are not intended as forecasts or guarantees of future investment returns. Generally, the Trustee aims to:

¨ Invest the Scheme’s assets prudently as permitted by the Trust Deed and by superannuation law;

¨ Invest across a diverse range of assets with an adequate level of liquidity;

¨ Ensure that the Scheme is able to make benefit payments to members when they are due; and

¨ Monitor the performance of the Scheme’s investment managers to ensure they exercise integrity, prudence and professional skill in fulfilling the investment tasks delegated to them.

See pages 7 to 11 for the specific investment objectives applying at 31 December 2018 for each option and page 12 for the Defined Benefit strategy.

Investment strategyAn investment strategy is the plan the Trustee follows to achieve the objectives of an investment option. Each investment option has its own investment strategy.

Based on research and professional advice, the Trustee chooses investment managers for the Scheme’s investment options and Defined Benefit strategy (see page 6). These managers are chosen because their approach is consistent with the investment objectives set by the Trustee.

The Trustee monitors each investment manager’s performance, processes and resources on a quarterly basis.

Investment managersThe Trustee appoints professional sector specialist investment managers to manage the Scheme’s investments in accordance with strict guidelines. These managers and their products may be changed from time to time without prior notice to, or consent from, members. There is no guarantee that the Scheme will always invest in any particular manager or product.

The Trustee treats potential and actual conflicts of interest seriously and has developed controls and processes for identifying, monitoring, avoiding and managing conflicts as appropriate. These were applied when deciding to make the current investment in the Towers Watson Investment Management (TWIM) fund and will continue to be applied when assessing investment performance and suitability in future.

The Scheme has changed the way it is managing international shares and has appointed a new international shares investment manager. There were costs associated with the transition to indexed products as well as out-of-market exposure during the transition period, both of which reduced returns for the year to 31 December 2018. The transition to indexed products will however result in ongoing reductions to investment fees. The changes are:

¨ BlackRock iShares Hedged International Equity Index Fund has replaced Schroders (Global Active Value Fund (Hedged); and

¨ BlackRock iShares Wholesale International Equity Index Fund has replaced MFS Investment Management (Global Equity Trust).

Along with the manager changes, the proportion of international shares that are hedged against movements in currency was also reduced. These changes impact all of the Scheme’s investment options except the Cash option. See pages 7 to 12 for the allocations for all options.


As at 31 December 2018, the Scheme’s managers were:

Asset sector Specialist investment manager (and fund)

%

Australian shares

Macquarie Investment Management Limited (Macquarie Australian Pure Indexed Equities Fund)

8.51%

International shares (hedged)

BlackRock iShares Hedged International Equity Index Fund

4.70%

International shares (unhedged)

BlackRock iShares Wholesale International Equity Index Fund

14.86%

Multi asset funds

Schroders (Real Return Fund)

4.96%

Funds of hedge funds

BlackRock (BlackRock Appreciation Strategy Fund)

5.56%

Listed property Resolution Capital (Global Property Securities Fund)

2.96%

Alternative risk premia

Towers Watson Investment Management (Towers Watson Diversifying Strategies Fund)

7.04%

Australian fixed interest (includes some exposure to global fixed interest)

Queensland Investment Corporation (Australian Fixed Interest Fund)

20.81%

Australian inflation-linked bonds

Ardea Investment Management (Real Outcome Fund)

19.28%

Cash BlackRock (BlackRock Cash Fund)

11.32%

Other investment informationDerivativesPart of the Scheme’s assets are invested in funds of hedge funds and alternative risk premia (see pages 7 to 12). The underlying managers for these investments may make use of derivatives to assist in achieving their objectives. The managers do not hold uncovered derivatives.

The Scheme’s other investment managers only use derivatives for risk-control purposes or to more efficiently shift asset allocations. Investment managers are required to have risk management processes in place in relation to the use of derivatives and the purposes for which they are used. Each year, the Trustee obtains confirmation from the managers that they have complied with their processes.

Actuarial reviewAn actuarial review of the Defined Benefit section of the Scheme is conducted annually. The Scheme’s actuary assesses the financial position of the Scheme and then makes a recommendation to the Trustee and MHA on the appropriate level of future contributions needed to maintain members’ benefits.

The most recent review at 31 December 2017 showed that the Scheme was in a satisfactory financial position. MHA continues to contribute in line with the actuary’s recommendations.

The next review at 31 December 2018 is currently underway and is expected to be completed by June 2019.

ReservesThe Trustee does not maintain investment reserves. However, it does maintain an operational risk reserve as described below.

Operational Risk Financial Requirement (ORFR) reserve

From 1 July 2013, super funds have been required to set aside financial resources to address their operational risks. The Trustee has established an ORFR reserve and 0.25% of Scheme assets has been set aside out of the Scheme’s Defined Benefit assets for this purpose.

The Trustee has decided that the ORFR reserve will be invested in the same way as the Scheme’s Defined Benefit assets. The ORFR reserve is monitored periodically by the Trustee to ensure that it remains close to the target level of 0.25% of funds under management.

Should the reserve fall below a predetermined shortfall limit, the Trustee will enact a plan for its replenishment. The Trustee will update members annually on the status of the reserve.

Level of reserves

As at 31 December

ORFR reserve

$ % of funds under management

2018 188,681 0.33%

2017 184,823 0.32%

2016 176,934 0.28%


Your super investment options

Diversified SharesInvestment objectives

¨ To achieve a return (net of taxes and investment fees) that exceeds the increase in CPI by at least 4.0% p.a. over moving 10-year periods.

¨ To limit the probability of achieving a negative return over moving one-year periods to approximately seven years in 20.

Investment strategyInvest 100% in shares, with approximately 30% in Australian shares and 70% in international shares.

Asset allocation

Likelihood of a negative return in any 20-year period*Approximately six years in 20

Volatility level*High

* The volatility level shown is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. It is based on the Standard Risk Measure developed by the industry and is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the range of risks and potential losses and gains associated with their chosen investment option.

Asset mix at 31 December 2018

Asset mix at 31 December 2017

Australian shares



Listed property

Hedge funds

Multi asset funds

Australian fixed interest**


Cash

Australian shares




2018

100.0%

De�ned Bene�t strategyCashConservativeBalancedHigh GrowthDiversi�ed Shares

2017

30.0%

17.5%

52.5%

10.0%

18.0%

31.5%

10.5%12.5%

7.5%

15.0%

10.0%

9.5%

12.0%

20.0%

7.0%

9.5%5.0%

5.0%

15.0%

30.0%

7.5%

9.0%

3.0%

5.0%

2.5%

18.0%

100.0%

10.0%

10.0%

2.0%

5.0%

1.4%

17.9%

31.6% 31.6%

6.5%

2.9%2.7%

3.4%1.7%

3.1%

16.9%

29.1%29.1%

6.0%

3.5%3.2%

2.9%4.2%2.0%

30.0%35.0%

35.0%

10.0%

18.0%

21.0%

21.0%

12.5%

7.5%

10.0%

15.0%

10.0%

9.5%

12.0%

13.5%

13.5%

9.5%5.0%

10.0%

2.0%

5.0%

15.0%

30.0%

7.5%

6.0%

6.0%

5.0%

2.5%

18.0%

5.0%

0.3%


High GrowthInvestment objectives


¨ To limit the probability of achieving a negative return over moving one-year periods to approximately six years in 20.

Investment strategyInvest entirely in growth assets, with approximately 60% in shares with the balance in diversifying assets.

Asset allocation

Likelihood of a negative return in any 20-year period*Approximately five years in 20

Volatility level*High


Australian shares



Multi asset funds

Funds of hedge funds

Listed property

Alternative risk premiaAsset mix at

31 December 2018Asset mix at

31 December 2017

Listed property

Hedge funds

Multi asset funds



Cash

Australian shares




2018

100.0%


2017

30.0%

17.5%

52.5%

10.0%

18.0%

31.5%

10.5%12.5%

7.5%

15.0%

10.0%

9.5%

12.0%

20.0%

7.0%

9.5%5.0%

5.0%

15.0%

30.0%

7.5%

9.0%

3.0%

5.0%

2.5%

18.0%

100.0%

10.0%

10.0%

2.0%

5.0%

1.4%

17.9%

31.6% 31.6%

6.5%

2.9%2.7%

3.4%1.7%

3.1%

16.9%

29.1%29.1%

6.0%

3.5%3.2%

2.9%4.2%2.0%

30.0%35.0%

35.0%

10.0%

18.0%

21.0%

21.0%

12.5%

7.5%

10.0%

15.0%

10.0%

9.5%

12.0%

13.5%

13.5%

9.5%5.0%

10.0%

2.0%

5.0%

15.0%

30.0%

7.5%

6.0%

6.0%

5.0%

2.5%

18.0%

5.0%

0.3%


BalancedInvestment objectives


¨ To limit the probability of achieving a negative return over moving one-year periods to approximately five years in 20.

Investment strategyInvest approximately 73% in shares and diversifying assets, with the balance in fixed interest assets and cash.

Asset allocation

Likelihood of a negative return in any 20-year period*Approximately three years in 20

Volatility level*Medium to High


Australian shares Listed property

International shares (hedged) Alternative risk premia

International shares (unhedged) Australian fixed interest#

Multi asset funds Australian inflation linked bonds

Funds of hedge funds Cash

# Includes some exposure to international fixed interest.Asset mix at


31 December 2017

Listed property

Hedge funds

Multi asset funds



Cash

Australian shares




2018

100.0%


2017

30.0%

17.5%

52.5%

10.0%

18.0%

31.5%

10.5%12.5%

7.5%

15.0%

10.0%

9.5%

12.0%

20.0%

7.0%

9.5%5.0%

5.0%

15.0%

30.0%

7.5%9.

0%

3.0%

5.0%

2.5%

18.0%

100.0%

10.0%

10.0%

2.0%

5.0%

1.4%

17.9%

31.6% 31.6%

6.5%

2.9%2.7%

3.4%1.7%

3.1%

16.9%

29.1%29.1%

6.0%

3.5%3.2%

2.9%4.2%2.0%

30.0%35.0%

35.0%

10.0%

18.0%

21.0%

21.0%

12.5%

7.5%

10.0%

15.0%

10.0%

9.5%

12.0%

13.5%

13.5%

9.5%5.0%

10.0%

2.0%

5.0%

15.0%

30.0%

7.5%

6.0%

6.0%

5.0%

2.5%

18.0%

5.0%

0.3%


ConservativeInvestment objectives


¨ To limit the probability of achieving a negative return over moving one-year periods to approximately three years in 20.

Investment strategyInvest largely in fixed interest assets and cash with approximately 37% invested in shares and diversifying assets.

Asset allocation

Likelihood of a negative return in any 20-year period*Approximately two years in 20

Volatility level*Low to Medium









31 December 2017

Listed property

Hedge funds

Multi asset funds



Cash

Australian shares




2018

100.0%


2017

30.0%

17.5%

52.5%

10.0%

18.0%

31.5%

10.5%12.5%

7.5%

15.0%

10.0%

9.5%

12.0%

20.0%

7.0%

9.5%5.0%

5.0%

15.0%

30.0%

7.5%

9.0%

3.0%

5.0%

2.5%

18.0%

100.0%

10.0%

10.0%

2.0%

5.0%

1.4%

17.9%

31.6% 31.6%

6.5%

2.9%2.7%

3.4%1.7%

3.1%

16.9%

29.1%29.1%

6.0%

3.5%3.2%

2.9%4.2%2.0%

30.0%35.0%

35.0%

10.0%

18.0%

21.0%

21.0%

12.5%

7.5%

10.0%

15.0%

10.0%

9.5%

12.0%

13.5%

13.5%

9.5%5.0%

10.0%

2.0%

5.0%

15.0%

30.0%

7.5%

6.0%

6.0%

5.0%

2.5%

18.0%

5.0%

0.3%


CashInvestment objectives


¨ To minimise negative returns over moving one-year periods to approximately zero years in 20.

Investment strategyInvest only in short-term interest-bearing assets (i.e. cash).

Asset allocation

Likelihood of a negative return in any 20-year period*Approximately zero in 20

Volatility level*Very low


CashAsset mix at


31 December 2017

Listed property

Hedge funds

Multi asset funds



Cash

Australian shares




2018

100.0%


2017

30.0%

17.5%

52.5%

10.0%

18.0%

31.5%

10.5%12.5%

7.5%

15.0%

10.0%

9.5%

12.0%

20.0%

7.0%

9.5%5.0%

5.0%

15.0%

30.0%

7.5%

9.0%

3.0%

5.0%

2.5%

18.0%

100.0%

10.0%

10.0%

2.0%

5.0%

1.4%

17.9%

31.6% 31.6%

6.5%

2.9%2.7%

3.4%1.7%

3.1%

16.9%

29.1%29.1%

6.0%

3.5%3.2%

2.9%4.2%2.0%

30.0%35.0%

35.0%

10.0%

18.0%

21.0%

21.0%

12.5%

7.5%

10.0%

15.0%

10.0%

9.5%

12.0%

13.5%

13.5%

9.5%5.0%

10.0%

2.0%

5.0%

15.0%

30.0%

7.5%

6.0%

6.0%

5.0%

2.5%

18.0%

5.0%

0.3%


Investment objectives

Active members


¨ To limit the probability of achieving a negative return over moving one-year periods to approximately one year in 20.

Investment strategyInvest largely in fixed interest assets and cash with approximately 22% invested in shares and diversifying assets.

Asset allocation

Likelihood of a negative return in any 20-year period*Approximately one year in 20

Volatility level*Low


Defined Benefit strategy(For the Defined Benefit assets of Scheme members, including Surcharge Accounts for Defined Benefit members)








31 December 2018

Listed property

Hedge funds

Multi asset funds



Cash

Australian shares




2018

100.0%


2017

30.0%

17.5%

52.5%

10.0%

18.0%

31.5%

10.5%12.5%

7.5%

15.0%

10.0%

9.5%

12.0%

20.0%

7.0%

9.5%5.0%

5.0%

15.0%

30.0%

7.5%

9.0%

3.0%

5.0%

2.5%

18.0%

100.0%

10.0%

10.0%

2.0%

5.0%

1.4%

17.9%

31.6% 31.6%

6.5%

2.9%2.7%

3.4%1.7%

3.1%

16.9%

29.1%29.1%

6.0%

3.5%3.2%

2.9%4.2%2.0%

30.0%35.0%

35.0%

10.0%

18.0%

21.0%

21.0%

12.5%

7.5%

10.0%

15.0%

10.0%

9.5%

12.0%

13.5%

13.5%

9.5%5.0%

10.0%

2.0%

5.0%

15.0%

30.0%

7.5%

6.0%

6.0%

5.0%

2.5%

18.0%

5.0%

0.3%


Your TrusteeA Trustee company, Towers Watson Superannuation Pty Ltd (ABN 56 098 527 256, AFSL 236049) is responsible for managing the Scheme. This Company has been licensed to act as a Trustee by the Australian Prudential Regulation Authority (APRA), the main regulator of super funds in Australia.

Towers Watson Superannuation Pty Ltd is a subsidiary of Towers Watson Australia Pty Ltd (ABN 45 002 415 349, AFSL 229921), who also acts as Administrator (via an outsourced arrangement) and consultant to the Scheme.

See under “Advisers to the Scheme” to the right for more information.

Your Policy CommitteeA Policy Committee ensures that the interests of members and MHA are represented in the management of the Scheme. The Committee comprises four members, with half appointed by MHA and half elected periodically by members.

At 31 December 2018, members of the Policy Committee were:

Appointed by MHAKirsty Hogan and Kieran Ryan

Member electedStephen Burroughs and Brad Louis

In October 2018, Brad Louis joined the Scheme’s Policy Committee as a Member-elected representative following the resignation of Henry Wei. Brad was the only valid nomination received when nominations were called. Brad’s term will run until 1 March 2020. The Trustee would like to thank Henry for his contribution to the successful management of the Scheme and welcome Brad to the Committee.

During February 2019, MHA-appointed representative, Kirsty Hogan, resigned from the Scheme’s Policy Committee.

MHA has appointed Angela Wakenshaw as the Company representative to replace Kirsty. Angela has extensive experience with the Scheme – currently as the Chair of the Policy Committee and also having previously been a Committee member over many years. Angela will also retain her role as Chair.

The Trustee would like to thank Kirsty for her contribution over the past two years and welcome Angela back to the Committee.

The next Policy Committee election is scheduled for 1 March 2020.

Indemnity insuranceThe Trustee is currently covered by a Trustee Professional Indemnity insurance policy that protects the Scheme’s assets from a legal liability to the extent allowed by law and the policy conditions.

Advisers to the SchemeThe following organisations provide specialist services to the Trustee.

Consultant Towers Watson Australia Pty Ltd

Actuary PricewaterhouseCoopers

Administrator From 1 June, 2018 Towers Watson Australia Pty Ltd (outsourced to Australian Administration Services Pty. Limited ABN 62 003 429 114 (AAS) a Corporate Authorised Representative (No. 307946) of Pacific Custodians Pty Limited ABN 66 009 682 866, AFSL 295142).

Prior to 1 June 2018, Towers Watson Australia Pty Ltd had outsourced to Link Super Pty Limited ABN 68 146 993 660 a related body corporate of AAS.

Auditors RSM

Deloitte

Insurer CommInsure

The Trustee and the Policy Committee do not receive commissions or other similar payments from any of the Scheme’s specialist advisers.

If you have a problem or concernWe aim to successfully resolve all of your superannuation issues but occasionally you may have a problem. The Scheme has a process to handle any issues or complaints. Read below for details.

When you first have an enquiry or complaint, you should contact the Scheme Administrator (see the back cover for contact details). Privacy-related enquiries should also be directed to the Scheme Administrator.

The Trustee has a formal process for reviewing enquiries and complaints if you are not satisfied with the response you receive. To make a formal enquiry or complaint, please obtain a form which is available from the HR Department or the Scheme’s website.

The HR DepartmentMunich Holdings of Australasia Pty LimitedPO Box H35 Australia SquareSydney NSW 1215Tel: (02) 9272 8075Fax: (02) 9272 8099

Running the Scheme


Your form will be sent to the Trustee for consideration. The Trustee will respond to you within 90 days. You can request the Trustee’s reasons for its decision on your complaint. A copy of the Trustee’s Enquiries and Complaints Policy is available from the Scheme’s website at https://super.towerswatson.com/mha.

If you are not satisfied with the Trustee’s response, you may contact the Australian Financial Complaints Authority (AFCA), except in relation to privacy-related matters. AFCA provides fair and independent financial services complaint resolution that is free to consumers.

There are some complaints that AFCA cannot consider such as complaints relating to the management of the Fund as a whole. In addition, time limits may apply. Please contact the Fund Administrator on 1800 127 953 or refer to AFCA’s website at www.afca.org.au as soon as possible for further information.

You can contact AFCA at:

Australian Financial Complaints AuthorityGPO Box 3Melbourne VIC 3001

Email: [email protected]: 1800 931 678

Complaints about your privacy that have not been resolved to your satisfaction can be directed to the Office of the Australian Information Commissioner (OAIC). You can contact the OAIC on 1300 363 992 or by email to [email protected].

What happens if you leaveIf you leave MHA or choose another super fund, the Scheme Administrator will ask you how you want to receive your super benefit. The Trustee may roll your benefit over to an Eligible Rollover Fund (ERF) if:

¨ You fail to give the Scheme Administrator instructions within 28 days of receiving details of your benefit; or

¨ The super fund you nominate won’t accept your benefit.

You can contact the ERF at:

The AdministratorSuperTraceLocked Bag 5429Parramatta NSW 2124Phone: 1300 788 750

Once your benefit is transferred to the ERF, you stop being a member of the Scheme and no longer have any rights under the Scheme. You will then need to contact the ERF directly about your benefit. You can also obtain the ERF’s Product Disclosure Statement using the contact details above.

The investment and crediting rate policy of the ERF will differ from those that applied in the Scheme. Also, the ERF may not offer any insurance cover. You should seek advice from a licensed financial adviser about whether the ERF is a suitable investment for you.

Establishing proof of identityBefore you withdraw a benefit from the Scheme, you may need to establish your identity by providing certified copies of certain documents. The Trustee may also need to obtain additional identification information and to verify your identity from time to time.

In some cases, the Trustee may have to disclose information about you to the Australian Transaction Reports and Analysis Centre (AUSTRAC), the regulator of the Anti-Money Laundering and Counter-Terrorism Financing legislation. Due to the sensitive nature of the information, the Trustee is not permitted to inform you if this happens.

Want to know more?A range of other information is available to keep you informed. This includes information about your benefits such as your choices for contributions, investments and insurance levels. Refer to your Product Disclosure Statement or visit the website https://super.towerswatson.com/mha. A number of Scheme documents are available on the website including the Trust Deed and various Trustee policies.


Here is a summary of the Scheme’s unaudited financial accounts for the year to 31 December 2018. The audited financial accounts and auditor’s report are available on request from the Scheme Administrator (see the back cover for contact details).

Statement of financial position $ $

Assets 2018 2017Cash and cash equivalents 2,009,950 2,028,988

Receivables 11,884 115,252

Investments

Unlisted Unit Trusts 54,918,519 57,448,365

Deferred tax assets 70,036 39,404

Total assets 57,010,389 59,632,009

LiabilitiesPayables (124,022) (108,730)

Income tax payable (112,039) (36,378)

Deferred tax liabilities – (180,911)

Total liabilities excluding member benefits (236,061) (326,019)

Net assets available for member benefits 56,774,328 59,305,990

Member benefitsDefined contribution member liabilities (26,243,299) (27,614,723)

Defined benefit member liabilities (25,132,833) (27,713,713)

Unallocated to members – –

Total member liabilities (51,376,132) (55,328,436)Total net assets 5,398,196 3,977,554

Total assets include amounts in the Scheme’s bank account. All contributions due at 31 December 2018 have now been paid to the Scheme.

Financials

Issued by Towers Watson Superannuation Pty Ltd (ABN 56 098 527 256, AFSL 236049), as Trustee of the Munich Holdings of Australasia Pty Ltd Superannuation Scheme (ABN 74 882 880 734). Preparation of this Annual Report was completed on 19 March 2019.

Changes in financial position$ $

Superannuation activities 2018 2017Interest 16,933 24,258

Distributions from unit trusts 1,697,750 1,988,419

Changes in assets measured at fair value (1,733,623) 2,276,605

Other investment income 53,515 73,128

Other income 2,804 170

Total superannuation activities income 37,379 4,362,580

Investment expenses (33,418) (32,409)

Administration expenses (92,179) (105,219)

Operating expenses (450,359) (441,734)

Total expenses (575,956) (579,362)Net result from superannuation activities (538,577) 3,783,218

Profit from operating activities (538,577) 3,783,218 Net benefits allocated to defined contribution member accounts 472,528 (2,528,609)

Net change in defined member liabilities 1,312,710 (1,725,668)

Profit/(loss) before income tax 1,246,661 (471,059)

Income tax (expense)/benefit 173,981 (198,092)

Profit/(loss) after income tax 1,420,642 (669,151)

Contact usGeneral enquiries The Scheme Administrator Munich Holdings of Australasia Pty Ltd Superannuation SchemePO Box 1442Parramatta NSW 2124Phone: 1800 127 953Fax: (02) 8571 6222Email: [email protected]: https://super.towerswatson.com/mha

The Trustee Towers Watson Superannuation Pty LtdC/- Jackie DownhamLevel 16, 123 Pitt StreetSydney NSW 2000Phone: (02) 9253 3333Fax: (02) 9253 3199

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