The Chair acknowledged the technical difficulties some members had experienced logging on to the meeting and sincerely apologised. She indicated that a recording of the meeting would be available on the Fund’s website from early the following week.
The Chair opened the meeting to questions from Members.
She advised that answers to all questions, including those not able to be addressed at the meeting, will be made available on the Fund’s website within 30 days.
Topic 1 Proxy Voting
Peter: How can we see how TelstraSuper votes at ASX company AGMs? In particular, on each resolution at those AGMs?
Anne-Marie O’Loghlin
- TelstraSuper is an active owner in the companies that we invest in.
- When we hold shares in a company, we often meet directly with the company and actively vote at their meetings on important matters. For example: the company’s strategy, remuneration, director appointments, and more recently, a company’s climate change plan.
- We publicly share how we vote at general meetings, on our proxy voting dashboard. This can be found on our sustainable investment page on the TelstraSuper website. This can be accessed at: https://www.telstrasuper.com.au/campaigns/investment-proxy-voting.
- In the last financial year, we voted at 211 company meetings for ASX-listed companies, on a range of issues.
Topic 2 Contributions
Brian: Can retirees whose portfolio was moved to the Lifestyle products, change their investment options back to the original products that are available to those on a TelstraSuper Personal Plus plan?
Graeme Miller
- The Lifestyle investment options were designed specifically for RetireAccess members. Their design reflects the fact that members drawing an income are typically more sensitive to market volatility and often have shorter term time horizons. They are also not required to pay tax on their investment earnings.
- These options are one of the key reasons why the Fund was awarded Pension Fund of the Year by two major ratings agencies this year. They are available to RetireAccess members only and those members are not able to invest in the Fund’s Accumulation options, or vice versa.
- TelstraSuper offers all members the flexibility to tailor their investment options to meet their risk profiles, by combining their diversified investment options with the Fund’s single sector asset class options.
- An adviser from TelstraSuper Financial Planning can help you to craft a portfolio to meet your needs and preferences.
Topic 3 Investment of non-super monies
Peter: Can TelstraSuper provide investment management and options for non-super money? (noting that the Fund already have the expertise, systems and processes in place, and would just need a licence)
Chris Davies
- Managing non-super money involves different processes, systems, and a different legal environment from superannuation investment. For this reason, super funds don’t usually provide this service to members.
- TelstraSuper Financial Planning has selected investment vehicles for non-super investments, for use by their clients. Members requiring advice on non-super investment can contact TelstraSuper Financial Planning, through the contact centre.
Topic 4 Future investment returns
Dong: Do you expect the investment results for next year to be better than this year?
Graeme Miller
- Super is a long-term investment. What really matters is how super performs over long-term periods, rather than any month or any quarter, or even any year. I am proud of the long-term investment returns that we have delivered to our members.
- The 2023 financial year has started off well, with strong returns in the four months to October, and this has continued into November.
- We are expecting inflation and interest rates to remain high, and this is likely to mean that volatility will continue in the short term. However, we are confident that we have the right strategies in place to deliver strong long-term returns.
John: I totally understand about the importance of sticking to the long-term strategy, however, for those of us who are close to retiring, should we be worried about decreasing fund amounts?
Graeme Miller
- Volatility in investment markets and investment options is normal, particularly for our higher growth investment options. While it is never pleasant to see negative returns, it is seldom a good strategy to have a knee-jerk reaction to them.
- This volatility is why the Fund offers a suite of investment options for members that span the risk and return spectrum. In that way, members can tailor an investment strategy to meet their needs.
- An adviser from Telstra Super Financial Planning can help you to work out an investment strategy that suits your personal circumstances.
Topic 5 Technology upgrades
David: Over the last 12 months there have been many technical difficulties. What is planned for computer upgrades?
Chris Davies
- The Fund has been investing heavily in our technology and has a strong internal technology team. They are very experienced across everything from digital to the underlying registry systems, used to maintain member accounts.
- The Fund has technology relationships with a number of suppliers, which are regularly reviewed. There has also been a lot of focus on cybersecurity, including ensuring that the Fund’s systems are as secure as they can be.