Annual Report

You can download a copy of LUCRF Super's 2008 Annual Report by clicking on the image below.

Investment Returns FAQ

As well as the articles in our Annual Report, we have prepared some additional Frequently Asked Questions regarding investment returns and performance. 

What do falling investment markets mean for your super?

Low to negative super fund returns caused by falling share markets have made a lot of headlines over the past six to twelve months.  Almost all investment sectors have been affected.

Super is a long term investment
In times like these, it is important to remember that your superannuation is a long-term investment. The low fees charged by industry funds, who don’t pay commissions which eat into your retirement savings, also become more significant in downturns.

Market ups and downs are normal
Historically, financial markets go up and down. It is an expected part of the investment cycle and you should not judge your returns by what has happened over the short-term. We all remember the fall-out from September 11, 2001 and its effect on the global economy. But the economy recovered again by 2003. Over the four years from 2004 to 2007, we declared and paid 13.20%*, 14.00%*, 16.60%* and 16.02%*, respectively.

* Balanced investment option.

Why is this year’s earning rate lower than previous years?

The return this year should be seen in the context of the prevailing economic and financial market performance. 

Financial markets in Australia and around the world all experienced a significant downturn, with Australian and US share markets declining by between 13% and 21%.   This is because of a combination of the flow-on effects of the sub-prime crisis in the USA, as well as four interest rate rises in Australia, aimed at curbing inflation. 

Whilst the Balanced Investment Option was adversely affected by this significant market decline, our asset diversity and income assets assisted LUCRF Super in limiting this fall in value. 

Just as our growth assets have lifted our returns in past years, it was our income assets that provided stability and some protection from the market decline this financial year. 

I’m retiring soon so I’m not interested in the long-term. What should I do?

After retiring, most of us expect to live at least another 10-15 years and quite often a lot longer, so this too is a long-term prospect and should be kept in mind when thinking about investment performance and growth. 

LUCRF Super offers different investment options for people who may wish to review their investment strategy as their life circumstances change.  For example, younger people are sometimes comfortable in taking a greater amount of risk in their investments, whilst those nearer the end of their working life may be more inclined to choose a more conservative investment strategy.  Whatever amount of risk you feel comfortable with, we have investment options that may suit you and we are happy to provide as much information as you would like. 

Our Business Development Managers are always able to meet with you at your workplace and provide you with general advice about options and risk, which you can use to tailor a personal risk profile that best suits you. 

Can I change my ongoing transactions to a more secure option?

LUCRF Super offers different investment options for people who may wish to review their investment strategy as their life circumstances change.  For example, younger people are sometimes comfortable in taking a greater amount of risk in their investments, whilst those nearer the end of their working life may be more inclined to choose a more conservative investment strategy.  Whatever amount of risk you feel comfortable with, we have options that may suit you and we are happy to provide as much information as you would like. 

If you are concerned about your current investment option you can change investment options – free of charge – at any time.  You can even separate the way that your current balance and future contributions are invested.  You should bear in mind that when an investment option switch is made the weekly declared rate for your existing investment option is applied to the account. You may have negative interest applied to your account if your existing investment option has a negative declared rate at the time of the switch.

Our Business Development Managers are always able to meet with you at your workplace and provide you with general advice about options and risk, which you can use to tailor a personal risk profile that best suits you. 

When will the market pick up, are we in for another bad year?

No one can accurately predict the future and the short-term rises and falls in the value of markets, however history shows that markets typically bounce back.  Senior economic commentators are advising that with the volatility and uncertainty surrounding the US sub-prime crisis and its flow-on effect – as well as rising inflation and fuel costs – it is unknown how long this particular phase of the long-term economic cycle will last.

What is LUCRF Super’s approach to the future?

LUCRF Super manages your money with a strategy of providing long-term growth over your working life, balanced with the need to protect members’ future retirement funds.

Our default Balanced investment option is designed to offer both growth and protection over the long-term. This option mixes Growth assets, such as shares and property, with Income assets such as fixed interest and cash.  This approach allows the Fund to capture growth as the markets rise, while providing a measure of stability when the markets are volatile or in decline, as we have experienced during the 2007/08 financial year.

The benefit of this approach can be seen in LUCRF Super’s long-term results. The following table shows the average investment return for the Balanced investment option over the past five years compared to the returns on Cash.

Compounded Average Return from 2004-2008
(Financial years 2003/04 – 2007/08)

Balanced Investment Option	Cash
10.30%	4.91%

LUCRF Super has a long-term view of managing the Fund’s investments.  This view, together with our ‘Balanced’ approach, will provide the opportunity for securing future growth and security for members’ money.

• Annual Reports

• 2008 Annual Report

  The 2008 Annual Report outlines the performance and achievements of the Fund during the 2007/08 financial year.

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• 2007 Annual Report

  The 2007 Annual Report outlines the performance and achievements of the Fund during the 2006/07 financial year.

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• 2006 Annual Report

  The 2006 Annual Report outlines the performance and achievements of the Fund during the 2005/06 financial year.

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• 2005 Annual Report

  The 2005 Annual Report outlines the performance and achievements of the Fund during the 2004/05 financial year.

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• 2004 Annual Report

  The 2004 Annual Report outlines the performance and achievements of the Fund during the 2003/04 financial year.

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