Superannuation products are issued by our wholly owned subsidiary Bendigo Superannuation Pty Ltd.
Bendigo Super 2023 Fund Update
Message from CEO Justin Hoare
2022-23 Bendigo Super Year in Review
During the 2022-23 financial year we welcomed 1,969 new members. With more than $1.45 billion in funds under administration, we continue to help members with their retirement goals.
From assisting over 1,864 members make voluntary contributions to build their retirement savings, to releasing payments to over 2,419 members so they can enjoy their hard-earned retirement, along with everything in between.
Important update about The Bendigo Superannuation Plan
You would have recently received communication from us about an important update about The Bendigo Superannuation Plan.
On 27 September 2023, Bendigo and Adelaide Bank (Bendigo Bank) announced it had signed an agreement to sell Bendigo Superannuation Pty Ltd (Bendigo Super) to Betashares Australia Holdings Pty Ltd (Betashares), subject to certain conditions and regulatory approval.
This decision was a result of an extensive review by Bendigo Bank that considered whether Bendigo Super can continue to be sustainable and cost effective into the future, as well as to align with Bendigo Bank’s strategic focus.
Our focus remains the same
It’s important to note that upon completion of the sale, while the ownership of Bendigo Super will change from Bendigo Bank to Betashares, the trustee and management team of Bendigo Super is expected to remain the same.
In the midst of change, our focus remains strongly positioned on improving our member outcomes. SuperRatings continues to rate Bendigo SmartStart Super as one of Australia’s lowest fee funds1. Flexible life insurance options also continue to be offered via TAL Life Limited - along with our range of diversified investment options, including a socially responsible and cash fund.
Message from CIO Thadeus McCrindle
Market & Economic Outlook
We have seen stronger economic performance through the first half of 2023 than in 2022. The Australian economy was growing at 2.1% p.a. according to the June 2023 release from the Australian Bureau of Statistics, which led stronger returns for growth assets. The ASX200 rose 14.8% during the 2022-23 financial year, and over the same period the Bendigo Growth Index Fund, our most popular investment option, generated returns of 8.74%2.
The Reserve Bank of Australia has also aggressively raised interest rates during the last financial year. While inflation has begun to recede from high levels, as a result of the higher interest rates, risks of it rising again remain.
My Investment team’s outlook expects a slowdown in economic growth and company profitability, as well as higher inflation. If these expectations prove correct, they may be quickly followed by a period of stronger economic growth and asset class returns.
The team are somewhat cautious and have a modestly defensive asset allocation position. Underweights to Government bonds and Australian shares are balanced with overweights to inflation linked bonds, alternatives and listed infrastructure. Through much of the 2022-23 financial year, we were more defensively positioned, which resulted in lower returns than some of the broad benchmarks. Pleasingly, we’re still well on track to meeting our long-term investment return objectives for most of our Bendigo Super investment options. I’ve always maintained that the best time to underperform is when there are robust total returns for most markets.
The team continue to actively monitor and respond to current market conditions, and plans to change its positioning, with the objective of adding to returns and reducing risk through time, for all investment options. Doing so will allow us to seek other investment opportunities and continually test our approach as markets and the economy change.
Join us online for our next update.
Our Annual Members’ Meeting will be held in February 2024, where you have the opportunity to hear from us in a live online forum. All Bendigo Super members will receive an invite later in the year, so don’t forget to register your attendance. We look forward to giving you a further update then.
Important information about The Bendigo Superannuation Plan
On 27 September 2023, Bendigo and Adelaide Bank ABN 11 068 049 178 AFSL 237879 announced it had signed an agreement to sell Bendigo Superannuation Pty Ltd ABN 23 644 620 128 AFSL 534006 (Bendigo Super) to Betashares Australia Holdings Pty Ltd, subject to certain conditions and regulatory approval.
Bendigo Super is the trustee for The Bendigo Superannuation Plan, which incorporates the following products:
- Bendigo SmartStart Super (Personal division);
- Bendigo SmartStart Super (Employer division); and
- Bendigo SmartStart Pension
We've prepared some Frequently Asked Questions to help our members understand more about the sale and what it means for them.
Budget update May 2023
Staying up to date with what is going on in the world, and how it can affect your superannuation is important. That’s why we want to keep you informed with recent updates, and how they may impact your retirement savings.
Treasurer Jim Chalmers handed down the 2023-24 Australian Federal Budget, including updates to key economic forecasts, on Tuesday, 9 May 2023. Below is a summary of key announcements directly relating to superannuation:
- Aligning the payment of super and wages for all employees
From 1 July 2026, employers will be required to pay their employees' super at the same time they pay their wages. This will enable employees to track their entitlements to ensure they are being paid on time and in full.
- Improving the equity and sustainability of the superannuation system
From 1 July 2025, earnings on balances exceeding $3 million will attract an increased concessional tax rate of 30 per cent. Earnings on balances below $3 million will continue to be taxed at the concessional rate of 15 per cent.
- End of reduced minimum pension drawdown rate
From 1 July 2023, the temporary halving of the minimum account-based pension drawdown rates will lapse, reverting to pre-COVID levels.
The minimum drawdown percentages were reduced by 50% in the 2020 Budget to allow retirees to better manage their affairs in light of the COVID-19 pandemic. However, the normalisation of financial conditions since has negated the need for this relief measure to continue.
To view the Budget in detail, visit budget.gov.au.
Budget update October 2022
Changes that may affect you and your super
Following the Federal election in May, the 2022-23 Federal Budget was delivered on Tuesday, 25 October 2022. Key announcements specific to superannuation, included:
- Maintaining the temporary 50% reduction in the minimum required drawdown rates for retirees with account-based pensions for the remainder of the 2022-23 financial year.
- Reduction of the minimum eligibility age for downsizer superannuation contributions from age 60 to 55. This measure is currently before Parliament and, if passed, it will take effect at the beginning of the first quarter following Royal Assent.
There were many other initiatives discussed within the budget. These include changes to Centrelink thresholds and benefits, funding for aged care, and cost of living relief, just to name a few. You can review the budget in detail at budget.gov.au
Bendigo Super 2021/22 - Year in Review
Join chief executive officer Justin Hoare and chief investment officer Thad McCrindle to reflect on the 2021/22 financial year.
Bendigo Super 2021/22 Year in Review
I’m Justin Hoare, Chief Executive Officer of Bendigo Superannuation.
And I’m Thad McCrindle, Chief Investment Officer.
The last financial year was a big one for our fund.
On the 1st May 2022, we welcomed Bendigo Superannuation as our new trustee.
Bendigo Superannuation is a wholly owned subsidiary of Bendigo and Adelaide Bank, and prides itself on looking after our members’ best interests.
During the last financial year, we welcomed more than 2,200 new members and I thank those members for choosing us. That took us to over 19,600 members in total, making up 1.48 billion in funds under administration.
Importantly 2,000 members chose to make a voluntary contribution to us, over and above what is required. We also made payments to more than 2,500 members to enable them to enjoy their retirement.
I understand that many of you might be nervous about market movements in Australia and globally. Please rest assured, that we have a team of specialist focused on ensuring that your investments are well looked after.
I will now handover to Thad to talk a little bit more about that.
We’ve seen volatile markets in the new year, really driven by interest rates and the war in the Ukraine. Both of these were quite unexpected and that has resulted in negative returns across most investments. For example, Australian shares as measured by the ASX 200 was down about 6.5% for the financial year.
And in contrast, the economy’s been performing well. Unemployment is the lowest it’s been in almost 50 years.
So the war in Ukraine has interrupted food and energy supplies. These price rises plus others have led to the highest inflation we’ve seen in almost 20 years. Early in 2022 the Reserve Bank of Australia reversed course and began raising interest rates rapidly. This is likely to continue given the level of inflation and strong employment conditions.
Investment market volatility has led to negative returns in Shares and Bonds and a reduction in many superannuation members’ balances.
My team manages each investment option and pleasingly we’ve been conservatively positioned for the recent market volatility. We will adjust from this conservative positioning when we believe the outlook is improving.
Investment returns over the long term are higher when prices fall. Despite negative returns in the past 6 months, long-term returns for all of the investment options on Bendigo Smart Super remain positive. The Bendigo Growth Index Fund, our most popular investment option, has returned 8.54% over the past 10 years.
It’s understandable you may be worried about your superannuation investment balance, but it’s important to remember that superannuation is a long-term investment that is generally only accessible in retirement. Therefore, it’s important you make sure, that your investment options suit your personal needs and risk appetite. Letting compounding do its work.
As custodians of your retirement savings, we want to make sure we’re here to support you. Support that will not only maximise your retirement outcomes, but will also help your overall financial wellbeing.
Our online Education Hub is a great place to get you started. It includes educational articles to help support you in maximising your retirement savings.
Or, if you prefer to speak to someone, you can request a call from one of our wealth specialists.
Our next Annual Member Meeting will be held in February 2023, where you have the opportunity to hear us in a live online forum. All members will receive an invite later in the year, please don’t forget to register. We look forward to giving further update then.
Superannuation products are issued by Bendigo Superannuation Pty Ltd (Bendigo Superannuation) ABN 23 644 620 128 AFSL 534006, a subsidiary of Bendigo and Adelaide Bank Limited (the Bank) ABN 11 068 049 178 AFSL 237879. Bendigo Superannuation and the Bank receive remuneration on the issue of products or the services they provide, full details of which are contained in the Product Disclosure Statement (PDS). Past performance is not an indication of future performance. Investments in these products are not deposits with, guaranteed by, or liabilities of the Bank or any of its related entities. This video is prepared by Bendigo Superannuation and contains general advice only. Please consider your situation and read the relevant PDS available from bendigobank.com.au/super before making an investment decision. To see target market determinations please refer to bendigobank.com.au/TMD
Extension of temporary reduction in superannuation minimum drawdown requirements
The Australian federal government has recently announced an extension of the temporary reduction in superannuation drawdown rates for a further year, until 30 June 2023.
Important information about the Trustee of Bendigo SmartStart Super and Bendigo SmartStart Pension
The Trustee and issuer of Bendigo SmartStart Super and Bendigo SmartStart Pension is changing from Sandhurst Trustees Limited to Bendigo Superannuation Pty Ltd (Bendigo Super) as of 1 May 2022.
Bendigo Super is a newly established subsidiary company of Bendigo and Adelaide Bank Limited. It has been established with the purpose of being the Trustee of the Bendigo Superannuation Plan (BSP) and looking after the interests of the BSP and its beneficiaries. Bendigo Super has been issued all relevant licences and authorisations by the regulators to operate as a Superannuation trustee.
There will be no change to the products or operation of members’ accounts and no action is required from members. However, as a result of this change, the product disclosure statement (PDS), letters and forms, including the direct debit form, will be updated to reflect the new trustee details.
Existing members of the BSP were notified of the upcoming change to the Trustee, please see a copy of the Significant Event Notice that was mailed to members here. Bendigo Super will follow any instructions members have given to Sandhurst, including continuing to process any direct debits from their superannuation or pension accounts, without interruption.
Please see the new leadership team including Board members and executive here.
Bendigo SmartStart Member Outcomes Assessment results are now available
The annual Member Outcomes Assessment for FY 2020-21 is now complete. A summary of the results is now available.
BUDGET UPDATE 2021/22 – Changes that may affect you and your super
The Federal Budget 2021/22 was announced on Tuesday, 11 May 2021. We’ve outlined some key announcements that may affect you and your retirement savings. Read the full update here.
Bendigo SmartStart Member Outcomes Assessment results are now available
The annual Member Outcomes Assessment for FY 2019-20 is now complete. A summary of the results is now available.
Government early super release COVID-19 - Applications are closed
In April 2020, the Australian Government provided a stimulus package in response to the COVID-19 pandemic. Measures included income support for individuals, additional payments to support households and temporary limited access to your superannuation fund. Applications for access to your superannuation closed on 31 December 2020. For the latest information, please go to www.treasury.gov.au/coronavirus/households for further information.
Things you should know
Bendigo Superannuation Pty Ltd ABN 23 644 620 128 AFSL 534006 (Bendigo Super) is the trustee and issuer of Bendigo SmartStart Super and Bendigo SmartStart Pension (products). Bendigo Super is a wholly owned subsidiary of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879 (Bank). Each of these companies receives remuneration on the issue of the products or services they provide, full details of which are contained in the relevant Product Disclosure Statement (PDS). Bendigo Super, the Bank and its related entities do not guarantee the repayment of capital invested, the payment of income or products’ investment performance. An investment in these products does not represent a deposit with, or liability of Bendigo Super, the Bank or its related entities. The Bank does not stand behind or guarantee the performance of Bendigo Super in its capacity as trustee and issuer of the products. Bendigo Super is not an authorised deposit-taking institution within the meaning of the Banking Act 1959.
Information on the website is subject to change without notice. Any advice in relation to superannuation is provided by Bendigo Super. The information contains general advice only and does not take into account your personal objectives, situation or needs. Before making an investment decision in relation to these products you should consider your situation and read the relevant PDS accessible through this site.