Mine Superannuation Fund Report

Document Type:Thesis

Subject Area:Business

Document 1

Superannuation fund relates to a compulsory saving mechanism product for working people that is contributed to their salary together with the employer input then accumulated through a fund management by professional trustees to grow their yields. The purpose of the report is to offer a comprehensive analysis of the Mine superannuation fund from a review of the fund and membership profile to key design features of their whole life product. The fund has numerous investment options that based on the expected gains of the whole life product, members yield are expected to substantively improve and create considerable income for their future. The report found that innovation and promotional initiatives will go a long way into establishing a framework for significant fund growth.

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The design structure of the fund benefits scheme should be re-engineered to factor in member changing needs and attain resonance to industry benchmarks. Despite a slight reduction in membership compared to 70, 076 in 2016, it has grown their members' funds and reserves from $ 9. 5 billion in 2016 to $ 10. 1 billion in 2017. Members' contributions and benefits payout equally improved from $ 728 million in contributions and benefits payments worth $ 722 million in 2016 to contributions of $ 786 million and benefits payment of $ 801 million in 2017 (Mine Super, n. d. An estimated 59 % of their total assets are invested in the MySuper strategy that seeks to develop an investment mechanism dedicated to yielding considerable growth of members fund over the years of saving (Mine Super, n. d. The fund offers insurance options that are flexible to aid members and their family to take care of unforeseen instances in the course of their work life.

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Mine supper fund offers three insurance products which include, death and terminal illness providing a lump sum payment in case of death or terminal illness, total and permanent disablement insurance that guarantees subscribers a lump sum payment when disabled and permanently unable to work. Moreover, another insurance offer is the income protection insurance which delivers some temporary income to members in situations where are a member is unable to work due to an injury or illness. The structural characteristics have to be analyzed in such a way to ensure they support the investment strategies being put in place. Furthermore, the investment strategies embraced by Mine superannuation fund should propel the company’s whole life retirement benefit into the limelight to ensure the impending retirement of employees is matched with the excellent benefits of equal measure.

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Therefore, the report aims to enlighten the employees regarding the investment strategies the company is trying to adopt based on the structural characteristics and ancillary features. The report further outlines the nature and duration of benefits the employees are likely to reap from retirement should the strategies succeed beyond expectation. Finally, a formidable investment strategy should aim to encourage employees in contributing maximum funds towards the retirement scheme to facilitate the fluency in running the entire whole of life benefit scheme. The focus should be based on a portfolio that blends short-term investments as well as long-term to provide liquidity for working capital requirements as well as high-value investments that guarantee increased returns. The fund should focus on investing in projects that have a return on investments such as land and buildings and avoid projects that will depreciate and lose value over a certain useful time.

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The investment in projects with a return in investments should be emphasized to facilitate a going concern of retirement benefits by ensuring the investment provides growth in returns upon maturity of the scheme. The fund needs to hire investment experts and economists to help analyze the usefulness of impending investments before making the move to invest. The experts should study the nature of the project and its existence in terms of valid ownership and advice the members appropriately on the steps it undertakes to influence fund growth. Conclusions and Recommendation In conclusion, it is imperative for the fund to ensure their different options reflect an accurate risk profile commensurate to the underlying economic conditions. The different investment strategies should be geared towards enhancing the level of returns for growth to enhance the rise of their average return above the industry benchmark.

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The fund should focus on a promotional initiative among coal workers and related industry employees to trust their roadmap towards better returns at lower fees (Mansor, Bhatti, & Ariff, 2015). The investment in professionals across several options will go a long way into improving the strategic plans employed by the fund together with the provision of expert advice backed by risk analysis to enhance gains in the market irrespective of economic dynamism. The ‘whole of life' product should be enhanced to develop an integrated framework focusing on the needs to create a more comprehensive mechanism that values members' interest in transforming their lives.  Sustainability Accounting, Management and Policy Journal, 6(1), 79-102. Drew, M. E. , & Stanford, J. Asset selection and superannuation fund performance: A note for trustees.

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