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CBH's super initiative

Wally Newman.

The CBH Group has opened its own superannuation fund to WA graingrowers, effective immediately.

The fund has demonstrated strong past performance and, because it is not operated for profit, features among the lowest cost funds in the industry.

The CBH Super fund charges an annual member fee of $65 plus direct an indirect investment costs amounting to a total management expense ratio of 0.22 per cent.

The total 2013-14 fee for a $50,000 account balance in the fund was $175 including the member fee of $65.

By comparison, $50,000 invested in Australia's largest industry fund, AustralianSuper, would be $373, including the member fee of $78.

The fund has also proven to be a strong performer against its benchmark, which aims, after tax and investment charges, to exceed the Perth Consumer Price Index by at least 3 per cent a year over rolling five-year periods.

The fund has outperformed this objective, delivering an average return of 9.32 per cent a year over the past five years (to end October 2014) after tax and charges. (CPI plus 3 per cent would be less than 6 per cent pa over this period).

In January 2014, the Australian Prudential Regulation Authority released statistics for the top 200 regulated pension funds and ranked the CBH Superannuation fund as No.1 for the previous five-year average rates of return.

The fund was previously ranked third in 2012 and first in 2011 by APRA for the respective five-year periods.

The managed option within the fund contains a diversified portfolio of Australian shares, international shares, Australian fixed interest holdings such as bonds, listed property and direct property, including CBH's own West Perth based building.

The CBH building represents about 10 per cent of the superannuation fund's current underlying assets.

Assets within the fund stood at $217 million at the end of 2014 and the fund currently has more than 900 members.

Previously only available to permanent and part-time CBH Group employees, former employees and their spouses, the fund, managed by a team of CBH investment professionals, is now extending its membership to all WA grain growers who would need to register as an associated employer.

Growers can transfer existing superannuation plans into the fund (in accordance with superannuation legislation) as well as make new contributions. An insurance option is also available to growers as part of the super plan.

CBH chairman Wally Newman said at CBH's recent AGM he was proud to be able to extend this membership offer to WA graingrowers.