2016 MAP Annual Report - · PDF fileThe year presented market challenges, ... Insurance Changes ... 2016 MAP Annual Report . 2 2. The Board . Superannuation Trust

Annual Report

2016superannuat ion

pensionpooled

superannuat ion

Annual Report

2016

1111 •112016 MAP Annual Report

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Contents

Report from the Board of Trustees ....................................................................................................... 3

What’s New .......................................................................................................................................... 6

Investments: The year in review ........................................................................................................... 7

Investment Options .............................................................................................................................. 8

Investment Allocation ......................................................................................................................... 10

Investment Performance & Managers ................................................................................................ 11

Governance ........................................................................................................................................ 14

Important Information ......................................................................................................................... 17

Directory ............................................................................................................................................. 19

About this Annual Report

This Annual Report is for members of MAP Superannuation Plan and MAP Pension Plan, sub-plans of MAP Superannuation Plan (Div II) ABN 71 603 157 863, SFN 2967 359 49, APRA Registrable Superannuation Entity No R1001587 and MAP Pooled Superannuation Trust (Div IV) ABN 92 209 339 241, SFN 2676 219 43, APRA Registrable Superannuation Entity No R1001563; Collectively referred to in this Annual Report as the Fund or the Plan.

MAP Funds Management Ltd (ABN 85 011 061 831, AFSL 240753) (‘MAP’) is the trustee and issuer of the MAP Superannuation Plan and the MAP Pension Plan (ABN 71 603 157 863); and the MAP Pooled Superannuation Trust (ABN 92 209 339 241). The Product Disclosure Statements (‘PDS’) are available at www.mapfunds.com.au or by calling 1800 640 055. This document may contain advice which is general in nature and not specific to your particular circumstances. Before making an investment decision or acting on general advice you should consider your own financial situation, the PDS and whether the particular financial product is right for you. Financial planning advice can be obtained from MGD Wealth Ltd (ABN 53 009 079 725, AFSL 222600).


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Report from the Board of Trustees

Welcome to our annual report for the year to June 2016. The year presented market challenges, consolidation and changes for the better along with continuing commitment to serving MAP members, many of whom work in the medical profession or the wider health sector.

Overall, it’s been a year of careful progress for the MAP Fund in the face of international economic headwinds caused by factors such as the Brexit vote, reduced interest rates and uncertainty in Australia caused by proposed changes to super and by the federal election. Importantly, for MAP members this year, lower fees were introduced from April 1. This was in accordance with an agreement reached to reduce rates over five years when parent company OneVue acquired MAP Funds Management in 2014. We are proud to deliver on this promise.

MAP is part of the expanding OneVue Group, which provides superannuation and investment management solutions and has more than $3.2 billion in funds under management. OneVue’s $177 million merger with the Diversa group this year helps to make the company even stronger and carves out a broader financial services footprint across administration for funds and superannuation.

Leveraging the strength of this group is an important priority for the MAP Trustee Board and this continued to be a key strategy through the year.

The Trustee has been focussing on building a stronger fund for the members’ benefit. MAP aims to provide a high quality of service to our members and ensure that the MAP Superannuation Plan complies with all relevant legislation, audit and regulatory requirements.

The Board provides leadership and vision for the organisation and monitors investment strategies and returns for each product.

Administration Fee reduction

From 1 April 2016, we reduced the administration fees in line with the five year plan. All members outside the cash option benefited with 0.50% per annum coming off the fee for the first $250,000.

Insurance Changes

From the December quarter this year, MAP Fund members also saw a slight change in insurance premiums within their super fund. After the completion of a tender process MAP has renewed its contract with Hannover Re and new cover terms now apply. Annual premiums for Death Only and Death & TPD cover are to rise by 5% a year for MAP Super members. This follows a period of 5 years where the premiums had not changed at all. We believe the increase is reasonable compared to what is available from other insurers in an environment of rising cost pressures in the insurance industry. There were some additional changes to the terms of the insurance outlined in the Significant Event Notice including the definition of Total and Permanent Disability (TPD) which will also be amended to reduce waiting periods from six months to three months.

New financial planning service a success

A major highlight has been the start of a new financial planning partnership to benefit MAP members. Specialist financial planning company MGD Wealth, based in Brisbane, was appointed this year to provide intra-fund services and advice to MAP members. We believe this is imperative to allow members to take ownership of their super.

We hope you have managed to find time to attend one of our quarterly economic seminars hosted by MGD Wealth at their offices in Brisbane during the past 12 months. Our MAP portfolio manager now presents at the economic seminars, which have helped dozens of MAP members gain valuable information.


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Please note that under the terms of the new MAP partnership, MGD Wealth can only provide intra-fund advice to MAP members, which includes simple, non-ongoing personal advice available on a group basis across the fund relating to your super. This includes contribution advice and investment and insurance advice relating to your super or pension account. Any other financial advice can be provided by MGD on a fee-for-service basis.

We also hope that you have enjoyed our newsletters which provide up-to-date detail on how the MAP Fund is performing within each investment option. In the past year, MAP members have converted $32.4 million to Transition to Retirement Income Streams (TRIS) and pensions. With the TRIS system still in place, members who are retiring can consider which option is best for them – a lump sum or a pension.

Investment Management

It’s been a challenging year for financial markets, with superannuation returns for median balanced funds at their lowest levels in the general market since 2012. Against this background, our in-house investment managers have strived this year to maintain a diversified exposure within our multi-asset portfolios. We have a very capable investment team which is dedicated to providing you with research, economic analysis and portfolio management. Please note that some investment fees have changed slightly from August 1, following a review of current investment managers.

Risk Reserve In order to provide ongoing assurance and protection for members, the Operational Risk Financial Reserve is fully funded in accordance with APRA standards. This provides for protection against member losses arising from an operational risk event.

After a recent review it was confirmed that costs would be lowered from 1 August 2016 for indirect costs associated with this Reserve. An Expense Reserve Ratio will also be set up for non-administration costs of the fund. Overall, members will benefit from a drop of 0.10% p.a. in indirect costs – in addition to the reduction in administration fees.

Outlook We continue to strive to provide stronger services such as our newsletters and economic seminars to adapt to the changing environment of low interest rates.

The Board would like to thank you for entrusting your retirement savings to us. The Board would also like to thank the management team and staff for their dedication and efforts in administering the superannuation fund.

With political and economic uncertainty dominating the landscape at the moment the Board will continue to manage the superannuation fund so that it continues to meet the needs of members in a world of continuous change in investment markets, regulation and technology.

Vin Plant Chair MAP Trustee Board


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MAP Super Plan grew in 2016 to

$409.2 million

$32.4 million moved from accumulation to pension or Transition to Retirement Income Stream

Total contributions in 2016 into MAP Super Plan

$91.1


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What’s New

Proposed changes to Super Proposed changes to superannuation for 2016-17 and beyond were announced in the Federal Budget on May 3, 2016. These were further updated through legislation of the changes. The changes impact several areas including contribution limits and new pension limits.

For further details on this and what this means for you please refer to our quarterly newsletter, which can be found on our website at www.mapfunds.com.au

Co-contribution thresholds

The co-contribution thresholds have been indexed for inflation. The full co-contribution rate now applies to incomes up to $36,021 and the partial co-contribution to incomes up to $51,021.

Maximum Contribution Rate

High-income earners should take note that the maximum contribution base for super was indexed. This means that the 9.5% super guarantee now applies to incomes up to $206,480.

Assets test pension changes The following changes take effect from July 2017.

From 2017, the assets threshold will increase, which means that some Australians will lose their right to qualify for the age pension. The assets threshold does not apply to the value of your home.

Homeowner Not a homeowner

Single $250,000 $450,000

Couple $375,000 $575,000

If you’re eligible to receive the age pension and the total value of your assets is above the threshold, the amount of age pension you receive will decrease faster than it currently does.

Currently, it will decrease by $1.50 per fortnight, for every $1,000 you have over the threshold. In

2017, it will decrease by $3.00 per fortnight, for every $1,000 you have over the threshold. It’s estimated that just over 300,000 retirees will lose some, or all, of their pension entitlements.

What can you do to retain your pension? Not everything you own is actually counted towards your assets for the purposes of the test – for example, your family home is not included in your total assets. Since everyone’s financial position and asset portfolio is different, it is important to get professional advice from a financial planner with expertise in retirement income.


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Investments: The year in review

Dragana Timotijevic Head of Research

The trend of soft economic growth, lower and more volatile returns continued througout the 2015/2016 Financial Year. Given this environment, it is pleasing to note that during the year up until June 2016, all multi asset options generated positive returns, albeit below the objectives.

The beginning of the Financial Year was characterised by increased volatility on the back of the Chinese currency devaluation and fears of mounting deflationary pressures. Volatility spiked up again at the beginning of 2016 with major equity markets being sharply sold off during the March quarter. However, central banks stepped in with the US Fed Reserve pulling back from raising interest rates and the European Central bank announcing another round of quantitative easing through an expended bond buying program. The Japanese central bank pushed the deposit rate into negative territory while the Chinese authorities accelerated the social financing program. In May, the RBA cut interest rates to 1.50%.

Towards the end of the Financial Year, the markets were once again rattled by the uncertainty related to the British referendum. In spite of the unexpected Brexit vote, the markets rallied after the event as the central banks came to the rescue once again.

Fixed Income allocations are most impacted by central bank policy settings, with over $13 trillion of Government Bonds now in negative yield territory. Essentially, investors have been pushed out the risk curve to achieve positive yields let alone their long term target rates of return.

As in the previous FY, both domestic and global Listed equities were the strongest returning asset

classes. Bonds also offered decent returns, while the performance from equities was mixed.

Over the next twelve months we expect the economic backdrop to be shaped by the same themes, which to a varying degree, have prevailed over the last year. In summary, we expect the continuation of slow growth, low inflation and extremely low interest rates. The “lower for longer” growth scenario accompanied with high valuations for both equities and bonds suggest that returns are likely to be more modest going forward compared to the ones experienced over the last several years.

Portfolio Management

The investment team has continued to focus on refining the mix of managers within the major sectors, while ensuring careful use of the investment management fee budget. Hence, Index strategies have remained a large part of Australian and International Equities while the portfolios maintained a relatively sizeable allocation to alternative assets as they tend to provide a more stable and consistent pattern of returns relative to equities.

New Investments

The investment team added three new investment managers: Northcape (Emerging Markets), T Rowe Price (Global Dynamic Bond Fund) and Invesco (Global Target Return Fund) with a view of increasing the bias towards more active, absolute return managers.

Redeemed Investments

The Fund redeemed from the following managers: Schroders Investment Management, Barwon Investment Partners, Colonial First State Investments, Dimensional Fund Advisers, QIC and Perennial Investment Partners Ltd.

Objectives and Strategies

In the three years to June 2016, all options delivered returns above the objectives. However, during the year up to June 2016, only the Diversified Property option generated returns above the objectives.

Dragana Timotijevic


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Investment Options (as at 30 June 2016)

Australian Equity

Established March 2004

International Equity


Diversified Property


Cash

Established May 1995

This investment option is designed for: members looking for exposure to a broad range of companies listed on the Australian Stock Exchange across large and small capitalisation companies with a mix of indexing, active management and income strategies.

This investment option is designed for: members looking for an exposure to global listed companies across developed and emerging markets with a mix of indexing and active management strategies combined with 50% neutral hedging position of the A$ against the major currencies - US$, YEN, Euro and GBP.

This investment option is designed for: members looking for exposure to property by way of global listed property trusts with unlisted exposure to commercial, retail and industrial properties within Australia. This strategy has a high income component with modest growth attributes.

This investment option is designed for: members who prefer low risk and a high level of security on their account balance.

Investment Return Objective:

CPI + 4.0%


CPI + 4.0%


CPI + 3.5%


RBA Cash Rate

Minimum Suggested Investment Time Frame:

7 years


7 years


5 years


1 year

Standard Risk Measure*: High Risk: with an estimate of between four and six years of negative annual returns over any 20 year period

Standard Risk Measure*: High Risk: with an estimate of between four and six years of negative annual returns over any 20 year period

Standard Risk Measure*: Medium to High: with an estimate of between three and four years of negative annual returns over any 20 year period

Standard Risk Measure*: Very Low Risk: with an estimate of up to half a year of negative annual return over any 20 year period

Investment Option Asset Allocation Range: Aust. Equities 90-100% Cash 0-10%

Investment Option Asset Allocation Range:

Intl. equities 90-100% Cash 0-10%

Investment Option Asset Allocation Range: Div. property 90-100% Cash 0-10%

Investment Option Asset Allocation Range: Cash 100%

Defensive vs Growth Asset Allocation Range: Defensive 0% Growth 100%




* Standard Risk Measure Guidance; The Standard Risk Measure is based on industry guidance to allow customers to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a customer may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Customers should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s.


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Capital Stable


Balanced Moderate

Established July 2012

Balanced


Growth


This investment option is designed for: members who prefer a low risk diversified investment option and are willing to accept some account balance fluctuation over the short term.

This investment option is designed for: members who seek moderate to high returns over the medium to long term in a diversified investment option, and who are comfortable accepting fluctuations in their account balance over the short to medium term.

This investment option is designed for: members who seek high returns over the medium to long term in a diversified investment option, and who are comfortable accepting fluctuations in their account balance over the medium to long term.

This investment option is designed for: members who seek to maximise returns over the long term in a diversified investment option, and who are comfortable accepting fluctuations in their account balance over the long term.


CPI + 2.0%


CPI + 2.5%


CPI + 3.0%


CPI + 3.5%


3 years


3-5 years


5-7 years


7 years

Standard Risk Measure*: Low to Medium Risk: with an estimate of between one and two years of negative annual returns over any 20 year period.

Standard Risk Measure*: Medium Risk: with an estimate of between two to three years of negative annual returns over any 20 year period.

Standard Risk Measure*: Medium to High Risk: with an estimate of between three to four years of negative annual returns over any 20 year period.

Standard Risk Measure*: High Risk: with an estimate of between four to six years of negative annual returns over any 20 year period.

Investment Option Asset Allocation Range: Aust. equities 0-20%

Intl. equities 0-25%

Div. fixed interest 15-60%

Div. property 0-15%

Alternative assets 0-15%

Cash 15-85%




Div. property 0-20%


Cash 10-60%




Div. property 0-20%


Cash 5-40%




Div. property 0-20%


Cash 2.5-25%

Defensive vs Growth Asset Allocation Range: Defensive 65-85%

Growth 15-35%


Growth 40-60%


Growth 60-75%


Growth 75-95%

* Standard Risk Measure Guidance; The Standard Risk Measure is based on industry guidance to allow customers to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a customer may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Customers should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s.


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Investment Allocation Asset Allocation by Asset Class (as at 30 June 2016)

MAP Superannuation Plan

Using Derivatives

The trustee may use derivatives to manage risk or gain exposure to types of investments where we believe it is appropriate. Derivatives include a wide assortment of instruments such as forwards, futures, options, swaps, and warrants. Derivatives are used to control risk, improve returns or to change asset class weightings as part of an overall investment strategy. Derivatives are not used for speculation. All derivatives are cash or security backed and no gearing of positions is allowed.

1111 •11 2016 MAP Annual Report

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Investment Performance & Managers

Investment Performance

For fair comparison purposes, returns shown are net of all investment fees, administration fees and taxes. Past performance should not be relied upon as an indication of future returns. Actual returns will be determined by the investment strategy adopted and prevailing market conditions.

MAP Superannuation Plan and MAP Pooled Superannuation Trust Returns (%)

Investment Option 2016 20151 20141 20131 20121 10 year compound

return2

5 year compound

return2

Australian Equity 3.3 4.0 12.9 18.0 (6.5) 4.0 6.0

International Equity -5.6 15.5 16.8 22.4 (6.7) 2.5 7.8

Diversified Property 11.3 7.1 6.9 6.2 5.6 0.7 7.4

Cash 1.8 2.6 2.8 3.9 5.1 4.1 3.2

Capital Stable 1.8 4.3 5.4 6.5 1.5 3.3 3.9

Balanced Moderate4

2.0 4.8 7.0 9.5 n/a n/a n/a

Balanced 1.3 5.7 9.0 12.0 (2.1) 3.0 5.1

Growth 1.4 6.3 10.6 13.6 (3.0) 3.1 5.6

MAP Pension Plan Returns (%)

Investment Option 2016 20151 20141 20131 20121 10 year compound

return2

5 year compound

return2

Australian Equity 2.3 4.2 14.4 18.9 (6.7) 4.0 6.2

International Equity -6.4 16.2 18.7 23.6 (7.2) 2.5 8.2

Diversified Property 14.1 8.4 7.5 6.2 5.9 0.3 8.4

Cash 2.2 3.0 3.2 4.2 5.6 4.7 3.6

Capital Stable 2.5 4.6 6.1 6.9 1.7 3.8 4.3

Balanced Moderate4

2.5 5.6 7.9 9.4 n/a n/a n/a

Balanced 1.9 6.0 10.0 12.6 (2.1) 3.3 5.5

Growth 1.7 6.8 11.8 14.1 (3.2) 3.3 6.1

1 1 year returns are to 30 June and net of all investment fees, administration fees and taxes. 2 Compound returns are compound annualised averages to 30 June 2016 and net of all investment fees, admin fees and taxes. 4 Returns since inception, option opened for investment from 1 July 2012.

Neither past performance nor volatility is a reliable indicator of what may happen in the future. Neither capital nor returns is guaranteed. Past performance is calculated pre-tax and after fees and expenses, assumes distribution reinvestment but does not take into account inflation.


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Bennelong Australian Equity Partners Pty Ltd

Bennelong Avoca

BlackRock Investment Management (Australia) Limited

Grantham, Mayo, Van Otterloo & Co

Invesco Australia Ltd

Lazard Asset Management Pacific Co

Macquarie Investment Management Limited

Mercer (Australia) Pty Ltd

Northcape Capital Pty Ltd

Select Investment Partners Limited

Smarter Money Investments Pty Ltd

T. Rowe Price International Ltd

Investment Managers of the MAP Superannuation Plan, MAP Pension Plan and the MAP Pooled Superannuation Trust

Investment Managers


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Concentration of assets of the MAP Superannuation Plan, MAP Pension Plan and MAP Pooled Superannuation Trust

As at 30 June 2016, the following underlying investments exceeded 5% of the total assets of the MAP Superannuation Plan, MAP Pension Plan and MAP Pooled Superannuation Trust:

■ Macquarie Investment Management Limited (24.30%)

■ BlackRock Investment Management (Australia) Limited (13.60%)

■ YBR Smarter Money Investments (11.15%)

■ Mercer (Australia) Pty Ltd (8.21%)

The Trustee acknowledges that, as a result of member discretion, individual accounts may have a greater than 5% exposure to a single investment.

Further, the Trustee acknowledges that when considered in aggregate (across all options in which the Trustee holds assets on behalf of members of the Fund), the Fund may be construed as having a total exposure to a single investment manager and this exposure may exceed 5% of the total value of the Fund.


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Governance

The Trustee MAP Funds Management Ltd (ABN 85 011 061 831) is Trustee of the Plan. MAP holds anAustralian Financial Service Licence (No. 240753) and a Registrable SuperannuationEntity Licence (No. L0000703).

No penalties were imposed this year on any responsible person under Section 38A of the Superannuation Industry (Supervision) Act 1993.

This year, fees totalling $3.79 million (excluding performance fees) were charged to the Plan to meet both of the following:

■ Management Costs

■ APRA financial requirements

A copy of the audited financial statements and APRA returns are available upon request.

The Board The Board provides leadership and vision for the organisation and monitors investment strategies

and returns for each product. It ensures compliance with all legislative and regulatory requirements, to give MAP members security and peace of mind about their investments.

The Board’s commitment includes all of the following:

■ Adopting a Directors’ Charter and RoleStatement

■ Focusing on future strategy and planning

■ Building and maintaining a culture ofcompliance and accountability to membersand regulators

■ Regular meetings between the Audit, RiskManagement and Compliance Committeeand MAP’s Auditors to ensure a direct andproactive relationship with respect to themonitoring of internal financial controls

■ Annual performance reviews for members ofthe Board and management

Board Members Following are profiles of Board members at 30 June 2016:

Mr Vin Plant - BBus Fin, MBA, F Fin, MAICD

Vin Plant was appointed as Chair of the MAP Trustee Board in November 2015. Mr Plant is a Sydney-based financial services specialist and chairman of the MAP Trustee Board. Mr Plant, who has served as a non-executive director on the PayPal Australia Board since 2009, has been Chairman of PayPal's Audit & Risk Committee since 2010. A former investment banker, he was a Partner at HSW Capital from 2009 to 2010 and held various senior positions at Standard Chartered Bank from 1991 to 2008. Vin is a fellow of FINSIA and a member of the Institute of Company Directors.

Mr Garry Wayling – BComm ACA GAICD

Garry Wayling was appointed as a Director of the MAP Board in May 2014 and is a member of the OneVue Board. He brings more than 30 years' experience in professional service, primarily in external audit and advisory roles with Arthur Andersen and then Ernst and Young. He is an independent Director of Inabox Limited, Eaton Vance Australia, AppDynamics Australia and Odyssey House, as well as an ex-officio member of the Board Audit Risk Committee for Mission Australia.


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Mrs Karen Gibson - BSc MBA GAICD

Mrs Gibson was appointed as a Director to the MAP Trustee Board in February 2013 and also served as Chair from February 2015 until October 2015. She has senior executive experience in the superannuation industry and consults with for-profit and not-for-profit organisations. Mrs Gibson is a graduate member of the Australian Institute of Company Directors and fellow member of the Australian Institute of Management.

Mr Robert J. Brown - BSc, M.A. (Applied Mathematics), Grad. Dip. Applied Finance, GAICD

Robert Brown was appointed as a Director of the MAP Trustee Board on March 22, 2016. He is the founder of Alford Brown & Associates, a consultancy providing insight and perspective to leading financial services organisations. Mr Brown draws on significant industry experience having previously held senior executive roles with HSBC, National Australia Bank, Westpac and State Street. Along with his recent appointment to the MAP Trustee Board, Mr Brown holds directorships in both the for-profit and not-for-profit sectors.

Board Committees

The Board of the Trustee is committed to strong principles of corporate governance, including continuous improvement of its performance and processes.

The following committees assist the Board, which in some cases involves engagement of external experts:

■ Investment Committee;

■ Audit, Risk Management and ComplianceCommittee; and

■ Human Resources, Nominations andRemuneration Committee

Members of all committees are appointed by the OneVue Holdings Limited Board. OneVue Holdings Limited is the ultimate parent company of MAP Funds Management Limited.

Ethics

We observe the highest ethical standards in formulating corporate policies and business practices. We embrace transparency, honesty, integrity and consistency in our decision-making and communication, and our firm commitment to responsible corporate governance requires us to remain proactive in meeting the:

■ Regulatory standards specified by government and industry;

■ Legal duties of directors; and

■ Law.

Audit and risk management Our comprehensive risk management program identifies analyses, evaluates, treats, monitors and communicates risk. MAP has professional indemnity insurance cover and other internal arrangements in place in respect of financial services provided to its retail clients. This is intended to cover claims in relation to the conduct of both past and present representatives of MAP. These arrangements comply with the requirements of Section 912B of the Corporations Act 2001.

Code of Conduct MAP’s Code of Conduct is based on utmost good faith and ‘high trust’ and guides our interactions with employees, clients, business associates and other stakeholders. Staff know its underlying principles, and are aware that failure to observe them could lead to dismissal.

These principles focus on honesty, integrity, objectivity, compliance with the law, respect for equal opportunity and cultural diversity, confidentiality, avoidance of conflicts of interest and the pursuit of excellence in skills, services and problem solving.

The Trust Deed The governing rules of the Fund are set out in the MAP Master Superannuation Plan Trust Deed. The Board has some powers to alter the Trust Deed. The only changes to the MAP Master Superannuation Plan Trust Deed throughout the financial year were amendments to include the ability to offer a MySuper product. The Trustee does not yet have a MySuper licence.


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Committee members as at 30 June 2016

Audit, Risk Management and Compliance Committee

Mr Garry Wayling (Chair)

Ms Gail Pemberton

Ms Greta Thomas

Ms Karen Gibson

Investment Committee

Mr Robert Brown (Chair)

Mr Brendan Foley

Mr Michael Cole

Human Resources, Numeration and Remuneration Committee

Ms Karen Gibson (Chair)

Ms Gail Pemberton

Ms Greta Thomas

The below directors have resigned from the MAP Funds Management Ltd Board during the Financial Year 2016:

Mr Adriaan C. Ryder – resigned on 5th February 2016 Ms Gail Pemberton – resigned on 30th November 2016 Ms Greta Thomas – resigned 2nd October 2015


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Important Information Abridged Financial Information – MAP Superannuation Plan (Div II)

Set out below is the abridged financial information relating to the MAP Superannuation Plan (MAP Super) and the MAP Pension Plan (MAP Pension).

The MAP Superannuation Plan and MAP Pension Plan are sub-plans of the MAP Master Superannuation Plan (Div II). If you would like to obtain a copy of the Funds’ full audited financial statements and related audit reports for the financial year, please contact us.

Net Assets (at 30 June 2016)*

DIV II

$’000

Opening Net Assets 388,132

Increase (decrease) 21,093

Closing Net Assets 409,225

* From 31st October, refer to website audited figures.

Abridged Financial Information - MAP Pooled Superannuation Trust (Div IV)

Set out below is the abridged financial information relating to the MAP Pooled Superannuation Trust (Div IV).

If you would like to obtain a copy of the Funds’ full audited financial statements and related audit reports for the financial year, please contact us.

Net Assets (at 30 June 2016)

MAP Pooled

Superannuation Trust $’000

Opening Net Assets 398,393

Increase (decrease) 19,528

Closing Net Assets 417,921

Reserves

The trustee maintains the following reserves.

■ Operational Risk Financial Requirement (ORFR)

The Reserve complies with prudential requirements and can only be utilised for the purpose of rectifying losses to members and/ or beneficiaries of the Fund caused by operational risk events such as incorrect benefit payments due to human or system error, unit pricing errors and loss of data. The reserve is funded from fees and other costs – refer current PDS for more information.

■ Taxation and Expense Reserve

The Reserve complies with prudential requirements and is utilised for the payment of fund fees, costs, tax and levies. The Reserve is funded through fees and other costs – refer to current PDS for more information.

Reserves (at 30 June 2016) MAP Superannuation Plan

2016 $’000

2015 $’000

2014 $’000

Opening Balance 0 0 0

Increase (decrease) in Reserves 1,317 0 0

Closing Balance 1,317 0 0

Reserves (at 30 June 2016) MAP Pooled Superannuation Trust

2016 $’000

2015 $’000

2014 $’000

Opening Balance 3,387 1,267 1,772

Increase (decrease) in Reserves 681 2,120 (505)

Closing Balance 4,068 3,387 1,267


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Allocating net earnings to members’ accounts

The value of the notional units in each investment option, and the unit price for each option, change with the value of all of the underlying assets of the investment option you have chosen.

Unit pricing is calculated using the following steps:

Step 1 – Each day we calculate the net value1 of the assets we attribute to each investment option.

Step 2 – This value is then divided by the number of units we have on issue in the investment option.

These steps give us the unit price at which we value units for the allotment of net earnings of the fund to members’ accounts. It also provides us with the unit price at which contributions, withdrawals, rollovers and switches between investment options are transacted. In the event of significant market movements, unit pricing may be delayed until a unit price can be struck which accurately reflects the underlying asset values.

This may result in a delay in the processing of the transactions listed above.

1Investments with external Investment Managers are valued daily, with the exception of some investments in alternative assets such as hedge funds and infrastructure, which may be priced monthly.

How are the account balances calculated?

The balance of a member account is equal to the number of units held multiplied by the applicable unit price.

Indemnity insurance

The fund through the OneVue Group has taken out insurance to indemnify the directors and responsible officers from loss resulting from any claim or wrongful act by the trustee or any other party. The directors are not indemnified against penalties or fines imposed by law from a lack of good faith, negligence or dishonest conduct.

Unclaimed money

Legislation requires the Trustee to transfer benefits to the Australian Taxation Office (ATO) when money is classified as Unclaimed Super. There are two ATO reporting periods when the

information and superannuation benefits are required to be sent to the ATO on 31 October for the 30 June period and on 30 April for the 31 December period.

Set out below is an outline of when money may be classified as unclaimed superannuation – more information is available from the ATO at https://www.ato.gov.au/Forms/Unclaimed-super-money-protocol/

1. Age 65 - your account has been inactive for two years or more, and we have not been able to make contact with you for five years;

2. Deceased member - the trustee is unable (after reasonable endeavour) to locate a beneficiary to pay your benefit to;

3. Temporary residents – temporary residents permanently leaving Australia have up to six months to claim their super and if not claimed the amount will be transferred to the ATO;

4. Former temporary resident member and you have not claimed your benefit after six months from your visa expiry or cancellation date and you are not Australian or New Zealand citizen; or

5. Small and Lost member - when your balance is less than $4,000* (increasing to $6,000 from 31 December 2016) and you are considered as;

■ non-contactable (two pieces of mail sent to you have been returned undelivered and no contributions or rollovers received within the last 12 months; or

■ inactive member (no rollovers or contributions received from you in the last five years), and there has been no positive act from you advising that you wish to stay with us.


19

Member Statements

Members can elect to receive their member statements monthly, quarterly, biannually or annually. Annual statements are distributed after the end of the financial year.

Eligible Rollover Fund

There are no circumstances in which the Trustee would pay a member benefit to an eligible rollover fund (ERF). For details on the Trustee’s ERF refer to the Directory of this report.

Complaints

If you have a complaint about MAP or your MAP account, including insurance, please contact our Complaints Officer:

Telephone: 1800 640 055

Write to: Complaints Officer MAP Funds Management Ltd PO Box 1282 Albury NSW 2640

We will do everything we can to resolve the issue as quickly as possible. If you are dissatisfied with our decision regarding your complaint or we have not made a decision within 90 days, you may take your complaint to the relevant external dispute resolution scheme.

The Superannuation Complaints Tribunal (SCT) is an independent body established by the Commonwealth Government to review trustee decisions relating to members. To find out if the SCT can handle your complaint and determine the type of information you would need to provide, you should contact the SCT:

Telephone: 1300 884 114

Website: www.sct.gov.au

Email: [email protected]

Write to: Superannuation Complaints Tribunal Locked Bag 3060 GPO Melbourne VIC 3001

Access to the SCT is free of charge.

You can also find out more about MAP’s complaint Charter on our website www.mapfunds.com.au

Directory Trustee

MAP Funds Management Ltd Level 5, 10 Spring Street, Sydney NSW 2000

ABN 85 011 061 831 AFSL No. 240753 APRA RSE Licence No. L0000703

All correspondence to:

MAP Funds Management Ltd PO Box 1282 Albury NSW 2640

Chief Executive Officer: Connie Mckeage

Chief Financial Officer: Ashley Fenton

Head of Research: Dragana Timotijevic

Superannuation Complaints Tribunal

Locked Bag 3060 GPO Melbourne VIC 3001 Phone 1300 884 114 Website: www.sct.gov.au

Auditors

BDO East Coast Partnership Level 14, 140 William Street Melbourne VIC 3000

Custodian

JP Morgan Nominees Australia Limited Level 21, 55 Collins Street Melbourne VIC 3000 Website: www.jpmorgan.com.au

Eligible Rollover Fund

AUSfund Unclaimed Super Fund PO Box 2468 Kent Town SA 5071 Website: www.ausfund.net.au

Administrator

OneVue Super Services Level 2, 540 Swift Street Albury NSW 2640Cment Ltd PO Box 1282 Albury NSW 2640 Phone: 1800 640 055 Email: [email protected] Website: www.mapfunds.com.au

Documents

2016 MAP Annual Report - · PDF fileThe year presented market challenges, ... Insurance Changes ... 2016 MAP Annual Report . 2 2. The Board . Superannuation Trust