August 2015 edition

P7

Catch up your superMaking up for time out of the workforce.

P8

Introducing Money MapBringing your fi nances together.

P6

Going above and beyondCelebrating our members.

superscoop

WINNER 2015

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Super Scoop August 2015

A message from the CEOWe’re here to support you on your journey.

Rosemary Vilgan

1 It’s important to remember that past performance is not a guarantee of future performance. 2 QInvest is a separate legal entity responsible for the fi nancial and credit services it provides. Advice fees apply.

Another great benefit of your QSuper membership.QInvest’s specialist brokers have access to hundreds of lending products and will go the extra mile to find the best deal for you. Our commission rebate will also save you money so you can pay off your loan sooner. Why not make an appointment today?

Save thousands with the QInvest LoanFinder mortgage broking service.

50% rebate calculated on the amount of ongoing commission (excluding GST) payable to QInvest. Rebate offer not available to GST-registered borrowers. The credit services advertised are provided by QInvest, not the QSuper Board or QSuper Limited (together the QSuper Group). QInvest is ultimately owned by the QSuper Board (as trustee for the QSuper Fund), however the QSuper Group does not receive any direct payments or commissions from QInvest as a result of members using the LoanFinder service. Members should make their own assessment regarding the suitability of this service for their individual needs.

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1800 643 893 qinvest.com.au/loanfi nderShaun

and Kelly, QInvest clients

since 2013.

EXCLUSIVE TO QSUPER MEMBERS,

THEIR FAMILIES AND FRIENDS.

At QSuper, our focus is on making sure we’re off ering you the products, services and help you need when you need it.

It goes further than that though. I understand that super is just one part of your fi nancial picture, so we want to help you pull all the pieces together. The fi rst, very exciting step, is our new service, Money Map, which will help give you a comprehensive picture of your entire fi nancial situation – you’ll fi nd more information on p8.

And there’s plenty more to come in the following months and years – so stay tuned!

Committed to off ering you the best possible value

Giving you value for money is very important to us. That means we look to off er you innovative and industry leading products and services for the lowest possible fee, but it also means we’re looking to consistently provide you with solid investment returns.

What you may not know, however, is that our investment performance and our fees are linked. Essentially, when our investment managers perform really strongly compared to their targets, as they have been doing for the last year or two, we pay them more. While this means the investment fee has gone up this year for some of our investment options, it also means members in these options received higher net returns.1

What hasn’t changed however is that we’re still off ering some of the lowest fees in Australia, and in even better news we’ve actually reduced our administration fee from 0.22% p.a. to 0.20% p.a. You’ll fi nd more information on our fees, including changes to the fee cap that mean even more members will be paying less in administration fees, on page 10.

Here for you

We know we have to keep evolving and improving the products and services we off er because we understand that your life is constantly changing. But that constant change also means you may need help every now and then. I’ve long been a believer in the value of great advice, and I am very proud of the advice services we off er through QInvest.2

Of course not everyone has the time or inclination to speak to a fi nancial adviser, which is why we’ve just introduced Online Advice. It’s available through Member Online, which means you can quickly and easily implement the advice you receive, and there’s no additional cost to you.

It’s just another way we’re looking to tailor our services for each and every one of our members. Each of you is on a unique journey, and will travel a diff erent path. Our job is to support you on the way.

A personal farewell

This will be my last CEO update, as after 18 amazing years leading QSuper, I’ve decided its time to move on to other challenges. I’ve been a part of QSuper for 27 years, and I’m immensely proud of the transformation of the fund over that time. I truly believe that our members are the heart of our fund, and playing a role in helping so many Queenslanders retire with confi dence has been incredibly rewarding. I feel very privileged to have been part of your super journey, and wish you all the best for the future.

Rosemary VilganChief Executive Officer, QSuper

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Super Scoop August 2015

Your new-look super statement

Helping you get

your future on track

A message from the CEO

Super is likely to be one of the biggest investments of your life. That’s why it’s important to understand your annual statement so you can be sure you’re tracking towards a great future. Our members have told us they want us to make it easier to understand. We listened and have redesigned your statement to make it easier to fi nd the info you need, so you can make sure you’re on track for your future.

You’ll notice that along with a brighter new look, your annual statement is now broken up into seven easy-to-read sections:

Your personal details

Your account balance

Your account history – your closing account balance over the last fi ve years

Your investment report – how your super is invested and how those investments are performing

QSuper investment report – the performance of all of QSuper’s investment options

Your benefi ts and insurances – an outline of your benefi ts, including any insurance you have

Your 2015 super transactions – detailed information about the transactions made on your account during the 2014/2015 fi nancial year

It’s your future retirement income that really counts

If you’re like most people, the fi rst thing you’ll look for on your annual statement is your total balance. With super, it’s important to look ahead and focus on the annual income you’re on track for rather than the total balance. Making small changes now could give you a lot more freedom further down the track.

Our new Online Advice service can give you a clearer understanding of your future by taking your whole fi nancial situation into account to give you an idea of what you’ll retire with – and best of all, there’s no additional cost to use this service.

A little bit of planning now can go a long way towards a better future.

Not happy with where you’re headed?

It’s never too late to take control and make a diff erence. Visit our website for more information or take action today by following some of these simple steps.

Head to Member Online to consolidate your super (and search for lost super) and potentially avoid paying multiple fees.

Top up your super by making voluntary contributions. (Just remember limits do apply).

Review your investment options – the right choice can make all the diff erence to your future.

Get fi nancial advice – QInvest has a range of services to suit your needs.1

Want more tips to boost your super? Read our article on page 7.

Need some help to understand your statement? Head to our website where you’ll fi nd a short video to help you understand your annual statement better, or just have a conversation with us on 1300 360 750.

Go paperless – Did you know you can receive your annual statement online? Head to Member Online to make the switch and receive your next statement in your inbox. Log in or register today at qsuper.qld.gov.au.

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1 Advice fees apply.

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Super Scoop August 2015

Get back to investment

basics

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Super Scoop August 2015

We’ve been writing a lot in the last year or two about the great range of investment options we off er you. But what we’d like to do in this edition is take a closer look at the diff erent types of investments that make up these options.After all, even though your super may sometimes seem like it’s out of reach, it is real money we’re talking about. And it’s your money, for your future. It makes sense then that you understand where we invest your money – as the saying goes, ‘a successful investor is an informed investor’.

Exploring our assets

Each one of our investment options is made up of one or more asset classes. These asset classes are the building blocks of your investment, the foundations of super investing.

Depending on your attitude to risk, your investments will be made up of varying amounts of the diff erent asset classes. And understanding asset classes is the key to working out which options are best for you.

Here are some of the asset classes that you can invest in with QSuper.

Cash – Highly liquid and usually invested in the short-term money market, cash can include deposits at call, bank bills and negotiable certifi cates of deposit. As a low risk defensive asset, cash is likely to provide very little short-term growth.

Fixed interest (Bonds) – This is like a loan to the government or a company, with the interest rate set in advance and paid back at maturity. It’s traditionally a defensive asset, but bonds can go both up and down in value as interest rates change.

Shares – This asset class allows you to own part of Australian or overseas companies. As a growth asset, shares generally deliver higher returns over the long term, with their value highly likely to fl uctuate over the short term.

Property – Considered a growth asset and designed to achieve higher returns over the long term, property includes commercial, industrial and residential properties. And because of our size, we can access property that’s not available to individual investors. properties. And because of our size, we can access property that’s not available to individual investors.

As well as these more traditional assets, we also invest in what are called ‘alternative assets’, which contain a diverse mix of both defensive and growth options. These include assets such as private equity, managed funds and commodities, as well as infrastructure – things like roads, airports, and water and power companies.

For more information on our various asset classes, and how they make up our diff erent investment options, visit qsuper.qld.gov.au/investments or download a copy of the Investment Choice Guide from our website.

Armed with this knowledge, you hopefully now have a better idea of how super investments work and the building blocks behind them. Being a more informed investor today could be the fi rst step towards enjoying a better lifestyle in the future.

Want to get more hands on?Our direct investment option, Self Invest, also lets you invest directly in diff erent asset types, to give you the chance to even further personalise your investment strategy. So what’s on off er?

Term deposits – choose from terms of 30, 90, 180 or 365 days from leading providers Bank of Queensland, NAB and RaboDirect.

Australian shares – pick your own shares from the S&P/ASX300.

Exchange traded funds (ETFs) – pre-mixed bundles of assets that trade like shares. We off er you ETFs in Australian and international shares, listed property and bonds.

For more info, check out qsuper.qld.gov.au/selfi nvest.

Asset profi le: One Times Square

Some of the assets we invest in might surprise you – like the iconic One Times Square in the Big Apple, which is topped by the New Year’s Eve ball. With its recognisable billboards and LED screens, extreme visibility (up to 35 million people walk through Times Square every year!), and long-term advertising signage leases by some of the world’s biggest companies, we expect this asset to continue to provide solid returns over the long term. See qsuper.qld.gov.au/assetprofi le for more about what we invest in.

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Super Scoop August 2015

Every day our members are out there

in the community doing a great job. They’re keeping us

safe and healthy, educating our kids and keeping Queensland

moving. And all the while we’re right behind them,

supporting their super needs.

Supporting the Queenslanders who support Queensland

But we also support them in another way, by getting behind programs and events held throughout the year that showcase their achievements, and help them develop both personally and professionally. We love having the opportunity to talk to our members face to face, and really connecting with them at various community and industry events. Here are just some of the ways we’re getting involved.

National Red Balloon Day

As a way to say thank you to our courageous fi re fi ghters, each year we support National Red Balloon Day. Many of QSuper’s fi rey members take part in the event activities, getting out into the community and talking to kids and adults about fi re safety – and showing off their big red fi re engines of course! To raise awareness and encourage our members to donate, we fl y red balloons at all our Member Centres and offi ces throughout the state, and also support the cause fi nancially by adding to the fundraising eff orts.

National Police Remembrance Day

To honour police offi cers who’ve made the ultimate sacrifi ce, National Police Remembrance Day is held every year in September. The day provides our police members an important occasion to pay their respects for their fallen colleagues. We are always honoured to be able to attend the ceremony and to provide fi nancial support to Police Legacy.

Premier’s Reading Challenge

An annual statewide event, the Premier’s Reading Challenge is all about improving literacy and promoting a love of reading in Queensland kids. In this its 10th year, we’re proud to be a Program Partner and, to encourage even more kids to get reading, we’re running a competition that gives students the chance to win books for their school library.

#qsuperconversations

You’ve probably got a lot on your mind right now. Kids, home, partner, career…the list goes on. And with so much on your plate, your super probably isn’t high on your priority list. But if you’ve had time off with the kids or worked part- time (or still do), it’s important you look at the impact your time out of paid work has had on your super.

Unfortunately, research1 shows a 32-year old woman on $65,000 a year will miss out on $28,000 in super if she takes two years off work, and a woman who earns $85,000 a year will be $36,500 behind.

Now’s the time to catch up

But don’t worry, with a few small changes now, and plenty of working years ahead of you, you can catch up your super.

Here’s how:

Check out our new Online Advice tool – off ered at no extra cost, this great new service looks at your current situation and risk appetite to give you some quality, personalised advice about how you can boost your super. After you receive your advice, you can use Member Online to make some simple changes to your super yourself. It could add up to a whole lot more for your future.

Consolidate – keep your super working hard for you and don’t let multiple sets of account fees with multiple super funds eat away at your balance. And while we’re consolidating your super, if we have your tax fi le number (and your permission), we can search for any lost super you have and reunite you with it.

Make voluntary contributions – obviously the more you can contribute to your super, the better. But little and often can add up to a whole lot too!

Take advantage of the super co-contribution – if you are eligible and earn less than $35,454,2 the Australian Government will contribute 50 cents for every $1 you put into your super up to $500 per year (and if you earn less than $50,4542 you could still be entitled to something). What a great incentive to pop whatever you have into your super!

Spouse contributions – heard of them? If your partner is also a QSuper member they can help off set the time you’ve had off by topping up your super account. And the sweetener? There are some great tax benefi ts – check out all the ins and outs at qsuper.qld.gov.au/spousecontributions.

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Catch up on your super after time off work

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Super Scoop March 2015

1 The Association of Superannuation Funds of Australia, How the ‘Super Baby Debt’ eats away at a woman’s nest egg media release, 27 August 2012. 2 Figures for the 2015/2016 fi nancial year.

We’re here to help!For more information on these and other strategies that could give your super a lift, just pick up the phone and call 1300 360 750 and have a conversation with us. Alternatively, check out our website at qsuper.qld.gov.au – it’s jam-packed with useful information and resources.

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Super Scoop August 2015

Bank accounts, investments, loans, credit cards and super together in one place

Instantly see where your money is going

Create a budget in minutes

Manage an irregular income

Set fi nancial goals and track your progress

Share it with your partner

Money Map at a glance

Your super, bank account and budget tools in one

place

By the time you hit your 30s and 40s, your fi nances can get pretty complicated. Mortgage, credit cards, loans, balancing a family budget – the list can seem endless. And with everything going on in life, giving your fi nances the attention they deserve isn’t easy. So we’ve introduced Money Map to help. Money Map brings all of your bank accounts, investments, loans, credit cards and super together in a secure online dashboard, giving you a complete picture of your fi nances. It’s quick to set up, automatically updated and accessible on the fl y. It also provides some very clever tools to help you plan for the future.

An easy way to manage your money today

Creating a budget is one thing. Sticking to it is more challenging. There’s always something more interesting to do than update a spreadsheet!

With Money Map you can create a budget in a few minutes and because it uses past spending as a starting point, you’re more likely to be able to stick to it. Money Map can also remind you when your bills are due.

Plus, unlike spreadsheets and other budget tools, your budget is automatically updated. This means you can go online at any time to check you’re on track and there are no surprises at the end of the month. You can even give your partner the ability to view accounts so you can manage your money together.

Keep your spending in check

We don’t always have control over how much money we bring in each week, and managing our fi nances around shift work, parental leave and working part time can be especially challenging. But one area where you can have more sway is your spending.

By linking all your diff erent fi nancial accounts in Money Map, you can see expenses from all of your accounts at once, giving you a much clearer picture of where your money is going. Transactions are grouped into meaningful categories and presented as an easy-to-read pie chart. You can even set limits for your expense categories and check in any time to see how much you have left.

Money Map software is provided for use by the QSuper Board as trustee of the QSuper Fund.

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Look beyond your bank account

Once you have everything you own and owe in one place, and the value of your accounts and investments is updated in real time, you can instantly assess your fi nancial position and decide if you’d like to make any changes to your fi nancial arrangements. No matter how volatile the markets get, you’ll always know how you’re faring.

Big plans for the future

Money Map is really simple to set up and features state-of-the-art security so you can be confi dent your personal information is fully protected.

It’s been created purely to help you take control of your fi nances today, so you can invest more for tomorrow.

You can even enter the fi nancial goals that are important to you and track your progress at any time. It’s like having a fi nancial partner on call to keep you on track.

It’s pretty straightforward when you know where to startFind out for yourself how Money Map can help you.

Log in to Member Online

Click on the Money Map tab for information

Watch the step-by-step video on how to get started.

Alternatively, call us on 1300 360 750 and we’ll talk you through it.

Super Scoop August 2015

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Super Scoop August 2015

Provide a better future for your better half. It’s always nice to give your loved ones something special. So why not open a QSuper account for your spouse? It’s quick, it’s simple and it could provide them with an even brighter financial future. What’s not to love about that?

Download an application form from our website, or call us and we’ll send you a copy.

1300 360 750 qsuper.qld.gov.au

Understanding changes to our fees

You’re probably aware that we charge you fees to manage and invest your super, but what you might not be as aware of is how those fees are calculated. Well put simply there are two parts to the fee for each of our investment options, the administration fee and the investment fee.

The investment fee is made up of two elements – base and performance fees. The base fee is what we pay our investment managers to manage your investments. The performance fee is only payable if the investment manager outperforms an agreed target. This year we’ve seen some really strong returns for many of our options, and in many cases performance fees are payable. What’s important to remember though is that the increase in the fee was linked to the increase in the return, so you got higher net returns or, put simply, more money in your account.1 And that’s great news for you.

The other part of the fee is the administration fee, which is what we charge you to manage your accounts and provide you with the innovative and industry-leading products and services you’ve come to expect from us. And this part of the fee is actually falling, as on 1 July 2015 we reduced our administration fee from 0.22% p.a. to 0.20% p.a. And in even better news we’ve reduced our administration fee cap. Previously any administration fees you paid on your Accumulation or Income account/s over $1,540 (that’s the combined figure for all your accounts, in case you were wondering) were refunded back to you. We’ve now cut that figure to $1,000, meaning even more members will pay even less. Head to qsuper.qld.gov.au/feecap for all the details on how the cap works. You’ll also find all the information about fees for all our investment options on the website.

scoop?What’s the

New online advice

We know how important it is for all our members to get the advice they need when they need it. And we’ve now made that even easier by launching our Online Advice service. This means you’ll be able to get advice on your super account at a time and place that suits you, and even better, there’s no additional cost to you.

Over the coming months you’ll be able to get advice on a variety of topics, including making contributions, retirement adequacy, retirement funding, insurance, and making sure you have the most appropriate investment strategy. And because you access advice through Member Online, it just takes a couple of quick clicks to action the advice and start looking to a better future. Find out more at qsuper.qld.gov.au.

Here’s the latest round-up of what’s new at QSuper.

1 It’s important to remember that past performance is not a guarantee of future performance. Please note, the returns of the option are not necessarily the returns of your investment as they do not take into account the timing of contributions, investment switches or withdrawals.

Important information from the QSuper Board of Trustees

Change to early release conditions for Defined Benefit accounts

Previously, members with a Defined Benefit account who wanted to access their super due to financial hardship or compassionate grounds needed to close their Defined Benefit account and transfer their funds to an Accumulation account before making an application. However from 10 July 2015 Defined Benefit account members are able to apply to withdraw funds directly from their Defined Benefit account. For more information on how your Defined Benefit account will be impacted by this type of withdrawal, please call us. The application process is exactly the same as it is for Accumulation account members – see the Compassionate Grounds Guide and Financial Hardship factsheet for all the details. You can download these documents from our website, or call us and we’ll send you the copy you need.

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Super Scoop August 2015

Introducing QSuper’s investment blog

Brad HolzbergerChief Investment Offi cer

Please note that the views of the blog author are not necessarily the views of the QSuper Board.

ADVERTISEMENT

I am a subscriber to the idea that superannuation funds should tell you what they are doing and thinking about. I’m not just talking about how and where your retirement savings are invested. I mean explaining the role of a fund. How we fi t into the bigger picture. How we frame the retirement income ‘question’ and how we set about bringing forward ‘answers’. Because after all, this is what we are here to do.What’s more we need to be able to do this in a straightforward way. And that, quite simply, is the genesis of our new investment blog. I am not saying we have all of the answers. But we will speak openly and honestly, and tell you what we know. But perhaps more interestingly we’re also going to share with you what we don’t yet know. What I mean by that is that I and the rest of the QSuper Investments team will use the blog to tell you what is puzzling us and challenging us, and what we would like to change!

QSuper is widely recognised by many experts as one of the most innovative funds of its type within the world. And by the way feel free to question me on this, as I’d be happy to explain further. But as a whole the industry can do better when it comes to retirement solutions.

Across the globe the best minds in the pension industry are thinking about how to translate a lifetime of savings into an adequate retirement income while managing the risks. And, importantly do this in a way that creates products members want to use.

We are inviting you to participate in this conversation. We want to share our thoughts, what is shaping our philosophy, infl uencing our thinking and ultimately how we invest. We want you to feel free to ask questions and challenge our thinking.

At times we may come across as controversial, but this is not controversy for its own sake. We will provide another perspective from which to view the super industry, your fund and how you approach your retirement. With compulsory super having been in place for twenty years the industry is maturing and entering the next phase of its evolution.

So if this sounds like something you’d be interested in, head online to qsuper.qld.gov.au/blog. We look forward to progressing the discussion with you.

Brad Holzberger

Join the conversation todayCheck out Investment views at qsuper.qld.gov.au/blog

QSuper feesQSuper is committed to keeping the fees for our investment options among the lowest in Australia. For information on the fees for all our investment options, see qsuper.qld.gov.au/fees

Past performance is not a reliable indicator of future performance. Returns may vary considerably over time. Each of the options has a different objective, risk profile and asset allocation. Visit the Investment options page on the website for more detailed information. Changes to inflation, fees, asset allocations, option objectives and risk play a significant part in the return of any investment option.

I’m super sorted.Report card as at 30 June 2015

Chant West has given its consent to the inclusion in this edition of Super Scoop of the references to Chant West and the inclusion of the logos and ratings or awards provided by Chant West in the form and context in which they are included. The Chant West ratings logo is a trademark of Chant West Pty Limited and used under licence. It is only current at the date awarded by Chant West. The rating and associated material is only intended for use by Australian residents within the jurisdiction of Australia and is not permitted to be considered or used by a party outside of Australia.SuperRatings does not issue, sell, guarantee or underwrite this product.Just quickly, we need to let you know that this information is provided by QInvest Limited (ABN 35 063 511 580, AFSL and Australian Credit Licence Number 238274) which is ultimately owned by the QSuper Board (ABN 32 125 059 006) as trustee for the QSuper Fund (ABN 60 905 115 063). Unless we tell you otherwise, all products are issued by the QSuper Board as trustee for the QSuper Fund. When we say ‘QSuper’, we’re talking about the QSuper Board, the QSuper Fund, QSuper Limited or (QInvest Limited), unless the context we’re using it in suggests otherwise.We’ve put this information together as general information only so keep in mind that it doesn’t take into account your personal objectives, financial situation, or needs, shouldn’t be relied on as legal or taxation advice, and doesn’t take the place of this type of advice. What we say about law or proposals is based on our interpretation of the law or proposals at the time we printed this document. You should consider whether the product is appropriate for you by reading a copy of the product disclosure statement before making a decision – you can do this by downloading a copy from our website at qsuper.qld.gov.au or call us on 1300 360 750. If you don’t want to hear from us, except when we’re required by legislation to get in touch, please call us. You can also let us know how you’d like us to contact you by logging in to Member Online. © QSuper Board of Trustees 2015. 8414 36-49F. 08/15.

Start the conversation todayP 1300 360 750Monday to Friday8:30am to 5:00pm AESTqsuper.qld.gov.au

You can also find us on:

A word about short-term returnsWhen looking at investment returns, it’s important to remember how limited the information in a one-year or year-to-date return is. Markets can be volatile, meaning returns can fluctuate wildly from one year to the next. That’s why our aim is to deliver consistent and stable returns over the long-term, and encourage you to look at longer-term performance as the most meaningful measure of success.

Helping us help youTo better understand the needs of our members, we regularly conduct research. Rest assured though that we only work with professional firms that operate to strict privacy standards, and you won’t be identified in results. Of course we understand that you may not want to be contacted by our researchers, and that’s fine – simply give us a call on 1300 360 750 and let us know. You can also find more information about our privacy policy in our Privacy factsheet.

Go paperless!Did you know you can now receive your annual statement online? It’s safe, secure and of course much more environmentally friendly. If you haven’t already made the switch from snail mail it’s easy to do. Simply log in to Member Online, click the ‘Your Profile’ tab, and update your preferences, and next year you’ll get an email from us when your statement is ready to view.

Investment returns (Accumulation account)

QSuper investment options 1 Year 5 year% p.a

10 year% p.a

QSuper Lifetime

Lifetime Outlook This option was introduced 26 May 2014

13.71% n/a n/a

Lifetime Aspire 1 This option was introduced 26 May 2014

13.75% n/a n/a

Lifetime Aspire 2 This option was introduced 26 May 2014

11.89% n/a n/a

For information on all the Lifetime groups head to qsuper.qld.gov.au/lifetime

Ready Made options

Moderate 7.18% 6.78% 5.63%

Balanced 12.45% 9.98% 7.05%

Socially Responsible 9.92% 9.02% 6.41%

Aggressive 14.59% 11.98% 7.16%

Your Choice options

Cash 2.00% 2.87% 3.61%

Diversified Bonds 3.74% 5.82% 6.23%

International Shares 14.12% 14.81% 6.71%

Australian Shares 8.38% 9.90% 7.54%