MAP Superannuation Plan & MAP Pension Plan · 2015 MAP Annual Report 4 Total 2015 MAP Super Plan grew to $388.13 million Loyal members: 57% have been with MAP more than 10 years $28.5

MAP Superannuation Plan & MAP Pension Plan

Annual Report

2015

2015 MAP Annual Report

2

Contents Message from the Board ............................................................................................................................................................................... 3

A Word from Your Trustee ............................................................................................................................................................................ 5

What’s New ............................................................................................................................................................................................................ 7

Investments: The year in review ................................................................................................................................................................ 8

Investment Options .......................................................................................................................................................................................... 9

Investment Allocation .................................................................................................................................................................................. 11

Investment Performance & Managers ............................................................................................................................................... 12

Governance ........................................................................................................................................................................................................ 15

Important Information ................................................................................................................................................................................. 18

Directory ............................................................................................................................................................................................................... 20

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 MAP Financial Planning Pty Ltd (ABN 91 090 411 537, AFSL 239117), a wholly owned subsidiary of MAP.


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Message from the Board

Looking after the medical profession is our history and is still core to what we do. The loyalty of members of the MAP Fund stands as testimony to our solid record. More than half of our members – 57% - have been with the fund for more than 10 years and dozens have been with the fund for more than 30 years.

MAP – powered by OneVue

MAP Funds Management is part of the expanding OneVue Group, a provider of superannuation and investment management solutions which has a record $3.075 billion in funds under administration as at 30 June 2015.

The last year has marked a phase of new beginnings and partnerships for MAP. Select Investment Partners became MAP’s investment manager in December. With a 14-year track record as a specialist provider of multi-asset portfolios, the company is a wholly-owned subsidiary of OneVue Holdings Limited.

Last November, member administration was also outsourced to Super Managers Funds Administration Pty Limited – a dedicated business with over 28 years’ experience. Members will benefit from broader capability in member administration.

Awards

Our track record on investment management is one of our strengths and our staff numbers have grown. We now have a team of eight dedicated to research, economics and portfolio management. To give an insight into the people and culture, we have published an overview of this in OneVue’s Annual Report which is available on our website. Strong teamwork has contributed to long-term award-winning

performance. Our top-performing MAP Cash offering this year won the prestigious SR50 Best Cash Return Award from SuperRatings from 2010 to 2015.

Our expertise was further recognised with the OneVue Group ranked as a finalist in the ‘Rising Star’ category of the SuperRatings awards for 2015. The awards recognise excellence in the superannuation industry.

Winning strategy

Strategy in your superannuation fund is so important to maximising benefits for your retirement. Starting a pension has the potential benefit of lowering the tax paid on your investment earnings. In the past financial year, members have converted $28.5 million into transition to retirement income streams and pensions.

The Year to Come

Members of the Fund have traditionally reaped the benefits of financial advice to help make the most of the fund. Recently, we restructured this arrangement to strengthen service to members via a specialised offering from experienced professionals.

You will have an opportunity to meet them in the near future, in conjunction with an economic and investment briefing.

In April 2016, the Trustee is committed to providing a further reduction in administration fees. Details will be provided to members in the March quarter.

With rapid change all around us, in the year 2016 we hope to see both past and new initiatives deliver further benefits to members.


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Total 2015 MAP Super Plan grew to

$388.13 million

Loyal members:

57% have been with MAP more than 10 years

$28.5 million moved from accumulation to pension or Transition to Retirement Income Stream

Top performer for 2015 International Equities

15.52% return


5

A Word from Your Trustee

Leveraging the strength of the OneVue Group is an important priority for the MAP Trustee Board and this has been a key strategy through the year.

As the most effective way for MAP to meet our regulatory requirements, the MAP Investment Committee combined with other Investment Committees within the Group. The Committee membership continues to be independent of executives operating the investments.

The functions of the former FARRM (Finance Audit Remuneration and Risk Management) committee have also been streamlined and replaced with those of OneVue’s group-wide Audit, Risk Management and Compliance Committee and Human Resources, Nominations and Remuneration Committee.

Over the whole of last year, the Trustee focussed on building a stronger fund for your benefit. In order to give MAP members security and peace of mind about their investments, we aim 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.

Outlook

We continue to strive to provide stronger services and to adapt to our changing environment.

The Board would like to thank you for entrusting your retirement savings to us. Congratulations should also go to the management team and staff for their dedication and effort in looking after you and your superannuation fund.

We will continue to work to create a superannuation fund that continues to meet the needs of members in a world of continuous change in investment markets, regulation and technology.

Karen Gibson Chair MAP Trustee Board

‘MAP Has Been Loyal to Me’ “MAP is a specialised fund which looks after the needs of doctors, dentists, their families and their staff. It’s a fund that understands the needs of those professionals. It’s that personalised service you get from MAP that you don’t get from other funds, that makes it special. I have been extremely loyal to MAP, because MAP has been loyal to me”

Leading ophthalmologist Dr Bill Glasson, a member of MAP Super for 35 years and a former Australian Medical Association President. (Testimonial)

Dr Bill Glasson


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Administration Fees – members on average

saved 0.08% compared to 2013/14

MAP Best Cash Fund SuperRatings

OneVue finalist “Rising Star” SuperRatings 2015

Length of average membership:

13.7 years


7

What’s New

Contribution Caps for 2015/16

Keeping up with the ever-changing regulatory landscape is part of our promise to members at MAP. At present, the general concessional contribution cap is $30,000. If you are aged 49 years or over at 30 June 2015, the concessional cap is $35,000.

The non-concessional contribution cap is $180,000 (note that if you triggered the “bring-forward” rule prior to 1 July 2014, this cap may be lower.)

If you are under 65 years of age, you may be able to bring forward to the current financial year the next two years’ worth of non-concessional contributions, subject to a cap of $540,000.

Government Co-Contributions and Low-Income Super Contributions

If you make a personal after-tax contribution and your total income (conditions apply) is under the co- contributions upper threshold ($50,454 for 2015/16), the Government may contribute up to $500 per year. The maximum co-contribution payable reduces for every dollar your total income exceeds the lower threshold ($35,454 for 2015/16), until your total income reaches the upper threshold.

If you earn less than $37,000 a year (conditions apply), the government may allow a refund of super tax under the Low Income Super Contribution (LISC). If your employer makes concessional (before-tax) superannuation contributions on your behalf, you may be eligible for a refund of the contribution tax deducted from your superannuation account, which is paid directly to your account by the government. The LISC will not be payable for concessional contributions made on or after 1 July 2017.

Treatment of excess non-concessional contributions

Instead of paying excess non-concessional contributions tax, you can choose to release your excess non-concessional contributions and 85% of associated earnings from your super fund. The full amount of associated earnings will be included in your assessable income and taxed at your marginal tax rate. A 15% tax offset will be applied to recognise the associated earnings that have already been taxed in your super fund.

If you choose not to release your non-concessional contributions from your super fund, you will receive an assessment, where the excess will be taxed at the highest marginal tax rate.

Low Rate Cap

Lump sum payments of the taxable component are tax-free, where they are paid out once preservation age is reached prior to age 60. This cap is $195,000 for the 2015/16 year.

Early release of superannuation - terminal illness

People suffering from a terminal medical condition will now find it easier to access their superannuation funds early, after the federal government amended regulations.

Under the previous rules, a patient would only qualify for early access on the grounds of a “terminal medical condition” if they obtained certificates from two separate medical specialists (one of whom must be a specialist practising in an area related to the illness or injury) which shows they have less than 12 months to live. The government has extended this life expectancy period to 24 months, with effect from 1 July 2015.

This amended time period does not apply to the definition of terminal illness contained within an insurance policy which may be attached to a person’s superannuation account.

Preservation Age

Generally, an account-based pension can be established once you have reached your preservation age and have permanently retired from the workforce. From 1 July 2015, the minimum preservation age increased to 56.

Investment Option changes

The Trustee regularly reviews the investment strategies of the Investment Options available. After our recent review, both the target asset allocations and the objectives have been updated to reflect changed assumptions. These will be effective from 1 January 2016 and are outlined in the attachment to your 2015 member statement.


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Investments: The year in review

Dragana Timotijevic Head of Research

The 2014/2015 financial year was marked by below average economic growth and generally lower returns from major asset classes, compared to the year before. Despite this, all multi-asset pools except the Capital Stable option achieved returns above investment objectives.

Global growth during the year continued to be modest by historical standards and characterised by divergence in growth rates between major economies. The US economy remained the engine of global growth, while the sluggish pace of expansion in Europe and Japan was the main drag on growth. China’s growth clearly decelerated and given the overall softness of global demand, growth in Australia remained patchy and sub-standard.

Policy response in major countries has reflected this diverging growth picture. The European Central Bank embarked on an expansive quantitative easing program, Japan adopted aggressive fiscal and monetary policies and the People’s Bank of China cut rates several times during the year. The Reserve Bank of Australia, too, cut interest rates twice, from 2.5% to 2%, the lowest level on record. In the US, however, the Federal Reserve Bank signalled to the market that the next move in interest rates is going to be up.

Other notable developments were sharp falls in commodity and oil prices, the continued strength of the US dollar and the significant depreciation of the Australian dollar.

The year end was marked with heightened volatility in both bond and equity markets, as renewed concerns over Greece coincided with wild gyrations on the Shanghai stock market and general uncertainty about the strength of global growth.

Australian Listed property was the strongest returning asset class. Most major asset classes, except

Emerging Markets Equities and Credit, delivered positive performances in the year to June 2015. The 18% fall in the A$ made a strong contribution to returns from unhedged foreign assets. As a result, unhedged International Equities generated a very strong return.

Portfolio Management

Towards the end of the year, the Investment Manager carried out an extensive review of objectives, asset allocations and asset class structures. These changes will be communicated to members.

Portfolio management focus remained on thoughtful use of the management fee budget and aiming to seek investments that provide significant benefits to the portfolio. These can manifest through either higher returns or lower risk by increasing diversification.

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. Index strategies continued to be mainly employed in managing Australian and International Equities.

New Investments

There were no new investment managers appointed during the financial year.

Redeemed Investments

The Fund redeemed from the Mercer Listed Infrastructure Fund. MAP prefers allocations to the infrastructure asset class through unlisted exposure.

Objectives and Strategies

In terms of single sector options, International Equities and Diversified Property achieved returns above their investment objectives. The Cash and Australian Equities options underperformed their objectives, with the former’s performance impacted by historically low cash rates.

Dragana Timotijevic


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Investment Options (as at 30 June 2015)

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 being 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 + 5.0%


CPI + 2.0%

Minimum Suggested Investment Time Frame:

7 years


7 years


7 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: with an estimate of between two to three 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%


Intl. equities 90-100%

Cash 0-10%


Div. property 90-100%

Cash 0-10%


Cash 100%

Defensive vs Growth Asset Allocation Range:

Defensive 0%

Growth 100%


Defensive 0%

Growth 100%


Defensive 0%

Growth 100%


Defensive 100%

Growth 0%

* 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 + 3.0%


CPI + 3.5%


CPI + 4.0%


CPI + 4.5%


3 years


3-5 years


5-7 years


7 years

Standard Risk Measure*: Low Risk: with an estimate of between 0.5 to one 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.


Aust. equities 0-25%


Div. fixed interest 15-50%

Div. property 0-15%

Alternative assets 0-15%

Cash 15-50%





Div. property 0-15%


Cash 0-35%





Div. property 0-20%


Cash 0-20%





Div. property 0-30%


Cash 0-20%

Defensive vs Growth Asset Allocation Range: Defensive 65-80%

Growth 20-35%


Growth 40-55%


Growth 60-75%


Growth 80-100%

* 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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Investment Allocation

Asset Allocation by Asset Class (as at 30 June 2015)

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.


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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 2015 20141 20131 20121 20111 10 year compound

return2

5 year compound

return2

Australian Equity 4.0 12.9 18.0 (6.5) 1.1 5.8 7.6

International Equity 15.5 16.8 22.4 (6.7) 7.0 4.6 10.5

Diversified Property 7.1 6.9 6.2 5.6 11.0 1.0 7.3

Cash 2.6 2.8 3.9 5.1 5.8 4.4 4.0

Capital Stable 4.3 5.4 6.5 1.5 6.1 3.9 4.7

Balanced Moderate4 4.8 7.0 9.5 n/a n/a

Balanced 5.7 9.0 12.0 (2.1) 7.9 4.3 6.4

Growth 6.3 10.6 13.6 (3.0) 9.7 4.8 7.3

MAP Pension Plan Returns (%)

Investment Option 2015 20141 20131 20121 20111 10 year compound

return2

5 year compound

return2

Australian Equity 4.2 14.4 18.9 (6.7) 11.9 6.1 8.1

International Equity 16.2 18.7 23.6 (7.2) 8.1 4.8 11.4

Diversified Property 8.4 7.5 6.2 5.9 13.1 0.5 8.2

Cash 3.0 3.2 4.2 5.6 6.4 5.1 4.5

Capital Stable 4.6 6.1 6.9 1.7 6.6 4.4 5.2

Balanced Moderate4 5.6 7.9 9.4 n/a n/a

Balanced 6.0 10.0 12.6 (2.1) 8.4 4.5 6.9

Growth 6.8 11.8 14.1 (3.2) 10.4 5.1 7.8

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 2015 and net of all investment fees, administration 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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Investment Managers of the MAP Superannuation Plan, MAP Pension Plan and the MAP Pooled Superannuation Trust

Investment Managers

Barwon Investment Partners

Bennelong Australian Equity Partners Pty Ltd

Bennelong Avoca

BlackRock Investment Management (Australia) Limited

Colonial First State Investments Limited

Dimensional Fund Advisers (Aust) Limited

Grantham, Mayo, Van Otterloo & Co

Lazard Asset Management Pacific Co

Macquarie Investment Management Limited

Mercer (Australia) Pty Ltd

Perennial Investment Partners

QIC Limited

Schroder Investment Management Australia Limited

Select Investment Partners Limited

Smarter Money Investments Pty Ltd

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

As at 30 June 2015, the following underlying investments exceeded 5 percent of the total assets of the MAP Superannuation Plan, MAP Pension Plan and MAP Pooled Superannuation Trust:

■ BlackRock Investment Management (Australia) Limited (10.45%)

■ Macquarie Investment Management Limited (25.43%)

■ Mercer (Australia) Pty Ltd (11.35%)

■ YBR Smarter Money Investments (14.19%)

The Trustee acknowledges that, as a result of member discretion, individual accounts may have a greater than 5 percent 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 percent 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 an Australian Financial Service Licence (No. 240753) and a Registrable Superannuation Entity Licence (No. L0000703).

No penalties were imposed this year on any responsible person under Section 38A of the Superannuation Industry (Supervision) Act 1993. The Trustee does not pay dividends or distribute profits in any form except as rebates to members.

This year, fees totalling $3.96 million 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 Role Statement

■ Monitoring and supporting the Chief Executive Officer

■ Focusing on future strategy and planning

■ Building and maintaining a culture of compliance and accountability to members and regulators

■ Regular meetings between the Audit, Risk Management and Compliance Committee and MAP’s Auditors to ensure a direct and proactive relationship with respect to the monitoring of internal financial controls

■ Annual performance reviews for members of the Board and management

Board Members Following are profiles of Board members at 30 June 2015:

Mrs Karen Gibson - BSc MBA GAICD

Mrs Gibson was appointed as Chair of the MAP Trustee Board in February 2015, after serving as a Director since February 2013. She has over 20 years senior management experience in the superannuation industry. Mrs Gibson is a graduate member of the Australian Institute of Company Directors, fellow member of the Australian Institute of Management, member of Women in Super, member and past mentor of Women in Finance.

Mr Adriaan C. Ryder - B BusSc (Actuarial) (Hons), AIA

Mr Ryder was appointed as a Director of the MAP Board in July 2009. As CIO for QIC, Adriaan is responsible for formulating and implementing strategic asset allocation policies for major clients. He is an Actuary and a member of several Advisory Boards, Investment Committees and Professional Associations. Adriaan has held senior investment roles in the UK and USA managing institutional client portfolios worldwide, with responsibility for asset management businesses in Japan, Europe and Canada.


16

Ms Gail Pemberton - MA FAICD

Gail Pemberton's distinguished career in financial services and the IT sector has spanned the globe. The multi-award winning recipient joined the MAP Trustee Board in February 2015. She is also Chair of OneVue and SIRCA Technology and a non-executive Director of PayPal Australia, Baycorp and QIC.

During her executive career Gail was the Chief Operating Officer at BNP Paribas Securities Services in the UK. She was previously the Managing Director of BNP Paribas Securities Services Australia and New Zealand, where she doubled the size of the business in less than three years.

Mr Garry Wayling - BCom (Acctg), GAICD, CA

Mr Wayling was appointed as a Director of the MAP Board in May 2014 and is a member of the OneVue Board. He brings with him more than 30 years of experience in a professional services, 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.

Ms Greta Thomas - MBA GAICD (resigned 2 October 2015)

Greta Thomas joined the MAP Trustee Board in February 2015 and is best known for the instrumental role she played in launching eBay Australia. She has a proven track record of helping lead brands create new business models and ventures.

She has expertise in strategy, marketing and creating and building businesses internationally. Career highlights include partnering with Richard Branson's ‘The B Team’ and helping build (RED), an international business with purpose founded by Bono and Bobby Shriver.


17

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 Compliance Committee; and

■ Human Resources, Nominations and Remuneration 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.

Committee members as at 30 June 2015

Committee Members

Audit, Risk Management and Compliance Committee

Mr Garry Wayling (Chair)

Ms Gail Pemberton

Ms Greta Thomas

Investment Mr Adriaan Ryder (Chair)

Brendan Foley

Michael Cole

Peter Heffernan

Human Resources, Nominations and Remuneration

Ms Karen Gibson (Chair)

Ms Gail Pemberton

Ms Greta Thomas


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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 2015)

MAP Super

$’000

MAP Pension

$’000

DIV II

$’000

Opening Net Assets

185,883 88,142 342,374

Increase (decrease)

(30,686) 13,087 45,758

Closing Net Assets

155,191 102,229 388,132

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 2015)

MAP Pooled Superannuation Trust

$’000

Opening Net Assets 8,543

Increase (decrease) 1,660

Closing Net Assets 6,883

Reserves

The Trustee maintains reserves in the Fund for the benefit of members. The reserves are held at a Fund level to meet regulatory requirements. Reserves are invested in the cash option for the benefit of all members.


19

At 30 June 2015 the Plan held reserves of $3.38 million.

MAP Reserves (at 30 June 2015)

2015

$’000

2014

$’000

2013

$’000

Opening Balance 1,267 1,772 1,972

Increase (decrease) in Reserves

2,120 (505) (200)

Closing Balance 3,387 1,267 1,772

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.

Effective December 2014, this changed from three times per week to daily pricing.

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.


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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, 135 Wickham Terrace Brisbane QLD 4000

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

Super Managers Funds Administration Pty Limited Level 2, 540 Swift Street Albury NSW 2640

Contact us

MAP Funds Management Ltd PO Box 1282 Albury NSW 2640 Phone: 1800 640 055 Email: [email protected] Website: www.mapfunds.com.au

MAP SUPERANNUATION PLAN

MAP PENSION PLAN

MAP POOLED SUPERANNUATION TRUST

Delivering quality services for over 50 years

Established by Doctors over 50 years ago to meet the superannuation and investment needs of medical and allied health professionals. MAP quickly grew to become the Superannuation Fund of choice for many Medical Professionals throughout Australia. In 1992, due to a growing demand for acceptance from other professions MAP became a Public Offer Entity.

MAP has evolved to now provide a broad range of comprehensive, specialist and individually tailored financial, investment and retirement planning services through MAP Financial Planning and the MAP suite of products.

MAP ABN 85 011 061 831

PO Box 1282 Albury NSW 2640

1800 640 055 [email protected]

www.mapfunds.com.au

Documents

MAP Superannuation Plan & MAP Pension Plan · 2015 MAP Annual Report 4 Total 2015 MAP Super Plan grew to $388.13 million Loyal members: 57% have been with MAP more than 10 years $28.5