super scoop - QSuper Fund · want a greater say and more control over how their super is being...

March 2015 edition

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From farmer to world traveller.Graham Moon is loving semi-retirement.

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Super seminarsGiving you answers to your retirement questions.

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Take control with Self Invest.The benefits of a self-managed super fund less hassle.

superscoop

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Super Scoop March 2015

Welcome

Whether you’re in the early stages of preparing for retirement, or you left the workforce years ago, something that’s likely to be at the forefront of your mind is how you’re going to fund, and keep on funding, your retirement. Where will the money come from to pay the bills every month, and will it still keep coming for your whole retirement?

Driving a better future for members

The super industry has achieved much over the last two decades, and more and more Australians are becoming better prepared for retirement. I think it’s fair to say that especially when compared with many countries we have a good system we can be proud of. But we shouldn’t settle for merely good. I strongly believe that both as a fund and an industry we need to do so much more to ensure all Australians can enter retirement with a feeling of financial security. At the moment many super fund members have no idea if their super will go the distance – it’s almost like getting into a car and having no idea if it will reach its destination. We need to make sure that your super can get you the retirement you dream of – we need super that just works.

That’s my goal, and the goal that will drive QSuper going forward. Last year’s Financial Services Inquiry brought super into the spotlight, and one area in particular that was called out was retirement incomes. This aligns with our thinking, as while we

are constantly looking at ways we can evolve and enhance our products and services to give you more certainty in your future, we are putting a real focus on what we can offer you in

retirement. As I noted above, for many retirees the biggest worry is outliving their retirement savings, so we

are looking at ways we can help you manage this risk. It’s a big challenge, and one that

will require the whole industry to shift its thinking, but I’m confident in our ability to lead the way.

Join us on the journey

This is just the start of the journey, but as you can see there is so much more to

come, and I look forward to sharing many exciting new developments with you over

the coming months and years – all designed to better ensure you can face retirement

with confidence.

We’re here for you

In the meantime, enjoy this edition of Super Scoop. It’s full of informative and interesting articles to help you make the most of your super and your retirement. And if you’re concerned about your super, or have any other questions, just give us a call. Because the last thing super should be is difficult.

Rosemary Vilgan Chief Executive Officer, QSuper

Australians need super that

just works.

Looking to refinance your home or buy an investment property? QInvest’s specialist brokers have access to hundreds of home loan products to get you a better deal.Why not make an appointment today?

Save time and money with QInvest LoanFinder.

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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EXCLUSIVE TO QSUPER MEMBERS,

THEIR FAMILIES AND FRIENDS.

A message from the CEOA simple five minute conversation with us now could lead to a better retirement.

Rosemary Vilgan

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1 Cost of operating SMSFs – Rice Warner May 2013.

Opening an Income account soon?

Through Self Invest you can transfer funds from your Accumulation account to an Income account without having to sell any of the investments you hold in this option. The big benefit of being able to transfer the full value of your Self Invest investment in this way is that you don’t incur any losses or capital gains tax.

A message from the CEO

When it comes to retirement, everyone has a different approach to planning for their future. But these days, more and more people want a greater say and more control over how their super is being invested, which is why self-managed super funds (SMSFs) are becoming increasingly popular.While SMSFs put control of your super in your hands, they can come with added baggage – because you (or a third party) are responsible for all the admin and paperwork that goes along with it. They can also be costly and time consuming, so even though you choose how your money is invested, you’re also responsible for all the reporting that’s involved which (especially if you pay professionals to do it) can often add up to thousands in running costs every year.

Invest on your terms

That’s where Self Invest is different because it gives you a hands on approach to managing your super without the cost and paperwork involved with an SMSF. You can choose to invest in whatever Australian companies you want (as long as they’re in the ASX300), and a range of exchange traded funds (also known as a pre-mixed bundle of investments that trade just like a share). Our exchange traded funds (ETFs for short) also give you access to investments such as property and bonds, in case you want to mix it up a bit. And all you need to be eligible to invest in Self Invest is a minimum balance of $50,000 in your Accumulation account.

Additionally, many members over the last few years have asked us why they can’t invest their super in term deposits. Well now you can! Through Self Invest you can access a number of term deposits from some of Australia’s biggest term deposit providers – including Bank of Queensland, National Australia Bank and RaboDirect – for terms ranging from 30, 90, 180 and 365 days.

Take control with

QSuper Self Invest

Offering a cost-effective solution

A key advantage of Self Invest is its cost-effectiveness and convenience. When compared to an SMSF, the annual savings can be considerable, especially when you factor in some of the costs for external providers such as accountants and legal professionals that many SMSF trustees rely on.1 We also take care of the administration side of things for you so you can really focus on your investments and creating the best possible outcome for your future. (In other words, don’t worry about the paperwork – just sit back, relax and leave that part up to us).

Self Invest at a glance(or everything you need to know in one simple list)

• Control, flexibility and choice – invest in Australian shares, and a range of exchange traded funds, or term deposits.

• Convenience – online access at a time and place that suits you.

• Low fees – competitive ongoing fees that are often cheaper than an SMSF1.

• Tax advantages – take advantages of many of the benefits available to SMSF investors.

• Tools and research – information tailored to your investment choices.

Intrigued? To get started, register for Member Online or find out more by visiting qsuper.qld.gov.au/selfinvest

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Who said semi-retirement would be quiet and boring? Just ask Graham Moon, at 71, he is busy juggling farming work, family life and plenty of travel.Have you started checking-off your bucket list yet? Graham Moon and his wife Karen definitely have a head start on many of us. The past six years have been filled with overseas adventures and exploring Australia, and he hasn’t even retired yet!

When he’s back on home soil, Graham spends his days on the cattle and grain farm he’s been working on since 1973. Although, these days the pace has changed and he admits ‘jobs that used to take two hours a few years ago, now take me all day’.

While the long-term plan is to move to a smaller property in a rural town, Graham’s not ready to give up farming completely yet, he’s just scaling back.

This doesn’t mean he’s slowing down though – far from it. Having always been active in the local community (an impressive sixteen years on Laidley Shire Council, including six as the mayor), Graham still participates in various charity events and volunteers with the Heart Foundation.

‘We plan to spend time helping Blue Care and Meals on Wheels in the near future. I’m also still a member of the Rural Fire Brigade, having clocked up 36 years of service now, although I’m not active in the field anymore.’

Super planning

So how have Graham and Karen achieved such a great lifestyle? The answer is some sound financial planning.

‘In the lead up to semi-retirement, we approached QInvest to develop a plan for a comfortable lifestyle,’ Graham explains.

‘I’ve opened a QSuper Income account, and our QInvest Adviser put together a plan so we can draw a regular income to cover our everyday expenses, but also be able to take a trip nearly every year if we want.’

Our plan includes a range of ideas for how we can sustain this lifestyle up until we are 99 years old.

To help with planning and managing finances, Graham has chosen the Premium Service with QInvest. This service means that Graham has a dedicated Financial Adviser who he can meet up to four times every year, and is always available over the phone.

From farmer to

world traveller

Graham Moon enjoys every moment of every day.

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‘We prefer having the same person dealing with our affairs on a regular basis. We pay a little more of course, but this means that we will always talk to the same person about our finances.’

‘I am confident that our QInvest adviser is up to date on the latest news and legislation. My business is farming and his business is giving us direction in relation to our finances.’

‘Since we have had access to regular advice, it has made budgeting and the things you need to take care of as you get older, very simple. We are very appreciative of that.’

Bringing it all together

Graham is obviously on a sound retirement track, so is there any advice he’d offer to those planning to retire in the next few years? ‘Other than getting good advice, the one thing I’d suggest is consolidating your super.’

‘I accumulated super in a couple of funds over my career, but I chose to consolidate with QSuper. My only regret is not doing it sooner, as I think the fees charged by one of my funds in particular were too expensive.’

‘Why QSuper? Really because of the lower fees, and the consistent investment returns. I think it is important that you have confidence in the people you ask to manage your funds for you.’

Keeping a healthy focus

Graham’s other top tip for retirement is to look after your mental and physical health.

‘You do need to stay fit and make sure you have regular health checks, because as you get older, things unfortunately have a tendency to wear out and break down,’ he says.

Keeping fit is especially important for the lifestyle Graham leads – both at work and at play.

‘Plenty of our holidays involve walking to see attractions. Hiking around Sapa was particularly strenuous, but even visiting major cities like Paris or Amsterdam needs a basic level of fitness because of the amount of walking involved.’

With a passion for politics, Graham also keeps his mind active through following the news in Australia and staying up to date on international events. And not to forget, researching the next trip overseas, of course!

With only a small head of cattle needing attention and a few vegetable crops to maintain, Graham now considers himself semi-retired. And that means he has the time to travel and see the world.

In the past six years, Graham and Karen have become self-confessed travelling addicts, visiting more countries than many people would in a lifetime.

‘We’ve been to Singapore, Kuala Lumpur, Israel, and China, and European destinations like Austria, Italy, and France.’

‘The highlights for us were definitely visiting the Lesser Three Gorges Dam in China, and cruising in Europe and New Zealand.’

Closer to home, the couple has been to the Norfolk Island, the Kimberly region and travelled on The Ghan from Adelaide to Darwin. Next on the agenda is a trip to Canada and Alaska.

World traveller

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At QSuper, we’re completely focused (you might say obsessed) with providing you and each of our 530,000 or so other members with everything needed to create and enjoy a great retirement.

Obviously, no two members are the same. What you want for your future and the pathway to get you there is completely unique. And it’s for this reason that we offer choices wherever

possible, providing members with different ways to personalise their experience.

Options across the board

From how you interact with us and view your account, to your investment options and the tools and advice channels available, we offer something for everyone. The thing about these choices is that they’re available if you

want them, and want to be involved in the way your super is set up. But if not, that’s fine too. They’re always there if you change your mind, and are constantly being added to and improved.

So whether you take advantage of the choices available or prefer to leave the decision-making to us, you can be confident that QSuper has your best interests in mind, both now and into the future.

So, you’ve got a few more years of full-time work left. Or perhaps you’re lucky enough to already be enjoying retirement. Either way, there are plenty of things that you can do to create a better future for yourself. And we’re here to help you in any way we can

Your super, your way

Investment optionsDepending on how much involvement and control you want over how your Accumulation account is invested, there are plenty of options for you to choose from.

Our default option, Lifetime, changes as you move through life. It contains eight groups, each with its own unique investment strategy to suit the lifestage you’re in. We use your age and Lifetime account balance to determine which of the eight groups you should be placed into, and if you should be moved to another group.

Some of the groups are more suited to members with lower balances, recognising the need to invest in more growth-focused assets to help build funds between now and retirement. For those members with higher balances, there’s a Lifetime group to suit, with investment strategies geared more towards maintaining the members’ money, rather than aggressively trying to grow it. For more information about the different groups, visit the website, or log in to Member Online to find out which group you’re in.

If you’d prefer more involvement with your investment you can choose from the pre-mixed bundles of assets within the Ready Made option, or mix-and-match the single asset classes with the Your Choice options. Both of these allow you to gain a bit more control over your investments by choosing from a range of options managed by QSuper.

Alternatively, our recently-launched Self Invest option offers the chance for you to invest your super directly into shares and exchange traded funds. And because many members – especially those in or close to retirement – told us they wanted a term deposit option, we listened and have included this choice within Self Invest too. With low ongoing fees and up-to-date market research and data, Self Invest has been designed to provide a real alternative to an SMSF, but with more convenience and less cost.

Visit qsuper.qld.gov.au/investments to learn more about the options available.

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Tools and adviceTo help you achieve and maintain the retirement lifestyle you’d like, you’ve got access to a range of resources.

Keeping track of how your super’s going and crunching the numbers is made easier with our retirement income calculator, while our investment choice calculator will give you a better idea of how your money is invested. Visit qsuper.qld.gov.au/calculators to view the full range.

Plus, our education program, consisting of seminars and webinars covering a range of different topics, is available to help you learn more about your super and general money matters. See the Super seminars article in this edition of Super Scoop for more information.

As a QSuper member, you also get access to financial advice through QInvest. You can access whatever level of advice you need, from over the phone advice on a single super topic to an indepth review of your entire financial situation. It’s up to you. To find out more or to book an appointment, visit qinvest.com.au or call 1800 643 893.

Information accessIf you ever want to know more about super, just take five minutes to check out our website at qsuper.qld.gov.au. And in the coming months, it’s going to get even better. After working with members to find out what’s important to them, the website will be simpler and more user-friendly, making it easier for you to find the information you’re searching for.

If you’re looking to gain access to your QSuper account information, Member Online is your best bet. This award-winning portal can be accessed via our website and provides personalised, real-time information whenever and wherever it suits you. Update your details, review and switch investment options and insurances – it’s all available through Member Online.

Sometimes a five-minute chat about your situation can provide you with the details and steps you need to take to make a big difference to your future. So give us a call on 1300 360 750 and talk to one of our friendly and knowledgeable Information Officers. Or, if you’re in Brisbane city, drop into one of our Member Centres at 70 Eagle Street or 63 George Street to see us in person.

We’re leading the way

However you choose to manage your super, you can be confident we’re doing everything possible to provide you with a happy and comfortable life in the years to come. And we’re always looking at how we can do that better.

The launch of our industry leading investment option QSuper Lifetime is just the start, but one that is recognised across the industry as a game changer, with our CEO Rosemary Vilgan recently accepting an Innovation Award at the international Pensions and Investment Innovator Awards. These awards recognise people who are ahead of the pack and making changes that will improve the retirement outcomes of members, and that’s what we’re all about at QSuper!

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Retirement is an exciting new phase, and can offer some of the best and happiest years of your life. But before you reach retirement you may have many questions:

Do I have enough money to retire?

What type of lifestyle do I want in retirement, and how will I fund it?

Is it too late to make a difference to my super?

At QSuper, we’re here to help you find the answers through our range of insightful seminars and webinars designed to give you the information and direction for creating your own unique road map to retirement.

Super in perspective

When it comes to super, we believe the journey to your retirement lifestyle is important. That’s why we offer more than 600 seminars each year tailored to every stage of life.

Our seminar program is the best in Australia1 (not that we want to boast) and each year we help more than 30,000 QSuper members better understand their super. So why not spend five minutes on our website at qsuper.qld.gov.au/seminars and see how it could help you.

Super seminars to put your future in perspective

We needed to get that information and find out what needed to be done, and I think the seminar provided that information. It’s confidence, I think.

John and Lyn Secombe, QSuper members since 1994

QSuper seminarsWe have tailored our seminars to focus on what’s relevant for you today. Jump online at qsuper.qld.gov.au/seminars to find a session that suits you. Remember to make a booking to secure your spot.

Of all our single-session seminars, we think these three would be really beneficial if you need a helping hand to plan your retirement. If you’re looking for something a little more in depth though, try our two-day Retirement Preparation seminar – all the details are on the right.

Design Your Future

A little bit of planning goes a long way, and it’s never too late to start. Discover why creating a blueprint now can make a huge difference in the future. We created the Design Your Future seminar to give you the information for planning your income needs during retirement.

At the end of the seminar, you will take home your own action plan with things to do that will keep you on the path to achieving your future goals.

Transition to Retirement

If you’re aged 55 to 64 and still working, a transition to retirement (TTR) strategy may suit you.

As well as allowing you to ease into retirement by possibly cutting back on hours and maintaining the same income, many people use TTR as a tax-efficient strategy to boost super in the lead up to retirement.

Because TTR can be complex and may not be right for everyone, we have created this seminar to demonstrate the pros and cons of both strategies while explaining the more technical components.

Ready Steady Income

Find out how you could make the most of your retirement savings and enjoy a regular income after you’ve stopped working.

The Ready Steady Income seminar will take you through a series of exercises that explore your expected spending habits during retirement and how long you might need to fund your lifestyle.

We also look at the many ways you can draw an income in retirement, including an account-based pension and annuities.

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can get the most enjoyment from this incredible time in your life.

Assistance options

Depending on your financial position at retirement, you may be entitled to assistance from the Department of Human Services (Centrelink). A DHS representative will give you an overview of the types of payments and concessions available, along with eligibility requirements.

Taking care of your loved ones

Planning for your loved ones’ futures can be just as important as planning for your own. The Public Trustee will take a look at how you can make sure your assets are distributed according to your wishes. They’ll also talk about making a Will, Enduring Power of Attorney and nominating beneficiaries.

Our single-session seminars are great if you’re limited on time, but leading the way is our Retirement Preparation seminar. Designed to make the complex clearer, over two-days we unpack the many issues relating to retirement, such as superannuation, investing, financial planning, estate planning, health and lifestyle.

Our popular seminar will cover a range of topics, including the following.

Going the distance

No matter how much money you have in super, there’s always something you can do to get it working harder. We’ll show you how to make the most of your super so you can have a comfortable lifestyle throughout retirement.

Healthy ways to enjoy the journey

In addition to finances, we look at your health and wellbeing – two factors that are essential to a happy and active retirement. A geriatric medical expert will discuss how you can take good care of your body and mind, and how you

Retirement Preparation

It took some of the guesswork out of managing my super for me, and was a great environment for asking questions and learning more about how I can improve my super outcomes.

Susie Hambleton QSuper member since 2000

I really appreciated that they’d put such a comprehensive package together for the Retirement Preparation seminar, that everything was covered and it was covered realistically.

Melody Gates, QSuper member since 1992

Take actionJump online at qsuper.qld.gov.au/seminars to find a session that suits you and book in to secure your spot today.

1 The 2014/2015 Superannuation Recommendations and Loyalty Study.

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Whether you’re still working, easing back or have retired completely, it’s essential to protect the assets you’ve built over your lifetime. No doubt you’ve got quite a few years ahead of you, so it’s still important that your future is as secure as possible.

If you’re still working, have you thought about what would happen if you became sick or injured, or worse? This is especially important if you have a partner or children that rely on your income.

You’ve worked hard for what you have. You’ve built up some super. You might have other savings or investments too, and you might even own your own home. But don’t let all your hard work go to waste – make sure your insurance cover and estate planning is up to date.

Planning and

protection for peace of mind

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No one likes to talk about what will happen if they pass away or can no longer manage their affairs. But having a plan in place is important. It means you get to make the decisions about ‘who gets what’ rather than those choices falling to someone else. Estate planning doesn’t have to be complex as there are a number of tools and resources available to assist with the process and make your choices clearer.

Deciding who gets what

As well as allowing you to decide how your assets will be distributed, a Will gives you the opportunity to name guardians, to establish a trust or donate your assets.

There are various types of trusts you can establish through your Will, primarily for the purposes of asset preservation, tax planning, or providing for children or charities. Alternatively, you can opt to donate some or all of your assets to an organisation of your choice.

To make sure your Will reflects any changes in your life, it’s suggested that you update it every three to five years. The Public Trustee offers a free

Will-making service, including assistance with setting up trusts, to all Queenslanders over 18. Visit pt.qld.gov.au to find out more.

Your super isn’t covered by your Will

It catches a lot of people by surprise – super isn’t covered under a Will. Generally, the decision around who receives your super in the event of your death is made by your fund’s trustee. For most people this means their super is directed to their spouse or dependant.

If however you have a more complex family situation and would like to specify exactly who receives your super, you might like to consider making a binding death benefit nomination. It’s valid for three years from the date of signing, and you can renew, replace or revoke it at any time.

Power of Attorney

It’s an unpleasant fact of life. As you get older, the chance of developing conditions like Alzheimer’s and dementia increases. And because we don’t know what’s going to happen tomorrow, next week or next year,

We’ve got you covered!

Luckily, as a QSuper member, you’ve got access to some great insurance options. Many of our members are automatically covered for death and temporary and permanent disability (TPD) insurance, and for those employed by the Queensland Government, for income protection. (Most other members are also able to apply for this cover).

Getting injured is never good news. But having an income to pay the bills while you’re off work will mean you have one less thing to worry about. And that’s where our income protection really helps out.

And have you thought about what would happen if an accident or ill health forced you out of the workforce say ten years early? That’s an extra ten years your super would have to support you for (and ten years less to grow it). A TPD payment would provide a much needed boost to your funds, meaning less financial stress at a time when you really don’t need it. And in the unfortunate event of your death, a lump sum death benefit offers security to your loved ones.

Some conditions apply around income protection and death and TPD insurance. So for more details, visit qsuper.qld.gov.au/insurance.

Estate planning essentials

Updates, changes and improvements

To view and change your current QSuper insurance cover, log in to Member Online. And keep an eye out for information on updates we’re planning for our insurance – as we’re looking at ways to make our insurance cover even better!

You don’t need a lawyer!

Contrary to what many lawyers out there might tell you, making an insurance claim through QSuper is quite straightforward. So call us to talk through your situation before you call a lawyer. It could end up being much easier than you expected and far less costly. Remember: we’re here to support you, so if you have a genuine claim, we can help guide you through the process. Just call us on 1300 360 750 to talk through your situation.

organising a Power of Attorney now can provide many people with a great deal of comfort and relief.

An Enduring Power of Attorney is where you appoint a person to make financial and legal decisions for you if you lose the capacity to make your own decisions – for example, through illness or injury.

There are two types of Attorney in Queensland – an Attorney for Financial Matters and an Attorney for Personal and Health Matters.

The Public Trustee can provide more information and assistance with setting up a Power of Attorney. Visit pt.qld.gov.au for details.

Super and your estate planFor more information on how you can control what happens to your super after your death, call us on 1300 360 750 or go to qsuper.qld.gov.au.

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1 Attorney General, Identity Theft Concerns and Experiences Survey 2011

At QSuper, we’re serious about protecting your personal information.

Protecting your personal information is our number one priority. Not only do you need a unique username and password for Member Online, we also encrypt all our electronic communications for additional security.To make sure we keep offering you the highest level of security, we have regular independent security audits to check we are keeping on track.If you do have any concerns, just give us a call on 1300 360 750 and we’ll be happy to talk through them with you.

Over the past couple of decades, we have seen phenomenal changes in technology. The internet has dramatically changed the way we communicate with our family and friends and also simplified everyday tasks like paying bills and banking. When was the last time you found yourself stuck in a queue at the bank?Your personal identity is as valuable as cash, and you need to be careful about where and how you share confidential information online.

Did you know one in six Australians have been a victim, or know somebody who has been a victim of identity fraud?1 In fact, more than half of the victims were targeted through the internet, either through a virus or online scam.

So, how do you control the distribution of your personal information?

Protecting your identity is much easier than you might think. Our five easy tips will help you avoid being the victim of online identity theft.

1 Choose a strong password Choose a password that is easy for you to remember, but difficult for others to guess. Stuck for ideas? Try the name of your first school or a street name, but steer clear from the names of your children or partner. To avoid repeating the same password, consider developing a suite of passwords to use across

accounts. This will also help when it is time to change your password. Never write your passwords down or tell anyone what they are.

2 Update your software

Take the time to protect all your devices and always check for the latest system update. Remember to use anti-virus, spam filters and security software to protect your computer, and stop viruses or other malicious software stealing your personal information.

3 Use secure websites

When shopping online, always use a secure website. If you’re giving the credit card a workout, check that the website address starts with https:// and you can see if the web security certificate is valid by clicking on the padlock icon near the website address.

4 Always log out

Always remember to log off when you finish using secure sites. Someone updating your Facebook status with something vaguely embarrassing could be the least of your problems if you use public internet facilities (i.e. internet cafes or libraries). Simply closing the page doesn’t mean you have safely left the session.

5 Think before you share

The whole idea of social media is to be social, but be smart about the type of information you share. Even a friendly happy birthday message could reveal your date of birth, or links to family members can reveal your mother’s maiden name or other information used for secret questions.

5

easy ways to protect

your identity online

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In addition to more than 350 specialty retailers, global fashion label Zara opened its first Queensland outlet at the Centre in September 2014. This is a testament to the strength of Robina Town Centre’s location in one of the state’s key growth areas.

Since being built in 1996, the Centre has undergone a number of developments and refurbishments totalling more than $400 million, increasing the size of the Centre by 62,100sqm. Additionally, the Centre received the Gold award for excellence in design and development at the 2012 International Council of Shopping Centres’ Asia Pacific Shopping Centre Awards for its landmark Northern Malls expansion.

Today Robina Town Centre covers an area of 58.3 hectares, which is seven times larger than Suncorp Stadium. The state of the art facilities include a car park with more than 6,500 spaces featuring the progressive ‘park assist’ LED light technology.

The ongoing growth in Robina and further development of its shopping centre is likely to add value to this investment and aiming to ensure it continues to provide stable, long-term returns for you.

We recognise that diversity is key when it comes to managing investment risk and ensuring the best possible long-term returns for members. That’s why we invest in a wide range of assets including infrastructure, alternatives and property. Our property portfolio includes a number of shopping centres, as the variety of shops and historically low vacancy rates provide a stable income.

So let’s take a closer look at one of our high quality retail property investments, Robina Town Centre.

This super-regional shopping centre is ranked as one of Australia’s top 11 based on total turnover. QSuper has investments in Robina Town Centre via its holding in the QIC Property Fund (QPF) which purchased the asset in 1999 from original developers Robina Land Corporation.

Located in the heart of the Gold Coast, Robina Town Centre is a premier fashion, dining and lifestyle destination. Attracting local residents and tourists, the centre features two department stores, David Jones and Myer, and major tenants include Big W, Kmart, Target, Woolworths, Coles and Event Cinemas.

The appeal of including real estate in investment portfolios lies in its ability to deliver long-term value, consistent yields and inflation protection.

Property is a common asset allocation across the suite of QSuper investment products. Other retail property assets include Logan Hyperdome, Castle Towers in New South Wales and Eastland in Victoria. International investments include One Times Square and Chelsea Market in New York. Find out more about some of the property and infrastructure assets we invest in at qsuper.qld.gov.au/assetprofile.

Investment options with current exposure:

Moderate

Aggressive

Balanced

Lifetime Sustain 2

Lifetime Sustain 1

Lifetime Aspire 1

Lifetime Aspire 2

Asset name: Robina Town Centre, Gold CoastDate of investment: November 1999

Asset profile

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Here’s the latest round-up of what’s news at QSuper, and for the super industry.

Freeze on superannuation guarantee (SG) rate rise

The Government has now passed legislation confirming the super guarantee rate will remain at 9.5% until 30 June 2021 instead of increasing by 0.5% annually. The next increase will be to 10% on 1 July 2021, with annual increases of 0.5% until it reaches 12%.

Changes to US tax law

If you have to file a tax return in the United States (US) you may be aware of recent changes to US tax law. There is now increased scrutiny over accounts held with some non-US financial institutions. Under the terms of an intergovernmental agreement between the US and Australia, QSuper doesn’t have to identify and report information about US members to the ATO. Keep in mind this doesn’t exempt individuals who must file a tax return in the US. QSuper isn’t licenced to provide taxation advice, so you may want to chat to a US tax adviser to see if you are likely to be affected.

Important information from the QSuper Board

Changes to asset allocation ranges

The QSuper Board has reviewed the asset allocation ranges for the QSuper Lifetime option and has revised the ranges of six of the eight groups to better reflect the investment risk profile being applied across different member groups. The changes (in bold) are mainly to the cash weightings of the groups listed in the table opposite, which gives QSuper more flexibility to adjust investment strategies as member profiles change over time. The updated ranges are outlined in the table.

The new asset allocation ranges were applied from 1 January 2015. Complete asset allocation ranges for the Lifetime option can be found in the Investment Choice Guide available on our website at qsuper.qld.gov.au/pds or under the Lifetime tab on the investment options page on our website.

scoop?What’s the

Lifetime group New ranges (%)

Sustain 2 Cash 50-90 Fixed interest 0-35 Property 0-20 Australian equities 0-20 International equities 0-25 Alternative assets 0-25 Infrastructure 0-20

Sustain 1 Cash 40-75 Fixed interest 0-35 Property 0-20 Australian equities 0-20 International equities 0-30 Alternative assets 0-25 Infrastructure 0-20

Focus 3 Cash 0-30 Fixed interest 30-75 Property 0-20 Australian equities 0-20 International equities 5-35 Alternative assets 0-25 Infrastructure 0-20



Aspire 2 Cash 0-20 Fixed interest 10-60 Property 0-25 Australian equities 5-30 International equities 5-45 Alternative assets 0-30 Infrastructure 0-25

Change to QSuper’s Socially Responsible Investment policy

The QSuper Board has made the decision to no longer invest in tobacco and by 30 June 2015 QSuper will not own any shares in companies involved in manufacturing cigarettes and other tobacco products (Global Industry Classification Code 302030).

All our investment options invested in international shares will be affected by this decision. The only exception is QSuper Self Invest, where all socially responsible investment decisions are up to you.

Low income superannuation contribution abolished

The low income superannuation contribution (LISC) is a government super contribution of up to $500 paid directly into the super accounts of people earning $37,000 or less. An act to abolish LISC has now been passed in parliament which means that if you earn under the threshold, from 1 July 2017 you’ll no longer receive this contribution.

Our contact centre’s one of the best

When you call our contact centre, you’re talking to an award-winning team. That’s because the QSuper Limited Member Services team was recently named the 2014 Auscontact Association’s Contact Centre of the Year in the 81-150 full-time employees category. The awards recognise excellence in customer service and celebrate our team’s dedication to providing you with a high level of customer service.

Providing proof of identity electronically

You can now establish proof of identity electronically when requesting a lump sum withdrawal from your account. You can do this by providing either your driver licence number, proof of age card number or passport number on your form and we’ll verify it on our end through a credit reporting agency. If you prefer to provide this manually, you can still send us certified copies of these documents with your application.

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Focus on: Diversified Bonds Option

The Diversified Bonds option contains shorter-term bonds than those held in the other options, so these bonds experience smaller price movements – but typically in the same direction. This option is relatively low risk, targeting a moderate amount of growth over the medium term.

The Diversified Bonds option invests around 40 per cent in Australian bonds and 60 per cent internationally. This means the strength of both local and global economies has the potential to affect returns. This option also includes bonds issued by corporations that are generally looking to provide higher returns than bonds issued by Governments.

For the last few years, the returns for Diversified Bonds option have been relatively strong when compared to the historical average returns for bonds as an asset class. However, as previously discussed, changes in global economies can impact on returns, so when making a decision to invest you should always remember that old adage ‘past performance is not a reliable indicator of future returns’.

Putting a spotlight on the assets we invest in.

What you may not be aware of is that different portfolios of bonds can be structured to target different objectives. So different QSuper investment options include different types of bonds.

Lifetime and Ready Made Options

Bonds within the Lifetime option and Ready Made options aim to diversify returns for these options. Our objective here is to build these options so that most asset classes have similar risk

and return expectations. The bond component of these options is mostly made up of long term government bonds. These bonds generally (but not always) do well when equities do badly, and vice versa, so these bonds can help balance returns during periods of volatility. Some bonds that pay interest at a given rate above inflation and protect capital against inflation are also held in these options.

Through QSuper’s range of investment options, your money can be invested in various asset classes, which all have different risk profiles. In this edition we look at bonds.QSuper includes bonds within a range of investment options, so what are bonds and how do they contribute to different objectives?

Put simply, a bond is a security that pays a given rate of interest and a lump sum at a maturity date. Bonds are generally considered relatively lower risk because in a scenario where a government, bank or corporation that issues the bond goes bankrupt, the bond holders receive money back before shareholders.

But that doesn’t mean bonds are risk free, and they can in fact produce negative returns. Essentially, if market interest rates fall, the market value of existing bonds will rise and if market interest rates rise, the market value of existing bonds will fall. We saw an example of this in 2014 when the market interest rate for Australian Government 10 year bonds fell from 4.2% to 2.7%, significantly increasing the market value of existing bonds.

Looking to the future, many market commentators expect the US Federal Reserve to raise their cash rate in 2015 which may reduce the market price of existing bonds around the globe. However you should note that the price of long term bonds is more sensitive to changes in market interest rates and speculation about such changes than short term bonds.

We offer a range of investment options to suit the differing needs of our members. But if you’re looking to create your own portfolio, we’d always encourage you to diversify across a range of assets, so you’re not putting all your ‘eggs in one basket’. See qsuper.qld.gov.au/investmentoptions for more information on the options you can choose from.

Risk Outlook

I’m super sorted.

Investment returns (Accumulation account)

QSuper investment options Year to date

5 year% p.a

10 year% p.a

QSuper Lifetime

Lifetime Focus 1 This option was introduced 26 May 2014

9.52% n/a n/a


9.02% n/a n/a


8.46% n/a n/a

Lifetime Sustain 1 This option was introduced 16 Dec 2013

5.99% n/a n/a

Lifetime Sustain 2 This option was introduced 16 Dec 2013

4.11% n/a n/a

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

Ready Made options

Moderate 5.26% 6.59% 5.80%

Balanced 9.42% 9.51% 7.28%

Socially Responsible 6.77% 8.13% 6.30%

Aggressive 9.05% 10.90% 7.23%

Your Choice options

Cash 1.24% 3.01% 3.73%

Diversified Bonds 4.64% 6.75% 6.66%

International Shares 5.95% 13.08% 6.50%

Australian Shares 5.15% 8.44% 7.80%

Report card as at 31 January 2015

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.

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 we focus on delivering you consistent and stable returns over the long-term, and encourage you to look at longer-term performance as the most meaningful measure of success.

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 into Member Online. © QSuper Board of Trustees 2015. 50P. 03/15.

Get in touchP 1300 360 750Monday to Friday8:30am to 5:00pm AESTqsuper.qld.gov.au

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Go paperlessDid you know you can now get your benefit statement delivered to your inbox, rather than your mailbox? Simply login to Member Online to make the switch. And when you receive your copy, you may notice it’s undergone a bit of a makeover. That’s because your super is likely to be one of your biggest investments in life, so we want you to really understand how your future’s tracking.

Join the investment conversationIf understanding the ins and outs of investing takes your interest, then keep an eye out on our website for the upcoming ‘Investment news’ blog. This is where our Investment team will share its professional opinions on the industry and discuss what is shaping their investment philosophy, influencing their thinking and ultimately explaining how they invest. So why not get involved!

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