annual report 2008 - intrust super · 6 intrust super annual report 2008 core super crediting rates...

Annual Report 200830 June 2008

Contact Us

Intrust super

phone: 132 467Fax: 07 3013 8898email: [email protected]: www.intrust.com.aupost: GPO Box 1416

Brisbane Qld 4001Visit: Level 8

348 Edward Street Brisbane Qld 4000

please read the 2008 AnnuAl repOrt in conjunction with your MeMber stAteMent.

Intrust Super Annual Report 2008 1

Contents

A Message from the Chairperson & the CEO ......................... 2

The things you want to know

The Year’s Highlights .............................................................. 4

Investment market update ...................................................... 5

How we’ve performed for Core Super members .................... 6

How we’ve performed for Executive and Select Super and Super Stream Pension members ..................................... 7

Tell us your TFN or you may suffer a penalty ........................11

Giving your super a boost .......................................................12

The things we need to tell you

More on your account .............................................................14

Who really invests your money ...............................................19

Who manages Intrust Super? ................................................27

Financial statements ..............................................................28

Enquiries and complaints ......................................................30

Keeping you in the loop ..........................................................32

Member Advantage Deals

Compliments of the house .....................................................34

Thanks for the tip ...................................................................35

Bon voyage ..............................................................................37

2 Intrust Super Annual Report 2008

A Message from the Chairperson & the CEO

Bigger and better than ever

We now manage just under one billion dollars on behalf of more than 140,000 members Australia wide. Intrust Super’s exceptional growth has been helped along by new members joining and transferring their other funds to make Intrust Super their fund of choice. Strong long term investment returns and the ground-breaking reforms introduced as part of the Government’s Better Super plan have made super an even more attractive way to save.

Johnny may have gone but our members still reap the rewards

Once again, thanks to Intrust Super and the Government’s co-contribution scheme we’re pleased to report that our members have received upwards of $4 million from the Government’s Co-contribution Scheme. This scheme rewarded those eligible members who made their own contribution to their super with a top up payment worth up to $1,500.

Focusing on long term performance is key

Whilst it’s been a bumpy ride for investors over the past 12 months, it’s important to keep it all in perspective, and focus on the long term nature of your super. For instance, Intrust Super’s Core Super Balanced option has returned a strong 8.54% over 3 years and an impressive

10.84% over 5 years, well above the median return for all funds, according to independent ratings agency SuperRatings.

In fact, according to SuperRatings, our Balanced option is in the top 10 of all funds and our Aussie Shares option is ranked number 1 in its class over 5 years. Now that’s an impressive result despite what we’re hearing in the news.

Building on our solid foundations and achievements from last year, Intrust Super has continued to excel in delivering value for money products and services to its members.

shirley Mellor, Chairperson

brendan O’Farrell, Chief Executive Officer

The things you want to know


The Year’s Highlights

This set the platform for how we communicate with our members. The goal being to make it much simpler for everyone. Our Product Disclosure Statements, Annual Statements and employer material were transformed into an informative suite of documents to make it easier for you when dealing with your super.

The pinnacle of all the hard work that was put into our re-brand over the past 12 months was our TV campaign and new web site launch in April 2008. We’re very proud of the new site and what it means for you.

Our ultimate goal for the site is to achieve best in the market with regard to content, valuable information, user friendliness and relevancy. Countless hours were spent in the early stages on

planning, research and user testing to

ensure that the user experience was second

to none, and that’s just the beginning.

We’re now in the second phase of the

web site revamp with the launch of our

retirement calculator which will help

members get a better understanding of

where they are now and where they want

to be in retirement. We’re also very excited

about the near completion of AccessOnline.

Members and employers will be able

to register and access all their super

information online, update their details

and check their insurance levels. There are

many new features planned over the next 12

months, but we don’t want to let the cat out

of the bag just yet, so stay tuned…..

The past 12 months have been an exciting and busy time for Intrust Super. Late last year we embarked on a major brand overhaul that looked at who we are, what we do and how we work with our members and employers.


Investment market update

These results in the major asset classes flowed through to give negative returns to the vast majority of the Balanced option returns in major Australian Super Funds. The Balanced option is the option selected by most Australian Super Fund members.Not all losses in the Balanced option were the same across all funds. Some funds lost more than the average and some lost less than the average. Fund members across Australia can take some consolation from a bad year if their fund was one of those in the top two quartiles, or put another way, their fund lost less that the average loss. They hold more assets than they otherwise might have had; meaning they are in a better position to make extra gains when markets return to positive growth territory.

Intrust Super had a return for the year to its balanced option of -5.8% which puts it in the second quartile of all funds surveyed.

Regardless of this second quartile performance, any losses in the value of investments can prompt some serious

decision making about the appropriate investment strategy a member should adopt going forward.

That can mean a search for security in less risky investments, or in the case of a gain it can be met with indifference, or even with a boost to risk-taking appetite.

Both these reactions are usually not well thought through. Both contain the seed of some future financial outcome that may be well removed from the original objective.

Superannuation is normally a long term investment and that needs to be reflected in our decision making as we consider our investment strategy from time to time. While it can be very tempting to make a decision based on short-term outcomes, investing decisions should be taken with the original objectives in mind and with an understanding of the longer term outcomes of the various investment options available.

Most members will be well aware that the past 12 months was one of the worst periods for investors for quite some time. The source of the negative sentiment in most of the major asset classes can be attributed to problems in the United States economy. However, there have been exceptions to the negative returns. For instance, Intrust Super’s Property option returned an impressive 18.40% for the year. Australian resource stocks also generally went against the downward trend in Australian stocks, however they were not capable of preventing an overall slide in the S&P ASX 200 share price index for the year. Similarly international share markets were down for the year.


Core Super Crediting Rates at 30 June 2008

Year Australian shares

International shares property bonds /

Fixed Interest Cash

2008 -14.6% -17.6% 18.4% 3.0% 6.2%

2007 30.2% 16.1% 14.6% 4.0% 5.7%

2006 24.6% 18.3% 11.7% 2.4% 4.5%

2005 29.7% 3.8% 8.7% 7.4% 4.6%

2004 23.1% 19.8% 9.8% 3.7% 3.9%

2003 2.1% -14.6% 7.1% 8.7% 3.2%

Three-year compound return at 30/06/08

11.47% 4.20% 14.87% 3.13% 5.47%

Five-year compound return at 30/06/08

17.20% 7.07% 12.59% 4.08% 4.98%

Year balanced stable Growth

2008 -5.8% 1.6% -11.3%

2007 18.0% 8.9% 19.5%

2006 15.0% 7.0% 16.8%

2005 15.1% 8.5% 15.6%

2004 13.7% 6.7% 16.4%

2003 2.0% 6.0% 0.0%

Three-year compound return at 30/06/08 8.54% 5.78% 7.39%

Five-year compound return at 30/06/08 10.84% 6.51% 10.75%

As investment markets move up and down over time, it is important to remember that past performance is not an indication of future returns. Please note that the investment returns shown above have been rounded. This means there may be minor discrepancies when adding to achieve the compound return.

How we’ve performed for Core Super members


Unit pricing

For Executive and Select Super, and Super Stream Pension members investments are unitised. Unit prices are set weekly and all transactions are unit based. Your account balance at any time is equal to the number of units you hold in each investment option multiplied by the investment option’s current unit price.

To view the latest unit prices visit www.intrust.com.au.

Unit pricing and investment returns

As the unit prices for Executive and Select Super, and Super Stream Pension members are calculated weekly and the returns for Core Super members are calculated monthly, there will be a difference in the returns as reported at 30 June. This means the returns shown in the table on page 8 that apply for Executive and Select Super, and Super Stream Pension members will differ from the returns for Core Super members.

During the year estimates are made about the costs we expect to incur for items such as tax, member benefit protection and investment related costs. At the end of the year we check how these estimates compare to the actual amounts incurred for these items. An adjustment is then made to pay back any over estimation or recoup any under allocation.

Core Super members’ returns are calculated monthly, this adjustment is applied to the June monthly crediting rate and is therefore included in the 2007/08 annual return.

As Executive and Select Super, and Super Stream Pension members accounts are based on weekly unit prices, this adjustment is made the first week after the necessary calculations have been undertaken, which this year was in August 2007. The adjustment will be reflected in a weekly return during August 2007, which will form part of the annual return for the 2007/08 year.

This means over a 12 month period the returns for Executive and Select Super and Super Stream members and Core Super members may vary slightly, however over time they will be the same.

How we’ve performed for Executive and Select Super and Super Stream Pension members


Executive and Select Super Crediting Rates at 30 June 2008

YearAustralian

sharesInternational

sharesCombined

sharesproperty Opportunities

bonds/Fixed Interest

Cash

2008 -13.40% -14.55% -13.68% 22.74% 3.14% 3.56% 3.15%

2007 30.20% 15.40% 24.30% 13.80% 6.70% 3.20% 5.00%

2006 24.60% 18.30% 7.70%# 11.70% 5.20% 2.40% 4.50%

2005 30.30% 6.20% N/A 8.50% 8.50% 7.00% 4.30%

2004 22.50% 15.90% N/A 9.00% 3.50% 3.2% 3.40%


12.18% 5.78% N/A 15.04% 4.35% 3.02% 4.05%


17.65% 8.04% N/A 12.69% 5.27% 4.02% 4.13%

# This return is for six months as the Option became available on 1 January 2006.

Year balanced Conservative stable Growth

2008 -4.05% -3.17% 2.62% -8.98%

2007 17.10% 11.60% 8.20% 18.50%

2006 15.00% 3.90%# 7.00% 16.80%

2005 15.30% N/A 9.00% 16.60%

2004 12.60% N/A 6.10% 15.30%


8.75% N/A 5.67% 8.04%


10.98% N/A 6.44% 11.16%

# This return is for six months as the Option became available on 1 January 2006.



Super Stream Pension Crediting Rates at 30 June 2008

YearAustralian

sharesInternational

sharesCombined

sharesproperty Opportunities

bonds/Fixed Interest

Cash

2008 -13.39% -13.65% -13.91% 24.81% 3.60% 4.18% 3.68%

2007 33.50% 15.70% 25.70% 15.00% 7.90% 3.80% 5.90%

2006 26.50% 18.70% N/A 12.70% 0.00% 0.00% 0.00%

2005 31.60% 4.40% N/A 9.30% 13.60% 8.70% 5.50%


13.88% 6.02% N/A 16.84% 6.72% 3.66% 4.90%


N/A N/A N/A N/A N/A N/A N/A

Year balanced Conservative stable Growth

2008 -4.70% -3.52% 2.97% -9.65%

2007 19.10% 13.10% 9.50% 20.50%

2006 16.50% 0.00% 8.10% 18.30%

2005 16.70% N/A 10.00% 16.70%


10.02% N/A 6.48% 8.76%


N/A N/A N/A N/A



What a difference in returns really means

What might seem like a small difference in returns can make a substantial impact on the amount of money you can collect when you retire. This is because super is invested over most members’ entire working lives, which can be up to 40 years. Over longer periods like this, the effects of compound interest come into play.

Whilst the following example is not a prediction of an actual outcome it is based on a single set of assumptions which can be proven incorrect by the passage of time. On a starting balance of $10,000 as an example, an investment return improvement of 1% (from 7% p.a. to 8% p.a.) could mean an increase from $76,123 to $100,627 over a 30 year time period. As noted previously, past performance is not necessarily a reliable indicator of future performance and should not be relied upon.


It’s in your best interest to give us your Tax File Number (TFN). While you don’t have to, if you don’t, you may pay more tax than you need to on both money coming into and payments made from your account.

Tell us your TFN or you may suffer a penalty

Advise us of your TFN today by calling us on 132 467, visiting www.intrust.com.au and downloading a form or log onto MemberAccess.

If you don’t supply your TFN and you:

are already a member from 1 July 2007 and receive more than $1,000 in employer/salary sacrifice contributions in a year, all contributions will be taxed at the top marginal rate (currently 46.5%).

AND if you don’t supply your TFN:

• noafter-taxvoluntarycontributionscanbepaidtoyouraccount,potentiallymeaning you’ll miss out on receiving up to $1,500 from the Government’s Co-contribution scheme.

• thetaxablecomponentsofallwithdrawalsmadebeforeage60willbetaxedatthe top marginal rate.

If you don’t supply your TFN and you:

join a super fund, all employer/salary sacrifice contributions will be taxed at top marginal rate (currently 46.5%).


Here are some ideas to help give your super a bit of a kick along. After all, the more you save now, the more you’ll have later.

Giving your super a boost

Pay in your own after-tax contributions

Adding after-tax dollars to your account is easy and can be done through payroll deductions, BPAY, direct debit or by cheque – whatever you prefer. You can make a once-off payment whenever you like or drip feed in smaller, regular amounts.

And if you make your own contributions, and if your eligible, you could receive a bonus payment from the Government’s Co-contribution, which could add in up to an extra $1,500 per year to your account.

Eligibility conditions include:

• beingunderage71,

• earninglessthan$60,342.00

• receivingatleast10%ofyourincomefrom wages/salary or from being self-employed,

• lodgingaTaxReturn,and

• ofcourse,makingthenecessarypayment yourself.

Salary sacrificing

Salary sacrificing is an arrangement you have with your employer to pay some of your pre-tax earnings directly into your super account. It’s effective because you are not only taxed on a reduced salary but you’re boosting your super at the same time.

Salary sacrificed money is treated just like employer contributions, and taxed at a low 15%, which is less than most people’s marginal tax rate.

Rolling in other super

If you’ve worked at more than one job during the last few years, then there’s a big chance that you’ve got other super accounts out there that could be costing you money.

Combining your other super accounts with your Intrust Super account may save you money as you’ll be paying fewer admin fees. The Government must also think it’s a good idea as they’ve developed a form to help you do this easily. You can download the form from www.intrust.com.au or call 132 467 if you’d like us to post one to you.

A word of advice, remember to check for any exit fees and changes to insurance cover, with your other fund, before you close the account.

The things we need to tell you

Investment options

How you invest your super can be as nearly as important as how much you invest. After all, the investment return you receive will have a direct impact on how your account grows over time, which ultimately affects the value of your super payout and your lifestyle when you retire.

It’s your money, so you control how it’s invested. You can choose between investing in one or a combination of Intrust Super’s eight investment options for Core Super or eleven options for Executive and Select Super and Super Stream. Changes are free and allowed monthly. To make it even easier for you, if you do not make a choice your super will be fully invested in the Fund’s default Balanced Investment Option.

How investment returns are paid to your account

Every week estimated interim crediting rates are set for each investment option. These are based on investment earnings

after assumptions for tax, investment and management costs.

Investment returns are allocated to members’ accounts each year with effect on 30 June. At this time the interim returns that are calculated weekly are converted into an annual return, which is applied to accounts on a simple interest basis.

Members who close their account during the year receive investment earnings based on the estimated interim weekly crediting rates applying at the date they close their account.

To ensure all members are treated fairly, Intrust Super aims to allocate all investment earnings to members in the year they are earned. A small operating reserve is maintained and details of this reserve are outlined on page 21.

The following tables show the full range of Investment Options available to you through Intrust Super.

More on your account


Although the average and ranges of asset class allocations shown here are not expected to move significantly from these levels, to achieve the best results our strategy allows the allocation to vary within the ranges shown in brackets. If at any time our asset allocation falls outside a prescribed range, we’ll take steps to bring the allocations back within the range as soon as possible in a way that keeps any re-balancing costs as low as possible.

A couple of key investment terms explained

rolling periods: This covers a number of consecutive years, for example a three-year rolling period could be from 1 July 2003 to 1 July 2006, and 1 July 2004 to 1 July 2007, and so on.

unlisted property: An investment in property (i.e. office blocks, resorts etc) that is not made through a portfolio that is listed on the stock exchange. Often access to this type of investment is limited to large investors like super funds.

Active managers: This type of manager invests by using their skills to make decisions about what types of assets to buy and sell in an attempt to achieve returns higher than the relevant market index.

Core Super Pre-Mixed Investment Options

balanced Growth stable

Investment aim

To achieve an average investment return of at least 3% p.a. above inflation over any rolling five-year period.

To achieve an average investment return of at least 4% p.a. above inflation over any rolling seven-year period.

To achieve an average investment return of at least 2% p.a. above inflation over any rolling three-year period.

Investment strategy

To achieve the above aim, these strategies use a variety of investments. The proportion invested in each type is shown below. We use specialist fund managers who have been selected by Intrust Super because of their expertise and experience to help us make these investments.

Investment risk Medium High Low

Asset allocation 2008 2007 2008 and 2007 2008 and 2007

Australian shares 35 [25-45] 35 [25-45] 40 [35-55] 10 [0-20]

International shares 25 [10-30] 25 [15-30] 30 [20-40] 5 [0-15]

Property 10 [5-15] 10 [5-15] 10 [5-15] 10 [5-15]

Growth opportunities 5 [0-15] 5 [0-15] 10 [0-15] 5 [0-10]

Bonds/fixed interest 15 [5-25] 15 [5-25] 5 [0-15] 30 [20-60]

Cash 2 [0-25] 2 [0-25] 0 [0-15] 30 [0-50]

Defensive opportunities 8 [0-15] 8 [0-15] 5 [0-15] 10 [0-15]


Core Super Individual Asset Class Investment Options

Australian shares

International shares property bonds

(Fixed Interest) Cash

Investment aim

To achieve a return greater than the average return of the Australian share market over any three consecutive years.This average is measured by the S&P ASX 300 Index, which includes the largest 300 companies listed on the Australian Stock Exchange.

To achieve a return greater than the average return of major international share markets in Australian dollars over any three consecutive years.This average is measured by the Morgan Stanley Capital International (MSCI) (ex Australia) Index.

To achieve a return greater than the average return of Australian unlisted property trusts over any three consecutive years.This average is measured by the Mercer Unlisted Property Trust Index.

To achieve a return greater than the average return of selected major bond and fixed interest markets over any three consecutive years.This average is measured by the UBSA Composite Bond Index.

To achieve a return that at least equals the UBSA 90 Day Bank Bill Index (before tax).

Investment strategy

To achieve the above aim, the Australian Shares option uses several active fund managers.

To achieve the above aim, the International Shares option uses several active fund managers.

To achieve the above aim, the Property option uses specialist fund managers that will provide exposure to a range of high quality properties via unlisted property trusts.

To achieve the above aim, the Bonds (Fixed Interest) option may use active bond fund managers.

To achieve the above aim, the Cash option uses a major cash investment manager.

Investment risk High High Medium Medium-low Low

Asset allocation

100% Australian shares

100% International shares

100% Unlisted property trusts

100% Fixed interest securities (bonds)

100% Cash


Executive and Select Super and Super Stream Pension Pre-Mixed Investment Options

Executive and Select Super and Super Stream Pension members have exclusive access to the Opportunities, Combined Shares and Conservative investment options. Details of these options follow.

Opportunities investment option

Investment aim To achieve an average investment return of at least 4.5% p.a. above inflation, over any consecutive three-year period.

Investment strategyTo achieve the above aim, the Opportunities Option uses both listed and unlisted investments with a focus on producing positive returns.

Minimum suggested investment time horizon 10 years

Investment risk High

Average asset allocation Varies over time

Conservative investment option

Investment aim To achieve an average investment return of at least 2.5% p.a. above inflation over any consecutive four-year period.

Investment strategy

To achieve the above aim the Conservative Option uses a variety of investments. The proportion invested in each type is shown in the table below.We use specialist fund managers who have been selected by Intrust Super because of their expertise and experience to help us make these investments.

Investment risk Medium

Average asset allocation

Average % Range %

Australian shares 20 10-30

International shares 15 5-25

Property 10 5-15

Growth Opportunities 5 0-15

Bonds 25 10-50

Cash 15 0-30

Defensive Opportunities 10 0-15


Combined shares investment option

Investment aimTo achieve an average investment return of at least 5% p.a. above inflation over any consecutive eight-year period.

Investment strategy To achieve the above aim, the Combined Shares option may use index and active fund managers.

Investment risk High

Average asset allocation 60% Australian shares and 40% international shares


Who really invests your money

To help your Intrust Super account achieve its objectives in the long-term, we appoint a range of specialist investment managers with a track record of providing solid returns, to invest on the Fund’s behalf. Each manager is chosen based on their suitability in relation to the Fund’s overall investment objectives and strategy. Each manager’s investment performance is regularly reviewed and changes made where necessary. While some changes to managers were made throughout the year, the managers in place at 30 June 2008 are shown on the next page.


Investment Manager Assets $ % of total assets

Australian equities

Barclays Global Investors 57,969,610 6.1%Cooper Investors Pty Ltd 79,439,622 8.4%Integrity Investment Management 32,931,599 3.5%Northward Capital Pty Ltd 42,839,065 4.5%Paradice (Small Cap) Investment Management 25,416,707 2.7%Paradice (Mid Cap) Investment Management 25,475,119 2.7%Paradice (Large Cap) Investment Management 29,268,178 3.1%

International equities

JANA Global Core Hedged Option^ 96,759,561 10.2%JANA Marathon Option+ 29,130,417 3.1%JANA High Alpha Global Share# 47,569,292 5.0%JANA Emerging Markets* 23,891,974 2.5%PM Capital 20,944,808 2.2%

Growth Alternatives

AMP Capital Investors 2,516,563 0.3%AMP Capital Investors 12,853,201 1.4%Hastings Funds Management Limited 17,508,603 1.9%Lazard Asset Management 19,159,758 2.0%Member’s Equity 714,390 0.1%Holowesko Partners 8,712,440 0.9%Trinity Limited 7,219,905 0.8%The Private Capital Group 2,829,900 0.3%AIF Capital 2,885,956 0.3%Macquarie Global Advisors Europe Fund III 1,359,185 0.1%Macquarie Global Advisors Asia Fund III 1,275,027 0.1%AMP Capital Investors 4,525,136 0.5%

Defensive Alternatives

Barclays Global Investors 20,227,688 2.1%GMO Australia 30,109,625 3.2%State Street Global Advisors (Aust mkt neutral) 22,744,565 2.4%State Street Global Advisors (Asia mkt neutral) 7,805,791 0.8%

propertyAMP Property 33,132,028 3.5%Colonial First State Limited 46,592,801 4.9%Trinity Limited 25,057,060 2.7%

Fixed InterestPimco Australia 32,813,672 3.5%Credit Suisse 33,595,098 3.6%Member’s Equity 2,356,002 0.2%

Cash Credit Suisse Management (Australia) Limited 96,391,861 10.2%total 944,022,207 100.0%

* JANA Emerging Markets is a pooled investment managed by Marvin & Palmer Associates.

^ JANA Global Core Hedged option is a pooled investment managed by Acadian Asset Management, AllianceBernstein and Capital International.

# JANA High Alpha Global Share is a pooled investment managed by Wellington Asset Management, Pzena and Baillie Gifford.

+ JANA Marathon Option is a pooled investment managed by Marathon Asset Management.


Investment manager changes during the year

In the 2007/08 financial year Bridgewater Associates, Bandini Investment Holdings,

MQ Specialist Investment Management Limited and Lazard Asset Management were

terminated as investment managers. Integrity Investment Management was appointed as

an investment manager.

Balanced Investment option asset allocation

The table shows the Balanced Investment Option’s asset allocation as at 30 June 2008:

2008 2007 2006

Australian Shares 29.8% 37.2% 34.1%

International Shares 21.3% 27.2% 22.5%

Property 12.1% 8.3% 9.2%

Growth Opportunities 9.1% 8.7% 8.4%

Bonds / Fixed Interest 7.1% 4.9% 11.3%

Cash 10.9% 1.8% 5.4%

Defensive Opportunities 9.7% 11.9% 9.1%

Reserves

Intrust Super maintains a small operating reserve produced by making a deduction from

overall investment returns. It is designed to act as a ‘buffer’ so that we can finalise figures

and issue Annual Member Statements soon after the financial year end. This reserve is

excess and is invested according to the Fund’s Balanced Investment Option.

The reserve’s value at the end of the last four financial years was:

30 June 2005 $4,288,000

30 June 2006 $3,260,636

30 June 2007 $5,937,392

30 June 2008 $2,198,314

We aim to keep the reserve at a level less than 0.5% of Fund assets.


Our approach to investing

Investments are selected purely on their ability to help achieve the relevant investment objective.

We do not take into account labour standards, nor environmental, social, or ethical considerations in selecting, retaining or realising the Fund’s investments.

Policy towards use of derivatives

Intrust Super does not use derivatives directly. However, investment in derivatives such as futures and options, may be used by our underlying investment managers.

Derivatives are used to protect the values of portfolios against major falls in market prices or to change portfolios’ exposure to markets more rapidly and efficiently than directly purchasing or selling physical assets.

Further, to assist in achieving the Fund’s investment objectives, the chosen investment managers may also use tactical asset allocation techniques which could include investments in derivatives.


Fees

We run a tight ship and work hard to provide you with good value for money. As a 100% industry fund, we only charge fees that are necessary to run the Fund – we do not pay commissions to financial planners, nor dividends to shareholders.

Investment managers charge fees to invest members’ money, these costs are taken from the Fund’s investment earnings before they’re credited to members’ accounts. These costs are different for each and every Investment Option.

As investment arrangements change over time, information about the costs related to each Investment Option will be shown on our website www.intrust.com.au quarterly. Feel free to contact us on 132 467 if you like us to mail you the information. There are other fees associated with managing your account. For a full listing of fees and charges please refer to the Product Disclosure Statement or visit www.intrust.com.au.

Protecting small account balances

In accordance with Federal Government laws, Intrust Super protects small account balances from erosion by fees and charges. This means that if your account balance falls below $1,000, the administration fees (including any termination fee) charged in a year will not be more than the amount of earnings credited for that year.

The only exception is if the Fund’s total administration and operating costs for the year are greater than the total

investment earnings for that period. In this case, if your account balance falls below $1,000 you will be charged a maximum of $10 in fees per year. Please note, insurance premiums, contributions tax and contributions surcharge may still be deducted from your account, even if your balance falls below $1,000.

Tax

Superannuation is often taxed at lower rates than other types of investments and generally at a lower rate than you pay on your income through the PAYG system.

Contributions tax

Federal Government contributions tax of 15% applies to all employer contributions. To minimise the tax you pay, Intrust Super deducts the contributions tax from your employer contributions after deducting administration fees and any insurance premiums.

earnings tax

Your account’s investment earnings are taxed at a maximum rate of 15%. This amount is often reduced due to the tax-effective investments used by the Fund. For example, Australian share investments may provide franking credits to the Fund, which reduces the total tax paid on investment earnings before they are passed on to members’ accounts.

benefit payment tax

When you make a withdrawal from your super account, tax may be deducted and paid to the Federal Government. The amount of tax varies depending on how old you are when you receive the payment


and what component is withdrawn. Please see the Product Disclosure Statement for more details. The Better Super changes that came into effect from 1 July 2007 have made payments from super tax free after age 60. Before making any decisions about taking a payment from your account, you may wish to consider seeking advice from a suitably qualified financial professional.

Contribution surcharge

From 1 July 2005, the surcharge no longer applies, however the Tax Office continues to deliver surcharge assessments for surcharge liabilities that relate to past financial years up to that time. Any surcharge amounts will be paid from members’ accounts when liability assessments are received from the Tax Office.

payments from super

As the Federal Government provides tax incentives to save through super, you generally can’t withdraw from your super account until you permanently retire. Preservation is the term generally used to describe the inability to access your money in cash before permanent retirement.

Your super account may also include:

• anunrestrictednon-preservedportion(which may be taken in cash at any time or be kept in your account); and

• arestrictednon-preservedportion(which may be taken in cash or retained in your account when you change jobs).

We’ll let you know how your account is split between preserved, restricted non-preserved and unrestricted non-preserved

on your Member Statement. Preserved benefits can only be taken in cash if you retire permanently from the workforce after reaching your preservation age. Your preservation age depends on when you were born and is shown below:

If you were born:Your

preservation Age is:

Before 1 July 1960 55

1 July 1960 - 30 June 1961 56

1 July 1961 - 30 June 1962 57

1 July 1962 - 30 June 1963 58

1 July 1963 - 30 June 1964 59

After 30 June 1964 60

Before you retire you may apply for a payment if you:

• arebetweenages60and65andhaveleftyour current employer, or changed jobs;

• atanytimeafteryouturn65yearsold(even if you are still working);

• haveanyunrestrictednon-preservedmoneyin your account. This part of your account can be withdrawn in cash at any time;

• haveanyrestrictednon-preservedmonies. This part of your account may be withdrawn when you leave your employer, regardless of your age;

• fallpermanentlyillorbecometotallyand permanently disabled (this will be dependent upon medical assessments);

• satisfytheconditionsundercurrentlegislation for release on compassionate grounds – please note approval is required from the Australian Prudential Regulation Authority (APRA);


• experienceseriousfinancialhardship(there are specific Government criteria that must be met); or

• areaneligibletemporaryresidentwhohas permanently departed from Australia.

Don’t make a move without letting us know

It’s important that you keep Intrust Super advised of your current postal address so you don’t lose touch with your money.

Intrust Super may transfer a member’s account balance to AUSFund – Australia’s Unclaimed Super Fund, our appointed Eligible Rollover Fund in some circumstances. These include:

• ifweconsideryoualostmemberbecause our mail to you has been returned as we don’t have your current address or if you have not received contributions in the last two years and your account balance is under $1,000;

• ifyouhaveceasedemploymentforatleast nine months with an employer who paid into Intrust Super for you and your balance is under $750; or

• ifyouarenotedasbeingemployedbyan Intrust Super contributing employer with an account balance under $750, but have not received contributions in the last 12 months.

The Trustee of Intrust Super is satisfied that the accounts of members transferred to AUSFund will continue to be properly maintained in the new fund. Contact details of AUSFund are:

AusFund PO Box 2468 Kent Town SA 5071

Phone: 1300 361 798

Email: [email protected]

If your superannuation benefits are transferred to AUSFund, your personal information will be used by AUSFund to administer your fund benefits. By this, we mean establishing and managing your account, paying benefits, providing you with membership benefits and services, and corresponding with you.

Once your account balance is transferred to AUSFund:

• youwillnolongerbeanIntrustSupermember and all insurance cover for you may cease.

• youwillbecomeanAUSFundmemberand be subject to its governing rules and investment objective and strategy. If Intrust Super can provide AUSFund with your current contact details, AUSFund will send you their current Product Disclosure Statement (PDS).

At any time you can contact AUSFund and ask for a copy of their PDS.

If your account balance is $50 or more, a levy of $10 per year or part year will be applied to your account by AUSFund, while lower balances are not subject to the levy they do not receive investment earnings. AUSFund protects all accounts from erosion due to administration levies, so that these cannot exceed the interest credited to each account.


Where possible, we will write to you before we transfer your account balance to AUSFund. You will have 28 days to take action to keep your account open or choose to transfer it to a fund other than AUSFund.

Unclaimed benefits

If we have to make a payment to you and aren’t able to do so because we can’t contact you or your beneficiaries to ask for payment instructions, we will pay the money to the Tax Office. This money can be claimed at any time by contacting them on 13 10 20.

Trust Deed amendments

The Trust Deed is the document that sets out the rules associated with Intrust Super.

The Trust Deed was recently reviewed and some minor updates made to ensure we could smoothly introduce the Government’s Better Super initiatives, including the new style of account-based pension accounts that we have introduced as our Super Stream pension product.

Trustee indemnity insurance

To protect both the Trustee and the benefits of members, the Trustee has taken out indemnity insurance. This protects the Trustee against any claims it cannot satisfy from Fund assets.


Who manages Intrust Super?

The Trustee of Intrust Super (Registrable Superannuation Entity Registration No. R1004397) is the company Host-Plus (Qld) Pty Ltd (ABN 45 010 814 623, Australian Financial Services Licence No: 238051, Registrable Superannuation Entity Licence No. L0001298).

The Board of Host-Plus (Qld) Pty Ltd has six directors equally representing employees and employer sponsors.

Employee representative directors are appointed by the Liquor, Hospitality and Miscellaneous Union (LHMU) Queensland branch and employer representative directors by the Queensland Hotels Association (QHA).

At June 2008, the directors were:

employee representatives

(lHMu)

employer representatives

(QHA)

Shirley Mellor (Chairperson)

Sandy McDonald (Deputy Chairperson)

Kerry Tomlinson Justin O’Connor

Gary Bullock Peta Irvine

During the year Kerry Tomlinson replaced Ron Monaghan as an employee representative director. We would like to take this opportunity to thank Ron for his dedication to Intrust Super and its members during his many years of Board service and wish him all the best for his future endeavours.

Service providers

Administrator Australian Administration Services

Auditor BDO Kendalls

Custodian JP Morgan Investor Services

Insurer: life Cover

Hannover Life Re of Australasia Ltd

Insurer: payGuard

Australian Income Protection Pty Ltd

Investment Advisor

JANA Investment Advisers Pty Ltd

legal advisors McCullough Robertson

personal Financial Advice

Money Solutions Pty Limited

The Trustee is the entity responsible for managing the Fund. It collects and invests contributions, maintains records, reports to members and employers, pays benefits, and is responsible for all other activities required to operate the Fund effectively.


statement of Financial position as at 30 June 2008 $ 2007 $

Assets

Investments

Cash and Short Term Deposits 104,072,692 37,674,929

Fixed Interest 68,767,299 61,256,554

Australian Shares 258,411,445 295,762,211

International Shares 251,346,685 283,922,240

Property 101,117,261 82,276,201

Opportunities 166,458,809 175,653,477

950,174,191 936,545,612

Other Assets

Cash at Bank 5,514,918 5,754,877

Receivables 10,640,344 7,730,879

Deferred Tax Benefits 273,656 346,550

16,428,918 13,832,306

Fixed Assets 509,451 542,251

tOtAl Assets 967,112,560 950,920,169

lIAbIlItIes

Payables 4,846,189 3,333,049

Income Tax Payable 14,981,441 14,068,198

Deferred Income Tax 1,716,280 13,742,543

tOtAl lIAbIlItIes 21,543,910 31,143,790

net Assets AVAIlAble tO pAY beneFIts 945,568,650 937,153,521

Represented by:

lIAbIlItY FOr ACCrueD beneFIts

Vested Benefits 943,370,336 931,216,129

Reserve 2,198,314 5,937,392

945,568,650 937,153,521

Financial statements


Operating statement as at 30 June 2008 $ 2007 $

InVestMent reVenue

Interest 868,465 234,271

Distributions 64,218,130 80,195,673

Movement in Net Market Value (133,154,050) 67,692,106

Other Investment Income 764,628 120,907

(67,302,827) 148,242,957

COntrIbutIOns reVenue

Employer 114,346,197 104,168,266

Member 10,259,329 10,828,524

Transfers 36,505,653 31,811,171

Government Co-contribution 4,122,865 5,637,488

165,234,044 152,445,449

OtHer reVenue

Group Life Insurance Proceeds 603,375 855,325

Other Income (16,295) 289,727

587,080 1,145,052

tOtAl reVenues FrOM OrDInArY ACtIVItIes 98,518,297 301,833,458

InVestMent eXpenses

Direct Investment Expenses 4,345,312 2,445,376

GenerAl ADMInIstrAtIOn eXpenses

Administration Expenses 4,665,758 4,279,077

Audit Fees 52,582 38,885

Operating Expenses 3,879,469 2,164,760

Anti-Detriment Payments 30,317 26,458

Superannuation Contributions Surcharge 37,918 95,487

Insurance Premiums 6,462,580 7,666,109

tOtAl eXpenses FrOM OrDInArY OperAtInG ACtIVItIes 19,473,936 16,716,152

OperAtInG surplus beFOre InCOMe tAX 79,044,361 285,117,306

Income Tax Expense 9,771,706 25,012,577

beneFIts ACCrueD As A result OF OperAtIOns AFter InCOMe tAX 69,272,655 260,104,729

BDO Kendalls are currently undertaking the annual audit of the Financial Statements. You can obtain a copy of the audited Financial Statements after October 2008 by contacting Intrust Super on 132 467.


Enquiries

Please direct all enquiries to Intrust Super by phone, email, in writing, or in person to:

Contact Centre

phone: 132 467Fax: 07 3013 8898email: [email protected] super

post: GPO Box 1416 Brisbane Qld 4001

Visit: Level 8 348 Edward Street Brisbane Qld 4000

Enquiries and complaints


Complaints

While Intrust Super strives to provide excellent member services, we acknowledge that services provided and decisions taken may not always satisfy everyone.

Should you be dissatisfied with the service you receive or any other aspect of Intrust Super please contact us to discuss the matter. If this does not resolve your enquiry, please contact the Operations Manager using the details listed above, to make a formal complaint.

We will do our best to acknowledge all complaints in writing within one working day of receipt and aim to resolve all complaints within five working days of receipt; however, at times the nature of the complaint may not make this possible. In these cases, the Trustee will resolve any complaints within a maximum of 90 days.

If you are not satisfied with the way we handle your complaint, or with its resolution, you may contact the Superannuation Complaints Tribunal. The Tribunal is an independent body set up by the Federal Government to assist members or beneficiaries to resolve certain superannuation complaints. The Tribunal may be able to help resolve your complaint but will only become involved after you have used Intrust Super’s internal complaint handling process, as outlined above.

If the Tribunal agrees to hear your complaint, it will firstly try to resolve the matter by assisting the parties to come

to a mutual agreement. Should mutual agreement not be reached, the Tribunal can progress the matter to a formal hearing. To find out whether the Tribunal can handle your complaint and the type of information you need to provide, please contact it as follows:

superannuation Complaints tribunal

Locked Mail Bag 3060 Melbourne VIC 3001

Phone: 1300 780 808


To help you stay fully informed about your account, Intrust Super and super in general we provide:

• memberstatementsatleasteverysixmonths

• thisannualreport

• newsletters

• lunchroomseminarsatvarious work places

• contactcentreservicesforthecostofalocal call or an email

• informationatyourfingertipsbyvisitingwww.intrust.com.au

Additional information

At any time you can ask for a copy of the Trust Deed (the Fund’s rules), the latest audited accounts, the Combined Risk Management Plan and Risk Management Strategy or a copy of the Fund’s Life and PayGuard Insurance policies. Contact us if you would like any of these documents. A fee may be charged for providing this information. The latest Product Disclosure Statement (PDS) is available by contacting us on 132 467 or by visiting www.intrust.com.au.

Privacy

Intrust Super collects your personal information to establish and administer your account. If you would like to access any personal information we hold about you, please contact us. A copy of the Fund’s privacy policy is available on request or by visiting www.intrust.com.au.

Late payments

To ensure you receive the super contributions you are entitled to, the Trustee has a follow-up process in place to contact employers who have not made contributions to the Fund by the due date. Your Annual Member Statement shows all contributions made up to 30 June. If contributions are not shown here they may have been received after 30 June and will appear on your next Statement.

If you make member voluntary contributions by payroll deduction (these do not include salary sacrifice contributions), by law, your employer has 28 days following the end of the month in which the contributions were deducted from your pay to forward them to the Fund.

Keeping you in the loop

Member Advantage Deals


Compliments of the house

And we’re not just talking a free fridge magnet or bumper sticker. We’re talking real benefits. Stuff that will actually help you and save you money.

Why is Intrust Super doing this?

Well, we know that superannuation isn’t that exciting. So, we figured we’d team up with some partners who can give you exciting offers. We call it our Member Advantage Program. But it’s really a thank you for choosing to put your super with Intrust Super. Super may not be exciting, but we promise it will be worth it in the end! Make sure you regularly check for new deals on our website at www.intrust.com.au by visiting the ‘Member Advantage’ page.

A super that helps you get great benefits now? It may sound like a tall tale but it’s true.

The advertisements and promotions displayed in this section have been included as provided by our Member Advantage Program Partners. Any offers made or views expressed in them are not made or endorsed by the Trustee of Intrust Super. The information contained in this section is general information only and should not be considered as a comprehensive statement on any matter and should not be relied on as that.

Neither the Trustee of Intrust Super nor any of its directors or employees or consultants give any warranty of reliability or accuracy, nor accept any responsibility arising in any way, including by reason of negligence or error or omission or misstatement. This disclaimer is subject to any contrary provisions of law. The information contained in this section does not take into account your investment objectives, particular needs or financial situation. These should be considered before investing or taking up any of the offers of product referred to in this section and you should obtain professional advice from a suitably licensed adviser before doing so.


Financial Partners

So what do you get with the Member Advantage Program? Let’s start with some deals from our Financial Partners. Much more than just a free pen or a 2% discount on something you don’t want, our Financial Partners can help you buy a car, or a house, or even save that little bit more for your future. Check our website at www.intrust.com.au for regular updates on deals from our Financial Partners.

Thanks for the tip

*Discount is current as at 20 July 2008 and is subject to change against the Members Equity Home Loan standard variable rate. Applications are subject to credit approval. Fees and charges apply. Terms and conditions available on request. Members Equity Bank Pty Ltd ABN 56 070 887 679. www.membersequitybank.com.au 97175/0808

• No application fee or monthly fees• No fees to redraw, split, fi x or top up your loan• 0.35% p.a. discount* just for being a fund member• Borrow up to 95% of home value

The same approach used to grow your super is now available to get a better deal on your home loan. Members Equity Bank, owned by leading industry super funds, offers a huge range of benefi ts.

Whether you’re looking for a new home loan or refi nancing, call Members Equity Banktoday on 1300 654 997 to fi nd out how much you can save.

As a member of Intrust Super, enjoy a discount on our variable interest rate for the life of your loan.

= Home loandiscount

Supermember

97175_Intrust Super Ad.indd 1 21/08/2008 9:56:07 AM


Thanks to Intrust Super’s partnership with Manchester Unity, all members receive discounted rates on Manchester Unity’s range of health covers*

* Discounted rates are not available on Healthmate Starter, Ambulance Only or Healthcover Plus Extras only products.MANCHESTER UNITY AUSTRALIA LTD. (ABN 99 087 648 771) IS A REGISTERED PRIVATE HEALTH INSURER UNDER THE PRIVATE HEALTH INSURANCE ACT (2007) AND IS REGISTERED UNDER THE LIFE INSURANCE ACT 1995. 08/08

Intrust Super brings you health cover that will keep you fit


Bon voyage

Travel Deals

Let’s face it, one of the main reasons we work is to fund our holidays. So it’s nice to know that with these great Travel Deals from our partners you won’t have to work quite as long before you can afford that next break. Holiday packages, weekends away, cheap flights, travel insurance – it’s all here for you to take advantage of. Time off anyone?

Check our website at www.intrust.com.au for regular updates

on Travel Deals.


ACE Travel InsuranceTravelling is great – unless you lose your luggage, have something stolen or hurt yourself. But, while you can’t stop bad stuff happening, you can at least make sure it won’t affect you long term with a great deal on Ina-suitcase travel insurance from ACE.

the Intrust super Member Ina-suitcase travel insurance includes:

• Unlimitedoverseasmedicalexpenses

• Unlimitedoverseasadditionalexpenses

• Unlimitedoverseascancellationcharges

• Upto$3,500forcamerasandvideos

• Upto$15,000luggageandtravel documents cover

• Upto$2,500rentalcarcollisiondamage

• Upto$2,500,000personalliabilityinsurance

• FreeACEAssistancecardfor24hourinternational emergency travel assistance

to apply, visit our website at www.intrust.com.au. If you have any questions, call the ACe Customer service team on 1800 803 548.

ACE Insurance Limited ABN 23 001 642 020 AFSL No. 239687 is the insurer of this product. ACE only provides general advice and does not consider your objectives, financial situation or needs. To decide if the product is right for you please read the policy documentation (including Product Disclosure Statement). Call us to obtain them or alternatively call your Insurance Broker.

Reservations: 1300 13 13 90 or europcar.com.au

All members receive an exclusive discount on all vehicle rentals with Europcar. There are over 200 convenient Europcar locations across Australia and New Zealand.

Choose from our fleet of cars including Audi, moving vans and a range of commercial vehicles.

Simply quote code CCC02945 when making your booking.

MK

0168


Sailaway Yacht Charters offers fully crewed charters for your special occasion. Each guests can either lend a hand in sailing the yacht or if they prefer—just sit back and relax.

A Sailaway Yacht charter can also make a terrific Team Building exercise. Bring your team aboard and make them grind a few winches; hoist the sails; and learn to work as a Team!

We also teach Australian Yachting approved sailing courses and many of our students became yacht owners and very good skippers.

We have different sized yachts for special occasions.

Whether it is only one person or even 32 people; we can find a yacht that will be suitable for you.

We also cater for Weddings and Sail yourself Bare Boats.

Our base is at East Coast marina at Manly; and we can pick up at Raby Bay and Newstead Park.

please feel free to surf our website www.sailaway.com.au or visit us at Manly. please call first on 0419 444 041.

We offer 10% discount to all Intrust super members.

YA C H T C H A R T E R S • S A I L T R A I N I N G • B A R E B O AT S


www.royalpinesresort.com.au

Pamper & Play at Royal Pines Resort...From $165 per person*

Enjoy one night’s accommodation in a premier room, full buffet breakfastplus the choice of either 18 holes of golf on the Championship courseor a pampering session at the luxurious Angsana Spa.

Phone 1800 886 880 or visitwww.royalpinesresort.com.au*Conditions apply. Offer is subject to availability and valid until 31 March 2009.Rates are per person, per night, twin share.

RACV Royal Pines ResortRoss Street, Ashmore, Gold Coast, QueenslandTel (07) 5597 8700 I Fax (07) 5597 2277

RPR_Super Advert:Layout 1 10/9/08 10:32 AM Page 1


For bookings, please contact our reservations team on

ph 07 5509 8000 toll Free (Australia) 1800 098 000

[email protected]

Sea World Drive Main Beach 4217 Qld

www.palazzoversace.com

Please let us know if you would like to be added to our database so you are the first to know of special offers and events taking place at the hotel.

Phone 07 5509 8000 or Email [email protected]

palazzo Versace Gold Coast unique, sophisticated and elegant.

Immerse yourself in the total Versace experience at the special industry rate of only

*$290.00 per room per night (subject to availability).

*This rate is available to Intrust Members only

The general information provided in this Annual Report does not constitute financial advice and does not take into account your investment objectives, personal needs and financial circumstances. Before making financial decisions you should consider obtaining independent financial advice and, in respect of Intrust Super, you should read the Trustee’s Product Disclosure Statement (PDS).

You can obtain a copy of the PDS by contacting the Fund as per the details shown below.

Intrust super

phone: 132 467Fax: 07 3013 8898email: [email protected]: GPO Box 1416

Brisbane Qld 4001Visit: Level 8

348 Edward Street Brisbane Qld 4000

Trustee: Host-Plus (Qld) Pty Ltd

ABN: 45 010 814 623 AFSL: 238051

RSE Licence No: L0001298

Intrust Super ABN: 65 704 511 371

RSE Registration No: R1004397

SPIN: HPP0100AU

HP/ANN/REP 45.1 11/08 ISS9

annual report 2008 - intrust super · 6 intrust super annual report 2008 core super crediting rates...

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