July 2015 edition

superscoop

P3

Going above and beyondRecognising our members’ achievements.

P4

Introducing Money MapAn easy way to navigate your fi nances.

P10 P6

Roslyn’s living the retirement dream.

superscoop

WINNER 2015

Giving you valuefor moneyUnderstanding changes to your fees.

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Super Scoop July 2015

As your super fund, our primary reason for being is to help support you every step of the way through retirement. That means we need to make sure we’re off ering you the products, services and help you need when you need it.

Committed to off ering you the best possible value

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

What you may not know, however, is that our investment performance and our fees are linked. Essentially, when our investment options perform really strongly, as they have been doing for the last year or two, we pay our investment managers more. While this means the investment fee has gone up this year for some of our investment options, it also means members in these options received higher net returns.1 But what hasn’t changed is that we’re still off ering some of the lowest fees in Australia, and in even better news we’ve actually reduced our administration fee from 0.22% to 0.20%. You’ll fi nd more information on our fees, including changes to the fee cap that mean even more members will be paying less in administration fees, on page 10.

New innovations to benefi t you

But a reduction in our administration fee very defi nitely doesn’t mean we’re slowing down when it comes to looking at enhancing and improving on what we off er you. We’re constantly looking at how we can do things better, to give you the confi dence that your best years truly are yet to come.

We‘ve achieved some great things for you over the past twelve months. You now have access to even more investment choices through Self Invest, with QSuper being one of the fi rst funds to off er a direct investment option to income account members. I’m also delighted to introduce Money Map, which allows you to get a complete, secure online picture of your entire fi nancial situation in one place. It’s just another way we can help you navigate your fi nancial future – you’ll fi nd more information on Money Map in the article on page 4.

I was thrilled that our commitment to you was recognised again this year, with QSuper being awarded 2015 Pension Fund of the Year at both the Chant West Fund Awards and the Connexus Financial Superannuation Awards.

But we have even more big things in store over the coming months and years, so we can provide solutions that are even better tailored to your needs. So stay tuned!

We’re here for you

We know we have to keep evolving and improving the products and services we off er, because we understand that even in retirement your life is constantly changing. But that also means you may have questions and concerns about your super, so we’re here for you when you need us. It doesn’t matter how you want to start the conversation – whether it’s over the phone, face to face or by email – we’re always ready to listen. And in the meantime, I hope you enjoy this edition of Super Scoop.

Rosemary VilganChief Executive Officer, QSuper

A message from the CEOWe’re here to support you every

step of the way through retirement.Rosemary Vilgan

Join the conversation with our investment experts. Book your seat today.

Places can fi ll up fast, so for information about locations we’ll be visiting and to book your seat go to qsuper.qld.gov.au/seminars or call 1300 360 750.

Question: Where can you get the

latest insights on investing in retirement?

Answer: Our 2015

Investment Update.

1300 360 750 qsuper.qld.gov.au

1 It is important to remember that past performance is not a reliable indicator of future performance.

3

Super Scoop July 2015

A message from the CEOSupporting the Queenslanders who support Queensland

Every day our members are out there

in the community doing a great job. They’re keeping us safe and healthy; they’re

educating our kids and keeping Queensland moving. And all the

while we’re right behind them, supporting their

super needs.

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

National Red Balloon Day

As a way to say thank you to our courageous fire fighters, each year we support National Red Balloon Day. Many of QSuper’s firey members take part in the event activities, getting out into the community and talking to kids and adults about fire safety – and showing off their big red fire engines of course! To raise awareness and encourage our members to donate, we flew red balloons at all our Member Centres and offices throughout the state, and also supported the cause financially by adding to the fundraising efforts.

QFES Australia Day Achievement Awards

The men and women of the Queensland Fire and Emergency Services do an incredible job in keeping our

communities safe. It’s for this reason we support the Australia Day

Achievement Awards, which recognise our QFES members and the volunteers who have performed exceptional work, above and beyond the normal course of duty.

#qsuperconversations

National Police Remembrance Day

To honour police officers who have made the ultimate sacrifice, National Police Remembrance Day is held every year in September. The day provides our police members an important occasion to show their respects for their fallen colleagues. We are always honoured to be able to attend the ceremony and to provide financial support to Police Legacy.

International Nurses Day

In May each year, we recognise the hard work and dedication of Queensland’s nurses – many of whom are QSuper members – by supporting International Nurses Day. This year we visited various regions across the state and provided financial assistance to help buy new textbooks for nursing staff. Just another way we’re looking after those who look after Queenslanders!

Your super, bank account and budget tools in one

place

Staying on top of your household fi nances is the best way to ensure you live the lifestyle you want in retirement. But if you have super, bank accounts, investments and credit cards in diff erent places, keeping track of it all isn’t easy. That’s why we’ve created Money Map.Money Map brings all your accounts (and that includes your super, bank accounts, credit cards etc.) together in a secure online dashboard, giving you a complete picture of your fi nances. It also provides some very clever tools, education and tips to help you plan for the future.

Keeping your spending in check

There are things you can’t change about your retirement fi nances. Interest rates, investment returns and changes to Government benefi ts are just a few. But one area you can have more control over is your spending.

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

4

Super Scoop August 2015

Help manage your money today

Everyone has diff erent priorities for retirement, but with Money Map you can create a budget that’s built around your lifestyle. And because it uses past spending as a starting point, you’re more likely to be able to stick to it.

Plus, unlike spreadsheets and other budget tools, your budget is updated automatically. This means you can go online at any time to check you’re on track, and there are no surprises at the end of the month.

Look beyond your bank account

Once you have all your investments in one place, and the value of your accounts and investments has been updated in real time, you can instantly assess your fi nancial position and decide if you’d like to make any changes to your investment arrangements. So no matter what else is going on, you’ll always know how you’re faring.

Smart, simple and secure

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

Super, bank accounts, investments and credit cards together in one place

Create a budget in minutes

Instantly see where your money is going

Set fi nancial goals and track your progress

Share it with your partner and view joint accounts

QSuper Money Map at a glance

5

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

Log in to Member Online

Click on the Money Map tab for information

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

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

Money Map has been created purely to help you take control of your fi nances today, so you can live a better lifestyle throughout your retirement.

You can even enter the retirement goals that are important to you, like saving for a holiday or treating the grandkids, and track your progress at any time. It’s like having a fi nancial partner on call to keep your fi nances on track.

Feel super confi dent about your future

You can start using Money Map at any time. Just log in to Member

Online and click on the Money Map tab. It comes with online education, tips and tools to help your money

stretch further in retirement.

Super Scoop July 2015

6

Super Scoop July 2015

Living the dream

Carpe diem – it’s a pretty good description of how Roslyn Macdonald approaches life in retirement. If she’s not busy learning Latin, Ros is off riding her horse, carrying out her work as President of the Brookfi eld Horse and Pony Club, or planning overseas trips.

Yes, life in retirement for Ros (68) is pretty sweet. And right at the centre of her dream retirement is her and husband Hector’s Pullenvale idyll, just 15 kilometres west of Brisbane’s CBD, where they’ve lived for 46 years.

Retired for four years, Ros says life in retirement is busier now than ever before – which given she was a Senior Lecturer at QUT’s Faculty of Law is really saying something!

‘I know people probably say this all the time but I don’t know how I ever found the time to work,’ Ros said.

And it’s easy to see how when you hear what keeps her busy, including Latin, which she’s been studying at the University of the Third Age (U3A) for almost a decade.

‘Retired people can go along to U3A and take classes in virtually whatever they’re interested in,’ Ros said.

‘The way it works is that all these people who are retired now but had wonderful careers in their working lives – linguists, historians, economists, you name it – off er their services free to U3A.

Real member

story

7

Super Scoop July 2015

‘I pay just $5 to go to class every Friday morning in the city. All the translating work is great for keeping my brain active and it’s also marvellous for meeting new people.’

Horsing around

Considering where Ros and Hector (74) live, it probably doesn’t come as a surprise that horses play a big role in their life. Aside from caring for and riding her horse ‘Windebar Oscar’ (Oscar for short), Ros fell into the role of President of the Brookfi eld Horse and Pony Club by accident three years ago.

‘I became involved in the club in 2007 when I took my grandchildren along to join the club, and I stayed on as a member long after they lost interest,’ she laughed.

‘I’ve enjoyed being club president enormously, but next year I’ll leave it up to someone else to take the reins.’Of course living on acreage means Ros and Hector are never short of things to do at home.

‘The property does need a bit of maintenance. But we’ve lived here for so long we’re used to it. Hector has his ride-on mower and I care for the garden – often coming across my fair share of toads and snakes I might add.’

Travel is the cherry on top

Ros and Hector also enjoy travelling the globe. They went on a six-week trip last year to Turkey and Greece, and stopped by London on their way home to visit two of their children.

‘Travelling is marvellous and it’s something I really enjoy.’

‘I’m currently planning an African safari trip with a group of girlfriends. We’re still working out the details but it’s bound to be a lot of fun.’

I know my super is in good hands

Of course, fun is pretty easy to come by when you know your super is in good hands. Ros and Hector say the peace of mind that comes from being a QSuper member has allowed them to relax and get on with the important things in life – enjoying retirement.

But they’ve also made some smart decisions with their super along the way too.

‘I really have Hector to thank for encouraging me to make extra contributions. It’s a piece of advice that has really paid off ,’ Ros said.

‘The way we look at our super is that we’re extremely privileged.

‘We quite honestly count ourselves lucky to belong to QSuper. The fees are

I know people probably say this all the time but

I don’t know how I ever found the

time to work.

U3A is an organisation where older people can go to learn about topics that interest them. It’s not a university in the formal sense – there are no exams or academic requirements – so it’s suitable to anyone. Find out more about U3A at u3aonline.org.au

extremely low, it’s very well run, and I can honestly say I would never roll my money out.’

For Ros and Hector, it all adds up to a worry-free retirement – now that’s something we’d all like!

8

Super Scoop July 2015

Mike and Jill retired on 1 July 2015. But like many of us they were worried they wouldn’t have enough super to live the life they wanted in retirement. They both have the travel bug so having enough money for yearly overseas trips is a must. Mike and Jill worked out they’ll need $72,000 a year to live the retirement they’re dreaming of (including money to take some big trips each year).

With that in mind, right before they retired Mike and Jill went to see a QInvest1 adviser to fi nd out how they could make their super go the distance.

Make your super go further by restructuring

When Mike and Jill went to see their QInvest adviser, they were told that when one person in a couple is younger, it can pay to have most of the super in their name because then it isn’t counted as an asset until they reach Age Pension age. This means they would likely be able to maximise their Centrelink benefi ts.

So because Jill’s Accumulation account funds won’t be assessed by Centrelink until she reaches Age Pension age – another 6.5 years away – Mike and Jill’s adviser suggested some clever account restructuring. He advised Mike to move $300,000 from his Income account and add it into Jill’s Accumulation account, eff ectively meaning $500,000 of their super money won’t be assessed by Centrelink for the next 6.5 years.

Q: How can we make the most of Centrelink benefits in retirement?

Maximise your Age Pension for longer

This means Mike will get a maximum Age Pension for as long as possible. So by restructuring, Mike and Jill will still have the same amount of money going in their pocket each year, but they’re taking less out of their own reserves so their money will last longer.

An extra boost for Mike and Jill

The benefi ts of restructuring for Mike and Jill are huge. Over the years it could add up to tens of thousands of dollars in benefi t. In the fi rst year of retirement alone, Mike and Jill will get approximately an extra $9,000 in Age Pension benefi ts that they wouldn’t have previously received.

Names: Mike and Jill

Ages: Mike is 65 and Jill is 60

Salaries: Mike earns $70,000 and Jill earns $58,000

QSuper account balances: Mike has $500,000 in an Income account and Jill has $200,000 in her Accumulation account

See if QInvest can help youIf like Mike and Jill you’d like to discover strategies that could help you get more from your money, talk to QInvest. Call 1800 643 893 today to book an appointment with an adviser, or visit qinvest.com.au

1 QInvest is a separate legal entity responsible for the fi nancial services and credit services it provides. Advice fees apply.

Assumptions

This is a case study used for illustrative purposes only. Please seek fi nancial advice and Centrelink assistance for your own situation. Net investment return of the account-based pension is 7.0% p.a., for the Accumulation account the net investment return is 6.2%. Expenditure is indexed to infl ation of 3.0% p.a. and the Age Pension is linked to the PBLCI of 3.3% p.a. For Age Pension calculations, $40,000 of non-fi nancial assets have been included. All results are displayed in today’s dollars. Contribution caps apply.

9

Super Scoop July 2015

Things you might not know about Ohio

Columbus hosts 15 of the Fortune 1000 companies

Seven US presidents were born in Ohio

Columbus is the 15th largest city in the US

Neil Armstrong and Steven Spielberg were born and raised in Ohio

Ohio is home to the Rock and Roll Hall of Fame

Asset profile

Asset name: CampusParc, Ohio State University, USADate of investment: 2012Investment options with current exposure:

When it comes to infrastructure investment, more traditional assets like roads, ports and bridges probably spring to mind. But to make sure we maintain a diversifi ed portfolio to provide you with the best possible long-term returns, we also have a number of ‘less expected’ infrastructure investments on our books.One of these is a car park. Doesn’t sound all that exciting, does it? But this isn’t just any old car park. This is a massive car park, with 36,600 spaces, operated by CampusParc.

Back in 2012 QSuper’s infrastructure manager, QIC, acquired an interest in CampusParc, which has the right to operate the Ohio State University (OSU) parking system for a period of 50 years. Its responsibilities include management of the permit system, parking enforcement, customer service, motorist assistance, event parking management, and parking facility maintenance.

OSU’s main Columbus campus is one of America’s largest. It covers a staggering 1,904 acres (or just over seven square kilometres) and has a total enrolment of 58,000 students, and 44,000 staff . So with this much area to navigate, you can see why people rely so heavily on cars, and subsequently parking spaces.

The CampusParc asset is underpinned by a concession agreement with the University (essentially a negotiated contract between a private company and a government entity), which provides strong investor protection. As part of the agreement, most parking fees at OSU will increase 5.5 per cent each year for the fi rst 10 years (until 2022), then 4 per cent or the Midwest CPI (whichever is greater) from years 11 through to 50, providing a predictable cash fl ow.

This is a particularly attractive investment from QSuper’s point of view as it’s a mature asset with visible revenue and earnings growth. So while it’s maybe a less expected type of infrastructure investment, CampusParc looks set to provide steady, guaranteed gains for decades to come.

Lifetime

Moderate

Balanced

Aggressive

Other assets we invest in include

One Times Square, New York

Edinburgh Airport

Thames Water

Port of Brisbane

To learn more, take a look at qsuper.qld.gov.au/assetprofi le

10

Super Scoop July 2015

Understanding changes to our fees

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

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

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

scoop?What’s the

New online advice

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

You can answer a few simple questions to discover your risk profi le, and the type of investment strategy that suits you. Then if you want to dig a little deeper, you can get an online Statement of Advice detailing which of QSuper’s investment options are right for you. And because you access advice through Member Online, it just takes a couple of quick clicks to action the advice and change your investment strategy. Find out more at qsuper.qld.gov.au.

Proposed changes to Age Pension assets test

If you are in, or close to, retirement, you are no doubt aware that the 2015 Budget saw the Government introduce changes to the assets test. This means the asset free threshold will increase and the maximum asset threshold will decrease from 1 January 2017, meaning that around 235,000 Australians will receive lower payments, and around 91,000 will lose the pension completely.

If you are concerned about the eff ect on your future budget or lifestyle, we’re here for you. Simply give us a call on 1300 360 750, and we can put you in touch with a QInvest adviser, who can look at your personal situation in detail.

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

1 It’s important to remember that past performance isn’t a guarantee of future performance. 2 This product is issued by Challenger Life Company Limited (ABN 44 072 486 938) (AFSL 234670) (“Challenger”). You should consider the appropriateness of the product for your circumstances and read the product disclosure statement (PDS) before deciding whether to acquire this product. You can download the PDS from challenger.com.au/guaranteedtermannuity.htm, or call QInvest on 1800 643 893. The QSuper Board and QSuper Limited are not licensed to provide fi nancial product advice about this product. You should consider obtaining fi nancial advice before making a decision about this product.

Considering an annuity?

QSuper members now have access to a special rate on a Challenger Guaranteed Term Annuity.2

� Competitive rates exclusive to QSuper members

� Gives you the option to diversify your retirement income

To find out more call QSuper or visit our website.

1300 360 750

qsuper.qld.gov.au/annuity

ADVERTISEMENT

11

Super Scoop July 2015

Introducing QSuper’s investment blog

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

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

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

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

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

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

Brad Holzberger

Brad HolzbergerChief Investment Offi cer

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

I’m super sorted.

Report card as at 30 June 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 our aim is to deliver consistent and stable returns over the long-term, and encourage you to look at longer-term performance as the most meaningful measure of success.

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.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. Income. 07/15.

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

You can also find us on:

Investment returns (Income account) as at 30 June 2015

QSuper investment options 1 Year 5 year% p.a.

10 year% p.a.

Ready Made options

Moderate 7.51% 7.68% 6.36%

Balanced 12.67% 11.07% 7.96%

Socially Responsible 11.35% 10.41% 7.24%

Aggressive 14.55% 13.26% 8.36%

Your Choice options

Cash 2.34% 3.37% 4.22%

Diversified Bonds 4.17% 6.80% 6.65%

International Shares 13.68% 16.52% 8.11%

Australian Shares 7.47% 11.04% 8.18%

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

QSuper Annual ReportYou’ll find all the in depth information about QSuper’s performance over the last 12 months in our Annual Report. It’s also the place to go for all the details about the fund and the QSuper Board. You’ll be able to download a copy of the report at qsuper.qld.gov.au/annualreport from late October 2015, or call us and we’ll send you a copy.