growing your super together together thinking smsf?...a range of tailored ˜ nancial advice services...

Growing your super together

AUGUST 2013

Growing your super together

PhilipQSuper member

since 2011

Make an informed choice

Page 5

THINKING SMSF?

It could cost you everything

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BEWARE BAD ADVICE

GROW YOUR BIGGEST INVESTMENT

Get the latest

important super

updates

0

WHAT’S

THE SCOOP?

Page 6

You’re with one of the biggest and best Page 3TOP MARKS

Another great reason to stay with QSuper.

Pension Fund of the Year.

A message from QSuper’s CEO

Rosemary Vilgan

‘Taking control of your super is so important, as it’s probably one

of the biggest investments you’ll ever have.’

Welcome2013 is a special year for QSuper, as we celebrate 100 years of helping members reach their goals. It’s a history I’m immensely proud to be a part of, but what I’m really excited about is what the future holds.

We know your needs are constantly evolving, so we’re always looking at ways we can do things better for you. Over the coming months you’ll see dynamic new developments such as enhanced access to your super through Member Online, as well as easier access to a range of tailored � nancial advice services through QInvest.1 QInvest has also recently launched a new mortgage broking service, exclusive to QSuper members, their families and friends.

A focus on the long termLast year we wrote to you about changes to the QSuper Balanced (Default) option designed to reduce volatility and smooth returns. This option has been one of the best performing funds over virtually all time periods.2 However we are focussed on the long term, and from talking to members we understand most of you want to protect your super from the ups and downs of investment markets, even if it means giving up some potential for higher returns in the short term. With this in mind, we positioned this option to better protect against volatility, which means when markets are booming our returns may be a little lower than other funds. However when markets fall the opposite is true, and the QSuper Balanced (Default) option should deliver more stable returns.I know it can be tempting to judge investment performance on year-by-year returns, but in reality super is a long-term investment so we believe it’s the long-term results that really count. Of course, with nine investment options you can also choose an investment strategy that suits your needs.

QSuper for life We’re also about to embark on an exciting investment journey with the launch of our new QSuper Lifetime option. The enclosed brochure gives you a taste of things to come.

An award winning fundI take great pride in knowing that everybody at QSuper is committed to providing members with the best possible products and services. That’s why it was so pleasing to see independent ratings agency Chant West name the QSuper Pension account Pension Fund of the Year3 against the best super funds in Australia.

Another signi� cant milestoneIn this 20th anniversary edition of our award-winning magazine Super Scoop, we’ve put together a range of articles designed especially for members like you, who are juggling multiple � nancial priorities, and often trying to balance this with family and career commitments.

I understand that super may not be top of mind, but taking control now could make a real di� erence to your future. It’s probably going to be one of the biggest investments you’ll ever have, which is why we’ve included an article on how to help your super grow. We’ve also highlighted the issues you need to consider if you’re thinking of starting an SMSF.

Just a few simple actions now could see you living your dreams in the future, so I hope you take the time to read and enjoy this edition of Super Scoop.

Rosemary VilganChief Executive Officer, QSuper

> FROM THE COVERMeet PhilipI love hearing about members like Philip who are making smart moves with their super. By choosing to take the time to understand his account and consider his options Philip is taking better care of his biggest investment.

By choosing to take the time to understand his account

Phil ipQSuper member

My story

profilememberReal

2 Super Scoop August 20132 Super Scoop August 2013

Super that changes and grows with you

QSuper

suits your needs.

Track your super 24/7 Check your insurance cover Manage your investments

For more choice, control and convenience log in now at qsuper.qld.gov.au

Check out the new, improved Member Online. The enhanced features are too good to miss!


Check out the new, improved The enhanced features are too good to miss!

Log in Log in Check out the new, improved

Log in Check out the new, improved

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miss outmiss out Check out the new, improved

miss out Check out the new, improved Member Online

miss outMember Online

Log in :) or miss out :(

1 QInvest Limited (ABN 35 063 511 580, AFSL and Australian Credit Licence number 238274) (QInvest) is ultimately owned by the QSuper Board (ABN 32 125 059 006) as a trustee for the QSuper Fund (ABN 60 905 115 063), and is a separate legal entity which takes full responsibility for the � nancial services and credit services it provides. 2 SuperRatings SMART, Product Comparison Report as at 30 June 2012, accessed 19 July 2013. 3 Inaugural Chant West Conexus Financial Super Awards 2013.

Track your super 24/7 Check your insurance cover Manage your investments


Check out the new, improved Member Online. The enhanced features are too good to miss!

Log in :) or miss out :(

Members are at the heart of everything we do at QSuper, which is why we’re dedicated to o� ering you outstanding products and services. And the experts agree – our accounts have received the highest ratings from independent ratings agencies Super Ratings and Chant West.

We’re proud to be one of Australia’s top funds, but you don’t have to take our word for it – our Pension account has just been named the best in the country.

Another great reason to stay with QSuper.

Pension Fund of the Year.

1 As at 30 June 2013. 2 Past management fees should not be taken as an indication of future fees as each year the expenses of managing QSuper’s investment options may vary. 3 QSuper management fee is the actual fee for 2012/2013. 4 Average Retail Master Trust Fee of 1.44% p.a and average industry fee of 0.99% p.a. are as at July 2012 and based on an account balance of $50,000 in an option considered by the ratings agency to be equivalent to the QSuper Balanced (Default) option. Source: Chant West Super Fund Fee Survey April 2013.

One of the biggest super funds in Australia Did you know you’re partnered with one of Australia’s largest super funds? We have around $43 billion1 in funds under management, and with that size comes the security and bene� ts of scale that we pass onto you in the form of low fees and great products and services. And you’ll never be lonely as a QSuper member – with over 530,0001 members, we could � ll the Gabba nearly 13 times over!

The investment choice you needAt QSuper we understand the importance of giving you the choice, convenience and � exibility you need when it comes to investing your super. So, if you want to manage your own investments, we o� er a premium range of options to choose from. But if you’d prefer to take the hassle out of managing your super, we’re about to introduce a new default option called QSuper Lifetime. This option is designed to deliver the right super strategy at the right time by seamlessly adjusting your investments as you move through di� erent life stages.

Low feesThe more you pay in fees, the less you have in your account working for you. That’s why we keep our fees as low as possible,2 with the fee for the QSuper Balanced (Default) option being less than half that of the average retail fund. When comparing fees you should be aware that not all funds clearly outline the total costs which may be deducted from super accounts. It’s your money, so make sure you always know what you’re paying.

Great information and serviceIf you want to know more about your super, we’re here to help. Our award-winning Contact Centre answers around 300,000 calls a year, and we deliver more than 500 seminars, in nearly 60 locations, to around 25,000 members annually. Our website hosts a comprehensive range of information and calculators all designed to give you the information you need, when you need it, and in a way that’s easy to understand.

Advice you can trustWe know how important it is for our members to get the right advice at the right time, which is why we’ve been o� ering access to quality � nancial advice from QInvest for almost 20 years. QInvest advisers are super experts with a detailed understanding of QSuper products. And with o� ces in convenient locations throughout Queensland, the right advice is never far away.

0.57%

0.99%

1.44%

QSuper3

Average Industry Fund4

Average Retail Master Trust4

Top marks.You’re with a top rated fund!

to stay with

Lyndel

to stay with

Neil

QSuper.

Ginette

to stay with QSuper.to stay with QSuper.

Philip

3Super Scoop August 2013

Self-managed superannuation funds (SMSFs) have become very popular over the past few years. As at 30 June 2011 they held 31% of the $1.34 trillion invested in super, and their assets grew in the preceding � ve years by 89%.1 You may even be considering one yourself.Understanding your obligationsThe most important thing to do before setting up an SMSF is to fully understand what you’re getting into, as many people underestimate the time and e� ort involved in managing their own super. They also don’t factor in all the costs – essentially the more external help you need, the greater your running costs will be. You should also consider investment costs – investing in property, for example, can incur fees such as stamp duty, conveyancing and agent and legal fees.

The help you needWe know that for some members an SMSF might be the right choice. We also know that many Australians set up SMSFs without doing their research � rst. That’s why QInvest has established a new service to give QSuper members access to the help and support they need to consider, or set up, an SMSF. By using this service you can ensure you’re getting the right information about whether an SMSF is right for you from advisers you can trust – for an obligation-free discussion call QInvest on 1800 643 893.

Both the ATO and the Government website MoneySmart have some excellent resources for anyone thinking about an SMSF, including some important questions you need to ask yourself, which we’ve included below.

O� ering the � exibility you wantAt QSuper we’re dedicated to o� ering our members the products and services they need to meet their retirement goals. These include:

� Nine investment options managed by investment specialists.

� An extensive seminar program designed to meet your information needs at di� erent life stages.

� Online access to your account, allowing you to manage your super any time of the day and night.

� Some of the lowest management fees in Australia.2

We’re also looking to expand our range of investment options to give you even greater control over your super.

Make an informed choice.

Get the SMSF lowdown from the experts!Get a balanced view on what’s involved in managing your own super at a QSuper SMSF seminar. In this informative and in depth session three experts – including an accountant and a lawyer – will give you all the facts you need to understand your responsibilities. Head to qsuper.qld.gov.au/seminars to book your seat today.

Thinking SMSF?

The Government website MoneySmart has some great resources available for anyone thinking about establishing an SMSF, including some important questions you should ask yourself before taking the plunge.

Will your self-managed fund perform better?Super funds use professional managers to invest your super money. Can you do better than the professionals?

Will you lose valued bene� ts?Super funds usually o� er life and disability insurance and a range of investment options. If you set up a self-managed super fund you will have to organise and purchase these yourself.

What if something goes wrong?Sometimes things can go wrong, for example, you may lose money due to fraud. Unlike other super funds members, you will not have access to any special compensation schemes.

Do you know enough?Do you know all your legal responsibilities? Are you on top of the investment market? Do you know the tax implications? Ultimately you will be responsible for your fund even if you have received incorrect advice.

Is an SMSF for me?

Source: MoneySmart website, accessed May 2013.

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1 Self-managed super funds: statistical report. March 2012. Australian Taxation O� ce. 2 Chant West Super Fund Fee Survey April 2013.

4 Super Scoop August 2013

Why super is so superThe tax benefits in a nutshellIf you’re serious about creating a � nancially secure future there’s no shortage of investment vehicles to choose from – property, managed funds, term deposits and shares are all viable wealth creation strategies. But super may have some real tax advantages.

So, what’s so great about super?Because the Federal Government wants you to save for retirement there are big tax concessions with super:

� Investment earnings are taxed at a maximum of 15%, while investments outside of super are generally taxed at your marginal tax rate (up to 46.5%).1

� Employer and salary sacri� ce contributions are taxed at only 15%.2

� No additional tax is payable on contributions to super made from your after-tax pay.2

More for your superA great bene� t of super is that contributions you make from your pre-tax salary (salary sacri� ce) are taxed at 15%. If you’re currently making post-tax contributions (which have come from money you’ve already paid tax on), you could consider making them pre-tax, through salary sacri� ce. Then, by recontributing your tax saving, you could end up with more going into your super without a� ecting your take home pay. Depending on your personal circumstances there may be other factors to consider, so see qsuper.qld.gov.au/salarysacri� ce for more information on how this strategy works and whether it’s right for you.

Tax-free livingWhere super really comes into its own is when it comes to accessing it, as once you hit 60 withdrawals from super are tax free. So as you can see, from a tax perspective, super can be a real winner.

For more info on the tax advantages of super, head to qsuper.qld.gov.au/tax

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One Times SquareNew York, USADate of investment: December 2011Value of investment: $71.8m USD(as at 31 March 2013)

Options with current exposure:

QSuper Balanced (Default)

QSuper Aggressive

QSuper Moderate

QSuper Indexed Mix

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Options with current exposure: Options with current exposure: Options with current exposure:

QSuper Balanced (Default)QSuper Balanced (Default)To view other asset pro� les visit:qsuper.qld.gov.au/assetpro� les

Big Apple.Big opportunity.

The global � nancial turmoil of the past few years has led us to increase our exposure to assets such as infrastructure and property with the aim of providing members with stable, long-term growth. This means that as a QSuper member your super may be invested in assets such as airports, utility companies, shopping centres, and one of the most recognisable buildings in the USA, One Times Square.

Diversi� cation is important when setting an investment strategy. That’s why we place members’ money in a wide range of quality investments, many of which are only available to institutional investors.

I want to be a part of it…Situated in the heart of Times Square, this New York icon has been featured in countless TV shows and movies, is the site of the famous New Years Eve ‘ball drop’, and its billboards and LED signs can be seen from ten blocks away.

Although 25 stories high, most of the � oor space is in fact empty. Retail currently makes up only 16% of the revenue source, with the only major tenant being Walgreen pharmacy – which has a � agship store over three � oors. The real moneymaker is those billboards.

Providing solid returns Due to its extreme visibility – around 35 million people walk through Times Square every year and an estimated 1 billion watch the new year festivities – advertising rates for these signs are among the highest in the world, and since 1998 have increased at an average of 8.4% per annum. Coupled with the fact that most signage leases are � ve to ten years, and that advertisers include blue chip companies such as Toshiba, Sony and TDK, this makes One Times Square a quality investment that the QSuper Board expects to continue to provide solid returns over the long term.11 Past performance is not a reliable indicator of future performance.

1 Including Medicare Levy. 2 Some exceptions apply. Please refer to the Accumulation Account Guide or De� ned Bene� t Guide for more information.

Self-managed superannuation funds (SMSFs) have become very popular over the past few years. As at 30 June 2011 they held 31% of the $1.34 trillion invested in super, and their assets grew in the preceding � ve years by 89%.1 You may even be considering one yourself.Understanding your obligationsThe most important thing to do before setting up an SMSF is to fully understand what you’re getting into, as many people underestimate the time and e� ort involved in managing their own super. They also don’t factor in all the costs – essentially the more external help you need, the greater your running costs will be. You should also consider investment costs – investing in property, for example, can incur fees such as stamp duty, conveyancing and agent and legal fees.

The help you needWe know that for some members an SMSF might be the right choice. We also know that many Australians set up SMSFs without doing their research � rst. That’s why QInvest has established a new service to give QSuper members access to the help and support they need to consider, or set up, an SMSF. By using this service you can ensure you’re getting the right information about whether an SMSF is right for you from advisers you can trust – for an obligation-free discussion call QInvest on 1800 643 893.

Both the ATO and the Government website MoneySmart have some excellent resources for anyone thinking about an SMSF, including some important questions you need to ask yourself, which we’ve included below.

O� ering the � exibility you wantAt QSuper we’re dedicated to o� ering our members the products and services they need to meet their retirement goals. These include:

� Nine investment options managed by investment specialists.

� An extensive seminar program designed to meet your information needs at di� erent life stages.

� Online access to your account, allowing you to manage your super any time of the day and night.

� Some of the lowest management fees in Australia.2

We’re also looking to expand our range of investment options to give you even greater control over your super.

Make an informed choice.

Get the SMSF lowdown from the experts!Get a balanced view on what’s involved in managing your own super at a QSuper SMSF seminar. In this informative and in depth session three experts – including an accountant and a lawyer – will give you all the facts you need to understand your responsibilities. Head to qsuper.qld.gov.au/seminars to book your seat today.

Thinking SMSF?

The Government website MoneySmart has some great resources available for anyone thinking about establishing an SMSF, including some important questions you should ask yourself before taking the plunge.

Will your self-managed fund perform better?Super funds use professional managers to invest your super money. Can you do better than the professionals?

Will you lose valued bene� ts?Super funds usually o� er life and disability insurance and a range of investment options. If you set up a self-managed super fund you will have to organise and purchase these yourself.

What if something goes wrong?Sometimes things can go wrong, for example, you may lose money due to fraud. Unlike other super funds members, you will not have access to any special compensation schemes.

Do you know enough?Do you know all your legal responsibilities? Are you on top of the investment market? Do you know the tax implications? Ultimately you will be responsible for your fund even if you have received incorrect advice.

Is an SMSF for me?

Source: MoneySmart website, accessed May 2013.

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1 Self-managed super funds: statistical report. March 2012. Australian Taxation O� ce. 2 Chant West Super Fund Fee Survey April 2013.



Grow your biggest investment

TIPONE

TIPTWO

1 Contribution caps apply when contributing to super. Please see qsuper.qld.gov.au/contributioncaps for more information. 2 Source: QSuper Salary Sacri� ce Calculator for non-Queensland Government employees. Please refer to calculator for assumptions used.


QSuper Indexed Mix

QSuper Moderate

QSuper Aggressive

QSuper Socially Responsible Cash

Diversi� edBonds

InternationalShares

Australian Shares

Our premium range of investment options

Outside of your house, your super is likely to be one of the biggest investments you’ll have for your future. With retirement still a few decades away, your super could well grow to be many hundreds of thousands of dollars. But are you doing everything you can to help realise its full potential?

Contribute more – the smart way!You don’t need us to tell you that contributing more will help your super grow1 – that’s just simple mathematics. But with the tax bene� ts of the super environment, it makes good sense to take advantage of this. Of course � nding those extra dollars can be more di� cult, but there are ways you can do it without breaking the budget. In fact, if you’re already making a personal contribution to super, such as the 2%-5% standard contribution made by most Government employees, you may be able to increase your contributions without a� ecting your take home pay. Head to qsuper.qld.gov.au/salarysacri� ce to � nd out more.

And if you aren’t already making extra contributions, but decide to start, making them via salary sacri� ce means your super contribution could be more than the reduction in your pay. Someone earning $60,000 p.a. could boost their super by $42 a fortnight, but only reduce their take home pay by $32.2 Now that’s smart! Remember, you only need to make a small contribution each pay to get great long-term rewards.

Understand your investment choiceThe success of any investment strategy hinges on having a well-thought-out investment strategy, and this is especially true for your super due to its long term nature. If you don’t want the hassle of managing your own investment, you’ll soon be able to take advantage of our innovative new investment option – QSuper Lifetime. This option is designed to deliver the right super strategy at the right time by seamlessly adjusting your investments as you move through di� erent life stages.

But if you prefer to manage your own investments, we o� er a premium range of options to choose from. Some of these have been pre-mixed to create a diversi� ed mix of di� erent asset classes, and some invest in a single asset class, giving you the power to create an investment mix that suits you.

Talk to an expertIf you need to talk over your options with an expert, why not talk to a QInvest adviser? You can get straightforward, over the phone advice on single topics such as investment choice or salary sacri� ce for just $55. Brian Wippell is based in our Brisbane city o� ce and specialises in helping his clients develop strategies to meet their � nancial and lifestyle goals. QInvest has over 30 advisers in locations throughout Queensland – why not book an appointment today?

an expert, why not talk to a QInvest adviser? You can get straightforward, over the phone

1800 643 893 qinvest.com.au

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

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.

qinvest.com.au/loanfinder 1800 643 893

Cecilia and Anthony, QInvest clients since 2006

Exclusive to QSuper members, their families and friends.

Advertisement

I then took the opportunity to ask James about his attitude to risk. He had never made an active investment choice, so his money was invested in the QSuper Balanced (Default) option, which has a medium risk pro� le. James told me that because he understands that at his age super is a long-term investment, he is comfortable with the idea of sustaining some short-term losses for the potential of better long-term results.2 I then calculated James’ potential retirement income if he invested his super in a more aggressive, higher risk option, while still making the additional $100 contributions, and discovered that his potential annual income could be around $43,000 a year.

What did James do?At the end of the appointment James decided that to make the most of his super, and to maximize the possibility of being able to live the retirement of his dreams, he would arrange to make a voluntary contribution of $100 a fortnight, and switch to a more aggressive investment option.

James’ storyJames came to see me because with his 40th birthday approaching he felt it was time to take stock of his � nancial situation. He was particularly interested in his super, as his parents had recently retired with relatively low balances and he doesn’t want that for himself.

When I met with James I discovered that he didn’t have a target for his super, but he did know that he wanted enough to be able to a� ord a comfortable standard of living. I discussed what that meant to him, and suggested that the ASFA retirement standard might be a good place to start – ASFA currently suggests that a single homeowner would need an annual retirement income of around $41,000 to maintain a comfortable standard of living.1

The � rst thing I did was work out the retirement income James is currently projected to receive. He thought he’d work to 65, and after suggesting that he should plan for his lump sum to last a few years past average life expectancy, we decided to assume that he would need an income until age 90. After running the � gures, I told James that if he continued with his current contributions and investment mix, he was projected to receive an annual income of almost $33,000 – well below the $41,000 required for a comfortable lifestyle.

What are James’ options?James wasn’t happy with this projection, and wanted to know what his options were to improve his outlook. I explained that to make a signi� cant di� erence he would need to make a voluntary contribution every fortnight, on top of the 5% standard contribution he already makes. His � rst reaction was that he didn’t have any cash to spare. However before he came to see me he’d � lled in a detailed budget outlining his income and expenditure. I went through it, and we discovered that once all his expenditure had been accounted for, and allowing a bu� er to cover the unexpected, he actually had just over $100 a fortnight he could spare.

I recalculated James’ future income with the extra contribution, and discovered that this strategy would boost his � nal lump sum by nearly $100,000, which would provide an estimated annual retirement income of around $37,000. James felt that still wasn’t enough to meet his goals, but we both agreed that with his current situation, making a bigger fortnightly contribution wasn’t an option.

Name: James Age: 39 Salary: $75,000 Current Accumulation account balance: $80,000

How do I get on track for a comfortable future?

Case study corner

By Neel KrishnaFinancial Adviser

Brought to you by QInvest

James


Assumptions: These calculations were made using the QSuper Retirement Income Calculator. 1. The calculation assumes expected net returns of 6.5% p.a. before retirement and 7.55% p.a. in retirement. Where a more aggressive investment option has been used, a net return of 7.4% p.a. before retirement is assumed. 2. Wage in� ation of 4% has been assumed. 3. The calculation assumes a life expectancy of 90. 4. Any Government payments applicable have not been included in this calculation. 5. All results are in today’s dollars. For all other assumptions see qsuper.qld.gov.au/assumptions. The member depicted is not a real member and the case study is used for illustrative purposes only.

James’ optionsAnnual

retirement income

$43,000Annual

retirement income

$37,000Annual

retirement income

$32,700

Do nothing

Pay an extra $100 a

fortnight

Pay an extra $100 a

fortnight, plus switch to a more

aggressive option

ASFA ComfortableLifestyle

ASFA ModerateLifestyle

Talk to an expertIf you want quality advice you can trust, contact QInvest today. Our advisers are experts on � nancial matters including QSuper products.

QInvest has more than 30 advisers based in locations throughout Queensland – why not make an appointment today?


Diversi� edBonds

InternationalShares

Australian Shares

1 ASFA Retirement Standard, March 2013 quarter. For more information on assumptions used by ASFA, visit www.superannuation.asn.au.2 Past performance is not a reliable indicator of future performance.

� Low fees and proven solid returns

� Platinum rated products and services

� Access to quality � nancial advice

from QInvest

� State-wide QSuper seminar program

� Comprehensive information

and education tools

� Access to death and total and

permanent disability insurance and

income protection.

� A 100 year track record of putting

members � rst.

Stick with the super

fund you know and trust

There are plenty of things you might throw out when you change jobs – but your QSuper account shouldn’t be one of them. A growing number of QSuper members are choosing to stay with us after they’ve left Government employment. If you’ve moved to a private sector employer – or think that a move might be likely – it’s good to know you can stay with us.

The times they are a-changin’These days it’s not unusual for a person’s career to take a few twists and turns over the course of a working life. Sometimes these are planned changes – but not always.

So what do you do with your super if and when you change jobs? Well, an important thing to remember is that QSuper can accept contributions from most private sector employers for existing members.

So if you move on to pastures new, you don’t have to contribute to the super fund your new employer suggests. In most cases, you’ll have the option to have them contribute to your existing QSuper account.

If you’ve already moved to a new employer – we’d love to have you back. By reactivating your existing QSuper account, you’ll continue to enjoy the bene� ts of being partnered with one of Australia’s largest and most trusted funds.

Always evolving and innovatingAt QSuper, we’re always looking for new ways to improve products and services for our members, such as our new

Changing jobs?Take your QSuper account with you.

QSuper Lifetime investment option, designed to deliver even better retirement outcomes for members. Another exciting new initiative is the release of our new and improved Member Online service. With great features and functionality, Member Online is a more interactive user experience for members. If you haven’t already discovered the bene� ts of online super management – here’s your chance!

Providing you with peace of mindOf course, there’s still no substitute for strength and stability in a super fund. So it’s reassuring to know that our accounts have received the highest levels of independent recognition when judged against the best of the best in Australia.1 Staying with QSuper can also o� er you a sense of security throughout your working life, as you still have access to our great insurance products, giving you the peace of mind that if the worst should happen, you’re covered.2

QSuper. Not for just anyone.Only people who have worked for the Queensland Government – and their partners – are eligible to be QSuper members. That makes you a part of a select group of people who enjoy the security and bene� ts QSuper membership o� ers.

So if you’re thinking of closing your QSuper account, be sure to give it plenty of thought � rst. You won’t be able to rejoin unless you or your partner start working for the Queensland Government again.

Want to reactivate your QSuper account?To � nd out how just head to qsuper.qld.gov.au/changingjobs


These days it’s not unusual for a person’s career to take a few twists and turns over the course of a working life. Sometimes these are planned changes – but not always.

So what do you do with your super if and when you change


1 See superratings.com.au and chantwest.com.au for information on ratings and awards received by QSuper. 2 Income protection is not available for all employees, including police o� cers and casual employees. For more information regarding the terms and conditions of QSuper’s insurance, including pre-existing conditions, please refer to: qsuper.qld.gov.au/insurance.



In many cases, people placed self managed super funds or their retirement savings into investment vehicles where the risks may not have been made transparent or fully understood. In some cases these investments were recommended by a � nancial adviser who may have received � nancial incentives for their recommendation. In other words, they were not acting in the best interests of their clients when recommending these investments.

These unfortunate situations really highlight why it is so important to do your homework to ensure you’re placing your � nancial future in the hands of an adviser you can trust.

A solid track recordQSuper has been looking after the super of Queensland Government employees for one hundred years. It’s not a responsibility we take lightly and over the decades we’ve built a high level of trust amongst our members. We know many of you feel secure in the knowledge that QSuper is your partner on your journey into retirement. We also know that to maintain this trust we have to continue to put your interests � rst.

We also understand how important it is for members to have access to quality � nancial advice when planning their future. That’s why we o� er members access to QInvest, our expert � nancial planners who’ve been providing trusted advice to our members for nearly 20 years.

A matter of trustQInvest advisers have a specialised understanding of your QSuper account, and pride themselves on putting your best interests � rst. Like QSuper, they understand that a good partnership has to be built on trust. At a time when many advisers received indirect fees in the form of commissions and rebates from the products they o� ered, QInvest advisers were, and still are, paid by salary only. In fact, you can always be con� dent that QInvest o� ers full transparency and charges only for the � nancial advice provided, not for the products recommended.

The Future of Financial Advice (FOFA) reforms came into e� ect on 1 July 2013. Under these Federal Government reforms, all advisers are now required to act in the best interests of their client, and are not able to receive payments or non-monetary bene� ts, such as commissions, if it is likely

to in� uence their advice (however any commisions on products held before this date will remain in place). These are obviously very positive steps for the industry, and should improve the quality of advice available to all Australians.

Research and compareThe moral of the story is to always do your homework before choosing an adviser, and the following questions are a good place to start:

A � nal word of adviceIf you’ve been recommended a certain adviser by a colleague or friend, it’s a good idea to check if they’ve been o� ered an incentive for their recommendation to you. In some cases, they may be receiving bene� ts like entertainment or free services to endorse certain products.

You’re working hard to save for your retirement, so it’s important you choose a � nancial partner you can trust. Sadly, as too many Australians have discovered, the wrong decisions could destroy your dreams forever.

Beware bad adviceRecent high pro� le � nancial collapses such as Prime Trust, Storm Financial, Wickham Securities and Banksia Financial Group have highlighted how superannuation members can have a lifetime of savings wiped out by choosing the wrong � nancial partner.

� What will this advice cost me?� What are your areas of expertise?� Are you licensed, and what services

do you have a licence for?

Talk to an expertIf you want quality advice you can trust contact QInvest today.

Based in our Brisbane city o� ce, Graham MacDonald specialises in super and investments, and is driven by the desire to make a positive di� erence to his clients’ � nancial future. Why not book an appointment today?

Graham


� Low fees and proven solid returns

� Platinum rated products and services

� Access to quality � nancial advice

from QInvest

� State-wide QSuper seminar program

� Comprehensive information

and education tools

� Access to death and total and

permanent disability insurance and

income protection.

� A 100 year track record of putting

members � rst.

Stick with the super

fund you know and trust


The times they are a-changin’These days it’s not unusual for a person’s career to take a few twists and turns over the course of a working life. Sometimes these are planned changes – but not always.

So what do you do with your super if and when you change jobs? Well, an important thing to remember is that QSuper can accept contributions from most private sector employers for existing members.

So if you move on to pastures new, you don’t have to contribute to the super fund your new employer suggests. In most cases, you’ll have the option to have them contribute to your existing QSuper account.

If you’ve already moved to a new employer – we’d love to have you back. By reactivating your existing QSuper account, you’ll continue to enjoy the bene� ts of being partnered with one of Australia’s largest and most trusted funds.

Always evolving and innovatingAt QSuper, we’re always looking for new ways to improve products and services for our members, such as our new


QSuper Lifetime investment option, designed to deliver even better retirement outcomes for members. Another exciting new initiative is the release of our new and improved Member Online service. With great features and functionality, Member Online is a more interactive user experience for members. If you haven’t already discovered the bene� ts of online super management – here’s your chance!

Providing you with peace of mindOf course, there’s still no substitute for strength and stability in a super fund. So it’s reassuring to know that our accounts have received the highest levels of independent recognition when judged against the best of the best in Australia.1 Staying with QSuper can also o� er you a sense of security throughout your working life, as you still have access to our great insurance products, giving you the peace of mind that if the worst should happen, you’re covered.2

QSuper. Not for just anyone.Only people who have worked for the Queensland Government – and their partners – are eligible to be QSuper members. That makes you a part of a select group of people who enjoy the security and bene� ts QSuper membership o� ers.

So if you’re thinking of closing your QSuper account, be sure to give it plenty of thought � rst. You won’t be able to rejoin unless you or your partner start working for the Queensland Government again.

Want to reactivate your QSuper account?To � nd out how just head to qsuper.qld.gov.au/changingjobs

1 See superratings.com.au and chantwest.com.au for information on ratings and awards received by QSuper. 2 Income protection is not available for all employees, including police o� cers and casual employees. For more information regarding the terms and conditions of QSuper’s insurance, including pre-existing conditions, please refer to: qsuper.qld.gov.au/insurance.

scoopWhat’s the?Here’s the latest round-up of what’s new at QSuper, and for the super industry.Changes to QInvest feesQInvest o� ers quality � nancial advice to QSuper members on a range of topics, including their QSuper bene� t. QSuper contributes towards the cost of personal advice about your QSuper bene� t, but members are required to pay part of the total cost – this is called the member co-payment. From 1 November 2013, the member co-payment amount for QInvest � nancial advice will change in response to recently introduced Federal Government legislation. More information on QInvest’s fees can be found at qsuper.qld.gov.au/advice.

Switch limit removedTo give you more control over how your super is invested, QSuper has removed the limit on the number of investment switches you can make each year.1

Open an account for your spouse for $10The amount required to open a QSuper account for your spouse has been reduced from $500 to $10. Your spouse is then able to request that their non-Queensland Government employer pay their super contributions into this new account. See qsuper.qld.gov.au/spouse for more info.

MySuperMySuper is the name of the Federal Government reforms designed to provide Australians with access to low cost, easy to compare default superannuation products. Employers

must have a MySuper product as their default super fund for all employees no later than 1 January 2014. Super funds that wish to accept contributions from employers where a member hasn’t made a choice of fund must have a MySuper product that has been licensed by the Australian Prudential Regulation Authority (APRA). QSuper will be o� ering members the new QSuper Lifetime investment option as our MySuper product. More information about how MySuper may a� ect you can be found on the QSuper website.

Superannuation co-contribution changesThe Government has recently passed legislation to reduce the superannuation co-contribution. The maximum amount you can receive is now $500 per year. To be eligible to receive the maximum contribution your total income must be no more than $33,516. The co-contribution progressively reduces for incomes over this amount. More information about the co-contribution can be found on our website.

Increased concessional contributions capA transitional cap of $35,000 has been introduced for older Australians. However it is expected that the current cap of $25,000 will increase with indexation, and reach $35,000 for all Australians by 2019. See qsuper.qld.gov.au/contributionscap for more information.

Reform to penalties for exceeding concessional contributions cap Any contributions you make that exceed the concessional contributions cap will be taxed at your marginal tax rate, plus an interest charge. Additionally, you will now have the option to withdraw any excess contributions from your super fund. See qsuper.qld.gov.au/contributionscap for more information.

Important information from the QSuper BoardIntroduction of binding death bene� t nominations On 1 July 2013, the QSuper Board introduced changes which allow QSuper members to make a binding death bene� t nomination for their QSuper account/s. Your superannuation bene� t does not form part of your estate, so in the event of your death it will be paid as a lump sum at the discretion of the Board, usually to your dependant or to your legal personal representative. However a binding death bene� t nomination allows you to nominate who receives your bene� t in the event of your death.2

You can nominate your legal personal representative and/orone or more of your dependants. However if you do nominate more than one bene� ciary you must specify what proportion you intend each to receive. It is important to note that for your nomination to be valid, all bene� ciaries must still be eligible at the time of your death. A binding death bene� t nomination will be valid for three years from the date it was made, renewed or amended. If you submit a binding death bene� t nomination, the Board will be obliged to pay your death bene� t in accordance with this nomination, provided it is still valid at the time of your death. Therefore it

is important that you review your nomination regularly, and whenever your personal circumstances change. You can renew, amend or revoke your nomination at any time by completing and returning a new form.

More information can be found in the Binding Death Bene� t Nomination form and factsheet. You can download this publication from our website, or call us and we’ll send you a copy.

Changes to Accumulation account transfersFrom 1 July 2013, the QSuper Board is implementing a change to the rules around transfers out of your Accumulation account. If you are a Queensland Government and related entity employee you are now able to transfer amounts related to your Queensland Government employment to another complying super fund while still employed by a Queensland Government or related entity employer. These transfers can only be made once in any twelve-month period, and you must leave a minimum balance of $2,000 in your QSuper account. More information is available in the Accumulation Account Guide.

1 See the Accumulation account PDS for more information on our switching policy 2 QSuper’s governing rules contain provisions for State, Police and Parliamentary accounts requiring the QSuper Board to distribute certain bene� ts automatically to a member’s spouse or eligible children upon the death of a member. These provisions take precedence over an otherwise valid binding death bene� t nomination. Please call us for more information.10 Super Scoop August 2013

QSuper has nine investment options,1 each with di� erent strategies, objectives and risk pro� les. We publish a standard risk measure2 that estimates the probability of negative annual returns over a given period, but the level of investment risk that’s right for you is very individual, and the risks associated with di� erent asset classes can change over time. In this new regular feature, our Investments team provides details of how current market conditions could impact our investment options over the coming two to three years.

Understanding the potential impacts of market conditions on QSuper’s investment options

Risk OutlookTHE INVESTMENT

AUGUST 2013

Past performance is not a reliable indicator of future performance. 1 The QSuper Indexed Mix is closing in December 2013. 2 The Standard Risk Measure (SRM) is based on industry guidance which allows members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. The SRM is not a complete assessment of all forms of investment risk, for instance it does not detail what the quantum of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. For more information, please refer to the Investment Choice Guide, available on our website or call us and we can send you a copy. 3 Average annual return for the QSuper Cash option for the last ten years has been 4.13% per annum.

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Potential for lower returns than normal.3 The lingering e� ects of the GFC have seen central banks around the globe continue to reduce their cash rates. While the rate in Australia has not dropped to the extreme lows of some countries, it is still below the average for the last decade, and market pricing suggests it will remain so for a number of years. Members who have planned, or are planning, their retirement income around a speci� c cash return should be aware that returns over the next few years may be lower than anticipated.

Likely to be lower than recent strong returns. Another result of low cash rates is lower bond yields. For example, the yield on Australian Government ten-year bonds is currently 3.5% per annum, which is considerably lower than the rate of 6.5% seen in 2008. As yields have fallen signi� cantly, the high returns for this option over the past � ve years are unlikely to be repeated over the next � ve years. While the possibility of negative returns is relatively low, bonds can and do experience losses.

Slow growth and continuing volatility. There are currently a number of issues around the globe that are creating uncertainty for international share markets in the foreseeable future. These include the potential for lower than expected growth in the US, high levels of debt in Japan and the ongoing economic problems plaguing Europe. While returns for International Shares over the last year have been strong, the outlook for this option means that it is likely to experience ongoing volatility.

Cash

Diversi� ed Bonds

International Shares

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QSuper Moderate

QSuper Aggressive

QSuper Socially Responsible

Global volatility and Chinese growth create uncertainty. Although this option is also impacted by the global economic issues outlined above, factors like the Australian housing market and Chinese growth could a� ect the returns of the Australian Shares option over the long term. There is a high concentration of mining and banking stocks in the Australian share market which are sensitive to changes in these economic conditions. Despite recent strong returns, this may lead to increased volatility for this option in the foreseeable future. Australian

Shares

Managing risk through diversi� cation. Our Ready Made options consist of various mixes of the asset classes discussed above, as well as having a degree of exposure to property, infrastructure and alternatives. Because of this, many of the potential market risks already discussed will apply to our Ready Made options (see our website for current asset allocations). For example, around half of the QSuper Moderate option is currently invested in cash, so the challenges associated with cash will be a factor. However the risks posed to both the International and Australian Shares options will be of more relevance for the QSuper Aggressive option, as it’s dominated by equity risk.

The QSuper Socially Responsible and QSuper Balanced (Default) options also have signi� cant equity risk, so they will be impacted by the global economic issues discussed above. These two options also invest in bonds, and although returns are expected to be lower than in previous years, bonds can often perform well when shares do poorly, so having exposure to both may reduce volatility.

All of our Ready Made options have exposure to property, infrastructure and alternative assets, such as shopping centres and airports, which are somewhat exposed to the economic cycle, but traditionally less so than shares. This can help to reduce volatility through exposure to a number of asset classes, which creates a diversi� ed portfolio.

A challenging outlook. Our investment specialists manage our options within ranges set by the QSuper Board, and constantly monitor markets in order to manage risk and identify emerging opportunities.

However the current investment environment poses a number of challenges, highlighting the importance of taking a diversi� ed approach to your investments in order to protect against the risk of too much exposure to any single asset class.

Talk to an expertIf you want advice on an investment strategy that is right for you, contact QInvest today.


For an expanded version, updated quarterly, head to qsuper.qld.gov.au/riskoutlook


Report Card As at 30 June 2013

QSuper investment options 1 year% p.a.

3 year% p.a.

5 year% p.a.

7 year% p.a.

2012/2013

% p.a.

DEFAULT OPTION


9.60% 8.06% 4.51% 4.63% 0.57%

READY MADE OPTIONS

QSuper Moderate 6.96% 6.06% 4.45% 4.55% 0.42%

QSuper Socially

Responsible16.11% 7.31% 4.04% 3.77% 0.90%

QSuper Indexed Mix1 14.26% 8.40% 5.06% n/a 0.34%

QSuper Aggressive 15.32% 9.26% 3.27% 3.71% 0.62%

YOUR CHOICE OPTIONS

Cash 2.55% 3.44% 3.59% 3.89% 0.28%

Diversi� ed Bonds 4.92% 6.02% 8.31% 7.07% 0.36%

International Shares 22.12% 12.72% 3.08% 3.03% 0.28%

Australian Shares 20.11% 7.48% 3.25% 4.17% 0.28%

Investment returns Accumulation account

Managementfees

1 The QSuper Indexed Mix option has only been available to members since 1 February 2008 and returns are based on the period of operation only.

Past performance is not a reliable indicator of future performance. Returns may vary considerably over time. Each of our options has a different objective, risk profile and asset allocation. Visit the Investment options page on our 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.

Contacting QSuperContact Centres70 Eagle Street Brisbane63 George Street BrisbanePh 1300 360 750+617 3239 1004 (international) Fax 1300 241 602+617 3239 1111 (international)Monday to Friday 8.30am to 5.00pm AESTGPO Box 200 Brisbane Qld 4001qsuper.qld.gov.au

Find us on:facebook.com/qsuperfundtwitter.com/qsuperfundyoutube.com/qsuperfund

SuperRatings does not issue, sell, guarantee or underwrite this product.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.

Important information This information is provided by the fund administrator, QSuper Limited (ABN 50 125 248 286 AFSL 334546) which is ultimately owned by the QSuper Board (ABN 32 125 059 006) as trustee for the QSuper Fund (ABN 60 905 115 063). This information has been prepared for general purposes only without taking into account your objectives, financial situation, or needs and should not be relied on as legal or taxation advice, nor does it take the place of such advice. Any statements of law or proposals are based on our interpretation of the law or proposals as at the time of printing. As a result, you should consider the appropriateness of the information for your circumstances and read the product disclosure statement (PDS) before deciding whether to acquire, or continue to hold, a product. You can obtain a PDS at qsuper.qld.gov.au or by calling us on 1300 360 750. Unless stated otherwise, all products are issued by the QSuper Board as trustee for the QSuper Fund. Where the term ‘QSuper’ is used in this document, it represents the QSuper Board, the QSuper Fund and QSuper Limited, unless expressly indicated otherwise. If you do not wish to be contacted except when required by legislation, please call us.

12 Super Scoop August 201312 Super Scoop August 2013 © QSuper Board of Trustees 2013. 6206 08/13 36-49M

More information about QSuper’s performance can be found in our Annual Report, which can be downloaded at qsuper.qld.gov.au/annualreport from October 2013. If you would like a printed copy just call us.

2013 Annual Report

At only 13 cents to print a copy, Super Scoop is a great way for us to stay in touch. We also use eco-friendly paper and a Queensland-based printing company that is committed to a high standard of environmental awareness and preservation.

Get up-to-date news on the markets every Monday with the online Weekly Finance Report. You can also get in-depth commentary straight to your inbox every quarter with our Investment Update email.

Subscribe nowqsuper.qld.gov.au/qusignup

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