Michael Nenes member since 1970

How your super faredThe QSuper report cardpage 8

Proudto be with QSuper

In our centenary year, we ask member, Michael Nenes what makes him proud

to be a memberSee page 2

ProudProudMy story

profilememberReal

What’s the scoop?The latest industry and fund newspage 6

Great value, great products and one of the lowest fees in Australiapage 5

Chant West2013 Pension

5

You’re with a top rated fund

Looking aftermembers for

100YEARS

MARCH 2013

Growing your super together

2 Super Scoop March 2013

QSuper has been looking after members for 100 years, but the fund of 1913 was very different to the QSuper of today.

Then

Did you know?QSuper is older than...

QantasThe � ying kangaroo took to the skies in 1920.

VegemiteAussie kids have been brought up on it since 1923.

Hills HoistAn Australian backyard icon since 1945.

now&

For your chance to win visit qsuper.qld.gov.au/100

There’s a lot of history in 100 years, so we’ve put together a special website and souvenir brochure to celebrate the milestones of the Fund, our members, and the great state of Queensland.

20 to be won

Inside our centenary WIN

A $500GIFT VOUCHER

WINA $500GIFT VOUCHER

2013Fast forward one hundred years, and Cecil wouldn’t recognise the place. From a single man wielding a fountain pen, the Fund has grown to hundreds of employees working in a modern 13-storey building, all focused on serving more than half a million members.

Technology has long since consigned the dusty ledgers to history. Now members can interact with us in a way that suits them – be that face to face, on the phone, via email, or even through social media. You can check your balance at two in the morning, and update your contact details while sitting on the bus.

As we look to the next hundred years we will continue to innovate, constantly striving towards our ultimate goal of improving retirement outcomes for our members.

1913The launch of the Fund on 1 January 1913 would have been a fairly quiet a� air. Although a de� ning moment in Queensland Government history, the origins of the Fund were relatively modest.

Only full-time, permanent salaried workers were able to contribute, so membership was essentially restricted to white collar workers such as clerks and teachers, and the Fund started with only 2,000 members.

A single employee, Cecil Fortescue, toiled away in an o� ce in the Treasury Building on George Street, carefully writing out each member’s contribution details by hand in leather-bound ledgers.

The promoter of the competition is QSuper Limited (ABN 50 125 248 286). Full terms and conditions of this competition are available on the QSuper website.

Looking aftermembers for

100YEARS

2 Super Scoop March 20132 Super Scoop March 2013

When he retired last year, QSuper member Michael Nenes had been with the Department of Transport and Main Roads for 42 years. If anyone knows how to navigate the road to a comfortable retirement – it should be him!

‘Sometimes I wonder how I found the time to work’, says Michael, 65, laughing. ‘There just don’t seem to be enough hours in the day to do everything I’d like to.

While six young grandchildren would keep most people busy, Michael and his wife Doris also train at the gym four mornings a week. ‘The e� ort we put in now will sustain us through our 70s and 80s – it’s an investment in our health.’It’s by no means the only smart investment decision they’ve made in recent years, and Michael and Doris are quick to credit the � nancial advice they’ve received from their QInvest1 adviser, Julie.‘When I was considering voluntary separation, she was a huge help. I had always planned to work until I was 65, but speaking to Julie helped me realise that taking the o� er and � nishing a year early could be a good option for us.’

Around the same time, Michael and Doris also attended a QSuper Retirement Preparation seminar. ‘We didn’t really understand pensions, so it was great to get our options explained.’

Ask Michael and Doris why they’re proud to be QSuper members, and access to good advice is a big factor. ‘QSuper have always given us the right guidance at the right time. Besides, they’re a proven performer. You don’t stay in the super business for 100 years unless you’re doing something right, do you?’

Proud to be with a super fund that’s always been there for us

Read more of Michael’s story at qsuper.qld.gov.au/memberstoriesRead more of Michael’s story at

My story

profilememberReal

investment in our health.’It’s by no means the only smart investment decision they’ve made in recent years, and Michael and Doris are quick to credit the � nancial advice they’ve received from their QInvest‘When I was considering voluntary separation, she was a huge help. I had

QSuper is a

proven performer.

When he retired last year, QSuper member Michael Nenes had been with the Department of Transport and Main Roads for 42 years. If anyone knows how to navigate the road to a comfortable retirement – it should be him!

Proud to be with a super fund that’s always been there for usbeen there for us

Michael Nenes member since 1970

1 QInvest Limited (ABN 35 063 511 580, AFSL and Australian Credit Licence number 238274). QInvest is ultimately owned by the QSuper Board (as a trustee for the QSuper Fund), and is a separate legal entity which takes full responsibility for the � nancial services and credit services it produces.

3Super Scoop March 2013

QSuper has been looking after members for 100 years, but the fund of 1913 was very different to the QSuper of today.

Then

Did you know?QSuper is older than...

QantasThe � ying kangaroo took to the skies in 1920.

VegemiteAussie kids have been brought up on it since 1923.

Hills HoistAn Australian backyard icon since 1945.

Hills HoistAn Australian backyard

now&

For your chance to win visit qsuper.qld.gov.au/100For your chance to win visit qsuper.qld.gov.au/100

There’s a lot of history in 100 years, so we’ve put together a special website and souvenir brochure to celebrate the milestones of the Fund, our members, and the great state of Queensland.

20 to be won

Inside our centenary WIN

A $500GIFT VOUCHER

WINA $500GIFT VOUCHER

2013Fast forward one hundred years, and Cecil wouldn’t recognise the place. From a single man wielding a fountain pen, the Fund has grown to hundreds of employees working in a modern 13-storey building, all focused on serving more than half a million members.

Technology has long since consigned the dusty ledgers to history. Now members can interact with us in a way that suits them – be that face to face, on the phone, via email, or even through social media. You can check your balance at two in the morning, and update your contact details while sitting on the bus.

As we look to the next hundred years we will continue to innovate, constantly striving towards our ultimate goal of improving retirement outcomes for our members.

1913The launch of the Fund on 1 January 1913 would have been a fairly quiet a� air. Although a de� ning moment in Queensland Government history, the origins of the Fund were relatively modest.

Only full-time, permanent salaried workers were able to contribute, so membership was essentially restricted to white collar workers such as clerks and teachers, and the Fund started with only 2,000 members.

A single employee, Cecil Fortescue, toiled away in an o� ce in the Treasury Building on George Street, carefully writing out each member’s contribution details by hand in leather-bound ledgers.

The promoter of the competition is QSuper Limited (ABN 50 125 248 286). Full terms and conditions of this competition are available on the QSuper website.

Fast forward one hundred years, and Cecil wouldn’t recognise the

Looking aftermembers for

100YEARS

3Super Scoop March 2013 3Super Scoop March 2013

Senior Technical O� cer Margaret Bopf has seen more than her fair share of changes at QSuper since � rst starting 33 years ago. ‘For a start, we all have a phone now’, she says, laughing. ‘When I started, there was one phone between every four or � ve desks, and you had to answer it within three rings.’ QSuper has evolved in many ways, but one thing hasn’t changed – our focus on members. ‘It’s been like that since day one,’ says Margaret. ‘We always understood the importance of supporting members on the road to retirement – and we continue to share that goal.’

Margaret Bopf

employee since 1979

Proud to work for a fund that puts members first

One thing hasn’t

changed at QSuper

– our focus on

members.

Greater choice for your retirementNow you’re in retirement, or getting close to it, you’ve probably got a strategy in place to ensure you have an income stream to fund your retirement lifestyle. However we know that circumstances can often change, and that you may want to review your options over the years.In this article we highlight two of the most popular forms of retirement income streams – annuities and account-based pensions, both of which have the added bonus of generating a tax-free income after 60 if purchased with funds from your super.

Account-based pensionsWith an account-based pension you invest your superannuation balance in a pension product provided by a superannuation fund, choosing for yourself how your funds are invested. Depending on the investment options you choose, the balance of your account may be a� ected by market movements.

You can nominate a regular payment amount and period, and payments will continue until all your funds are exhausted. You also have the � exibility to make lump sum withdrawals if you need to.

AnnuitiesWith an annuity you are using your funds to buy a guaranteed income1 through a life insurance company either for a speci� ed period of time (guaranteed term annuity), or for life (life-time annuity). This income is � xed at the start of the term, although you arrange for it to increase annually with in� ation or an agreed amount. This income is guaranteed for the term of your annuity, no matter what � nancial markets may be doing. You cannot, however, make additional lump sum withdrawals.

What’s right for you?There are pros and cons to both types of investments, depending on your needs and priorities. Of course you don’t necessarily have to choose, as a strategy that combines both can be bene� cial to some retirees. Whatever your circumstances though, we recommend that you talk to a quali� ed � nancial adviser before making any decisions.

To see a case study showing how a QSuper Pension account can be combinded with an annuity head to qsuper.qld.gov.au/kerry&david

4 Super Scoop March 2013 1 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 � nancial product advice about this product. You should consider obtaining � nancial advice before making a decision about this product. 2 Plan for Life Annuity Benchmarking Report, December 2012. 3 QSuper subsidises QInvest’s fees when you seek � nancial advice about your QSuper bene� t. QInvest can also provide advice outside of your QSuper bene� t, however this will incur an additional fee.

1300 360 750 qsuper.qld.gov.au/annuity

Combining an annuity with a QSuper Pension account could offer peace of mind and a level of protection against future market downturns. And because we’re one of Australia’s largest super funds, we’ve been able to negotiate a special deal on behalf of our members with Challenger – Australia’s largest provider of annuities.2

To find out more call QSuper or visit our website.

QSuper members now have access to a special rate on a Challenger guaranteed term annuity.1

Gives you the option to diversify your retirement income

Competitive rates exclusive to QSuper members

Easy application process

Access through QSuper - the fund you know and trust

ADVERTISEMENT

Considering an annuity?

Need advice?QInvest advisors are public

sector experts and can give you

professional � nancial advice

on structuring a retirement

income that’s right for you.3

1 The issuer of the annuity product may guarantee the income payments. You should consider the terms and limitations of any guarantee as summarised in the product disclosure statement provided by the product issuer.

sector experts and can give you

Assumes 7%, 6.5% and 6% return net of fees and tax and that an annual income of $25,000 is drawn. This is a projection only. Return, in� ation and fees may vary signi� cantly over time. Full details of assumptions are available when using the pension payment calculator. Past performance is not an indication of future returns. Source: qsuper.qld.gov.au/pensioncalculator. This graph does not replace � nancial or taxation advice.

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$060 65 70 75 80 85 90

7%6.5%6%

5Super Scoop March 2013

A 1% di� erence could mean your money runs out nearly 5 years earlier.

The impact of management fees on your retirement

Investment return

Age

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Great value, great products and one of the lowest fees in Australia

It’s a simple fact – every dollar you pay in fees is a dollar you don’t have available to spend in retirement. You might be surprised to see how dramatically your retirement savings can be a� ected by the fees you pay. If your super is invested over the long term with a fund that charges higher management fees, you may � nd your retirement savings run out years earlier.

If you pay 1% more in fees, you could be getting 1% less in returns. The graph below shows what sort of impact this can have.

An independent study2 shows that compared to other super funds, the management fee for the QSuper Balanced (Default) option is very competitive. The graph to the right shows just how well this management fee stacks up against industry averages for similar investment options. As you can see, on an account balance of $50,000 our management fee is less than half that of the average retail fund. It is also less than the management fee of the average industry fund. And as the graph at the bottom of the page shows, this can make a di� erence to how long your money will last in retirement.

Great value for moneyWe know our members expect more than just low fees, so while we place great emphasis on keeping fees low, we also recognise that it’s important to provide the quality products and services you need to achieve your retirement goals.

Of course, you should always take factors other than fees into account when comparing funds, including investment returns and insurance options.

The less you pay in fees, the more money you have working for your future retirement. That’s why we pride ourselves on ensuring our fees remain as low as possible.1

Why fees matter...

Some of the great bene� ts we o� er members� Comprehensive information and

educational tools� Subsidised � nancial advice

through QInvest3

� A statewide seminar program� Platinum rated4 products

and services

QSuper fees vs average for industry and retail funds

5 Management fee is based on a superannuation account balance of $50,000 for the QSuper Balanced (Default) option. The fee is estimated on 2012/2013 � nancial year management costs as at 1 January 2013, which may di� er from future fees.6 Based on a superannuation account balance of $50,000 in an option considered by the ratings agency to be equivalent to the QSuper Balanced (Default) option for the average industry and retail fund as at October 2012. Chant West, Super Fund Fee Survey, October 2012.

Average Industry Fund6QSuper5

0.71%p.a.

0.97%p.a.

Average Retail Master Trust6

1.44%p.a.

1 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.2 Chant West Super Fund Fee Survey, October 2012.3 QInvest Limited (ABN 35 063 511 580, AFSL and Australian Credit Licence number 238274). QInvest is ultimately owned by the QSuper Board (as a trustee for the QSuper Fund), and is a separate legal entity which takes full responsibility for the � nancial services and credit services it provides.4 The Accumulation account and the QSuper Pension account have both received a Platinum rating from SuperRatings. www.superatings.com.au/ratings.

scoopWhat’s the?>>

Indu

stry

new

s There are plenty of other changes on the horizon for the super industry, so here’s a round-up of what might a� ect you.Bringing it all togetherIf you’re still in the workforce and accessing a QSuper Pension account through a transition to retirement strategy, you may be interested in the Australian Taxation O� ce’s (ATO) proposed auto-consolidation measures designed to help Australians consolidate their super in one place. From 1 January 2014 the ATO plans to use your tax � le number to match up the accounts you have with other super funds, to help consolidate your accounts in one place.

Financial advice reformsThe Australian Government has recently passed legislation to overhaul the � nancial planning industry. Known as the Future of Financial Advice (FOFA) reforms, these measures come into e� ect on 1 July 2013 and have been introduced to tackle remuneration con� icts which may in� uence the type and quality of � nancial advice provided. The FOFA package contains a number of reforms, with a focus on adviser remuneration as advice can currently be represented as free or low cost, when in reality the adviser may be receiving other remuneration. The � nancial planning services our members are able to access via QInvest are delivered with full transparency, with fees charged for advice and not for the products recommended.

MySuperMySuper is the name of the Australian Government reforms designed to provide working Australians with a low cost, easy to compare default superannuation product. APRA licensed funds can o� er a MySuper option from 1 July 2013, and must have one in place by 1 January 2014 for members who have not made an investment decision.

Important reminder for anyone using a transition to retirement strategy: contribution caps have changed

For several years now, Australians over the age of 50 have been able to make annual concessional contributions (generally employer and before-tax personal contributions) to their super of up to $50,000 p.a. before incurring a penalty tax rate. However this changed on 1 July 2012, and the concessional contribution cap is now $25,000 p.a. for all Australians, regardless of age.

ATO reporting shows that a signi� cant number of superannuation fund members have already exceeded this cap. This means that if you are using a transition to retirement strategy to salary sacri� ce a large proportion of your salary to super, you need to be extra vigilant. If you are worried you might have exceeded the cap, or may be in danger of doing so, we recommend you speak to your � nancial adviser to replan your strategy.

6 Super Scoop March 2013

>>Q

Supe

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rd n

ews Your privacy

QSuper has recently updated its privacy policy to allow the QSuper Board, QSuper, QInvest and related entities to share your personal information between these entities when providing products and services to you, as outlined in our Privacy Policy. A copy of this updated policy is included with this edition of Super Scoop. You can also download the policy from our website, or call us and we can send you a copy. The privacy of your personal information is important to us. If you do not agree to the sharing of your personal information as outlined in the policy, please contact us.

Binding death nominationsWe are currently reviewing our policy on binding death nominations. More information will be available in the coming months.

� NEW FEATURES

� MORE FUNCTIONS

� MORE FLEXIBILITY

Keep an eye on our website over the coming months to � nd out more.

A better online experience launches soon

7Super Scoop March 2013

By Brad Holzberger, Chief Investment O� cer

InvestmentUpdate

Brad Holzberger, Chief Investment O� cer, shares his opinion on the � nancial markets and investment performance for the period July 2012 to January 2013.

that some of the more extreme risks have reduced, with the European Central Bank (ECB) announcing measures to support highly indebted countries.

It is projected that a gradual recovery will begin in late 2013, buoyed by the recent ECB actions and improved � nancial market con� dence. However for this recovery to be sustained, governments within the EU must continue with austerity and reforms.

In Australia, modest growth continued, although there are some concerns emerging around a potential slow-down in the Chinese economy. The Reserve Bank of Australia lowered the cash rate by 0.50% to 3% in two moves over the last seven months, re� ecting weaker employment growth and moderating in� ation.

How has this a� ected QSuper’s investment options?QSuper investment options with greater exposure to equities – QSuper Balanced (Default), QSuper Indexed Mix, QSuper Aggressive, QSuper Socially Responsible, QSuper Moderate, Australian Shares, and International Shares – have generally earned strong positive returns over the past seven months, which is consistent with stronger global share-market performance. In contrast, the Cash option and Diversi� ed Bonds option have each

The start of the 2012/2013 � nancial year saw the sovereign debt crisis dominate headlines. But despite a modest start, global equity markets have risen signi� cantly over the past few months. This rally has been supported by increased investor optimism that the widespread government and household debts of European countries and the US can be managed successfully.

Economic data from the US suggests that record low interest rates are continuing to support a modest economic recovery. It is anticipated that this growth will strengthen over the second half of the � nancial year, supported by an improving housing market and some strengthening in consumer spending.

Having averted the majority of the so-called ‘� scal cli� ,’ the Obama administration is now entering negotiations to increase the debt ceiling and pass a budget. The � nal details will need to be agreed on before the impact on US growth can be determined, but it does seem likely the US Government will introduce spending cuts and tax increases, which may have a negative impact on economic activity.

It is likely that when � gures become available they will show that countries in the European Union (EU) have remained in recession over the � rst part of the � nancial year. However there are signs

recorded more modest returns, which is consistent with our expectations and re� ects current policy settings.

Looking aheadWe remain somewhat cautious, and believe that averting the ‘� scal cli� ’ in the US and the new measures of the ECB do little to actually � x the problem – instead these measures just provide more time for these debts to be paid down. There are still signi� cant structural issues with US and European economies, and we believe that economic activity over the coming months will be shaped by the solutions developed to deliver long-term improvements.

In the meantime, as governments and households save more and spend less to reduce their debts, economic growth will be subdued. It is likely that central banks will maintain low interest rates to accommodate this austerity. In our opinion, weak spending and low interest rates mean returns on most asset classes will be relatively low compared to historic returns.

Because of this, QSuper continues to advocate a conservative approach to � nancial market risk taking, and will continue to monitor and adjust the QSuper portfolio accordingly to balance the risks the QSuper Board foresees with the returns expected from its investments.

Put yourself in the picture and win!If you’d like to star in one of our upcoming publications or campaigns, simply visit our website, tell us a bit about your hobbies and attach a recent photo. You’ll automatically enter our prize draw, and could win a fabulous digital SLR camera kit worth $1,280!

Register at qsuper.qld.gov.au/realmembers

The promoter of the ‘put yourself in the picture’ competition is QSuper Limited (ABN 50 125 248 286). Full terms and conditions are available on our website.

Costing only 13 cents to produce a copy, Super Scoop is a cost-e� ective way to communicate with our members. We also use eco-friendly paper and an ISO14001 accredited printing company that promotes sustainable forest management.

Important information This information is provided by the fund administrator, QSuper Limited (ABN 50 125 248 286, AFSL 334546), which is wholly owned by the Board of Trustees of the State Public Sector Superannuation Scheme (ABN 32 125 059 006) (QSuper Board). 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. 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 otherwise stated, all products are issued by the QSuper Board as trustee for the State Public Sector Superannuation Scheme (ABN 60 905 115 063) (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.

Contacting QSuperContact Centres70 Eagle Street Brisbane63 George Street BrisbanePh 1300 360 750+617 3239 1004 (international) Fax 1300 240 602+617 3239 1111 (international)Monday to Friday 8.30am to 5.00pm AESTGPO Box 200 Brisbane Qld 4001qsuper.qld.gov.au

1 As at 1 January 2013

2 The QSuper Index Mixed 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.

8 Super Scoop March 2013© QSuper Board of Trustees 2013. 5840 03/13 Pension

Subscribe now to our quarterly email update to receive all the latest investment and economic news a� ecting your super.

Investment

Updateemail

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1 As at 1 January 2013

Report Card As at 31 January 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

QSuper Balanced (Default)

13.00% 8.74% 4.37% 5.37% 0.71%

READY MADE OPTIONS

QSuper Moderate 9.26% 6.94% 4.69% 5.28% 0.48%

QSuper Socially Responsible 14.89% 6.67% 3.08% 4.18% 0.94%

QSuper Indexed Mix2 15.80% 9.17% 4.96% n/a 0.44%

QSuper Aggressive 15.32% 9.40% 3.02% 4.12% 0.76%

YOUR CHOICE OPTIONS

Cash 3.57% 4.24% 4.34% 4.70% 0.29%

Diversi� ed Bonds 10.25% 8.35% 8.01% 7.29% 0.44%

International Shares 19.89% 12.55% 3.10% 3.00% 0.29%

Australian Shares 20.65% 7.64% 2.74% 5.33% 0.29%

Investment returnsQSuper Pension account

EstimatedManagement

fees1

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

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.