HUB24 Super Fund Annual Report. for the year ended 30 June 2016

Transcription

1 HUB24 Super Fund Annual Report for the year ended 30 June 2016

2 3 Welcome to the HUB24 Super Fund Annual Report CONTENTS 4 About the HUB24 Super Fund 5 Legislative changes 5 Proposed changes to super 7 Investment information Other important information Financial statements This Annual Report is issued by Diversa Trustees Limited (ABN , AFSL , RSE Licence No. L ) as Trustee of the HUB24 Super Fund (ABN , RSE R ) (the Fund). The Fund is promoted by HUB24 Custodial Services Ltd (ABN , AFSL ) ( HUB24, Administrator ) which is a wholly owned subsidiary of HUB24 Limited (ABN ). The Fund is a public offer superannuation fund and was established under a trust deed dated 11 May The Trustee, a professional trustee company, is responsible for the prudent management of the Fund and for ensuring that the Fund operates in accordance with the Trust Deed governing the Fund and the relevant legislation. The information contained in this Annual Report is general information only and does not take into account your personal objectives, financial situation, and/or needs or circumstances. Before acting on this information, you should consider its appropriateness, having regard to your personal objectives, financial situation, needs and circumstances. No representations or warranties express or implied, are made as to the accuracy or completeness of the information, opinions and conclusions contained in this document. To the maximum extent permitted by law, neither the Trustee, HUB24 nor its directors, employees or agents accept any liability for any loss arising in relation to this document. This applies to the maximum extent permitted by law. HUB24 Super Fund Annual Report

3 Welcome HUB24 Super Fund Annual Report At HUB24, we re always moving forward, and this past year has been no different. We ve continued to expand our functionality and product offering, with you and your adviser top of mind in any new features we bring to the market. As a business, we ve been mindful of how we need to adapt and change in response to proposed changes in legislation, particularly where superannuation has taken center stage. Excitingly, our efforts have also been rewarded with HUB24 being the recipient of a number of key industry awards over the year. A gateway to the world Our launch of international managed portfolios enables members to own professionally managed portfolios of international listed companies from more than 15 global markets. As well as knowing exactly what you re investing in and benefiting from direct dividend cash flow, one of the best features is being able to own shares in well-known overseas businesses such as Colgate, Nestle, Toyota, and Microsoft at a much more affordable entry point. The addition of these new managed portfolios and the inclusion of many of them within your investment menu, supports our goal of providing you and your adviser with the very best in terms of choice and diversification. Making the most of legislative changes The section overleaf gives you a comprehensive summary of the proposed changes to superannuation legislation revealed on Budget night in May 2016 and also includes further significant amendments recommended in September this year. While they can be difficult to understand at times, these changes create a good opportunity for you to engage with your adviser and discuss the potential impact on your circumstances and how you can maximise your benefits under the current rules. Award-winning features and services Our continuous improvements in providing you with complete and easy access to all features related to your superannuation account meant that HUB24 was once again awarded Best Navigation & User Interface, and Best Tablet/Smartphone Access in the latest Investment Trends Platform Report.¹ The 2016 Investment Trends Planner Technology Report followed closely, where we were again awarded Best Value for Money.² According to the report, the low return economic outlook is leading to an increased focus on costs, with value for money now overtaking online functionality as the most important driver of satisfaction for platforms such as HUB24. We also won SuperRatings Fast Mover award³ for the fastest growing fund in the industry. We remain grateful for the ongoing support from you and your adviser which makes these awards possible. The Trustee is pleased to issue this annual report for the HUB24 Super Fund for the period ended 30 June If you have any questions about this report, please contact your adviser or call us on Kind regards Andrew Alcock Managing Director, HUB24 ¹Investment Trends December 2015 Platform Benchmarking Report, based on extensive analyst reviews of 22 platforms across 506 functional points. ²Results from the Investment Trends 2016 Planner Technology Report based on an online survey of over 878 financial planners. ³SuperRatings does not issue, sell, guarantee or underwrite this product. Go to for details of its ratings criteria. HUB24 Super Fund Annual Report

4 About the HUB24 Super Fund The Fund provides accumulation, account-based pension and transition to retirement pension accounts to help build your superannuation savings and draw an income in retirement. The Fund has a number of benefits and features to help you easily administer and track your retirement savings: flexible account features to suit your individual circumstances and life stage a comprehensive range of insurance cover choices access to your account anytime award-winning technology wide investment choice to help build and preserve your savings a number of portfolio management tools allowing you to efficiently manage your investment strategy Fund Details HUB24 Super Fund ABN RSE R Administrator USI HUB24 Custodial Services Limited ABN AFSL Mail GPO Box 529, Sydney NSW 2001 Phone Fax admin@hub24.com.au Website Trustee and Issuer Diversa Trustees Limited1 ABN AFSL RSE Licence No. L Mail GPO Box 3001, Melbourne VIC 3001 Phone (03) Fax (03) Directors at 30 June 2016 Mark Cerché (Chairman) Murray Jones Andrew de Vries Vincent Parrott Luke Barrett 1 On 1 July 2016, the Trustee changed its name from The Trust Company (Superannuation) Limited to Diversa Trustees Limited. This has no impact to members and all other trustee details remain unchanged. HUB24 Super Fund Annual Report

5 Legislative changes Proposed changes to super Key superannuation thresholds 2016/17 1 A number of superannuation (super) contribution caps and thresholds that apply for the 2016/17 financial year are outlined below. Concessional contribution cap: Under age 49 at 30 June 2016 $30,000 Aged 49 or over at 30 June 2016 $35,000 Non - concessional contribution cap: Under age 65 at 30 June 2016 $180,000² Aged 65 and over at 30 June 2016 $180,000³ Low rate cap (for lump sum payments: $195,000 A number of proposed changes to super were announced in the Federal Budget on 3 May The proposals are intended to improve the sustainability, flexibility and integrity of the super system through targeted tax concessions and threshold changes. Since Budget night, further amendments have been made to the Government s proposals. Legislating the objective of superannuation The Government intends to legislate the primary objective of the superannuation system being to provide income in retirement to substitute or supplement the Age Pension. To promote the stability of the super system, future regulatory changes must have a statement confirming they are compatible, and therefore aligned, with the objective of the super system. Capital Gains Tax (CGT) cap: Government Co - contributions (maximum): $1.415 million $500 $1.6 million transfer balance cap From 1 July 2017, the Government intends to limit the amount that an individual can transfer into the tax-free retirement ( pension ) phase to $1.6 million. This table does not include all contribution caps applicable to Super. For more information on contribution caps, including how they may affect you, speak to your adviser or visit au. Super guarantee contribution rate The super guarantee (SG) rate will remain at 9.5% until 30 June Further, members with pension account balances in excess of the cap as at 30 June 2017, will be required to either: transfer the amount to an accumulation account, or withdraw the money from super. Amounts held within a transition to retirement pension will generally be exempt from the cap as the Government has proposed to remove the earnings tax exemption status associated with transition to retirement income streams from 1 July Increasing preservation age Generally, you re able to access your super as a lump sum or pension either when you retire, on or after reaching your preservation age (between 55 and 60 depending on your date of birth) or if you re aged 65 or over. If you were aged 56 before 1 July 2016, you have already reached your preservation age. If you were born after 30 June 1961 your preservation age is between 57 and 60 depending on your date of birth as shown in the following table: Date of birth Preservation age Before 1 July July June July June July June Reforming the taxation of concessional contributions Currently, the concessional contributions cap is split between those under age 49 and those 49 and over as at the previous 30 June. From 1 July 2017, the Government intends to lower the concessional contributions cap to $25,000 for all individuals regardless of their age. Additionally, they intend to reduce the income threshold which sees an additional 15% tax on concessional contributions for high income earners ( Division 293 threshold) from $300,000 to $250,000 per annum. 1 July June After 30 June The Government has proposed significant amendments to Super, with most effective from 1 July Information on these proposed changes is outlined under Proposed changes to Super 2If you were under age 65 on 1 July 2016, you may be able to use the bring-forward rule allowing you to make up to $540,000 of non-concessional contributions over three financial years. 3Subject to contribution eligibility (for example, the work test). HUB24 Super Fund Annual Report

6 Annual non-concessional contributions cap The annual non-concessional contributions cap will be reduced from $180,000 per year to $100,000 per year from 1 July For those under 65, the three year bring-forward 4 rule will continue but at a reduced rate of $300,000 up to the total account balance. Additionally, from 1 July 2017, only those with a superannuation account balance below $1.6 million (assessed as at the previous 30 June) will be able to make non-concessional contributions. Note: this proposal is in place of the $500,000 lifetime nonconcessional contributions cap originally announced on 3 May Supporting Australians to save for their retirement by introducing the Low Income Superannuation Tax Offset From 1 July 2017, the Government intends to replace the Low Income Superannuation Contribution with the Low Income Superannuation Tax Offset. This change aims to avoid situations where those with a taxable income of up to $37,000 pay more tax on their super contributions than their take-home pay by refunding the tax paid on their concessional super contributions up to a cap of $500. The Australian Tax Office (ATO) will determine an individual s eligibility for the Low Income Superannuation Tax Offset and advise their super fund annually. Improving access to concessional contributions From 1 July 2017, the Government proposes to allow all Australians under 75 who make personal super contributions (including those aged 65 to 74 who meet the work test) to claim a personal income tax deduction on them. If a tax deduction is claimed against these contributions, they would count toward the individual s concessional contributions cap, and, be subject to the 15% concessional contributions tax within the super account. Allowing catch - up concessional contributions The Government intends to allow individuals with super balances of $500,000 or less to accrue any unused portion of their concessional contributions cap from 1 July 2018 for up to five years. This change is aimed at improving flexibility for people with interrupted work arrangements, or who work part-time (for example maternity leave or caring responsibilities). Extending the spouse tax offset The Government intends to extend the eligibility rules for claiming the tax offset for super contributions made to a low income spouse. The existing 18% tax offset will be made available for any individual (married or de facto) who contributes to their spouse s super account, where their spouse s income is less than $37,000. The tax offset is capped at $540 and is completely phased out where the receiving spouse s income is above $40,000. Enhancing choice in retirement income products Currently, the tax exemption on earnings within the retirement phase of super is restricted to certain income streams. From 1 July 2017, the Government intends to extend the tax exemption on earnings to other forms of retirement products, such as lifetime annuities and group self-annuitisation products. Abolishing the anti-detriment rule From 1 July 2017, the Government will remove the anti-detriment provision which allows superannuation funds to claim a tax deduction for a portion of the death benefits paid to eligible dependants. An anti-detriment payment is an amount that can be included when a lump sum death benefit is paid to a dependant. The payment represents a refund of the 15 per cent tax on contributions that has been paid by the deceased member over their lifetime. Superannuation funds will no longer be able to claim a tax deduction for anti detriment payments made to eligible dependants. Transition to retirement income streams Transition to retirement income streams were introduced to help those moving toward retirement to supplement their income by accessing a portion of their super balance. To help ensure these products are not primarily being used for tax minimisation purposes, the Government has proposed two key changes from 1 July 2017: remove the tax exempt status of earnings within a transition to retirement income stream, which will see earnings taxed at the maximum concessional rate of 15%, and remove the ability to treat certain income stream payments as a lump sum for tax purposes (which are currently tax free up to the low rate cap, currently $195,000). More information A number of fact sheets are available and can be accessed via The Treasury s website: SuperannuationAndRetirement/Superannuation-Reforms While these changes are yet to become law, it is important you are aware of how they may impact you. You should speak to your adviser if you are unsure about what these changes may mean for you. 4The bring-forward rule allows you to bring forward up to two years of non-concessional contributions. HUB24 Super Fund Annual Report

7 Investment information The Trustee has appointed the Administrator as the Investment Manager to invest and manage the assets of the Fund on terms contained in an agreement between the Trustee and the Administrator. The Administrator selects and appoints a range of investment managers and portfolio managers for managed funds and managed portfolios and Approved Deposit Institutions (ADI s) for cash and term deposits, subject to approval from the Trustee, to manage the investments on behalf of members. For a full list of available investment options, please refer to the Investment Menu available on InvestorHUB or from your adviser. Objectives and Strategy The general investment objectives of the Fund are: To provide you with a range of different investment options by potential return, risk profile and style to suit your individual circumstances and promote diversification of your strategies. To achieve competitive investment returns for you commensurate with risk. In order to achieve the investment objectives, the investment strategy determined by the Trustee is to: Select an appropriate range of managed funds within each asset class based on the manager s capabilities, investment style and performance. Provide you with a selection of cash products (including term deposits) issued by ADI s. Approve an appropriate range of direct investment options, such as listed securities (including Exchange Traded Funds (ETFs) and Listed Investment Companies (LICs)) within selected asset classes. Provide members with access to a range of managed portfolios. The Trustee of the Fund considers each investment option as an investment strategy in its own right and aims to provide you with wide investment choices that will enable you and your adviser to select an investment strategy that takes into consideration: your personal needs your personal investment objectives and long-term goals and circumstances your risk tolerance, and the expected investment timeframe. With the help of your adviser, you can construct and implement an appropriate investment strategy by choosing investments from the range of available investment options within the Fund. Investment Options Neither the Trustee nor the Administrator manages the underlying investment options. Consequently, the Trustee and the Administrator have no control over the performance of the underlying investment options. Due to this, the Trustee may place restrictions on the percentage that you may invest in a particular investment option. Please refer to the relevant PDS and the Investment Menu for further details regarding any investment restrictions. Returns for investment options will generally be generated from growth assets and defensive (income) assets. Growth assets will include shares (Australian and international), listed property & infrastructure and alternative assets. Defensive assets will include fixed interest investments (Australian and international) and cash. You can view the performance of your account including the underlying investment options you hold by logging into InvestorHUB and by referring to your Annual Statement. Note: Investment returns can be violatile and past performance is not a reliable indicator of future performance. Growth Assets Shares, property and infrastructure and alternative assets are generally considered high-risk and high-return investments and are suitable for longer-term investors with a timeframe of five years or more. Historically, these growth assets have provided long-term growth well above inflation. However, returns are likely to be volatile in the short term. Investors can expect a negative return once in every four to five years, which is why exposure to these assets is suited to longer term investors. Time greatly reduces, but does not eliminate, the volatility in these returns. Growth asset prices move in cycles, reflecting the underlying strength of the economy, political factors, industry trends and market sentiment. On any given day interest rate and inflation expectations, company profits, dividends, economic growth figures and the rise or fall of currencies can impact these prices. You can change your investment strategy or options at any time. Your adviser is responsible for placing instructions on your behalf and ensuring your required investment strategies are implemented. The investment options available to you will depend on the product you hold. You should refer to the latest Investment Menu for the product you hold for details of the Investment Options currently available to you. A copy of the latest Investment Menu is available on InvestorHUB or from your adviser. HUB24 Super Fund Annual Report

8 Defensive Assets Fixed interest (bond) investments are low - to medium - risk investment options suitable for investors with a timeframe of three years or more. Total bond returns can include income from interest payments and growth from price fluctuations if traded on the secondary market. In addition to providing a regular income stream, fixed interest can provide a stabilising effect during periods of share market volatility. Bond yields and prices can fluctuate regularly based on the economic outlook, inflation expectations, the rise or fall of currencies as well as the credit status and risk of the issuers of the fixed income securities. Bond investors can expect a negative return once in every five to six years. They tend to provide better returns than cash over the long term, but lower returns than property and shares. Cash and cash like instruments (including Term Deposits) provide the safest of the investment options (with lowest volatility), but generally the lowest return over the medium to long term. Investment in cash and cash like instruments are not expected to produce a negative return in any year. Diversification In order to reduce market risk, members should ensure that they spread investment across a range of asset sectors and investment options offered by the Trustee. As the performance of asset classes and sectors differ over time, holding investments with low or negative correlations reduces overall return volatility. Diversification can be achieved in the following ways: Spreading exposure across the different asset sectors; shares, property & infrastructure, alternatives and fixed interest and cash. Holding a spread of investments within each asset sector; different countries, industries, companies and securities. Investing in a number of funds managed by different fund managers in order to diversify manager risk. The level of exposure to the various asset sectors and investment options will be determined by the requirement to meet the individual needs of each member. Determining these needs is the joint responsibility of the member and financial adviser. The Trustee takes no responsibility in making this determination other than to provide a suitable list of investments and ensure that this list remains suitable for members at all times. Given the broader nature of investment choice (through a range of underlying investment options summarised above) across the Fund, the Trustee has a number of policies that outline how the Trustee manages its investment related responsibilities. The Administrator, in conjunction with the Trustee, regularly reviews the overall investment strategy. HUB24 Super Fund Annual Report

9 Further information about available investment options The investment options available in the Fund as at 30 June 2016 fall generally into the categories as shown in the following table. For more details about the investment choices available, refer to the relevant product disclosure statement (PDS) including material incorporated by reference which are available from your adviser, or on InvestorHUB. The Trustee may add or remove investment options from time to time. For an up-to-date list of investment options, refer to the latest Investment Menu available on InvestorHUB. Australian listed securities International listed secruities Managed Portfolios Managed funds Term deposits You can choose from a wide range of Australian listed secruities including predominantly from the S&P/ASX All Ordinaries index. The type of Australian listed securities include: ordinary shares; ETFs; LICs; Interest rate secruities; and hybirds (such as preference shares and convertible notes) The Fund offers you, via managed portfolios, the opportunity to invest directly in listed securities from a number of international markets, including North American, Asian and European stock exchanges. A managed portfolio is a managed investment portfolio with a specific investment strategy, and can be single-sector or multi-sector. When investing in a managed portfolio, you invest in line with the composition of the portfolio manager s portfolio which may include Australian and international listed securities, managed funds and/or other managed portfolios. The value of the portfolio is determined by the value of the underlying investments. The Fund provides access to an extensive range of managed portfolios. The portfolio managers design each managed portfolio based on a number of factors such as investment style, investment objectives and different risk profiles, and may use strategic and/or tactical asset allocation to achieve the investment objectives. A managed fund is an investment product where an investor contributes money to receive an interest or unit in the managed fund, which is then pooled together with other investors monies and managed by a fund manager. You can choose from a wide range of managed funds offered by Australian and international fund managers. Further information about available managed funds can be found in disclosure documents issued by the relevant underlying fund manager. The Fund provides access to term deposit accounts with a range of durations, where the interest is fixed by the term deposit provider. Typically, durations of three months, six months or one year are offered. Further information about available term deposits can be found in the disclosure documents issued by the relevant term deposit provider. The current terms offered are published on InvestorHUB each week (usually on a Monday). HUB24 Super Fund Annual Report

10 Allocation of investment earnings The net return achieved by the investments selected by you and your adviser (after taking into account gains or losses of a revenue or capital nature and any expenses or tax applicable) and the cash holding in respect of a member (after allowances for tax and expenses including reasonable estimates for tax and expenses where the exact amount may not be known), is passed on to members accounts. Your annual return is equal to the gross income generated by the selected underlying investment options less any relevant fees, costs and taxes during each financial year. More information about the fees and costs can be obtained by reviewing the fees and costs information in the current PDS (including incorporated information) applicable to your membership of the Fund. Any income, relevant fees, costs and taxes are used to update your account balances if you leave the Fund during the financial year. Amounts of fees, costs and taxes may be estimated where they are not actually known or apportioned as determined by, or on behalf of, the Trustee where they relate to the Fund as a whole. Fund s asset allocation for the year ended 30 June 2016 Use of financial derivatives The Fund does not invest directly in derivative instruments. Investment managers may use derivatives in managing pooled investment vehicles in which the Trustee invests. The Trustee allows the use of derivatives within these vehicles, for certain circumstances including but not limited to: protecting the assets against, or minimise liability from a fluctuation in market values. reducing the transaction cost, or setting the desired asset allocation or investment profile. to obtain prices that may not be available to the Fund in other markets. For further information on the use of financial derivatives, please refer to the relevant underlying disclosure documents for your chosen investment option(s) which are available from your adviser or InvestorHUB. Other Important Information Cash 24.7% 28.5% Fixed interest 16.3% 14.5% Property 4.7% 4.3% Australian shares 29.4% 32.2% International shares 21.4% 18.7% Alternatives* 3.5% 1.8% *Alternatives include investments in emerging markets, technical investment trading, commodities, and foreign exchange currencies and global infrastructure assets. More information about these investments can be obtained from your adviser or the Administrator. Single investments exceeding 5% of Fund assets The following exceed 5% of the total of the Fund s assets: Investment Valuation method % of total assests Cash Redemption 16 Compliance The Fund is administered at all times to comply with the Superannuation Industry (Supervision) Act 1993 (Cth.) ( SIS ) and all other relevant legislation. The Trustee has lodged with APRA all relevant annual returns and disclosure documents. The Trustee has not received a notice from APRA stating that the Fund is non-compliant with relevant law during the reporting period. No penalties have been imposed on the Fund and/or the Trustee from any kind of non-compliance during the 2015/2016 financial year. Eligible Rollover Fund The Trustee may transfer your superannuation benefits to an Eligible Rollover Fund (ERF) if: you haven t made a contribution within a 12-month period and your balance falls below a minimum amount of $2,000, we lose contact with you and can t locate you, or you no longer have a financial adviser appointed in relation to your account. We ll tell you in writing at your last known address if we intend to transfer your account and we ll proceed if you don t respond with instructions on your account. HUB24 Super Fund Annual Report

11 The ERF we currently use is the Super Money Eligible Rollover Fund (SMERF): Mail: PO Box A2499, Sydney South NSW 1235 Phone: Fax: (02) The Trustee is also the trustee of SMERF and receives remuneration in this capacity. If your benefit is transferred to an ERF: you will cease to be a member of the Fund and any associated benefits such as investment choice or insurance cover will cease; and you will be unable to make additional contributions to the Fund (or the ERF). You will need to contact the ERF directly to claim your Superannuation entitlement. If your account is transferred to an ERF, you should obtain a copy of their PDS. Government superannuation surcharge During the reporting period, we may have received a surcharge assessment from the Australian Taxation Office (ATO). The amount payable in respect of members was deducted from the relevant members accounts and remitted to the ATO at the time that it fell due. Any amount paid will be shown in the transaction section of your member statement Indemnity insurance The Trustee maintains an appropriate level of professional indemnity insurance to protect its directors and officers from any liability they may incur in carrying out their duties. Protection from liability does not extend to loss incurred through gross negligence or willful misconduct and is subject to the terms of the relevant insurance policy. If you are a former temporary resident whose superannuation benefits are transferred to the ATO as unclaimed money, you may not be notified of this or receive an exit statement after the transfer occurs. The Trustee will rely on relief provided by the Australian Securities & Investments Commission (ASIC) Class Order (CO 09/437) which says, in effect, that the trustee of a superannuation fund is not obliged to meet certain disclosure requirements in relation to non residents that have ceased to hold an investment in the fund as a result of the payment of unclaimed superannuation to the Commissioner of Taxation. How you keep us informed You should contact the Administrator if you wish to: advise us of a change of your name or contact details change your beneficiary(ies) apply to increase or change your insurance cover claim a benefit from the Fund receive a copy of the accounts and other Regulatory documents for the Fund Contact us Mail: GPO Box 529, Sydney NSW 2001 Phone: Fax: admin@hub24.com.au Website: If you have a complaint, you should contact the Administrator (see contact details provided above). We take complaints seriously as they give us information about how we can improve services to you. We have an internal complaints handling policy which you can access free of charge. For more complex issues, the Trustee will keep you updated regularly as to the progress of your complaint. Temporary residents If you are or have been a temporary resident, you can generally only withdraw your benefits as a single lump sum after your visa has expired and you ve left Australia permanently. Exceptions apply if you become permanently disabled, temporarily disabled, suffer a terminal medical condition (as set out in law) or die. If you don t claim your benefit within six months of your departure from Australia or your visa expiring, whichever is later, we may have to pay it to the ATO as unclaimed money. If this happens, you ll no longer be a member of the Fund and you may lose any insurance cover. You will then need to apply to the ATO to claim your benefit. HUB24 Super Fund Annual Report

12 Financial Statements Audited accounts Included in this report is the audited abridged financial information. Audited financial statements and the auditor s report for the year ended 30 June 2016 are available on request from the Administrator. Abridged financial information The following financial information is extracted from the Fund s audited financial statements as at 30 June Operating statement for the year ended 30 June $ 000 $ 000 Investment revenue Distributions 38,055 20,291 Interest 2,638 1,697 Changes in net market values (9,593) 15,137 31,100 37,125 Contributions revenue Concessional contributions 33,345 15,077 Non-concessional contributions 100,062 73,885 Transfers in 797, , , ,552 Insurance recovery Total revenue 962, ,686 Less: General administration expenses Adviser fees 18,560 9,771 Insurance premiums 3,376 1,700 Plan management fees 6,830 3,071 Other expenses Total expenses 29,315 14,990 Benefits accrued before income tax 932, ,696 Income tax expense/(benefit) Benefit accrued after income tax 932, ,850 HUB24 Super Fund Annual Report

13 Statement of financial position as at 30 June 2016 Assets $ 000 $ 000 Cash and cash equivalents Cash at bank 275, ,300 Trade and other receivables Trade receivable 3,720 1,859 GST receivable Investments Financial assets Direct shares and unit trusts 1,404, ,036 Tax assets Deferred tax assets Total assets 1,684, ,387 Liabilities Trade and other payables Accounts payable Unsettled investment transactions 3,577 4,615 1,255 1,301 Tax liabilities Income tax liabilities 1, Deferred tax liabilities Total liabilities 10,150 4,056 Net assets available to pay benefits 1,674, ,331 Represented by: Liabilities for accrued benefits Allocated to members accounts 1,671, ,116 Operational risk reserve 2,304 - Expense recovery reserve ,674, ,331 HUB24 Super Fund Annual Report

14 Expense recovery $ 000 $ 000 $ 000 Balance at the beginning of the reporting period Plus: Transfers in Less:Tranfers out Balance at the end of the reporting period The Investment strategy for the expense recovery reserve mirrors overall investments held by members of the Fund. Operational risk reserve $ 000 $ 000 $ 000 Balance at the beginning of the reporting period Plus: Transfers in 2, Plus: Earnings Less:Tranfers out Less: Losses Balance at the end of the reporting period 2, The Investment strategy for the Operational risk reserve mirrors overall investments held by members of the Fund. HUB24 Super Fund Annual Report