HUB24 SUPER FUND ANNUAL REPORT

Transcription

1 HUB24 SUPER FUND ANNUAL REPORT for the year ended 30 June 2017

2 CONTENTS 1 Welcome 2 About the HUB24 Super Fund 3 Legislative changes 5 Proposed changes to super 5 Investment information 9 Other Important Information 11 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. ii HUB24 ANNUAL REPORT 2017

3 WELCOME HUB24 SUPER FUND ANNUAL REPORT It s been a busy year for us at HUB24 as we continue to grow our business and enhance our platform offer for you and your adviser. We re delighted that HUB24 continues to be recognised by the industry, taking out the top awards for our managed portfolio functionality which provides you access to investment professionals to run your portfolios, and our mobile app and user interface InvestorHUB that you use to view your account. We also maintained our SuperRatings Gold rating which supports our offer as good value for money for our customers. Choice for you and your adviser At HUB24 we are committed to continually expanding our menu with quality products to allow you and your adviser access to a wide range of options to meet your investment needs, no matter what stage of life you may be. This year we ve launched direct access to international equities providing you access to 14 international exchanges, enabling you to benefit from the diversification of owning international assets, we also continue to add to our selection of over 200 managed portfolios. Additionally, working with our insurance partner Zurich we ve launched a new unique insurance product Zurich Active this cover provides the ability to make multiple claims based on the severity of health events over time as a default option. Enhancing functionality for you and your adviser As well as expanding our product menu we ve also been enhancing our platform with new functionality. We ve provided your adviser with better visibility around incoming super rollovers providing them with the ability to commence your pension quickly and efficiently. Additionally, for those of you in pension phase you can now opt to receive your payments bi-monthly, which can help in managing your cashflow. We understand it s important to have access to your financial information as required so you now have the ability to download Centrelink schedules from InvestorHUB allowing you to access information whenever you need it. Additionally, we are committed to continually protecting your information and have implemented enhanced password security measures for activating and resetting your password, including SMS verification. Simplifying your statements By now you would have received your annual statements. This year we have enhanced the design and provided a new 3-year super balance snapshot which helps you to see how your super is tracking, and an asset allocation chart which provides you with a visual representation of how your super is invested. 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 give our service team a call on Regards Andrew Alcock Managing Director HUB24 Limited Results from the Investment Trends 2016 Platform Competitive Analysis and Benchmarking Report, based on extensive analyst reviews of 19 platforms across 526 functional points. Investment Trends does not issue, sell, guarantee or underwrite this product. Go to for details of its rating criteria. SuperRatings does not issue, sell, guarantee or underwrite this product. Go to for details of its rating criteria. HUB24 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 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 USI Administrator 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 Limited ABN AFSL RSE Licence No. L Mail GPO Box 3001, Melbourne VIC 3001 Phone (03) Directors at 30 June 2017 Vin Plant (Chairman) Karen Gibson Murray Jones Vincent Parrott Garry Wayling 2 HUB24 ANNUAL REPORT 2017

5 LEGISLATIVE CHANGES Key superannuation thresholds 2017/18 A number of superannuation (super) caps and thresholds that apply for the 2017/18 financial year are outlined below. 1 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 born after 30 June 1960 your preservation age is between 56 and 60 depending on your date of birth as shown in the following table: Date of birth Preservation age Total Superannuation balance Applies to the value of accumulation and retirement phase $1.6m Before 1 July July June Concessional contribution cap All ages $25,000 Non-concessional contributions cap If total superannuation balance as at 30 June 2017 is less than $1.6 million: Under age 65 as at 1 July 2017 $100,000 1 Aged 65 and over at 1 July 2017 $100,000 2 If total superannuation balance as at 30 June 2017 is $1.6 million or more: All ages $0 Low rate cap 3 (for lump sum payments) $200,000 Capital Gains Tax (CGT) cap amount $1.445M Government co-contributions $500 Transfer balance cap The limit on the amount that can be transferred into retirement phase $1.6M This table does not include all contribution caps applicable to super. For more information on contribution caxps, including how they may affect you, speak to your adviser or visit Key-superannuation-rates-and-thresholds/. Super guarantee contribution rate The super guarantee (SG) rate will remain at 9.5% until 30 June Transition to retirement income streams From 1 July 2017, the tax-exempt status of earnings within a transition to retirement income stream (TRIS) was removed. As a result, income and realised capital gains generated by investments within the TRIS will be taxed at 15%, similar to accumulation accounts. 1 If you were under age 65 on 1 July 2017, you may be able to use the bringforward rule allowing you to make up to $300,000 of non-concessional contributions over three financial years. 2 Subject to contribution eligibility (for example, the work test). 1 July June July June July June After 30 June Tax deductibility on personal contributions From 1 July 2017, all Australians under age 75 who make personal super contributions (including those aged 65 to 74 who meet the work test) are able 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. Prior to 1 July 2017, individuals were required to have earned less than 10% of their total income from employment as an employee to be eligible to claim a tax deduction on their personal super contributions. Anti-detriment payments abolished From 1 July 2017, the Government removed the antidetriment provisions. Superannuation funds are no longer able to claim a tax deduction for anti detriment payments made to eligible dependants where death occurred after 30 June Where death occurred prior to 1 July 2017, an antidetriment payment could be included when a lump sum death benefit was paid to a dependant. The payment represented an estimated refund of the 15% tax on contributions that had been paid by the deceased member over their lifetime. Anti-detriment payments are now only payable in respect of certain superannuation death benefit payments where the member died before 1 July 2017 and the payment is made by 30 June This amount applies if you reach your preservation age but are under 60 years old. The low rate cap is a limit on the amount of taxable components (taxed and untaxed element) that can be taxed at a concessional (lower) tax rate. HUB24 ANNUAL REPORT

6 Removal of ability to treat super income stream payments as lump sums From 1 July 2017, the ability to elect to have super income stream payments commuted to lump sum payments for tax purposes was removed. Additionally, all commutations no longer count toward the minimum pension amount. Reduction in the Division 293 threshold for high income earners The Division 293 tax was introduced to reduce the tax concession on superannuation contributions for those individuals deemed high income earners, the Division 293 threshold. From 1 July 2017, the Government reduced the Division 293 threshold from $300,000 to $250,000 per annum. This reduction will see an additional 15% tax on concessional contributions for individuals with income for surcharge purposes 4 over $250,000. not hold a temporary visa at any time during the financial year 1 lodge their tax return for the relevant financial year. From 1 July 2017, to be eligible for the Government co-contribution individuals must also: have a total superannuation balance less than the transfer balance cap as at 30 June of the previous financial year not have exceeded their non-concessional contributions cap. Spouse contribution offset threshold increase From 1 July 2017, the thresholds used to determine the tax offset available on spouse contributions (up to a maximum of $3,000) has increased: 2016/ /18 The maximum tax offset is available where the receiving spouse has total income less than: The tax offset cuts out where the receiving spouse has total income exceeding: $10,800 $37,000 $13,800 $40,000 Introduction of the Low Income Super Tax Offset (LISTO) From 1 July 2017, LISTO has replaced the Low Income Superannuation Contribution (LISC). The LISTO payment is intended to provide support for low-income earners to ensure that generally they do not pay greater amounts of tax on their superannuation contributions versus their taxable income. If eligible, individuals with an adjusted taxable income of up to $37,000 will receive a LISTO payment to their super fund equal to 15% of their total concessional super contributions for the year to a maximum of $500. Changes to eligibility rules for the Government co-contribution The Government has expanded the eligibility criteria for the for the Government co-contribution. Currently, to be eligible for a Government co-contribution individuals must: have made at least one eligible personal super contribution during the financial year pass two income tests 5 be less than age 71 at the end of the financial year, 4 For information on how to determine your income for surcharge purposes, speak to your adviser, or refer to 5 Income tests refer to: income threshold test and the 10% eligible income test. Refer to Super-co-contribution for more information. 4 HUB24 ANNUAL REPORT 2017

7 PROPOSED CHANGES TO SUPER The following changes are not yet law at the time of writing: First Home Super Saver Scheme From 1 July 2017, the Government will allow individuals to make voluntary concessional and non-concessional contributions to super of up to $15,000 per year to a maximum of $30,000 which can subsequently be withdrawn to purchase their first home. Individuals will be able to access these contributions (less any concessional contributions tax 6 ) from 1 July 2018, along with deemed earnings (calculated at the rate of the Shortfall Interest Charge 7 ) for a home deposit. Withdrawals will be taxed at an individual s marginal tax rate less a 30% tax offset. Reducing barriers to downsizing From 1 July 2018, individuals aged 65 and over will be able to make non-concessional contributions of up to $300,000 from the proceeds of the sale of their home. The home must have been held continuously for a minimum of 10 years and must have been their principal place of residence for a portion of this time. Eligible contributions will not count toward the existing contribution caps and existing contribution eligibility restrictions such as the work test will not apply. Couples are able to take advantage of the downsizing cap for the same home, allowing for $600,000 per couple to be contributed to their super. MORE INFORMATION Consultation drafts for the above proposed changes can be accessed via the Treasury s website: au/ /content/glossies/factsheets.htm. 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. 1 6 Currently a maximum of 15% 7 The Shortfall Interest Charge is calculated as the 90-day Bank Bill rate plus 3%. Refer to rates/ for more information. 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. HUB24 ANNUAL REPORT

8 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. 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. 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. dividends, economic growth figures and the rise or fall of currencies can impact these prices. 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. 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, 6 HUB24 ANNUAL REPORT 2017

9 FURTHER INFORMATION ABOUT AVAILABLE INVESTMENT OPTIONS The investment options available in the Fund as at 30 June 2017 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; Hybirds (such as preference shares and convertible notes); and Exchange Traded Bonds 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 ANNUAL REPORT

10 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 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 Cash 24.7% 21.6% Fixed interest 16.3% 20% Property 4.7% 4.5% Australian shares 29.4% 28.9% International shares 21.4% 22.4% Alternatives* 3.5% 2.6% * 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 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. 8 HUB24 ANNUAL REPORT 2017

11 OTHER IMPORTANT INFORMATION 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 2016/2017 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. The ERF we currently use is the Super Money Eligible Rollover Fund (SMERF): Mail: PO Box 1282 Albury NSW 2640 Phone: smerf@diversa.com.au 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. 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. 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 HUB24 ANNUAL REPORT

12 CONTACT US Mail: GPO Box 529 Sydney NSW 2001 Phone: Fax: 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. 10 HUB24 ANNUAL REPORT 2017

13 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 2017 are available now 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 Statement of Financial Position for the year ended 30 June $ 000 $ 000 Assets Cash and cash equivalents 464, ,734 Australian listed equities 537, ,188 Australian listed trusts 675, ,664 International listed equities 8,881 - Units in managed funds 1,119, ,353 Fixed interest securities 77,528 36,074 Other financial assets 12,006 3,959 Deferred tax assets Total assets 2,895,980 1,684,491 Liabilities Benefits payable 3, Accounts payable 4,406 7,611 Income tax payables 6,565 1,016 Deferred tax liabilities 4, Total liabilities excluding member benefits 19,369 10,150 Net assets available for member benefits 2,876,611 1,674,341 Defined contribution member liabilities 2,871,324 1,671,863 Total net assets 5,287 2,478 Equity Expense recovery Operational risk reserve 4,801 2,304 Total equity 5,287 2,478 HUB24 ANNUAL REPORT

14 FINANCIAL STATEMENTS Income Statement for the year ended 30 June $ 000 $ 000 Superannuation activities Interest 3,395 2,638 Dividends 32,838 15,762 Distributions from managed funds 53,163 22,293 Changes in fair value of investments 57,089 (9,593) Total revenue 146,485 31,100 Investment expense (3,781) (933) Administration expense (12,173) (6,446) Adviser fees (29,364) (18,560) Total expenses (45,318) (25,939) Operating results 101,167 5,161 Net benefits allocated to defined contribution member accounts (98,434) (2,772) Operating result before income tax expense 2,733 2,389 Income tax expense (65) (635) Operating result after income tax 2,668 1, HUB24 ANNUAL REPORT 2017

15 FINANCIAL STATEMENTS Statement in changes in Member Benefits for the year ended 30 June $ 000 $ 000 Opening balance 1 July 1,671, ,115 Employer contributions 58,559 33,345 Member contributions 222,729 99,925 Transfers from other superannuation entities 1,063, ,240 Superannuation co-contributions & LISC Compensation from successor fund Income tax on contributions (8,784) (5,002) Net after tax contributions 1,336, ,645 Benefit to members (231,835) (84,548) Anti-detriment credit Insurance premiums charged to members accounts (4,905) (3,377) Death & disability benefits credited to members accounts 1, Net benefits allocated, comprising: Net investment income 146,429 31,184 Net administration fees (15,695) (8,377) Net adviser fees (32,300) (20,036) Net tax (expense)/credit (320) 4,660 Closing balance as at 30 June 2,871,324 1,671,863 HUB24 ANNUAL REPORT

16 FINANCIAL STATEMENTS Statement of Changes in Equity/Reserves for the year ended 30 June 2017 The Fund maintains two reserves; Expense Recovery and the Operational Risk Reserve. The Investment Strategy for these reserves is to align with the overall fund investment profile by investing in the Quilla Moderate Strategy Managed Portfolio Expense Recovery: $ 000 $ 000 $ 000 Balance at the beginning of the reporting period Transfer (to)/from reserves (2,203) (1,794) - Operating result 2,515 1, Balance at the end of the reporting period Operational risk reserve: Balance at the beginning of the reporting period 2, Transfer (to)/from reserves 2,344 2,302 - Operating result Balance at the end of the reporting period 4,801 2, HUB24 ANNUAL REPORT a-1117