ANNUAL REPORT 2017 PORTFOLIOCARE WELCOME. ewrap SUPER/eWRAP PENSION SUPER SERVICE/PENSION SERVICE ELEMENTS SUPER/ELEMENTS PENSION CONTENTS

Transcription

1 ANNUAL REPORT 2017 PORTFOLIOCARE ewrap SUPER/eWRAP PENSION SUPER SERVICE/PENSION SERVICE ELEMENTS SUPER/ELEMENTS PENSION CONTENTS SUPER FUND INFORMATION SUPER NEWS PRODUCT NEWS OTHER INFORMATION ABRIDGED FINANCIAL INFORMATION WELCOME Thank you for choosing AMP to help you achieve your financial goals. This annual report for the financial year ending 30 June 2017 will help you understand more about your super and investments. You ll find information on fund performance and management as well as recent developments in superannuation. Keep track of your super We've made it easy to find your forgotten super by offering AMP customers a free super search which includes details of where they hold super monies. If you're interested in securing a free super report, go to amp.com.au/supersearch. WE'RE HERE TO HELP If you'd like to explore your super or investments, check you have the right insurance cover or would like some help achieving your goals, speak to your financial adviser or call us on Registered trademark of Hillross Financial Services Ltd ABN AFS Licence No PortfolioCare is part of The Retirement Plan (the fund) ABN The trustee of the fund and issuer of this annual report is N.M. Superannuation Proprietary Limited ABN AFSL No Administrator: Asgard Capital Management Limited ABN AFS Licence No

2 SUPER FUND INFORMATION THE TRUSTEE N.M. Superannuation Proprietary Limited ABN , AFS Licence No (the trustee) is a wholly owned subsidiary of AMP Life Limited (AMP Life) effective from 1 January Prior to this time the trustee was a wholly owned subsidiary of The National Mutual Life Association of Australasia Limited (NMLA). AMP Life and NMLA are part of the AMP group. The trustee is a registrable superannuation entity (RSE) Licensee under the Superannuation Industry (Supervision) Act 1993 (SIS Act), which means that it has satisfied licensing conditions required by the Australian Prudential Regulation Authority (APRA). THE BOARD OF DIRECTORS The directors of N.M. Superannuation Proprietary Limited are also directors of AMP Superannuation Limited, which is another superannuation trustee and also part of the AMP group. The boards of each trustee maintain a framework for the management of conflicts of interest and conflicts of duties, which is documented in the Conflicts Management Policy. The framework provides for the identification, recording, management and monitoring of conflicts in accordance with applicable laws and regulations. Rick Allert (AO), Independent NonExecutive Chairman FCA Michele Dolin, Independent NonExecutive Director BA, MA, MBA, FCPA, FAICD, FASFA, SF Fin. Louise Dudley, Independent NonExecutive Director BCom, CA, GAICD Darryl Mackay, NonExecutive Director BSc, FIAA, MAICD Brian Salter, Executive Director BA, LLB (Hons), LLM (Hons), MAICD, F.ASF More information on the trustee, including profiles of the directors and governing policies, is available at amp.com.au/trusteedetails. N.M. Superannuation Propietary Limited Board meeting attendance 12 months to 30 June 2017 Rick Allert Michelle Dolin Louise Dudley Darryl Mackay Brian Salter Held while member Attended while member 4 THE RETIREMENT PLAN (THE FUND) The fund is a complying superannuation fund under the SIS Act. During the financial year ending 30 June 2017, products available through the fund were: PortfolioCare Super/Pension Service PortfolioCare Elements Super/Pension PortfolioCare ewrap Super/Pension. THE FUND S COMPLIANCE STATUS The fund is a regulated fund under the SIS Act. The trustee has not received any notices or penalties for noncompliance during the reporting period. The trustee is not aware of any matter that would cause it to lose its complying status and has formally resolved that the fund will at all times be administered in strict compliance with all applicable acts and regulations. The fund does not maintain any reserves. The trustee also maintains an appropriate level of indemnity insurance for protection against losses that may occur as a result of a claim against it for breach of professional duty. TRUSTEE AMENDMENT The trustee may amend the trust deed following changes to the law or to introduce new features. There were no amendments to the trust deed during the year to 30 June 2017 and the last amendment was made on 28 June Should you require a copy of the trust deed of the fund please contact us, or alternatively a copy can be obtained online from amp.com.au/trusteedetails. If you have any enquiries about the fund you should contact the customer relations team on TRUSTEE S INVESTMENT OBJECTIVES AND STRATEGY One of the main investment objectives is to achieve investment returns which meet or exceed stated targets for each specific investment option relating to a member s interest in the fund. The SIS Act requires the trustee to have an investment strategy in place in order to meet the investment objectives that takes into account issues such as investment risk and liquidity. Importantly, the trustee must be able to demonstrate that the strategy is being followed. The investment strategy for the fund is to offer a range of discretionary investments that members can select from in line with their attitudes towards risk. The discretionary investments are made up of pooled managed funds and listed securities. An investment committee reviews and approves all investment options offered through the fund. The trustee does not invest directly in derivatives for the fund. However, underlying fund managers may do so. Derivatives are securities that derive their value from other assets or indices. Most derivatives are characterised 2

3 by high leverage, which means large profits and losses can occur due to movements in the underlying asset s price or index value. Examples of derivatives include futures, options and swaps. Members are required to direct the trustee to invest their total assets into the pooled managed funds and/or listed securities they select from either the PortfolioCare ewrap Super/Pension, PortfolioCare Elements Super/Pension and PortfolioCare Service Super/Pension Investment Options document available from amp.com.au/portfoliocare. The specific investment objectives and strategies for each investment option offered by the fund is documented in the underlying fund manager s product disclosure statement for managed investment options or in the direct security company disclosure document for each direct security. INVESTMENT MANAGERS The fund offers a wide range of investment options, managed by the following investment managers: Aberdeen Asset Management Limited Acorn Capital Limited Advance Asset Management Limited Allan Gray Australia Proprietary Limited AllianceBernstein Australia Limited Alphinity Investment Management Proprietary Limited American Century Investment Management AMP Capital Investors Limited AMP Life Limited Antares Capital Partners Limited Antipodes Partners Limited APN Funds Management Limited Apostle Asset Management Limited Armytage Private Propriety Limited Arnhem Investment Management Proprietary Limited Arrowstreet Capital Limited Partnership Aspen Funds Management Limited Aubrey Capital Management Limited Aurora Funds Management Limited Ausbil Investment Management Limited Australian Unity Funds Management Limited Bennelong Funds Management Limited Bentham Asset Management Proprietary Limited Blackrock Investment Management (Australia) Limited BT Investment Management Limited CBRE Clarion Securities LLC Celeste Funds Management Limited Challenger Retirement & Investment Services Limited Charter Hall Holdings Proprietary Limited Colonial First State Investments Limited Cromwell Property Securities Limited Denning Pryce Proprietary Limited Deutsche Australia Limited Dimensional Fund Advisor Australia Limited Epoch Investment Partners Incorporated FIL Investment Management (Australia) Limited Franklin Templeton Investments Australia Limited Generation Investment Management LLP Global Thematic Partners LLC GMO Australia Limited Goldman Sachs Asset Management Australia Proprietary Limited Greencape Capital Proprietary Limited Heathley Asset Management Limited Henderson Global Investors (Australia) Funds Management Limited Hunter Hall Investment Management Limited Hyperion Asset Management Limited Independent Franchise Partners LLP Integrity Investment Management Australia Limited Invesco Asset Management Australia Limited Ironbark Asset Management (Fund Services) Limited JPMorgan Asset Management (AUS) Limited Kapstream Capital Proprietary Limited Karara Capital Proprietary Limited Kardinia Capital Pty Limited K2 Asset Management Limited Lazard Asset Management Pacific Co. Legg Mason Asset Management Australia Limited Lighthouse Investment Partners, LLC Macquarie Investment Management Limited Magellan Asset Management Limited Man Investments Australia Limited MapleBrown Abbott Limited MCG Wealth Management Merlon Capital Partners Proprietary Limited Metisq Capital Proprietary Limited MFS Investment Management MLC Investments Limited Nikko Asset Management Australia Limited Nova Port Capital Proprietary Limited OC Funds Management Limited Onepath Funds Management Limited Partners Group (Guernsey) Limited Pengana Capital Limited Perpetual Investment Management Limited 3

4 Perennial Investment Partners Limited Phoenix Portfolios Proprietary Limited PIMCO Australia Proprietary Limited Platinum Asset Management Plato Investment Management PM Capital Limited RARE Infrastructure Limited Resolution Capital Limited Schroder Investment Management (Australia) Limited SG Hiscock & Company Limited Solaris Investment Management Limited St George Bank Treasury Department State Street Global Advisors Australia Limited T. Rowe Price International Limited Threadneedle Asset Management Limited UBS Asset Management Limited Value Partners Limited Vanguard Investments Australia Limited Walter Scott & Partners Limited Wellington Management Company LLP Winton Capital Management Limited Zurich Investment Management Limited ASSET HOLDINGS GREATER THAN % At 30 June 2017, the following investment was greater than % of the fund s assets: Experts' Choice Balanced Fund 6.42% St George Cash Holding Account.47% RELATIONSHIP BETWEEN THE TRUSTEE AND SOME SERVICE PROVIDERS The trustee invests in a wide range of managed investment funds. AMP Capital Investors Limited ABN AFS Licence No (AMPCI), AMP Capital Funds Management Limited ABN AFS Licence No (AMPCFM), ipac asset management limited ABN AFS Licence No.2346 (ipac) and National Mutual Funds Management Limited ABN AFS Licence No (NMFM) are members of the AMP group and are also the responsible entities for a number of these investment funds. AMPCFM, ipac and NMFM are responsible for the selection and ongoing monitoring of fund managers for investments operated by them, and are entitled to change fund managers or asset allocations at any time without notice to members invested in the portfolios. For a full list of these investment funds, refer to the PortfolioCare ewrap, PortfolioCare Elements and PortfolioCare Service Investment Options document available on amp.com.au/portfoliocare. Where the trustee invests money of the fund, it must deal with the other party to the transaction at arm s length or on arm s length terms. The trustee has appointed NMMT Limited (NMMT) ABN AFS Licence No as agent for the provision of services to the fund. This includes selecting the range of investment options made available, managing the cash account and acting as custodian to hold all assets in the fund. The trustee reserves the right to change the custodian without prior notice to members. AMPCFM, ipac, NMFM, AMP Life and NMMT may receive a fee for the services they provide. NET EARNINGS RATE OF RETURN Earnings on investments are reflected by a change in capital value plus any distributions, dividends and interest. Income distributions are generally paid into the cash account. The wide choice of individual investments available to PortfolioCare members means that earnings and performance vary from member to member. Please refer to your annual Investor Report for information about the earnings on your particular investments. Your annual Investor Report contains details about the performance of your super investments. For further information please contact your financial adviser. LIQUIDITY RISK Liquidity risk is the risk that your investment cannot be bought, sold, cashed, transferred or rolled over as quickly as you might wish. Different investments have different transaction processing times, and therefore different levels of liquidity risk. Investment transactions, withdrawals, rollovers and transfers from your superannuation account are normally processed within 30 days of us receiving all the necessary information. Some investments, referred to as 'illiquid assets', require a longer period to be redeemed. This longer redemption period is imposed by the underlying investment manager because some or all of the assets within the investment are illiquid. Account fees will continue to be charged while invested in illiquid investment options. We have labelled these investments as 'illiquid investments' in the Investment Options document, which also shows the maximum redemption period for each option. For more information, you should read the PDS for your chosen managed investment funds. 4

5 COMPENSATION There may be circumstances in which the trustee needs to pay compensation to members. There are four key principles that guide the trustee s payment of compensation to current and former members: the trustee should not benefit other members do not bear the cost of compensation compensation is paid to members in a manner that minimises the cost and inconvenience to those members receiving the compensation, and communication should be provided to affected members in all circumstances where the member would reasonably expect to be notified. The trustee may decide not to pay compensation to current or former members where it considers the individual compensation amounts small. VOTING VOTING POLICY SUPER AND PENSION NMMT has a formal voting policy. This policy sets out the principles that NMMT applies when exercising its voting entitlements on behalf of super and pension members. NMMT recognises that voting is a valuable right which should be actively managed and exercised in the best interests of all members. A copy of the NMMT voting policy is available to members on request by writing to the trustee at: N.M. Superannuation Proprietary Limited GPO Box 291 MELBOURNE VIC 3001 WHY DOES NMMT VOTE ON BEHALF OF MEMBERS? From time to time NMMT as agent of the trustee may vote on behalf of super and pension members in respect of corporate actions related to custodial holdings of managed investment schemes. HOW DOES NMMT VOTE ON BEHALF OF SUPER AND PENSION MEMBERS? NMMT generally votes where a resolution is deemed to have the potential to materially affect the nature and outcome of the investment. A summary of resolutions NMMT voted on for members is available at amp.com.au/trusteedocuments. SUPER NEWS 2016 FEDERAL BUDGET MEASURES The 2016 Federal Budget contained a number of superannuation reforms with a start date of 1 July The reforms were covered in the 2016 and 2017 Annual report. The reforms are summarised as follows: REFORMS COMMENCING ON 1 JULY 2017: Nonconcessional contributions: the nonconcessional contributions cap is reduced to $100,000 per annum and no cap is available in a year where your total superannuation balance, on 30 June in the immediate prior financial year, is $1.6 million or more. This reform replaces the proposed lifetime cap on nonconcessional contributions that was initially announced in the 2016 Federal Budget. Concessional contributions: the concessional contributions cap is reduced to $2,000 per annum. Preretirement: earnings on assets backing preretirement income streams will now be taxable, in the same way that earnings from investments in the super accumulation phase are. Tax deductions for personal contributions: providing you meet the work test in relation to personal contributions, you will now be able to claim a tax deduction for them. The test requiring that an individual has to earn less than 10% of their income from employment related activities to qualify to claim a tax deduction for a personal super contribution has been removed. Transfer balance cap: Introduction of the Transfer Balance cap which limits the total amount of superannuation benefits (both accumulation and transition to retirement) that you can transfer into a retirement phase pension or income stream, where investment earnings are tax exempt. The cap is $1.6 million for the 2017/18 financial year and is indexed.

6 Spouse contributions: Extension of eligibility for the spouse contribution tax offset, whereby the maximum spouse contribution tax offset, of up to $40, is available to the contributor when the receiving spouse s income is less than $37,000 (up from $10,800). Division 293 tax: The threshold for when Division 293 applies (the additional 1% contributions tax on high income earners) has been reduced to $20,000. Death benefits: The antidetriment benefit deduction on death benefit payments has been removed. Death benefits: For eligible beneficiaries, their superannuation death benefit income stream will now be able to be rolledover to another product provider. Low Income Super Tax Offset: A Low Income Super Tax Offset has been introduced, which will provide a payment of up to $00 to your superannuation account based on the tax paid on your concessional contributions if your adjusted taxable income is less than $37,000. REFORMS COMMENCING ON 1 JULY 2018: Concessional contributions: Ability to carry forward the portion of the concessional contributions cap not used in a year, for up to five years. In the year you make a concessional contribution that contains a carry forward unused cap portion, your total superannuation balance, on 30 June of the previous financial year, must be less than $00,000. REFORMS FROM THE 2016 FEDERAL BUDGET THAT DID NOT PROGRESS: The following reforms were announced in the 2016 Federal budget and included in the 2016 Annual report but have subsequently not been proceeded with: Lifetime cap for nonconcessional superannuation contributions Removal of work test to contribute to superannuation FEDERAL BUDGET MEASURES The 2017 Federal Budget also included some superannuation related measures. These are as follows: HOUSING PACKAGE FIRST HOME SUPER SAVER SCHEME COMMENCING 1 JULY 2017 From 1 July 2017, individuals can make voluntary contributions (including salary sacrifice, personal tax deductible and nonconcessional contributions) of up to $1,000 per year and $30,000 in total, to their superannuation account to purchase a first home. These contributions, along with deemed earnings, can be withdrawn for a first home deposit from 1 July Withdrawals of concessional contributions and deemed earnings will be taxed at marginal tax rates less a 30 per cent offset. Nonconcessional contribution amounts will not be taxed when withdrawn. Voluntary contributions under this scheme must be made within existing superannuation caps. HOUSING PACKAGE CONTRIBUTING THE PROCEEDS OF DOWNSIZING TO SUPERANNUATION COMMENCING 1 JULY 2018 From 1 July 2018, people aged 6 and over will be able to make a nonconcessional contribution into their superannuation of up to $300,000 from the proceeds of selling their home. The existing voluntary contribution rules for people aged 6 and older (work test for 674 year olds, no contributions for those aged 7 and over) and restrictions on nonconcessional contributions for people with balances above $1.6 million will not apply to contributions made under this new special downsizing cap. This measure will apply to a principal place of residence held for a minimum of 10 years. Both members of a couple will be able to take advantage of this measure for the same home, meaning $600,000 per couple can be contributed to superannuation through the downsizing cap. These new contributions will be in addition to any other voluntary contributions that people are able to make under the existing contribution rules and concessional and nonconcessional caps. Though once the contribution is made, only individuals with remaining transfer balance cap space available can convert their contributions into a retirement phase pension account (where earnings are taxexempt). INCREASE IN THE MEDICARE LEVY AND MEDICARE LEVY LOW INCOME THRESHOLDS COMMENCING 1 JULY 2019 The government will increase the Medicare levy by half a percentage point from 2.0 to 2. per cent of taxable income from 1 July Low income earners will continue to receive relief from the Medicare levy through the low income thresholds for singles, families, seniors and pensioners, however these will be increased from the 2016/17 income year. 6

7 OTHER GOVERNMENT LEGISLATED CHANGES SUPERANNUATION GUARANTEE (SG) RATE NO CHANGE As communicated in 2014, the SG rate increased from 9.2% to 9.% from 1 July The rate will remain at this level until 30 June 2021, and will then increase by 0.% each year until it reaches 12% from 1 July 202. SUPER THRESHOLDS FOR THE 2017/2018 FINANCIAL YEAR The following super and taxation threshold amounts apply during the 2017/2018 financial year. Threshold Standard concessional contributions cap (per annum) From 1 July 2017 $2,000 Nonconcessional contributions cap: Standard (per annum) (i) $100,000 Bring forward (over three years) before age $300,000 6 (ii) SG maximum contribution base (per quarter) Government cocontribution (iii) (per annum) Lower income threshold Higher income threshold Tax free part of bona fide redundancy and approved early retirement scheme payments (per payment) Base limit Plus for each completed year of service Low rate cap amount (lifetime limit) (previously known as post June 1983 low tax threshold) Applies to the taxable component of taxed super fund benefits for members aged 9 Untaxed plan cap amount Applies to the taxable component of untaxed super fund benefits Employment termination payment cap (ETP) (per annum) Capital gains tax (CGT) cap amount (lifetime limit) Transfer balance caps Maximum adjusted taxable income for the full Government Low Income super tax offset $2,760 $36,813 $1,813 $10,1 $,078 $200,000 $1,44,000 $200,000 $1,44,000 $1,600,000 $37,000 PRODUCT NEWS PRICING UPDATE FOR ewrap ONLY Effective 1 July 2016, the administration fees on PortfolioCare ewrap were lowered. The fee reduction applied across all fee tiers and the minimum monthly administration fee. INVESTMENT OPTIONS DOCUMENT To improve the way we disclose and maintain investment options on our menu, we have replaced the PDS Part 2 for PortfolioCare ewrap Super/Pension,PortfolioCare Elements Super/Pension and PortfolioCare Super/Pension Service with Investment Options documents. These documents provide a list of current investment options available through the products and will be a source of information for estimated fees and costs of individual investment options. A summary of the changes are as follows: 17 October 2016 PortfolioCare ewrap Super/Pension PDS Part 2 Investment Selection document was replaced by the PortfolioCare ewrap Super/Pension Investment Options document. 30 June 2017 PortfolioCare Elements Super/Pension and Investment PDS Part 2 was replaced by the PortfolioCare Elements Super/Pension and Investment Investment Options document. PortfolioCare Super/Pension Service PDS Part 2 Investment Selection document was replaced by the PortfolioCare Super/Pension Service Investment Options document. CLOSURE OF ELEMENTS SUPER AND PENSION TO NEW MEMBERS Effective 17 October 2016, we issued a Supplementary Product Disclosure Statement (SPDS) for our Elements Super and Pension products to confirm their closure to new members and for new accounts. Existing members of PortfolioCare Elements Super and Pension may continue to make contributions to their accounts and we remain committed to providing members in these products with the highest level of service. (i) The cap is nil for members with a total superannuation balance of over $1.6 million (at 30 June of the year prior to making the contribution). (ii) Transitional rules apply for the 2017/18 and 2018/19 years. (iii)the maximum entitlement remains at $00 and applies where at least $1,000 nonconcessional contributions have been made in the financial year and the person does not exceed the lower income threshold. 7

8 CHANGES TO FEE AND COST DISCLOSURES New ASIC regulations across the superannuation industry will change fee and cost disclosures for superannuation products over the year. The new rules are intended to promote greater transparency and comparability of fee and cost information. It s important to note that these changes don t mean you re being charged any additional or increased fees and costs, they simply change the way that fees and costs are displayed, and include indirect costs that were previously not disclosed. There is no change to investment option objectives as a result of the regulations, and investment option returns will not be affected. For open products your Product Disclosure Statement (PDS) has been updated effective 30 September 2017 and all statements (annual, half yearly, quarterly as applicable and exit statements) will be updated by 1 December CONSOLIDATION OF MULTIPLE ACCOUNTS Each year the trustee will identify and review members who have multiple accounts within the fund. Where the trustee reasonably determines that it is in the best interest of the member, the member s accounts will be consolidated and the member will receive an exit statement. Members may be given the opportunity to choose not to consolidate their accounts. UNCLAIMED SUPERANNUATION AND LOST MEMBERS ROLLOVERS TO THE ATO Under the Superannuation (Unclaimed Money and Lost Members) Act 1999, we're required to review account balances every six months and process rollovers to the ATO for the following members: members who have reached age 6, have not made contributions for over two years (meaning the account has been inactive) and we haven t been able to contact for over five years. lost members where their account balance is less than $6,000. lost members where there have been no deposits to the account in the last five years and there are insufficient records to identify the owner of the account and we re unable to pay the member directly. We do this twice a year, in April for the JulyDecember reporting period and in October for the JanuaryJune reporting period. Prior to transferring unclaimed super monies to the ATO we take reasonable efforts to contact members (or former members). If you have concerns about your superannuation we suggest that you speak to your financial adviser or our customer relations team. INSURANCE CHANGES InsuranceCare Employee Super Account closed to new members and employers on 30 September 2017 (previously offered through PortfolioCare Super Service) Effective 30 September 2017, InsuranceCare Employee Super Account closed to new members and employers. This means new applications into the product will not be accepted from new employer groups, new employees within existing employer groups, as well as existing employee members within PortfolioCare Super Service who have not taken out InsuranceCare insurance cover. What this means for existing InsuranceCare Employee Super Account members InsuranceCare members may continue to apply to increase or change their existing level of cover as well as extend the type of insurance cover taken out to the extent it is allowable under the policy. InsuranceCare Personal Super Account was soft closed in 2014, meaning we also can t accept Personal Super Account applications. There are no other changes to the product because of the closure and we remain committed to providing members with the highest level of service. InsuranceCare will have a new insurer effective 1 January 2018 We have reviewed the insurance arrangements offered for InsuranceCare. Westpac Life Insurance Services Limited has been selected as the new insurer for InsuranceCare, effective 1 January Members will have the same comprehensive insurance that is available now, plus some insurance benefits have been improved that could provide members with more protection. Other insurance offers through PortfolioCare (personal super only) To apply for insurance or change your cover through AIA Australia Limited's Priority for Platform Investors (PPPI), you ll need to obtain the relevant insurance PDS. This PDS is available from your financial adviser or from pppi.aia.com.au. Please read it carefully and consider your circumstances when deciding if this cover is right for you. INVESTMENT OPTIONS Our investment menus continue to provide a diverse range of investment possibilities, and we have expanded the range of investment options available to members during 2016/17. As part of our commitment to keeping you informed, we communicate material changes as we receive them on any of the underlying investments. For more information, please refer to the relevant product Investment Options document. 8

9 TERMINATION OF MANAGED FUNDS The following investments were terminated in the financial year 2016/17: Effective 19 October 2016, Aurora Fortitude Absolute Return Fund (AFM000AU) Effective December 2016, Acorn Capital Microcap Fund (AUS108AU) Effective December 2016, Integrity Australian Share Fund (ITG0001AU) Effective 12 May 2017, Antares Small Companies Fund (PPL107AU) The following investments were suspended/soft closed in the financial year 2016/17 effective 21 March 2017: Hunter Hall Australian Value Trust (HHA0001AU) Hunter Hall Global Equities Trust (HHA0002AU) Hunter Hall Value Growth Trust (HOW0002AU) OTHER INFORMATION ELIGIBLE ROLLOVER FUND SUPER ACCOUNTS ONLY Effective 1 January 2014, the nominated Eligible Rollover Fund changed from the Advance Retirement Savings account to the AMP Eligible Rollover Fund. We may transfer your benefits to this fund if: the value of your account is less than $2,000 1 we lose contact with you and can t locate you after a reasonable amount of time. On transferring to the AMP Eligible Rollover Fund, your rights in your super account (as applicable) will cease and you will no longer be able to make contributions to your account. Instead, you become a member of the AMP Eligible Rollover Fund and are subject to its governing rules. You will receive a PDS for the AMP Eligible Rollover Fund setting out relevant information shortly after the time your benefits are transferred. It is important to note that the following are some of the conditions that will alter from the account you previously held: You will no longer receive regular reports in respect of your PortfolioCare account. Any insurance cover you may have held through your account will cease. A different fee structure will apply. Holding an interest in the AMP Eligible Rollover Fund may result in different risks and returns to those applicable to your current investments. For further information contact: AMP Customer Service PO Box 300 PARRAMATTA NSW 2124 Phone: Fax: POLICY COMMITTEES FOR SUPER SERVICE EMPLOYEE ACCOUNTS ONLY Employers with 0 or more employees in the same corporate superannuation fund have a legal obligation to establish a policy committee. Employers with fewer employees may establish a committee but are not obliged to do so. The role of the committee is to allow employees the opportunity to enquire about investments and performance within their fund. While there is an obligation to establish the committee, if the committee decides that it serves no purpose, then it may resolve to dissolve itself at its convenience. It may be reestablished in the future if requested by at least five employees. If you re unaware of the existence of your policy committee, you should ask your employer for details. Your employer should be able to advise you of the committee members and how each member was appointed. If you are concerned that a committee does not exist, or you are unable to locate your committee, you may contact your employer or financial adviser for assistance. 1 We may vary the minimum transfer amount at any time. We may do this for individual members or group of members at our discretion (with or without notice). 9

10 FURTHER ENQUIRIES AND DISPUTE RESOLUTION PROCEDURE Further financial information not contained in this annual report, including information about fees and charges and other effects arising from a rollover or transfer of your benefit entitlements, is available on request. If you have any enquiries or complaints about the operation or management of one of the accounts, please contact the Customer Relations team on: PortfolioCare PO Box 7229 PERTH CLOISTERS SQUARE, WA 6000 Phone: Fax: (08) portfoliocare.client.services@asgard.com.au Our customer relations team are here to help. If you have a complaint, please contact us and we will do our best to resolve your concern as quickly as possible. To help us do this, please provide as much information as possible about your complaint. We have established procedures to deal with any complaints. If you make a complaint, we will: acknowledge its receipt and ensure an appropriate person properly considers the complaint, and respond to you as soon as we can. If we cannot resolve your complaint to your satisfaction or you have not had a response from us within 90 days, then you may have the right to lodge a complaint with the Superannuation Complaints Tribunal (SCT). The SCT is an independent body set up by the Government to assist members, or their beneficiaries, to resolve superannuation related complaints. It is important that you contact us to try resolve your complaint before contacting the SCT. Contact details for the SCT are: Phone: Mail: Superannuation Complaints Tribunal Locked Bag 3060 MELBOURNE VIC 3001 Online: sct.gov.au Time limits on making complaints to the SCT Time limits apply to certain complaints to the SCT. If you have a complaint, you should contact the SCT immediately to find out if a time limit applies. ANNUAL FINANCIAL STATEMENTS THE RETIREMENT PLAN Superannuation legislation allows us to provide you with abridged financial statements relating to the accounts in this annual report. A copy of the full audited financial statements for the fund for the financial year ended 30 June 2017 is available from us on request. The abridged financial information for The Retirement Plan includes the Super and Pension Services, Elements Super and Pension and ewrap Super and Pension accounts. ABRIDGED FINANCIAL INFORMATION Any information that you may require (including The Retirement Plan trust deed, financial statements and the auditor s report) is available on request by contacting us at PortfolioCare PO Box 7229 PERTH CLOISTERS SQUARE, WA 6000 Phone: Fax: (08) portfoliocare.client.services@asgard.com.au 10

11 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE /06/2017 $'000 30/06/2016 $' June 2017 $ June 2016 $ 000 Assets Superannuation activities Investments Dividends 10,49 11,461 Investments in equities 197, ,491 Interest 2,677 4,269 Investments in fixed interest securities 4,169 2,813 Distributions from managed investment schemes 166, ,622 Term deposits Investments in managed schemes 33,26 2,631,900 43,413 2,796,184 Changes in assets measured at fair value Other income 96, (107,978) 00 Total investments 2,866,76 3,060,901 Total superannuation activities income 277,236 79,874 Other assets Cash and cash equivalents Receivables Current tax asset Deferred tax asset 222,428 16,109 7,060 3,43 210,724 9,79 10,286 9,896 General administration expenses Operating expenses Total expenses Net result from superannuation activities (21,440) (21,440) 2,796 (2,049) (2,049) 4,82 Total other assets Total assets Liabilities Payables Accounts payable Total liabilities excluding member benefits 249,00 3,11,81,93,93 240,66 3,301,66 4,38 4,38 Profit from operating activities Less: Net benefits allocated to members' accounts Net profit/(loss) before income tax Income tax benefit Net profit/(loss) after income tax 2,796 (29,816) (4,020) 4,020 4,82 (71,96) (17,131) 17,131 Net assets available for members benefits 3,109,862 3,297,028 Member benefits Allocated to members 3,106,409 3,287,132 Unallocated to members 3,43 9,896 Total member liabilities 3,109,862 3,297,028 Total net assets Total net equity 11

12 STATEMENT OF CHANGES IN MEMBER BENEFITS FOR THE YEAR ENDED 30 JUNE 2017 Opening balance of member benefits Employer contributions Member contributions Transfer from other superannuation plans Income tax on contributions Net after tax contributions Benefits to members/beneficiaries Transfers from other superannuation plans Adviser fees Insurance proceeds received from insurer Insurance premiums charged to members' accounts Tax on insurance and adviser fees Net benefits allocated to members' accounts, comprising Net investment income Administration fees Transfer to/(from) unallocated benefits Closing balance of member benefits 30 June 2017 $ 000 3,287,132 31,04 69,34 2,976 (,266) 148,100 (320,208) (24,383) (21,922) 4,244 (4,913) 2, ,26 (21,440) 6,443 3,106, June 2016 $ 000 3,2,086 34,071 66,047 2,100 (,709) 146,09 (234,766) (194,642) (23,269) (4,872) 2,378 97,00 (2,049) (1,248) 3,287,132 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017 Cash flows from operating activities Dividends and distributions from managed investment schemes received Interest received Other income received General expenses paid Adviser fees paid Insurance premiums paid Insurance proceeds received Income tax refund Net cash inflows/(outflows) from operating activities Cash flows from investing activities Proceeds from sale of investments Payments for purchase of investments Net cash inflows/(outflows) from investing activities Cash flows from financing activities Employers contributions received Members contributions received Transfers from other superannuation plans received Benefits paid to members Income tax paid on contributions received Net cash inflows/(outflows) from financing activities Net increase/(decrease) in cash held Cash at the beginning of period Cash at the end of period 30 June 2017 $ ,320 2, (21,811) (21,922) (4,927) 4,244 1,789 12,290 1,13,212 (868,110) 28,102 31,04 69,34 2,976 (73,788) (,266) (42,688) 11, , , June 2016 $ ,04 4,32 1,178 (2,03) (23,269) (4,890) 14, ,601 1,010,767 (890,424} 120,343 34,071 66,047 2,100 (429,470) (,709) (282,961) (13,017) 223, ,724 12

13 Contact us phone web mail amp.com.au/portfoliocare PO Box 7229 PERTH CLOISTERS SQUARE WA 6000 Trustee: N.M. Superannuation Proprietary Limited ABN AFS Licence No Administrator: Asgard Capital Management Limited ABN AFS Licence No