Incitec Pivot Employees Superannuation Fund

Transcription

1 2016 ANNUAL REPORT Incitec Pivot Employees Superannuation Fund

2 In this issue Note from your Trustee 1 Your 2015/16 super returns 4 Our investments 8 More about IPE Super 18 Financials 21 How you can contact us Back page Features A recipe for super success 2 Super news: 2016 Federal Budget and your super 16 Your Annual Report This Annual Report has been prepared for members of the Incitec Pivot Employees Superannuation Fund (ABN ). It reviews the Fund s performance and super developments for the past 12 months and covers how the Fund is managed. If you have a question, call the IPE Super Helpline on The information in this document is general information only and does not take into account your particular objectives, financial circumstances or needs. It is not personal or tax advice. Any examples included are for illustration only and are not intended to be recommendations or preferred courses of action. You should consider obtaining professional advice about your particular circumstances before making any financial or investment decisions based on the information contained in this document. Information on tax and superannuation legislation is current as at the date of publication and may change. Issued by Towers Watson Superannuation Pty Ltd (ABN , AFSL ), as Trustee of the Incitec Pivot Employees Superannuation Fund, (ABN , MySuper Authorisation number ). Preparation of this Annual Report was completed on 13 September 2016.

3 Note from your Trustee We are pleased to present the 2016 Annual Report for IPE Super which includes an overview of the Fund s investment performance for the year to 30 June 2016 and reflects on key events over the past year. Your 2015/16 super performance It s been a difficult year for investment markets, which were volatile over the year to 30 June Both the Australian and international share markets experienced dramatic swings throughout the year and ended the year virtually unchanged. The weakness of share markets dragged on the returns for IPE Super s Assertive Plus, Assertive and Active Balanced options, which have a significant proportion of assets invested in shares. However, the modest gains achieved by these options other assets such as direct property, alternative investments, fixed interest and cash contributed favourably to overall results. The Fund s investment returns for the year were above those of peer funds (see below). Remember though that super is generally a long-term investment, so returns over longer periods are a better indicator of performance than over a shorter period of one or two years. Since IPE Super commenced in 2006, the Assertive Plus, Assertive and Active Balanced options have delivered solid returns (see page 4). This period also takes into account the very poor returns associated with the global financial crisis. A recipe for super success IPE Super has many features to help you plan for your future. Follow the recipe on page 2 and make the most of your membership. Super news: 2016 Federal Budget proposals The 2016 Federal Budget contained a number of super-related proposals. These will generally start from 1 July 2017 and only if the necessary legislation is passed. Read page 16 for a summary of what is proposed and what it could mean for you. Many people develop an interest in super when they are nearing retirement. However, the long-term nature of super means it s important to understand super at every stage of your life and not just leave it until you are nearing retirement. We encourage you to take the time to read this year s Annual Report to see how IPE Super is supporting your retirement journey. The Trustee Incitec Pivot Employees Superannuation Fund If you are a Defined Benefit member, the defined benefit part of your super is generally not affected by investment returns, but instead is linked to your salary. However, the growth of your additional voluntary contribution and rollover accounts is dependent on the Fund s investment returns. See the table below for how each option performed during 2015/16. More details on your returns are on page 4. To see how IPE Super invests its assets, see page 8 to 15. IPE Super s performance Past performance is not necessarily a reliable indicator of future performance. Investment option 2015/16 Five-year compound average net return (per year) Assertive Plus 3.31% 9.24% Assertive 3.38% 8.43% Peer fund comparison # % Active Balanced % 7.99% Peer fund comparison # 2.81% 7.92% Conservative 3.66% 5.77% Peer fund comparison # 3.36% 5.70% Cash 1.80% 2.77% Defined Benefit section % 6.55% IPE Super s membership At 30 June ,232 At 30 June ,304 IPE Super s assets At 30 June 2016 $185.2 million At 30 June 2015 $181.7 million Notes: Investment returns are net of tax, investment fees, indirect costs, and an administration fee that has varied over time but is currently 0.165% per year. Before 1 November 2015, returns were also subject to a deduction of 0.083% per year to build up IPE Super s Operational Risk Financial Requirement (ORFR) reserve. ORFR deductions ceased from 1 November No allowance for the ORFR reserve was made from the investment returns of the Defined Benefit section. For more information on IPE Super s ORFR reserve, see page 11. Returns for Account-Based Pension members are on page 4. # Peer fund comparisons are based on SuperRatings Pty Ltd s Fund Crediting Rate Survey, median returns (SR50 Growth (77-90) Index, SR50 Balanced (60-76) Index and SR50 Capital Stable (20-40) Index), published on 20 July 2016, compared with IPE Super s Assertive, Active Balanced and Conservative options, respectively), SuperRatings statistics are not financial product advice; independent professional advice should be obtained before making any financial decisions. 1 This is the option for MySuper members. 2 If you are a Defined Benefit member, see page 7 to find out how investment performance affects your benefits in IPE Super Annual Report 1

4 A RECIPE FOR SUPER SUCCESS Feature IPE Super has a number of features to help you enhance your super and plan for your future. Follow this recipe to set yourself up for super success. Ingredients Contributions Planning Foresight Internet or telephone PREP: NOW COOK: UNTIL RETIREMENT LEVEL: EASY TO MEDIUM SERVES: YOU AND YOUR DEPENDANTS Method 1. Get ready... Register yourself on the Member Centre. Go to and click on Member Centre, then Register Now (You can skip this step if you have already registered). 2. Take stock of where you re at Log in to see your super balance, how your super is invested, what insurance cover you have and who you ve nominated for your death benefit. 3. Top up or roll over TIP: Having a copy of your Benefit Statement on hand will help. TIP: You can edit your personal details online. Can you be putting extra money away into super? As long as you stay within the Government s contribution limits, your contributions should be eligible for tax concessions (see page 17 for more details on the limits). TIP: To top up your contributions, complete an Application & Change Form, available from the website or call the IPE Super Helpline on If you have super in other funds, consider rolling it into one account in IPE Super. You could save yourself extra fees and paperwork. TIP: Before rolling over, it s important to check whether you will be charged exit fees or will lose any valuable benefits, such as insurance cover, if you withdraw your benefit from your other fund. TIP: Rollovers can be arranged online through the Member Centre, or by completing a Rollover Form from IPE Super s website. Need a helping hand? Further information and forms are available at under About the Fund and Forms & Publications. If you have any questions, call the IPE Super Helpline on Incitec Pivot Employees Superannuation Fund

5 4. Measure up Are your investments a good fit for your life stage and attitude to risk? Remember that each of IPE Super s eight investment options has a different potential risk and return. It s a trade-off generally, the higher the potential return in the long term, the higher the risk of short-term loss. TIP: If you are a Defined Benefit member, investment choice only applies to your additional voluntary contributions and rollover accounts. TIP: See pages 12 to 15 and IPE Super s Investment Guide to learn about the different investment options that the Fund offers. Do you have enough insurance to protect you against the unexpected? Think about who is financially dependent on you, the cost of day to day living and the size of any debts you may have. TIP: IPE Super provides eligible members with a range of flexible insurance options to help protect you and your family from the unexpected (see your most recent Benefit Statement for details of your cover). Eligible members can also buy extra insurance cover for death and disablement, as well as for income protection, through IPE Super. To learn more, read IPE Super s Insurance Guide, available from the Fund s website. 5. Who will get a share Make a nomination of beneficiaries and keep it up to date so that the Trustee is aware of how you would like your super paid out if you die. There are two types of nominations. If you have a binding nomination that is valid at the time of your death, the Trustee will be legally required to pay your benefit according to your wishes (even if your personal circumstances have changed). In the case of a non-binding nomination, the Trustee will need to investigate your personal circumstances at the time of your death and act in the best interests of your dependants when making a decision. Need financial advice? If you could do with some guidance to help you make decisions about planning for your future, consider speaking with a licensed financial adviser. Towers Watson Australia Pty Ltd offers financial planning services through qualified financial planners: call (03) You can also locate a financial adviser in your area by downloading the Government s guide, Financial advice and you, from Follow these steps: Hover over the Tools and resources tab, then go to Publications. Scroll down to the Investing category. Alternatively, you can contact the Financial Planning Association of Australia at or by calling TIP: To make a binding nomination, simply complete the Death Benefit Nomination Form available at have it witnessed by two people (who are not your beneficiaries) and return as directed. Non-binding nominations can be completed via the form or online via the Member Centre. 6. Leave to grow. 7. Check regularly to see if further adjustments are required! 2016 Annual Report 3

6 Your 2015/16 super returns The table below shows IPE Super s investment returns. Your super performance will fluctuate each year depending on how the investment markets perform. Super returns can be either positive or negative. In most cases though, super is a long-term investment. For instance, returns earned over a period of five or more years, instead of one or two years, are likely to better indicate your super s performance. Detailed returns are also provided on your Benefit Statement and the most recent returns are available on the website at by logging into the Member Centre. A snapshot of IPE Super s returns Past performance is not necessarily a reliable indicator of future performance. Investment option Five-year compound average net return (per year) Compound average return since inception (per year) Accumulation section Assertive Plus 3.31% 11.15% 16.21% 19.80% -2.70% 9.24% 4.77% 2 Assertive 3.38% 9.57% 14.57% 16.65% -1.00% 8.43% 5.06% 2 Active Balanced % 8.89% 13.15% 15.21% 0.00% 7.99% 4.79% 2 Conservative 3.66% 5.20% 7.69% 8.16% 4.20% 5.77% 5.12% 2 International -1.39% 22.47% 18.71% 26.07% -4.60% 11.51% 2.67% 2 Shares Australian 2.97% 6.41% 17.46% 20.44% -4.80% 8.09% 4.99% 2 Shares Diversified Fixed 4.87% 4.02% 5.92% 4.41% 8.60% 5.55% 5.79% 2 Interest Cash 1.80% 2.12% 2.67% 3.29% 4.00% 2.77% 3.72% 2 Account-Based Pension section Aggressive 2.93% 11.87% 19.16% 9.11% 3 n/a n/a 12.22% 4 Assertive 2.43% 10.91% 17.22% 8.01% 3 n/a n/a 10.94% 4 Balanced 3.01% 9.68% 15.33% 18.57% 0.20% 9.13% 5.99% 2 Cautious 3.47% 7.97% 12.32% 5.36% 3 n/a n/a 8.30% 4 Conservative 4.11% 6.33% 9.28% 3.42% 3 n/a n/a 6.61% 4 Cash 2.24% 2.53% 3.19% 3.91% 4.60% 3.29% 4.39% 2 Defined Benefit section 3.27% 6.70% 9.72% 12.46% 1.00% 6.55% 4.53% 2 Notes: Returns are for periods to 30 June. Investment returns are net of tax, investment fees, indirect costs and an administration fee that has varied over time but is currently 0.165% per year. Account-Based Pension returns are not taxed. From 1 July 2013 to 31 October 2015, returns were also subject to a deduction of 0.083% per year to build up IPE Super s Operational Risk Financial Requirement (ORFR) reserve. ORFR deductions ceased from 1 November No allowance for the ORFR reserve was made from the investment returns of the Defined Benefit section. For more information on IPE Super s ORFR reserve, see page This is the option for MySuper members. 2 IPE Super commenced on 1 November 2006, so the returns shown are the compound average returns since that date. 3 The Aggressive, Assertive, Cautious and Conservative options for the Account-Based Pension section were introduced from 1 January 2013, so returns shown for 2013 are for the six-month period from 1 January 2013 to 30 June The Aggressive, Assertive, Cautious and Conservative options for the Account-Based Pension section were introduced from 1 January 2013, so returns shown are the compound average returns for the period since inception. 4 Incitec Pivot Employees Superannuation Fund

7 Investment market update The 2015/16 financial year was one of increasing global economic uncertainty. This was primarily caused by economic and geopolitical risks in the Eurozone (the potential Grexit and eventual Brexit), uncertainty and volatility surrounding the Chinese economy, a fall in global commodity prices and concerns about Japanese deflation. These lower expectations also occurred despite indications of a potential US economic recovery, the end of 10 years of US interest rate reductions and predominantly positive signals for the Australian economy. Returns for global share markets suffered, with the MSCI World ex Australia (unhedged) Index returning just 0.4%, compared to 25.2% and 20.4% for the last two financial years, respectively. The Australian dollar depreciated relative to the basket of currencies included in the MSCI World ex Australia (AUD hedged) Index, falling in value by 1.4%. Despite mixed signals from the US, signs of a continued recovery were apparent as the Federal Reserve (Fed) increased interest rates for the first time in almost a decade. The US unemployment rate fell to 4.7%, an even more significant low than the previous year, before finishing flat at 4.9%. Uncertainty surrounding the US election also weighed on the US economy. The US dollar strengthened throughout the year against major currencies. While concerns around Greece s potential exit from the Eurozone faded early in the year (as an agreement between Greece and its creditors was reached in July 2015) and confidence began to pick up, uncertainty around Brexit led to a mixed year for the European Union (EU). Britain s vote to leave the EU at the end of the financial year shocked financial markets (which had become increasingly confident that Britain would remain), increasing economic and financial risks. This uncertainty contributed to negative performance for the Eurozone share market, with the Euro Stoxx 50 Index returning -16.3% over the financial year (in local currency terms). Over the year the Bank of Japan remained committed to quantitative easing and low interest rates, moving to a negative and record low interest rate of -0.1%, as it fought to promote economic growth and prevent deflation. It was also a volatile year for China, which experienced a continued decline in growth. The Shanghai Stock Exchange Composite Index began the year at a high (following a 150% rise in under 12 months), crashing during the year and ending the year 43.3% below its June 2015 high. Indicators for the Australian economy were mixed, with global economic uncertainty having an impact on stability, coupled with the lead up to the federal election. The Australian economy still managed to outperform its forecast driven by a slight recovery in commodities (and therefore mining), as well as continued positive contributions from the services sector. The manufacturing sector continued to lessen overall performance. The Reserve Bank of Australia decided to cut the official cash rate even further during the year, to a then record low of 1.75%, in a bid to improve growth in the Australian economy to a more desirable level and support further growth in household consumption. In line with the poor performance of global shares, the Australian share market experienced meagre returns. The S&P/ASX 300 Index returned 0.9%, compared to 5.6% and 17.2% for the previous two financial years, respectively. While overall share market returns were low, the performance of various sectors differed greatly. The energy and resources sectors delivered returns of -21.8% and -10.6%, respectively. Utilities was the most positive contributor returning 24.4%, followed closely by the health care and consumer discretionary sectors which each returned 21.1% and 19.7%. The Australian dollar fell over the year, despite some late recoveries to end at US cents (down from US cents). The fall was largely attributed to slowing demand from China, a subsequent fall in commodity prices and an increase in optimism towards the US economy. Over the same period the Australian dollar also fell against the currencies of its major trading partners, with the Trade Weighted Index ending the year at 62.5 (down from 63.8 at the start of the year). With falling bond yields, fixed interest provided investors with solid returns. Australia fixed interest, measured by the Bloomberg AusBond Bank Bill Index, returned 2.2% for the year, down from 2.6% last year. On the other hand, the Bloomberg AusBond Composite Index returned 7.0%. Global fixed interest outperformed Australian fixed interest, with the Barclays Global Aggregate Index (hedged to AUD) returning 9.3% for the financial year. Australian cash reflected the low cash rates and returned 2.2% for the year. Note: This investment commentary does not constitute advice. All investment figures quoted relate to before-tax performance of the relevant industry benchmark Willis Towers Watson. All rights reserved Annual Report 5

8 Super spotlight Asset classes: These are different types of investments e.g. shares, property, fixed interest and cash. Growth assets: Returns from growth assets come from the change in the asset s value (such as an increase in share prices) and the income from the investment (such as dividends). Shares, property, infrastructure and hedge funds are common examples of growth assets. Returns are generally higher than other assets over the longer term but will be negative from time to time. Income assets: These assets include cash, corporate debt and fixed interest. Their market value can also fluctuate, but usually with less volatility than is the case with growth assets. 6 Incitec Pivot Employees Superannuation Fund

9 Returns on your super Accumulation members Your accounts receive the actual investment return for your chosen option(s) (or the Active Balanced option for MySuper members) after allowing for tax, investment fees, indirect costs, and an administration fee (currently 0.165% per year, increasing to 0.190% per year from 1 December 2016). From 1 July 2013 to 31 October 2015, returns were also subject to a deduction of 0.083% per year to build up IPE Super s Operational Risk Financial Requirement (ORFR) reserve. If you are an Account-Based Pension member, your actual returns are calculated in the same manner except there is no tax on the investment returns earned by Account-Based pensions. Investment returns can be positive or negative. Defined Benefit members Your retirement benefit is generally not affected by investment returns. This benefit is instead linked to your salary at or near retirement. However, the growth of your additional accounts that is, any additional voluntary contributions or rollovers into IPE Super is dependent on the Fund s investment returns. These additional accounts receive the actual investment return for your chosen option (or the Active Balanced option if you did not make an investment choice). Defined Benefit members who joined the Orica Defined Benefit Super Fund before 1 July 1992 have an Accumulation Guarantee. This means you will receive the greater of an accumulation or defined benefit. The rate of growth of this Accumulation Guarantee benefit is dependent on the investment performance of IPE Super s Defined Benefit section. The actual investment return for the Defined Benefit section is determined after allowing for tax, investment fees, indirect costs, and the Fund s percentage-based administration fee (currently 0.165% per year, increasing to 0.190% per year from 1 December 2016). Returns may be positive or negative. See your Benefit Statement for information on how your benefit is calculated. The Defined Benefit section is closed to new members. Note: Surcharge payments (if any) are deducted from members benefits. If you leave during the year Investment returns are calculated each month. If your super needs to be paid out before monthly investment returns have been calculated, or if you switch investment options, an interim earning rate will be used. The interim earning rates are based on the daily unit price of each of IPE Super s investment options. These interim rates will cover the period from the previous date that investment earnings were declared until the date your benefit is paid (or your transfer request is processed). The exception is benefits that are paid to Defined Benefit members. If you are a Defined Benefit member and you leave employment, the whole of your benefit will be transferred to IPE Super s Retained Benefits section. Here, the defined component of your benefit will be invested in the Fund s Cash option while your additional accounts (if any) will continue to be invested in your chosen investment option (or Active Balanced option if you did not make an investment choice). Your benefit will continue to be invested in this manner until you either change your investment option, transfer your benefit from IPE Super or are paid your benefit from IPE Super Annual Report 7

10 Our investments IPE Super has a number of investment options for you to choose from, each with its own investment objective and strategy. There are four pre-packaged investment options (Assertive Plus, Assertive, Active Balanced and Conservative) and four asset class options (Australian Shares, International Shares, Diversified Fixed Interest and Cash). For Account-Based Pension members, there are six investment options for you to choose from. If you are an Accumulation member, you can choose how your entire super is invested. If you don t make a choice, your super will be invested in IPE Super s Active Balanced option (which is the MySuper option), or the Pension Balanced option if you are an Account-Based Pension member. If you are a Defined Benefit member, you only have investment choice for your additional accounts that is, any additional voluntary contributions or rollovers into IPE Super. We know that it is important for you to find the most appropriate investment choice for your circumstances. If you wish to change how the Trustee invests your super, you can log into the Member Centre at Alternatively, you can download the form which is relevant for your membership category by visiting IPE Super s website and looking under Forms & Publications. Consider obtaining financial advice before taking these steps see page 3 on how to find a financial adviser. Read on to learn about the investment objectives and strategy of each option. Details of IPE Super s investment managers are also provided. Investment objectives Investment objectives are specific goals that the Trustee sets for the performance of the Fund and each investment option. They are not intended as forecasts or guarantees of future investment returns. In general, the Trustee aims to: Invest the Fund s assets prudently as permitted by the Trust Deed and by superannuation law, Invest across a diverse range of assets, Ensure that the Fund is able to make benefit payments to members when they are due, and Monitor the performance of the Fund s investment managers to ensure they exercise integrity, prudence and professional skill in fulfilling the investment tasks delegated to them. See pages 12 to 15 to learn more about the specific investment objectives for each investment option. Investment strategy An investment strategy is the plan the Trustee follows to achieve the objectives of an investment option. Each investment option has its own investment strategy. For the details of each option s investment strategy, see pages 12 to 15. Investment managers The Trustee appoints professional investment managers to manage IPE Super s investments. These managers and their products may be changed from time to time without prior notice to, or consent from, members. JANA Investment Advisers Pty Ltd (JANA) (ABN , AFSL ) is the investment adviser to IPE Super. Part of the National Australia Bank Group, JANA is a specialist provider of tailored investment advice to major superannuation funds and other institutional investors. JANA s role is to assist the Trustee in establishing appropriate long-term investment objectives and strategies for IPE Super and to implement these strategies. This includes appointing, monitoring and, where appropriate, terminating the investment management companies who look after IPE Super s assets. The Trustee currently invests IPE Super s assets across a number of unit trusts. Each trust covers a specific investment sector. The majority of the trusts adopt a multi-manager approach whereby the trust comprises a number of specialist investment managers. The table on page 9 shows the trusts, the individual managers and the Fund s holding in each. The Trustee also has direct holdings in three unlisted property funds and an infrastructure fund. These too are shown. Super spotlight Investment objective: This is a fund s investment goals. A fund s investment objectives are usually set in terms of risk and return. For example, a fund might aim to achieve returns that exceed the rate of inflation by a set amount. Asset allocation: The distribution of investments across various asset classes (such as shares, property, fixed interest and cash). Super spotlight Trust Deed: This legal document sets out the rules relating to the establishment and operation of the Fund. 8 Incitec Pivot Employees Superannuation Fund

11 IPE Super s investment managers at 30 June 2016 Investment managers % of Fund Investment managers % of Fund Australian shares 25.00% JANA Core Australian Share Trust 15.17% Balanced Equity Management Pty Ltd Solaris Investment Management Ltd Concise Asset Management Limited FIL Limited JANA High Alpha Australian Share Trust 7.85% Cooper Investors Pty Ltd Ubique Asset Management Pty Ltd BT Investment Management (Institutional) Limited JANA Small Caps Australian Share Trust 1.98% Fairview Equity Partners Pty Ltd Invesco Australia Limited Paradice Investment Management Pty Ltd International shares 22.28% JANA Passive Global Share Trust 4.86% Vanguard Investments Australia Ltd JANA Passive Global Share Trust (Hedged) 5.22% Vanguard Investments Australia Ltd JANA Core Global Share Trust 0.32% Acadian Asset Management LLC Janus Capital Management Ltd Schroders Investment Management Australia Limited JANA Core Global Share Trust (Hedged) 0.30% Acadian Asset Management LLC Janus Capital Management Ltd Schroders Investment Management Australia Limited JANA Emerging Markets Trust 3.33% Delaware Investments Australia Neuberger Berman Australia Pty Limited JANA High Alpha Global Share Trust 8.25% Carnegie Asset Management Fondsmaeglerselskab A/S Harding Loevner LLC Pzena Investment Management LLC Sands Capital Management LLC Tweedy, Browne Company LLC Property 12.74% JANA Global Property Trust 0.12% Morgan Stanley Investment Management Limited Resolution Capital Limited AMP Capital Diversified Property Fund 5.95% Dexus Wholesale Property Fund 5.21% Charter Hall Prime Office Fund 1.46% Alternatives 14.40% JANA Select Opportunities Trust 8.93% BlackRock Inc RARE Infrastructure Limited Fischer Francis Trees & Watts Inc Insight Investment Management (Global) Limited Loomis Sayles & Company LP Oaktree Capital Management, L.P. Shenkman Capital Management Inc JANA Low Correlation Strategy Trust 4.79% JANA Investment Advisers Pty Ltd AMP Capital Community Infrastructure Fund 0.68% Diversified Fixed Interest 11.55% JANA Diversified Fixed Income Trust 9.76% PIMCO Australia Pty Limited UBS Asset Management (Australia) Limited Franklin Templeton Investments Australia Limited Fischer Francis Trees & Watts Inc Insight Investment Management (Global) Limited Loomis Sayles & Company LP Wellington Management Company, LLP JANA All-Maturity Diversified Debt Trust 0.44% Amundi Asset Management Antares Capital Franklin Templeton Investments Australia Limited Fischer Francis Trees & Watts Inc Insight Investment Management (Global) Limited Goldman Sachs Group Inc Loomis Sayles & Company LP PIMCO Australia Pty Limited UBS Asset Management (Australia) Limited Wellington Management Company, LLP JANA Short-Maturity Diversified Debt Trust 1.35% Antares Capital Fischer Francis Trees & Watts Inc Insight Investment Management (Global) Limited Goldman Sachs Group Inc Loomis Sayles & Company LP UBS Asset Management (Australia) Limited Wellington Management Company, LLP Cash 14.03% JANA Cash Trust 14.03% Antares Capital Total % 2016 Annual Report 9

12 Asset allocation Each of IPE Super s investment options are invested in various asset classes. The Trustee places limits or ranges on the Fund s exposure to each asset class and nominates a neutral or benchmark position for each option. The asset allocation ranges for each investment option are shown below. Investment option and asset type Benchmark allocation Asset allocation range Accumulation section Assertive Plus option Australian shares 51% 36% to 66% International shares 34% 24% to 44% Property 12% 0% to 20% Growth alternatives 3% 0% to Defensive alternatives 0% 0% to 5% Fixed interest 0% 0% to 5% Cash 0% 0% to 5% Assertive option Australian shares 42% 27% to 57% International shares 28% 18% to 38% Property 12% 0% to 20% Growth alternatives 3% 0% to Defensive alternatives 7% 0% to 15% Fixed interest 8% 0% to 20% Cash 0% 0% to 15% Active Balanced option Australian shares 36% 25% to 55% International shares 24% 5% to 30% Property 0% to 20% Growth alternatives 3% 0% to Defensive alternatives 7% 0% to 15% Fixed interest 15% 5% to 40% Cash 5% 0% to 25% Conservative option Australian shares 12% 5% to 25% International shares 8% 0% to 20% Property 0% to 20% Growth alternatives 3% 0% to Defensive alternatives 7% 0% to 15% Fixed interest 40% 20% to 60% Cash 20% 0% to 40% Investment option and asset type Benchmark allocation Asset allocation range Account-Based Pension section Aggressive option Australian shares 46% 30% to 60% International shares 33% 15% to 45% Property 0% to 20% Growth alternatives 11% 0% to 30% Defensive alternatives 0% 0% to 15% Fixed interest 0% 0% to 20% Cash 0% 0% to 15% Assertive option Australian shares 30% 15% to 45% International shares 23% to 40% Property 0% to 20% Growth alternatives 17% 0% to 30% Defensive alternatives 12% 0% to 25% Fixed interest 8% 0% to 30% Cash 0% 0% to 20% Balanced option Australian shares 26% to 40% International shares 18% 5% to 35% Property 0% to 20% Growth alternatives 16% 0% to 30% Defensive alternatives 12% 0% to 30% Fixed interest 18% 0% to 40% Cash 0% 0% to 25% Cautious option Australian shares 17% 0% to 30% International shares 11% 0% to 30% Property 0% to 20% Growth alternatives 12% 0% to 30% Defensive alternatives 15% 0% to 30% Fixed interest 35% 0% to 50% Cash 0% 0% to 30% Conservative option Australian shares 0% to 20% International shares 7% 0% to 20% Property 5% 0% to 15% Growth alternatives 8% 0% to 20% Defensive alternatives 13% 0% to 30% Fixed interest 47% 0% to 60% Cash 0% to 40% Cash option Cash 100% 100% 10 Incitec Pivot Employees Superannuation Fund

13 Other investment information Derivatives The Trustee does not invest directly in derivatives. IPE Super does, however, invest in the JANA Select Opportunities Trust. Within this trust, one or more of the underlying managers may use derivatives to assist them in achieving IPE Super s investment objectives. IPE Super s other investment managers only use derivatives for risk-control purposes or to more efficiently shift asset allocations. Investment managers are required to have risk management processes in place in relation to the use of derivatives and the purposes for which they are used. Each year, the Trustee obtains confirmation from JANA that the managers have complied with their risk management processes. JANA also has a comprehensive Derivatives Policy. Deferred tax assets Super funds normally pay tax on capital gains. If the Fund experiences capital losses (which can arise, for example, due to falls on share markets), super funds are allowed to accumulate the tax benefits associated with those losses and use them to offset the tax on future capital gains. Australian Accounting Standards require that future tax benefits will be recognised only to the extent that it is likely that future taxable gains will be available to utilise the capital losses. In order to prudently manager the Fund s tax position, the Trustee has imposed a limit on the level of taxation benefits arising from these capital losses. At 30 June 2016, the level of IPE Super s tax losses was within the limit set by the Trustee. The Trustee is therefore recognising the whole of the Fund s tax losses as a Fund asset. Actuarial review IPE Super s financial position is reviewed by the actuary at least every three years. The actuary then makes recommendations to the Company on the appropriate level of future contributions needed to maintain members benefits. Reserves The Trustee does not maintain investment reserves. However, it does maintain an Operational Risk Financial Requirement (ORFR) reserve as described below. Operational Risk Financial Requirement (ORFR) reserve From 1 July 2013, super funds have been required to set aside financial resources to address their operational risks. The Trustee has established an ORFR reserve equal to 0.25% of the value of members vested benefits for this purpose. The reserve has been funded in two ways. For accumulation-based benefits, the reserve was funded by setting aside a small portion of the Fund s investment earnings at the rate of 0.83% per year. The amount is invested in the Active Balanced option. For defined benefits, the reserve was funded by setting aside amounts from the Fund s defined benefit assets. These amounts are invested in the same as the Fund s defined benefit assets. The desired level of 0.25% was reached by 30 June The Trustee will periodically monitor the reserve to ensure that it remains close to this level. Should the reserve fall below a predetermined shortfall limit, the Trustee will enact a plan for its replenishment. The Trustee will update members annually on the status of the reserve. Level of reserve As at 30 June ORFR reserve % of members vested benefits % ($479,136) % ($337,787) % ($169,331) At the most recent actuarial review (at 30 June 2015) the Fund s Actuary determined that the Fund s assets were not sufficient to cover benefits if all members had resigned voluntarily at that date. The Trustee and the Company have agreed on a contribution strategy to return IPE Super to a satisfactory financial position. Since this actuarial review, the Fund s financial position has strengthened, but at 30 June 2016 remains in an unsatisfactory financial position Annual Report 11

14 IPE Super s pre-packaged investment options Accumulation section Summary Assertive Plus Assertive Active Balanced (MySuper option) Provide growth over the long term, while acknowledging that returns are likely to be very volatile over the short term. Provide growth over the long term, while acknowledging that returns are likely to be volatile over the short term. Provide growth over the medium to long term, while acknowledging that returns are likely to be somewhat volatile over the short term. Conservative Provide stable returns over time whilst placing a high importance on capital protection. What is the investment objective for this option? Achieve an expected rate of return (net of investment fees and tax) that exceeds the rate of inflation (CPI) by at least 4% per year over each seven-year period. Achieve an expected rate of return (net of investment fees and tax) that exceeds the rate of inflation (CPI) by at least 3.5% per year over each seven-year period. Achieve an expected rate of return (net of investment fees and tax) that exceeds the rate of inflation (CPI) by at least 3% per year over each five-year period. Achieve an expected rate of return (net of investment fees and tax) that exceeds the rate of inflation (CPI) by at least 2% per year over each three-year period. What investment strategy does this option use? Invest mainly in Australian and international shares, and property. Invest mainly in Australian and international shares, and property, with around 15% in defensive alternatives and fixed interest investments. Invest mainly in Australian and international shares, and property, and has around 30% in income-producing assets such as defensive alternatives, fixed interest and cash investments. Invest mainly in fixed interest, cash and defensive alternative investments, with about 30% in shares and property. How is the option invested at 30 June? % 16% 40% 38% % 4% 9% 7% 7% 9% 25% 30% 31% 6% 11% 16% 7% 6% 27% 31% 14% 25% 12% % 2% 3% 4% 8% 8% 15% 9% 6% 26% 31% 31% 39% 11% 7%15% 6% 40% 7% 24% 11% 31% 26% 13% Australian shares International shares Property Growth alternatives Defensive alternatives Fixed interest Cash 12 Incitec Pivot Employees Superannuation Fund

15 IPE Super s asset-class options Option Australian shares International shares Diversified Fixed Interest Cash Investment objective Achieve a long-term (net of tax and fees) rate of return that exceeds the net of tax return of the S&P/ASX 300 Index over rolling four-year periods. Achieve a long-term (net of tax and fees) rate of return that exceeds the net of tax return of the MSCI World (excluding Australia) Index over rolling four-year periods. Achieve a long-term (net of tax and fees) rate of return that exceeds the net of tax return of the composite benchmark (comprising 50% UBS Composite Bond Index and 50% Barclays Global Aggregate Index [Hedged]) over rolling two-year periods. Aims to outperform the net of tax return of the UBS Australia Bank Bill Index each year. Investment strategy and asset allocation (as at 30 June 2015 and 30 June 2016) Invest purely in Australian shares. Invest purely in international shares. This option has full currency exposure i.e. there is no currency hedging. Invest purely in fixed interest investments, in both domestic and international markets. All international fixed interest is fully hedged. Invest purely in cash investments. 100% 100% 100% 100% IPE Super s Defined Benefit section How are the defined benefit assets invested? 30 June % 30 June % 21% 22% 11% 9% 3% 2% 17% 15% 18% 13% 15% 17% Asset Allocation JANA, as IPE Super s investment adviser, assists the Trustee to determine how IPE Super s defined benefit assets are invested by nominating a long-term neutral or benchmark asset allocation position for these assets. Depending on how investment markets are performing, the investment outlook and IPE Super s financial position (among other considerations), JANA and the Trustee may agree on a short-term asset allocation that differs from the long-term benchmark. The current long-term and short-term benchmarks for IPE Super s defined benefit assets are shown in the table below. Asset class Long-term benchmark Current short-term target benchmark Australian shares 21% 18% International shares 14% 17% Direct property 12% 13% Growth alternatives 3% 2% Defensive alternatives Diversified fixed interest 30% 18% Cash 22% Investment objective The key investment objective of the defined benefit asset pool is to achieve a return (net of investment fees and tax) that exceeds the rate of inflation (CPI) by at least 2% per year over each three-year period. Australian shares International shares Property Growth alternatives Defensive alternatives Fixed interest Cash 2016 Annual Report 13

16 IPE Super s account-based pension investment options Account-Based Pension section What is the investment objective for this option? Aggressive Assertive Balanced Achieve a return (net of investment fees) that exceeds inflation (CPI) by at least 6% per year over rolling five-year periods. Achieve a return (net of investment fees) that exceeds inflation (CPI) by at least 4.5% per year over rolling five-year periods. Achieve a return (net of investment fees) that exceeds inflation (CPI) by at least 3.5% per year over rolling three-year periods. What investment strategy does this option use? Invest mainly in Australian shares, international shares, property and growth alternatives. Invest mainly in Australian shares, international shares, property and growth alternatives (80%), with around 20% in defensive alternatives and fixed interest investments. Invest mainly in growth assets like shares, property and growth alternatives (70%), with the remainder (30%) in income assets like fixed interest, cash and defensive alternatives. How is the option invested at 30 June? % 5% 9% 41% 42% % 4% 7% 31% 32% % 14% 7% 4% 26% 24% 28% % 6% 40% 39% % 16% 11% 26% 28% % 15% 22% 15% 23% Australian shares International shares Property Growth alternatives Defensive alternatives Fixed interest Cash 14 Incitec Pivot Employees Superannuation Fund

17 Cautious Conservative Cash Achieve a return (net of investment fees) that exceeds inflation (CPI) by at least 2% per year over rolling three-year periods. Achieve a return (net of investment fees) that exceeds inflation (CPI) by at least 1% per year over rolling three-year periods. Aims to outperform, after fees, the UBS Australia Bank Bill Index. Invest about 50% in growth assets like shares, property and growth alternatives, with the remainder (50%) in income assets like fixed interest, cash and defensive alternatives. Invest mainly in fixed interest, cash and defensive investments, with about 30% in shares, property and growth alternatives. Invests purely in cash investments % 18% 17% 17% 4% 8% 9% 34% 9% 26% 4% 100% % 15% 14% Note: An asset allocation is not available as there were no assets in the Conservative option at 30 June % 14% 11% Australian shares International shares Property Growth alternatives Defensive alternatives Fixed interest Cash 2016 Annual Report 15

18 Super news: 2016 Federal Budget and your super Feature In outlining a number of super-related proposals in the 2016 Budget, the Government confirmed that the purpose of superannuation is to provide income in retirement to substitute, or supplement, the Age Pension. Changes will generally only start from 1 July 2017, if Parliament passes the necessary legislation. Most of the measures are aimed at reducing tax concessions available to higher income earners. Some other measures assist low income earners and families and increase workplace flexibility. Here is a brief summary of what is proposed and what it means. Helping low income earners and increasing flexibility Financial support will continue to be made to low income earners (for those on a $37,000 adjusted taxable income or less) who make contributions to super. Qualifying individuals can effectively receive a refund of the contributions tax of up to $500 on Superannuation Guarantee and other before-tax (e.g. salary sacrifice) contributions to super after 1 July This will replace a similar scheme which is due to wind up on 30 June In another measure to assist families to support each other to accumulate super, the level of income to qualify for the Spouse Tax Rebate will increase from $10,800 to $37,000. If you make after-tax contributions on behalf of your spouse whose income is less than $37,000, you can qualify for a tax rebate of up to $540 per year (that is, an 18% rebate on contributions up to $3,000). The Government proposes to make it easier for anyone up to age 75 to make superannuation contributions. Currently there are rules that apply after age 65 that may restrict some older workers from taking advantage of growing their super while working. Reductions to tax concessions There will be a new $1.6 million cap on the total amount individuals can transfer into retirement pension accounts. This will apply to current retirees as well as those still to enter retirement. Existing retirees would have until 1 July 2017 to either withdraw the excess from super or transfer it back to an accumulation account where investment earnings would be taxed at a maximum of 15%. From 1 July 2017, there will be a lower limit of $25,000 per year on the amount of concessional contributions that can be made to super. Concessional contributions include employer contributions (or notional contributions for defined benefit members) and any before-tax contributions. Currently the limit is $30,000 per year if you are under 50 and $35,000 per year if you are over 50. If you have less than $500,000 in super, the Government proposes that you will be able to carry forward any unused concessional contribution cap, so that you can make greater contributions later on. Unused amounts will be able to be carried forward on a rolling basis for a period of five consecutive years. This may assist members to balance family responsibilities by topping up their super in later life. The total amount of non-concessional contributions you can make in your lifetime, taking into account contributions made from 1 July 2007, will be limited to $500,000. Currently, the limit is $180,000 per year (or $540,000 over a three-year period if you are under 65). This will limit the amount of lump sum contributions you can make to super from, for example, the sale of a property or the receipt of an inheritance, and is intended to prevent super being used for estate planning and tax avoidance. The Government plans to make this change from Budget night (3 May 2016). Currently, high income earners pay a higher rate of tax on their superannuation contributions of 30% (instead of 15%). From 1 July 2017, this tax will apply to anyone whose adjusted taxable income exceeds $250,000 per year (currently $300,000 per year). The tax treatment of transition to retirement pensions will be tightened by removing the tax-free status of investment earnings on assets invested in these pensions where the member has not retired from the workforce. The investment earnings will be taxed at a maximum of 15% rather than being tax free. Transition to retirement pensions may feature in the retirement planning of anyone over their preservation age and are a complex product. If this proposal becomes law, members in this position may wish to discuss their options with their financial adviser. What are the latest super thresholds? Super thresholds are usually set by the Government from 1 July each year. Below are some key thresholds for the 2016/17 year. Government co-contributions Under the co-contribution scheme, the Government pays up to fifty cents for every dollar of after-tax contributions you make to your super if you earn less than $36,021 a year. The maximum co-contribution is $500 per year, which reduces by 3.33 cents for every dollar of income above $36,021, with no co-contribution payable once your income reaches $51,021. If you qualify for the co-contribution, the ATO automatically pays it to your account in the Fund after processing your annual tax return. 16 Incitec Pivot Employees Superannuation Fund

19 Contribution caps Contribution caps are limits the Government sets on the amount of super contributions each year which can receive concessional tax rates. The caps have not changed since last year and are shown in the table below. Changes to these caps announced in the Federal Budget are proposed to take effect from 1 July Age on 30 June 2016 Concessional contributions Non-concessional contributions Under age 49 $30,000 $180,000* Age 49 or over $35,000 $180,000* * If you are under age 65, you can generally bring forward two years of caps to make total non-concessional contributions of up to $540,000 over three years from 1 July 2016 (but with reduced or nil contributions in the following two years). What are concessional and non-concessional contributions? If you re an Accumulation member, concessional contributions include any contributions you make from your before-tax salary (by salary sacrifice), including the Company s compulsory contributions. If the Company pays any fees for you, these are also classified as concessional contributions. If you re a Defined Benefit member, concessional contributions must include notional contributions in respect of your defined benefit (rather than the Company s actual contributions) which IPE Super s Administrator reports to the ATO. The notional contribution includes your regular member contribution to your defined benefit if this contribution is made from your before-tax salary (by salary sacrifice). Any additional contributions that you pay from your before-tax salary also count towards your concessional contributions. If you have any questions about your notional contribution in respect of your defined benefit, please contact the IPE Super Helpline on For all members, contributions you make from your after-tax salary are an example of non-concessional contributions. What happens if I exceed the caps? If you exceed the caps, the ATO will forward you a tax assessment. Members who exceed the concessional contributions cap can elect to release up to 85% of the excess contributions from the superannuation system. If you choose to do so, the amount will be paid by the Fund to the ATO, where it will first be used to meet any outstanding tax liabilities you may have (including the tax on the excess contributions) with the remainder then paid back to you. Excess contributions withdrawn do not count towards your non-concessional cap. If you exceed the non-concessional cap, you can elect to release the excess contributions from super, together with an amount of associated earnings. The ATO will send you a form to enable you to do this. The associated earnings will be included in your taxable income and taxed at your marginal tax rate. If you don t elect to withdraw all the excess contributions, they may be taxed at up to 49%. What are associated earnings? An amount that the ATO calculates using a prescribed interest rate. It may not reflect the actual earnings on the contributions in the Fund. Remember that any extra tax cannot be paid from any defined benefit super you may have. Fee update IPE Super s transaction fees are indexed each year. The table below sets out the fees which will apply from 1 December Fee type Fee from 1 December 2016 Administration fee $81.20 per year plus A percentage-based fee of 0.190% p.a. ($1.90 per $1,000) of your account balance. The percentage-based fee is deducted from IPE Super s investment returns before they are applied to your account. Switching fee $54.10 (excluding the first switch in any financial year) Exit fee $61.00 Contribution splitting fee Family Law information fee Family Law establishment fee $61.00 $ $ Annual Report 17

20 More about IPE Super How is IPE Super managed? A Trustee, with input from the Policy Committee, manages IPE Super and uses several advisers who provide their services to the Fund. Half of the members of the Policy Committee are elected by members of the Fund. Who is your Trustee? A Trustee company, Towers Watson Superannuation Pty Ltd (ABN , AFSL ) is responsible for managing the Fund. It has been licensed to act as a Trustee by the Australian Prudential Regulation Authority (APRA), the prudential regulator of super funds in Australia. Towers Watson Superannuation Pty Ltd is a subsidiary of Towers Watson Australia Pty Ltd (ABN , AFSL ) who also acts as Administrator (via an outsourced arrangement), actuary and secretary to the Fund. See under Who advises IPE Super? for more information. How to contact the Trustee The Fund Secretary IPE Super C/- Towers Watson Australia Pty Ltd Level 23, 55 Collins Street Melbourne VIC 3000 Phone: What is a Policy Committee? A Policy Committee ensures that the interests of members and the Company are represented in the management of IPE Super. The Committee comprises six members half appointed by the Company and half elected periodically by members. During the year, Daniel Theuma replaced Drew Moakes as a member-elected representative following a call for nominations in December The next Policy Committee election will be held in March At 30 June 2016, the Policy Committee members were: Company-appointed Peter Armstrong Elizabeth Hunter Victor Timos Member-elected Liz Bongers (Phosphate Hill) Daniel Theuma (Southbank) Andrew Weir (Townsville) Indemnity insurance The Trustee is currently covered by a Trustee Professional Indemnity insurance policy that protects the Fund s assets from a legal liability to the extent allowed by law and the policy conditions. Who advises IPE Super? The following organisations provide specialist services to the Trustee. Consultant and actuary Administrator Investment consultant Legal adviser External auditors Insurer Towers Watson Australia Pty Ltd Towers Watson Australia Pty Ltd (outsourced to Link Super Pty Limited (ABN ) a Corporate Authorised Representative (No ) of Pacific Custodians Pty Limited (ABN , AFSL )) JANA Investment Advisers Pty Ltd (ABN , AFSL ). Appointed by the Trustee; JANA is responsible for selecting investment managers to manage IPE Super s investments. Lander & Rogers Deloitte, KPMG MetLife Insurance Limited Super spotlight Policy Committee: The Policy Committee monitors the overall management of a super fund. It provides members with an avenue to have their issues raised with the trustee and a means for member feedback to filter through to the trustee. The Policy Committee is made up of equal representation from the employer and members. 18 Incitec Pivot Employees Superannuation Fund

21 How can you resolve any problems or concerns? Although our aim is to ensure that IPE Super s level of service meets your expectations, sometimes problems may arise. If you have an enquiry or complaint, you should contact IPE Super s Administrator (see the back page for contact details). Privacy-related enquiries should also be directed to IPE Super s Administrator. The Trustee has a formal process for reviewing enquiries and complaints if you are not satisfied with the response you receive. To make a formal enquiry or complaint, please obtain an Enquiry or Complaint form from by calling the IPE Super Helpline on The Trustee will respond to you within 90 days. You can request the Trustee s reasons for its decision on your complaint. A copy of the Trustee s Enquiries and Complaints Policy is also available from the Help & feedback page of the IPE Super website at If you are not happy with how the Trustee handles your enquiry or complaint, you may contact the Superannuation Complaints Tribunal, an independent body set up by the Federal Government to settle your concerns in such cases. The Tribunal can be contacted by phone on or by at info@sct.gov.au. The Tribunal, however, cannot consider some complaints, for instance, those that concern the management of the Fund as a whole. Time limits also apply to certain complaints that are related to total and permanent disability claims as well as to complaints about objections to the payment of death benefits. If your complaint is regarding any of these issues, please contact IPE Super s Administrator or refer to the Tribunal s website on as soon as possible for further information. You can direct complaints about your privacy that have not been resolved to your satisfaction to the Office of the Australian Information Commissioner (OAIC). The OAIC can be contacted at or enquiries@oaic.gov.au. What will happen if you leave? If you leave your employer or choose another super fund, IPE Super s Administrator will ask you how you want to receive your super benefit. Depending on your circumstances, you may then have four options for your super. Option 1: Retain your benefits in IPE Super When you cease employment with Incitec Pivot, your super will be transferred into an account in your name in IPE Super s Retained Benefits section. Here, your super will earn investment returns at the rate earned by your chosen investment option, which can be positive or negative. If you re a former Defined Benefit member, the defined benefit portion of your benefit will be invested in the Cash option. It will remain invested in the Cash option until you provide IPE Super s Administrator with alternative investment instructions. Your additional accounts (consisting of your additional voluntary contributions and rollovers you have made) will continue to be invested in your chosen investment option (or the Active Balanced option if you did not make an investment choice). Investment returns applied to your accounts can be positive or negative Annual Report 19

22 Your super will remain in the Retained Benefits section until you provide IPE Super s Administrator with payment instructions for your benefit. To confirm your decision to leave your benefit in the Retained Benefits section, or to change investment choice in the Retained Benefits section, simply fill out the Benefit Payment Option Form (available from or the IPE Super Helpline on ) and return it as directed. You can also change your investment choice online by logging into the Fund s Member Centre. Option 2: Take a cash payment If you have any unrestricted non-preserved super (see your Leaving Service Notification letter), you can take some or all of this amount in cash, less any taxes that may apply. If you are under age 60, tax will apply to the taxable component. For partial payments, the tax components of the payment will be in proportion to your total benefit. You cannot choose, for example, to withdraw only your tax-free component. Amounts paid by IPE Super to members aged 60 or over are tax free. Option 3: Rollover to another super fund You can roll over your super into another fund of your choice, providing it is a complying superannuation fund under law. If you choose this option, you will need to complete the Benefit Payment Option Form, available from or call the IPE Super Helpline on If the fund you have nominated won t accept your benefit, the Trustee may roll your benefit over to an Eligible Rollover Fund (ERF). The ERF nominated by the Trustee is: AUSfund PO Box 543 Carlton South VIC 3053 Phone: admin@ausfund.net.au Contact: The Administrator Once your benefit is transferred to the ERF, you stop being a member of IPE Super and no longer have any rights under the Fund. You will then need to contact the ERF directly about your benefit. You can also obtain the ERF s Product Disclosure Statement using the contact details above. The investment and crediting rate policy of the ERF will be different to those that applied in the Fund. Also, the ERF will not offer any insurance cover. You should seek advice from a licensed financial adviser about whether the ERF is a suitable investment for you. Option 4: Take a pension If you are retiring after reaching your preservation age, you can choose to take your super as a lump sum or roll it over into an IPE Super Account-Based Pension or similar product offered by another fund. If you are still working and have reached your preservation age you can also roll your super into an IPE Super Account-Based Pension under the Government s transition to retirement laws. For more information about IPE Super s Account-Based Pension, refer to the PDS, Your IPE Super Account-Based Pension Guide, which is available from or call the IPE Super Helpline on If you are a Defined Benefit member, you may also have the option to take your benefit in the form of a lifetime pension from the Fund. For more information about IPE Super s pension options for Defined Benefit members, refer to the PDS Lifetime Pension and Deferred Pension Benefit Options, which is available from or call the IPE Super Helpline on Super spotlight Product Disclosure Statement (PDS): The PDS is the main disclosure document for new members of superannuation funds and for those members starting a pension from the Fund. Do you need to provide proof of identity? Before you withdraw a benefit from IPE Super, you may need to establish your identity by providing certified copies of certain documents. The Trustee may also require additional identification information to verify your identity from time to time. In some cases, the Trustee may have to disclose information about you to the Australian Transaction Reports and Analysis Centre (AUSTRAC). Due to the sensitive nature of the information, the Trustee is not permitted to inform you when this happens. Need to know more? Other information about your benefits such as your choices for contributions, investments and insurance levels are available at Refer to the PDS, Your IPE Super Guide, visit the website or call the IPE Super Helpline on A number of Fund documents, including IPE Super s Trust Deed and various Trustee policies, are also available on the website. 20 Incitec Pivot Employees Superannuation Fund

23 Financials A summary of IPE Super s unaudited financial accounts for the year to 30 June 2016 is set out below. The audit is expected to be finalised by 30 September The audited financial accounts and auditor s report will be available on request by contacting the IPE Super Helpline on after that date. Current assets include amounts in the Fund s bank account. All contributions due at 30 June 2016 have now been paid by IPL to IPE Super. Change in net assets during the year $ Net assets at the start of the year (30 June 2015) 181,693,188 Plus income Contributions 13,920,489 Rollovers 3,380,646 Net investment income 5,966,298 Interest 35,145 Investment fee rebates 135,343 Proceeds from insurance 437,996 Less Benefits paid and payable (17,174,558) outgoings Insurance premiums (632,235) General administration and operating expenses (801,610) Income tax expense (1,784,418) Net assets at the end of the year (30 June 2016) 185,176,284 Statement of net assets Investments JANA Assertive Plus option 16,206,371 JANA Assertive option 21,619,027 JANA Active Balanced option 64,971,352 JANA Conservative option 3,310,190 JANA Cash option 5,037,373 JANA Australian Shares option 3,022,897 JANA Diversified Fixed Interest option 2,801,045 JANA International Shares option 2,942,119 JANA Defined Benefit Unit 48,004,230 JANA Pensions Balanced option 4,986,343 JANA Pensions Cautious option 4,561,482 JANA Pensions Aggressive option 1,383,708 JANA Pension Assertive option 149,738 JANA Pensions Cash option 340,124 Dexus Wholesale Property Fund 9,134,669 AMP Capital Community Infrastructure Fund 1,191,341 AMP Capital Diversified Property Fund 10,433,763 Charter Hall Prime Office Fund 2,563,345 JANA Passive Global Share Trust (Hedged) 9,165,610 JANA Small Caps Australian Share Trust 3,477,171 JANA Select Opportunities Trust 15,678,514 JANA Passive Global Share Trust 8,525,471 JANA Core Global Share Trust (Hedged) 525,001 JANA High Alpha Global Share Trust 14,475,965 JANA Core Global Share Trust 557,596 JANA Core Australian Share Trust 26,622,477 JANA Cash Trust 24,619,758 JANA Diversified Fixed Income Trust 17,127,381 JANA Emerging Markets Trust 5,838,079 JANA High Alpha Australian Share Trust 13,767,874 JANA All-Maturity Diversified Debt Trust 773,224 JANA Global Property Trust 214,031 JANA Short-Maturity Diversified Debt Trust 2,369,924 JANA Low Correlation Strategy Trust 8,405,432 Current Cash and equivalents 3,164,705 3,437,718 assets Investment income receivable 7,073,828 Deferred tax assets 21, ,158 Other assets 96,590 25,542 Current Benefits payable liabilities Taxation payable (649,316) (1,013,644) Accounts Payable (276,762) (409,944) Net assets at the end of the year 181,693, ,176,284 $ $ 2016 Annual Report 21

24 How you can contact us If you have any queries about IPE Super or any of the information in this Annual Report, contact: Mail: The Fund Administrator IPE Super PO Box 1442 Parramatta NSW 2124 Helpline: Website: