Get a plan, meet the team.
Super Fund of the Year. Again.
On the trail of lost or unclaimed super.
Autumn 2016
2
Welcome to
the autumn edition
of more.
At Hostplus we strive to put our members first. Through
innovative investments, industry-leading tools and
technology, as well as our dedicated customer service and
account management teams, we work hard to ensure that
your hard work leads to a comfortable, dignified retirement.
3
Performance update.
4
Super Fund of the Year. Again.
6
Master plan – TTR.
7
Transition to retirement case study.
When Hostplus was named SelectingSuper’s "Super Fund
of the Year" for 2014 we were understandably proud. Part of
the Rainmaker Group, SelectingSuper is one of the largest
and most widely respected analysts in the industry and so
to receive such an accolade was truly an honour.
9
On the trail of lost super.
10
Meet our financial planners.
12
Vantage point.
14
Moreover.
In late 2015 Hostplus was once again named Super Fund of
the Year, the first time in history that any fund has received
the award in concurrent years. To receive such prestigious
recognition for our efforts in back to back years is not only
humbling, it’s also a galvanising force that drives us all to
work harder and smarter for you, our members, in the years
to come.
In this edition of more magazine we take a closer look at
the importance of implementing a strong financial plan,
we explore the recent changes to lost super legislation,
and Dr Sam Sicilia provides some insights into long-term
investment strategies.
We hope you enjoy this edition of more.
David Elia
Chief Executive Officer
We’re everywhere you are. Find us online.
The information contained in this document is general information only. This document does not and is not intended to contain any recommendations, statement of opinion
or advice and does not consider any one or more of your objectives, financial situation or needs. Before acting on this information, you should consider obtaining advice from
a licenced financial adviser and consider the appropriateness of this information with regards to your own circumstances. Issued by Host-Plus Pty Limited ABN 79 008 634 704,
AFSL No. 244392, RSEL No. L0000093, MySuper No. 68657495890198, Hostplus Superannuation Fund ABN 68 657 495 890, RSE No. R1000054.
3
Another
balanced
performance.
Our Balanced options for Super and Pension
continue to deliver above average results.
The Hostplus Balanced Super option
returned 1.51% for the six months
ending 31 December 2015 and 7.00%
for the year. This represents a top
quartile, top ten result over 1, 3, 5 and
10 years according to the SuperRatings
Funds Crediting Rate Survey1.
The Hostplus Balanced Pension option
returned 2.08% for the six months
ending 31 December 2015, a top ten
result in the SuperRatings Pension
Fund Crediting Rate Survey2 . The same
survey shows the Balanced Pension
option returning 7.95% for the year to
31 December 2015 a top quartile result
over 1, 3 and 5 years.
The Hostplus Pension Cash (default)
investment option returned 1.12% for
the 6 months ending December 2015*.
or the full details of our
F
investment returns across
all options, please visit
hostplus.com.au/investments
SuperRatings SR50 19 January 2016
SuperRatings SRP50 19 January 2016
*Past performance is not a reliable indicator
of future performance.
1
2
6 months ending
31 December 2015
Balanced option
superannuation
Balanced
option pension
Cash option
pension
1.51%
2.08%
1.12%
4
Super Fund
of the Year.
Again.
5
Dedication,
passion and skill.
Hostplus named Super Fund of the Year
two years in a row.
Each year, the SelectingSuper
Awards, administered by Rainmaker
Information, recognise the best
superannuation and retirement
income providers in Australia. Award
winners are selected from the most
eminent and top-rated funds that
the Rainmaker research team has
assessed as the best in each category.
According to Rainmaker, the criteria for
selection of award winners is rigorous.
“Building retirement savings is the
core objective of superannuation
funds, and so net performance is the
most highly ranked criteria used in
the analysis carried out by Rainmaker
SelectingSuper. Other criteria include
whether funds’ insurance offerings
represent value for money and
how well they support members
with great communications and
smart technology.”
Since the awards were introduced in
2006, no-one has won the coveted
Super Fund of the Year two years in a
row. Until now. Hostplus is proud to be
recognised as SelectingSuper’s 2015
Super Fund of the Year.
“These funds are industry leaders,
having demonstrated a consistent
history of strong relative net returns
over different time periods and
persistently achieved their objectives.
To be amongst the finalists is to join
an elite group. To be the winner is to
be the best of the very best,” said
Alex Dunnin, Executive Director of
Research and Compliance at the
Rainmaker Group.
Mr Dunnin commended Hostplus for
its strong investment performance
across its “... low fees, consistently
strong and persistent investment
returns, and competitive insurance.
Hostplus also has a formidable
investment 'engine room' and
demonstrated resources and capacity
that have led them to have consistently
achieved impressive relative net returns
and insurance premium value,” Mr
Dunnin added.
In a period where the quality of
superannuation products is hotly
debated amongst the industry and
consumers, Hostplus Chief Executive
Officer David Elia is humbled that
the fund has been recognised
for excellence.
“Winning the Super Fund of the Year
for a second year in a row just provides
us with more motivation to further
improve the way we deliver quality
services to our members. On this front
we have a major product development
roadmap in place that will see further
improvements in our investment and
insurance products, in addition to
digital services we will deliver
to members,” Mr Elia said.
“When you consider that the
Australian superannuation system is
acknowledged as one of the best in the
world, being recognised as the ‘Best’ is
truly an honour. We are also extremely
proud to have the hard work of our
organisation recognised by receiving
these awards from such a highly
respected organisation as Rainmaker.”
Hostplus also received the 2015
SelectingSuper Personal Super
Product of the Year – Deluxe Category
in recognition for excellence in
providing superannuation solutions
to individual consumers. We were also
shortlisted as a finalist in five other
award categories.
Combined with our low fees,
consistent investment performance
over the past 3, 5 and 10 years
(as rated by SuperRatings Fund
Crediting Survey, 21 July 2015) and
competitive insurance offerings,
these awards and nominations add up
to simply better super for the nearly
1 million members who entrust their
retirement to Hostplus.
“These funds are industry
leaders, having demonstrated
a consistent history of strong
relative net returns over
different time periods and
persistently achieved their
objectives. To be amongst
the finalists is to join an elite
group. To be the winner is to
be the best of the very best.”
Alex Dunnin
Executive Director of Research and
Compliance at the Rainmaker Group
(pictured above presenting the award
to Umberto Mecchi, Hostplus Group
Executive, Strategy, Marketing and
Client Services).
ind out more at
F
hostplus.com.au/foty
6
Master plan.
It’s never too early to get a head start.
It’s never too early to start planning
for your retirement. Many working
Australians are content to simply allow
their superannuation to accumulate
throughout their working lives without
consideration to investment choice
or the numerous other options that
may be available to them. Members
who chose to engage the services of
a financial planner may be surprised
to discover just how many options
are available and just how significant
an impact can be made not only on
their retirement but also on their hip
pockets right now.
As a Hostplus member, you can take
advantage of a free, no obligation
session with a Hostplus Dedicated
Industry Fund Services Ltd licensed
Financial Planner. In this session, you
and your planner are able to lay the
groundwork for a full financial plan by
assessing your current situation and
discussing your goals in the short and
long term.
With advice available for budgeting,
superannuation investment choices,
insurance, debt management,
non-superannuation investments,
Centrelink entitlements and a wide
variety of other areas, there are
ample opportunities to get more
out of your situation.
One particular strategy which may
benefit eligible members is a Transition
to Retirement (TTR) account. TTR
allows you to access some of your
super while you’re still working.
Date of Birth
Preservation
Age
From 1 July 1964
60
1 July 1963 – 30 June 1964
59
1 July 1962 – 30 June 1963
58
1 July 1961 – 30 June 1962
57
1 July 1960 – 30 June 1961
56
Before 1 July 1960
55
7
With a TTR account you may be able
to reduce your working hours and
supplement your income
with regular withdrawals from your
superannuation. If you’ve reached
your preservation age, you may
already be eligible to open a TTR
account. Depending on your birthday,
your preservation age is between ages
55 and 60; see the following table for
more detail.
Hostplus member
saves big with a
Transition to
Retirement strategy.
Transition to retirement.
Reduce your full-time hours and use your super
to maintain your take-home income.
Take-home income
As full-time
hours are
reduced...
Super keeps
your income
steady.
Case study
While it’s one thing to understand the
benefits of making a financial plan
based on general information, it’s an
entirely different matter to see the
effects in the real world. The following
case study shows the difference a
financial planner can have on
your retirement.
Please note some personal details
have been altered to protect the
member’s privacy.
After speaking with a Hostplus
representative during a workplace
visit in mid-2015, Fiona* took up
Hostplus’ offer of a no obligation
appointment with a Hostplus
dedicated IFS Financial Planner. In the
appointment, Fiona explained that
although she wanted to start planning
for her retirement, she did not want
to compromise her current lifestyle
or reduce her take-home pay. At 61
years of age with an annual salary of
approximately $34,000 and around
$121,000 in her super, Fiona intends
to keep working full-time for another
few years.
After researching and analysing
Fiona’s financial situation, the financial
planner was able to recommend
a strategy that would achieve her
goals of increasing her retirement
nest egg and maintaining her take
home pay. He recommended Fiona
implement a Transition to Retirement
(TTR) strategy, which involved setting
up a Hostplus pension account and
withdrawing approximately $10,000
per annum in pension payments.
He also recommended Fiona pay
$13,000 of her salary into super
as salary sacrifice.
Call Hostplus on 1300 467 875 to
arrange your initial consultation
today or visit hostplus.com.au/
financial-planning to learn
more about the benefits of
receiving professional advice
from SelectingSuper’s Super
Fund of the Year.
8
By implementing these
As a Hostplus
recommendations Fiona was able to
member, you can take achieve the following benefits:
advantage of a free,
·· Her weekly take-home pay of
$580 was maintained.
no obligation session
·· Overall, she will save $1903 in tax as
with a Hostplus
well as adding almost $1,800 extra to
Dedicated Industry
her Hostplus super in the first year.
·· Because the advice was related to her
Fund Services Ltd
superannuation, the advice fees were
licensed Financial
able to be deducted directly from her
Hostplus account, so she did not incur
Planner.
ind out more by visiting
F
hostplus.com.au today or by
calling our customer service
team on 1300 467 875 8am to
8pm, weekdays AEST to arrange
your no cost, no obligation
appointment.
any out of pocket expenses.
With figures like these, it’s easy to see
just how significant the benefits of
speaking to a Hostplus dedicated IFS
Financial Planner can be.
Calculations
How Fiona's figures were
calculated
• Fiona's strategy in the table at left used
these assumptions:
• Fiona leaves $5,000 in super to keep her
account open. Investment returns in super
are taxable.
• Fiona is employed and is eligible for LISC
(low income super contribution)
• Investment returns are based on earnings
of 6.6% and an average tax rate of 9% on
super fund earnings.
• As Fiona is over age 50, her maximum
concessional super contribution is
$35,000 for 2015/16.
• Fiona's concessional contributions are
taxed at 15% when they are received by
her super fund.
• Fiona's investment returns in super are
taxed at a maximum of 15%, but may
be lower if tax offsets such as dividend
franking credits apply.
• Fiona's investment returns in her pension
account are tax free.
• The amount of TTR pension that can be
withdrawn each year by Fiona must be
between the minimum 4% and maximum
10% of the account balance.
Current ($)
TTR strategy ($)
33,800
33,800
0
13,000
Taxable income
33,800
20,800
Minus tax & Medicare Levy
-3,195
-49
0
10,000
30,605
30,751
3211
3211
0
13,000
7,986
7,986
0 (LISC of
$482 applies)
-1,932 (LISC of
$500 applicable)
0
-10,000
-719
30
10,478
12,235
$1,757 more
goes into super
-3,913.74
2010.35
Gross income
Minus salary sacrifice
TTR pension income
Take-home pay
Super contributions: employer contributions
(9.5%)
Super contributions: salary sacrifice
Investment returns
Minus contributions tax
Minus TTR pension drawdown
Minus tax on earnings
Net gain in super
Total tax paid
COMBINED TAX SAVINGS - $1903 (Because she pays less tax)
* Not her real name. Issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL No. 244392, RSEL No. L0000093, MySuper
No. 68657495890198, as Trustee for Hostplus Superannuation Fund ABN 68 657 495 890, RSE No. R1000054. The
information contained in this document is general information only. This document does not and is not intended to contain any
recommendations, statement of opinion or advice and does not consider any one or more of your objectives, financial
situation or needs. Before acting on this information, you should consider obtaining advice from a licensed financial adviser
and consider the appropriateness of this information with regards to your own circumstances.
Tick the box.
Hit the box office.
9
hostplus.com.au/protect
Lost and found. On the trail of lost super
It may surprise you, but figures released
by the Australian Tax Office (ATO) in
June 2015 put the amount of lost or
unclaimed super in Australia in the
vicinity of $16 billion1. While it may
seem unlikely that you would ever
forget or lose track of ‘real’ money, it's
easy to understand how people can
forget about their super when they
change jobs, move house, or change
their name.
Under recently introduced legislation
the threshold of account balances for
lost super has increased. This means
more individuals have the potential to
have their super balances transferred
to the ATO. Refer to www.ato.gov.au
for more details.
One of the most unfortunate
consequences of this is inactive or lost
members may miss out on the benefits
of having their super consolidated in one
account. For example, members may
miss out on greater earning potential
through compound interest.
The good news is, if you’re aged under
65, you can permanently opt out of
future transfers to the ATO. This means
you can be sure your money remains
in your Hostplus account even if you
become uncontactable or your account
becomes inactive.
Win the ultimate
HOYTS VIP ‘Black’ card.
If you opt out before 29 April 2016 you’ll automatically be entered into
the draw to win one of five HOYTS ‘Black’ cards.* A HOYTS Black Card
gives you a FREE movie ticket to any session at any HOYTS cinema in
Australia, up to five times a day for an entire year. You also enjoy the
HOYTS Express priority queues where available, and HOYTS Rewards –
Australia's premiere cinema loyalty program. There are five (5) HOYTS
VIP ‘Black’ cards to be won.
*Terms and conditions apply
By opting out, you’ll also enjoy the
peace of mind of knowing that even if
your circumstances change, you and
your super will continue to benefit
from your membership with Hostplus.
Members aged 65 and over can
ensure their super stays with Hostplus
simply by keeping their contact details
up to date.
1. Australian Tax Office, Super Accounts Data Overview, https://
www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/
Super-statistics/Super-accounts-data/Super-accounts-dataoverview/ 3 August 2015.
Step 1.
hostplus.com.au/protect
Step 2.
Fill in your details
Step 3.
Tick the box
10
Meet the planners.
Hostplus members have access to a network of qualified,
Industry Funds Services Ltd financial planners around Australia.
Experts in wealth creation, investments, Centrelink, pre- and
post-retirement strategies, risk management and more,
the Hostplus team is here to help you reach your goals.
11
Take a look to see who’s in your area and call Hostplus on 1300 467 875 8am–8pm
Monday to Friday AEST to arrange your free, no obligation consultation today.
Prabath Ekanayake
Bahar McLeod
Anthony Williams
Victoria
Victoria
Victoria
Prabath is a Certified Financial Planner
with over 11 years’ experience. He
provides advice across all key areas
to help you get more from your
finances. He takes the time to clearly
understand the goals of his clients and
enjoys seeing members pursue their
passions through effective planning.
With over 12 years’ experience in the
financial services industry, Certified
Financial Planner Bahar provides
tailored advice personalised to meet
your needs. Bahar enjoys supporting
her clients throughout their journey to
reach their goals.
Anthony has 14 years’ experience in
a wide range of financial services both
at home in Australia and internationally.
In his role as a Certified Financial
Planner he enjoys working with
Victorian members to improve their
financial situation, and the busy nature
of his profession.
Craig Buchanan
Guy Mahony
Brett Pitcher
New South Wales
New South Wales
Queensland
A Certified Financial Planner since 2003,
Craig provides comprehensive advice to
Hostplus members in New South Wales.
Craig enjoys helping his clients achieve
their lifestyle goals and objectives by
developing and delivering financial
strategies that allow them to make
informed decisions along the way.
Guy has 19 years’ experience in the
financial services industry and holds
an advanced diploma in accounting in
addition to being a Certified Financial
Planner. After nine years of providing
quality advice to Hostplus clients, Guy
takes great satisfaction from assisting
clients to achieve their goals by building
on a strong financial foundation.
Over two decades in the financial
services industry, Brett has developed
considerable experience and technical
knowledge across the spectrum of
advice. A Certified Financial Planner,
Brett is passionate about the value of
financial advice and ensures members
are educated to make informed
financial decisions.
Matthew Lowry
Michael Stone
Kelvin Shortte
Tasmania
South Australia and
Northern Territory
Western Australia
Matthew provides tailored financial
planning solutions to Hostplus
members across Tasmania. A Certified
Financial Planner with more than 16
years’ experience, Matthew takes great
satisfaction from helping everyday
Tasmanians reach their retirement
goals through careful planning and
long-term strategies.
Michael utilises over 28 years of
experience in the finance industry to
offer advice across a wide variety of
fields. As a Certified Financial Planner,
Michael provides trusted, professional
advice to Hostplus members in
both South Australia and the
Northern Territory.
In the 14 years Kelvin has been
providing financial advice to residents
of Western Australia, he has built his
reputation by focusing on his clients'
best interests. An expert in his field,
Kelvin believes in keeping things simple
and easy to understand.
12
Vantage
point.
One of the most
wealth-destructive
behaviours that
all investors, even
professional investors,
suffer from is an
“action” bias. When
sharemarkets are
volatile, investors
feel compelled to do
something, to take
some sort of action,
even if it’s in their best
interest to do nothing.
Dr Sam Sicilia
Chief Investment
Officer Hostplus
People are sometimes surprised to
learn that in the world of investments
it often pays to do nothing.
Of course, choosing to do nothing due
to laziness is not a good investment
strategy. On the other hand, choosing
to do nothing in a considered way is a
relatively good investment strategy.
For most investors, seeing through
periods of market volatility and simply
allowing investment returns
to compound is by far the best
strategy over time.
When the Global Financial Crisis hit
in mid-2007, the uncertainty and
speculation that followed had an
adverse impact on investor sentiment.
We know that sharemarkets are
driven largely by investor sentiment
in times of uncertainty, so it was not
surprising that sharemarkets around
the world were volatile. But volatile
is not the same thing as risky. Along
the way, it seemed that the world was
about to end. Fortunately, the world
doesn’t end very often, and by early
2009 sharemarkets began to recover
because investor sentiment turned.
Over the past 40 years, behavioural
finance experts studying how
investors make decisions have gained
deep insights into the psychological
elements that affect decision-making.
One of the most wealth-destructive
behaviours that all investors, even
professional investors, suffer from is
an “action” bias. When sharemarkets
are volatile, investors feel compelled
to do something, to take some sort of
action, even if it’s in their best interest
to do nothing. To overcome action
bias, investors need to be aware of
it, change their behaviour when they
recognise it and do nothing.
Of course, we all make mistakes
usually due to poor choices. One
of the most admirable attributes of
successful people is that they learn
from their own mistakes, and they
learn from the success and wisdom of
others, so that they can make better
choices in the future.
Successful investors know that they
cannot consistently buy at the bottom
of the sharemarket or sell at the
top of the sharemarket. To win the
sharemarket timing game requires
investors to take action at just the
right time, to be there when “lightning
strikes”. Trying to time entry into and
exit from the sharemarket is a loser's
game because it can rarely be done.
Sadly, most investors that choose to
play the sharemarket timing game
eventually make bad choices and hand
back all of their gains (and perhaps
more) to the sharemarket. For most
investors, the end outcome is vastly
better if they choose to do nothing
during periods of market volatility and
simply allow the passage of time to
compound investment returns.
13
During the early days of the Global
Financial Crisis, a relatively small
number of Hostplus members
chose to move their money out of
the Balanced Option (which has a
well-diversified exposure across
many asset classes) into a single
undiversified asset class, the Cash
Option. In making that choice, those
members implicitly committed to
having to make another choice further
down the track – when to move
back out of the Cash Option? The
members who took this course of
action most likely missed out
on the returns from sharemarkets –
you had to be out of the Cash Option
when the sharemarkets turned in
March 2009.
time, successful investors are able to
resist the temptation to take action
when sharemarkets are volatile – they
choose to simply do nothing.
o learn more, visit
T
hostplus.com.au/investments
Unfortunately, when sharemarkets
are volatile, the investors' action bias
beckons them to play the losers’
market timing game. Most of the
"People are sometimes
surprised to learn
that in the world
of investments it often
pays to do nothing."
Dr Sam Sicilia
Chief Investment Officer,
Hostplus
14
moreover.
What's happening, what's new
Swinging down the street
Georgy Girl,
The Seekers Musical.
State Theatre NSW
2 April – 4 May
Georgy Girl tells the true story of The
Seekers and their rise to international
fame, the challenges of success and all
the laughs along the way. Experience
swinging sixties London and re-live
their journey along with the golden
soundtrack that the world fell in love
with. Featuring all the hit songs of
The Seekers including 'The Carnival Is
Over', 'I’ll Never Find Another You', 'A
World of Our Own' and of course the
Oscar®-nominated 'Georgy Girl'.
ticketmaster.com.au
15
Asia Pacific Triennial 8
Queensland Art Gallery
Closes 10 April
This flagship exhibition focuses on the
work of Asia, the Pacific and Australia
and the role of performance in recent
art, with live actions, video, kinetic
art, figurative painting and sculpture
exploring the use of the human form
to express cultural, social and political
ideas, and the central role of artists
in articulating experiences specific to
their localities.
agoma.qld.gov.au/whats-on/
q
exhibitions/apt8
Jamieson Autumn
Festival, Victoria
Deckchair Cinema,
Darwin NT
23 April
20 April – November
Showcasing the natural beauty, as
well as the range of skills and talents
within and around this little town.
Enjoy workshops in fine art, pottery,
blacksmithing and gold panning.
Listen to musicians and singers about
the town. Watch the penny farthings
in the street or enjoy the guided
walk amongst the historic trees of
Jamieson.
Deckchair Cinema is the must-do
outdoor cinema located under the
stars on Darwin’s tropical waterfront,
showcasing a range of popular and art
house films. You can stretch out on a
deckchair while enjoying
a great selection of food and drinks
from the licensed bar. Just spectacular.
ventfinda.com.au/2016/2016e
jamieson-autumn-festival/
jamieson
deckchaircinema.com
You’re with
the Super Fund
of the Year.
That’s a plus.
We’re proud to be recognised as Rainmaker SelectingSuper’s Super Fund
of the Year for the second consecutive year. Our consistent investment
performance*, low fees and competitive insurance ensures you retire
with more. And that’s a plus.
hostplus.com.au
Issued by Host-Plus Pty. Limited ABN 79 008 634 704, RSEL No. L0000093 AFSL No. 244392 as trustee for the Hostplus Superannuation Fund ABN 68 657 495 890 RSE No.
R1000054, MySuper No. 68657495890198, which includes the Hostplus Pension. This information is general in nature and is not intended to be a substitute for professional
financial product advice. You should determine the appropriateness of the information having regard to your objectives, financial situation and needs, and obtain and consider
a copy of the Product Disclosure Statement before making an investment decision. Ratings are only one factor to be taken into account when deciding whether to acquire,
continue to hold or dispose of a financial product. *Rainmaker SelectingSuper June 2015 Survey. 5049 01/16