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michaelreiken

4 www.clubsuper.com.au

Club Super Insurance Guide

1300 369 330 5

How many of us insure our house and car but forget what’s most important – our own lives and our family.

It’s always good to have peace of mind knowing that you are covered 24 hours a day, 7 days a week, anywhere in the world. You never know what will happen tomorrow - so it is important to prepare yourself today with adequate insurance cover.

When you join Club Super you automatically receive Income Protection insurance cover. If you're aged 24 or under, you get one unit of Death cover and two units of Total and Permanent Disablement (TPD) cover. If you're aged 25 or over you get two units of Death cover and two units of TPD insurance cover.

But is this enough for you?

It is important to regularly review your insurance needs, especially when your circumstances change and if need be, increase your insurance cover. Having enough insurance cover can make all the difference to your life and those closest to you if something happens. Read this Insurance Guide to work out the cover best for you.

This Insurance Guide covers: Death and Total and Permanent Disablement (TPD) insurance

Income Protection (SalarySafe) insurance What happens to your insurance after you cease employment

Type of Death and TPD insurance available How to transfer your insurance cover from another fund into Club Super

How to increase your life insurance at key times in your life without the need to show medical evidence.

4 www.clubsuper.com.au 1300 369 330 5

Are you and

covered?your family

6 www.clubsuper.com.au

Club Super Insurance Guide

1300 369 330 7

Death and TPD insurance

Sometimes reading and understanding insurance can be quite confusing. So we have made things easier for you. Below are definitions of some commonly used insurance terms.

Death cover – Death cover is also known as life insurance or life cover. It’s an insured amount which is paid on top of your account balance to your dependants or beneficiaries if you were to die. (Make sure you nominate your beneficiaries on the Member Application Form). All Club Super members automatically receive Death cover.

Total and Permanent Disablement (TPD) cover – TPD insurance may be paid to you if the insurer determines that you meet the definition of TPD. See page 12 for more details.

SalarySafe – SalarySafe is Club Super’s Income Protection (IP) insurance product. We are one of the few funds in Australia that pays a benefit of up to 100% of your income to you. On top of that, 9% of the IP is paid to your super account. Income Protection cover kicks in 21 days after you are injured or sick and cannot work for a period of time.

Units of cover – You can choose how many units of insurance cover you wish to have, although you may be asked to provide medical evidence if you ask for more than a certain number of units. Each Death and TPD unit costs $1.90 per week. The insured amount reduces with age and the premium remains fixed. You can apply for cover of up to $10 million for Death and $3 million for TPD insurance.

Fixed insurance cover – If you wish, you can elect the amount of insurance cover you want. Then, your insured amount remains fixed and insurance premiums increase as you get older.

Key Life Events - You can apply for an additional unit of Death and TPD insurance cover at certain key-life events, including getting married, divorced, the birth or adoption of a child, taking out a mortgage, home renovations, death of a spouse, completion of first university degree, becoming a carer or a dependent child starting secondary school. You don’t even need to provide evidence of health. Please read pages 11 and 12 for more information.

Cooling off period – This is basically how much time you have to review your insurance arrangements after you receive your new insurance cover details. So when you apply for more cover and you’re accepted, we send you a letter of confirmation of insurance cover. You’ll then have 14 days from when you received the letter to cancel it if you wish.

So what now? – Read the following Insurance Guide as well as our PDS to fully understand our insurance products. If you need more help, give us a call.

insurancebasics What insurance cover is available?

If you're aged 24 or under, you get one unit of Death cover and two units of Total and Permanent Disablement (TPD) cover. Your Death cover will automatically be updated to 2 units of cover on your 25th birthday. If you're aged 25 or over when joining the fund, you get two units of Death cover and two units of TPD insurance cover. This level of cover is known as the default level of insurance cover. This is provided an up to date Superannuation Guarantee contribution is received by Club Super on your behalf within 6 months of commencement of employment.

All members of Club Super are eligible to apply for up to a maximum of $10 million Death insurance cover. TPD insurance is limited to $3 million.

You have two options with your cover:

• Unit based insurance cover – You elect the number of units of cover you would like. Your insured amount reduces with your age and your premium remains fixed; or

• Fixed amount insurance cover – You elect the amount of insurance cover you would like. Your insured amount generally remains fixed and your insurance premium increases each year. At older ages, TPD insurance tapers off.

If you don't make a choice on your Member Application form, you will receive the default level of insurance cover.

The premium is deducted directly from your superannuation account each week whilst you have insurance cover.

Remember that Club Super is unable to confirm your insurance unless you supply us with your date of birth.

Who is eligible for automatic insurance cover?You're eligible if:

• you are employed with a Club Super employer, and are At Work on the date you commence employment with a Club Super participating employer, to join Club Super. If you are not At Work on the date you commence employment, you will receive Limited Cover until you have been At Work for 60 consecutive days;

• your employer makes SG contributions into Club Super on your behalf within 6 months of commencement of employment;

• you are an Australian resident (an Australian resident is a person who has always lived in Australia and/or has come to Australia to live; and is eligible to work in Australia);

• you are less than 70 years of age; and

• you are not a member of any armed forces of any country.

How much Death & TPD insurance cover can you have?You can apply for up to a maximum of $10 million Death insurance. TPD insurance is limited to $3 million.

Unit based insurance coverTable 1: Death and TPD Unit based insurance cover amounts (per unit)

Age to next birthday Insurance amount per unit

Up to 40 $150,000

41-45 $110,000

46-50 $80,000

51-55 $50,000

56-60 $20,000

61-65 $15,000

66-70 $5,000

Still confused with insurance? Club Super can refer you to a Money Solutions qualified financial planner for help. They may also be able to help you with investment advice, planning for retirement and ways to achieve your financial goals.

www.clubsuper.com.au1300 369 330

ANNUAL REPORT2011

Prepared and issued on 31 October 2011

Prepared on 1 February 2011by the Trustee Club Plus Qld Pty. Ltd.

(ABN 30 010 892 396) of Club Super (ABN 12 737 334 298)

Inside:> Are you and your family covered?> Insurance basics> Do you have enough insurance?

John, Mark and ShaneClub Super members

Insurance Guide

Insurance Guide

Insurance Guide

1

Message from the Chairperson 1

How is Energy Super invested? 3

Defined Benefit investment pool 6

Investment options 7Defined Contribution investment options 9Market Linked Pension and Income Stream investment options 13

Who looks after your super? 16

Costs 19

Financial information 22

How to contact Energy Super 24

Disclaimer: This document is intended to provide information and not advice. It should not be relied upon as advice or take the place of professional advice. This document has been prepared without taking into account your individual objectives, financial situation or needs. Accordingly, before acting on the contents of this document, you should consider whether it is appropriate to you having regard to your objectives, financial situation and needs.

Issued by Electricity Supply Industry Superannuation (Qld) Ltd (ABN 30 069 634 439 AFSL 336567) the Trustee for Energy Super (ABN 33 761 363 685).

Contents

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Superannuation

Message from the ChairpersonIt is with great pleasure that I welcome you to the inaugural Energy Super Annual Report.

The past 12 months has been a dynamic period, both inside and outside Energy Super, and I would like to take a moment to highlight some of the key milestones which have occurred.

After more than nine months of intensive planning to deliver a smooth merger, Energy Super was born on 1 April 2011.

We thank you for remaining with both predecessor funds throughout the merger process, and with Energy Super since. I assure you that the same level of commitment to your superannuation investments and retirement goals will be upheld moving forward. Both ESI Super and SPEC Super had a track record of consistent returns, low fees and strong service to members and Energy Super continues this legacy.

Further changes resulting from the merger will continue, including the Board of Directors reducing from the current 12 directors (including Chairperson) to 10 from December 2011. A further reduction to eight directors will occur in April 2014, continuing to feature a mix of both Member and Employer Representatives.

However, while the merger has been a primary focus for the past 12 months, we’ve also witnessed a variety of other milestones and achievements serving to bolster the new Fund.

Performing for our members now and into the future

Despite the impact of natural disasters at home and abroad and ongoing international economic recovery concerns, Energy Super has delivered positive returns to its members across all investment options in 2010/11.

In October 2010, ESI Super cracked $3 billion in funds under management, and Energy Super was launched with a $3.8 billion fund status in April. Gradual and consistent progress across these short few months saw Energy Super edge towards $4 billion status as the Fund’s investment strategies continued to bolster strong positive returns.

While our investment returns for 2010/2011 showed positive and strong returns, the market has been quite volatile since. Global markets have reacted to renewed concerns in regards to a stalled period of economic growth in both the U.S. and a number of European economies. So it’s only natural to be concerned about how this volatility might affect the value of investments held within your superannuation.

It is important for our members to remember that although the U.S. and European economies have slowed, the International Monetary Fund’s 2012 growth forecast for Australia is higher than the rest of the developed world. If the Australian economy stalls, the Reserve Bank of Australia still has the flexibility to stimulate the economy through monetary easing. Together with our professional investment advisers, we will continue to closely monitor our investment strategy, and to look for further opportunities that are available in the current global markets.

New initiatives

Energy Super has launched a number of initiatives as part of a continual improvement program to upgrade our employer, member and advice services in line with a changing membership base.

Following the recent launch of the Fund’s SuperChoice Clearing House scheme, Energy Super’s participating employers can now efficiently make both default and choice-of-fund superannuation contribution remittances online, through a streamlined transactional website.

This provides benefits to members in ensuring contributions are allocated to their accounts quicker and more accurately.

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To find out more about Co-contributions contact SPEC Super or go to our website to view our Co-contribution Fact Sheet.Note: if you claim a personal contribution as a tax

deduction you cannot claim the Government co-

contribution.

Sacrifice a littleWho doesn’t want to pay less tax? Well, if you salary sacrifice some of your income into super, you could reduce your taxable income. Salary sacrifice contributions are concessional contributions and are made by your employer, on your behalf, from your before-tax income. Don’t forget, a contributions tax of 15% will be deducted from your salary sacrifice contributions when they are received by your super fund.

Consolidate!Did you know there are over 32 million* superannuation accounts in Australia? This means, if Australia has a working population of approximately 15 million^, then there are over 17 million unnecessary super accounts. That’s a lot!

It may be good idea to consolidate your super into one account so you can keep track of it. Then you won’t have to pay unnecessary fees. So if you have multiple super accounts, have a think about consolidating them into SPEC Super. Please note, SPEC Super does not charge any fees for rolling money into the Fund.

It’s really easy. Fill out the Member Rollover Authorisation form in this PDS and send it to SPEC Super. (Note, each super fund you rollover needs a separate rollover form. Also note that the paying fund may charge you an exit fee when you roll into SPEC Super so you should confirm this before you commence the rollover).

Spouse contributionsYou can make contributions on behalf of your spouse and they will become a spouse member in the SPEC Personal division. The receiving spouse must satisfy a work test if aged between 65-69 inclusive. They can also make spouse contributions into your SPEC Super account. In some circumstances, you may be eligible for tax concessions, where your spouse’s

total income includes (assessable income, reportable fringe benefits and reportable employer superannuation contributions) for the financial year is less than $13,800. If you would like to find out more information about making spouse contributions, read the Contributions Fact Sheet on our website.

Contribution splittingMembers may apply to SPEC Super at the end of the financial year, to have certain superannuation contributions that were made to their own account in the previous financial year, ‘split’ to their spouse’s account. This provides an opportunity to even up the account balances and may provide a tax incentive, particularly if you or your spouse intend retiring before age 60. The ‘split’ amount may be invested in your spouse’s SPEC Super account, or with their account in another fund.

Member Online - quick & easy If you register for Member Online you can:

•View your balance and previous MemberStatements and Record of Contributions;•Viewyourcontributionhistory;•Obtainyouraccountbalance;•Use the superannuation and pension

calculators; and•View and update your current member

details.

You can access a demonstration system at www.specsuper.com in which you can view and enter test data. Please use a Membership Number of 3 and a password of demo. Go on, it’s easy.

We hope these tips have been helpful to your superannuation planning. If you require further assistance, please call us on 1300 366 648.*The Association of Superannuation Funds of Australia

2009 ^Australian Bureau of Statistics 2008

Personal contributions, accessing the Government co-contribution (if eligible), salary sacrificing or rolling over your money into your SPEC Super account, can all potentially boost your super balance considerably.

We have listed below some ways you can make the most out of your super.

It all adds upEvery little bit helps. Yes, the contributions made by your employer will help your super balance. But will it be enough? Making personal contributions from your after-tax pay, in addition to the contributions your employer makes will boost your balance significantly. After tax personal contributions are non-concessional contributions and can be made by:

•Deductionfromyourpay; •DirectDebitfromyourbankaccount,or •BPayorcheque.

If you’re self-employed or a contractor, you can also make self-employed contributions. To find out more, please refer to the Contributions Fact Sheet on our website.

The Government can help you!Making personal contributions from your after-tax pay may also entitle you to the Government co-contribution incentive. From 1 July 2009, the Government will contribute a maximum co-contribution of $1 for every $1 of your contributions. This rate will remain for three financial years, before being increased to the following:

ElectrifyYour Super

Year

Your

co

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n

Max

imum

G

over

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-con

trib

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2012/13

2013/14

2014/15

$1

$1

$1

$1.25

$1.25

$1.50

No matter what your retirement plan is, you will need money to fund it. It is important to think of your long term goals and how you reach them.

Contributions

What are concessional contributions?•Employercontributions;•Salarysacrificecontributions;•Self employed contributions for

which a tax deduction is claimed.

What are non-concessional contributions?•Personal(aftertax)contributions;•Spousecontributions;and•contributionsoverthe

concessional contributions limit.

What contribution limits apply?For 2009/10 contributions are limited to: •$25,000forconcessional

contributions (or $50,000 if you are aged 50 or over);

•$150,000fornon-concessionalcontributions (or $450,000 over 3 years if you are under age 65).

What if the contribution limits are exceeded?•AnyConcessionalContributions

in excess of $25,000 (indexed) per financial year to June 30 will be taxed at an additional 31.5% on top of the current 15% tax on contributions.

•Anynon-concessionalinexcessof three times the indexed concessional contributions limit ($150,000 for 2009/10) will be taxed at 46.5%. This tax must be taken from your superannuation account.

8 www.specsuper.com 91300 366 648

2 3

A message from Sr Sandra Lupi 03

Chairman’s Report – Dr John O’Donnell 04

Your Trustee Board 06

Your Mercy Super Team 07

Mercy Super – Always for you 08

Insurance – what’s the big deal? 10

Income Streams – helping your super last a lifetime 11

The year in review and legislation update 12

Financial Year Annual Market Review 14

Your Investments 15

Investments – choosing the best ‘fit’ for you 16

Member Investment Options – investment objectives and strategy 18

Asset Allocation and Fund Managers 20

Other information 22

Your Fund 23

Financial Statements 24

General information 26

Keep in touch Back cover

A message from Sr Sandra Lupi

This is the Annual Report of Mercy Super, ABN 11 789 425 178, for the year 1 July 2010 to 30 June 2011, prepared and issued 23 September 2011.

The Trustee of the Fund is Mercy Super Pty Ltd, ABN 98 056 047 324. Mercy Super Pty Ltd is Corporate Authorised Representative No. 268897 and is authorised to provide general financial product advice in relation to superannuation under Australian Financial Services Licence No. 238507, and is a Registered Superannuation Entity (RSE Licence L0001359 and RSE Registration R1004311).

This Annual Report contains general information and does not take into account your personal objectives, financial situation or needs. Before deciding whether to act on any information given in this Report, it is important that you consider the appropriate Member Booklet (also known as a Product Disclosure Statement), having regard to your own particular situation. Please contact the Fund if you wish to obtain a copy of the Member Booklet.

Sandra Lupi RsmCongregation Leader Sisters of Mercy, Brisbane

SHARED PRINCIPLES LEAD TO MUTUAL SUCCESS2011 marks 150 years of the Sisters of Mercy in Queensland. During this period, we have pursued our ideal of participating in God’s mission of mercy to bring about a more just and compassionate world. Together with our partners in ministry, we work to realise the vision of our founders, Catherine McAuley and Ellen Whitty, in our time and place. We endeavour to develop collaborative relationships and processes so as to continue the Mercy tradition of service in sustainable ways.

As Sisters of Mercy celebrates its 150th anniversary, it is fitting that we acknowledge the role played by our colleagues at Mercy Super in upholding the values of our organisation. In working to fulfil the vision of our founders, the Sisters of Mercy has enjoyed the support of Mercy Super in promoting our guiding spirit of empathy, professionalism and trust.Mercy Super also celebrates a significant milestone next year when it will have been supporting the financial security of its members for fifty years. The success of the Fund over this time is a reflection of its principle of always putting its members first. This focus on understanding and responding to the needs of members underpins all aspects of the Fund’s activities.The Sisters of Mercy continue to be proud of our association with Mercy Super – a superannuation provider that genuinely believes in living up to its promise of Always for you.

The success of the Fund over this time is a reflection of its principle of always putting members first.

For further information on how QIEC Super can make

a difference visit us at

call us on

or email us on

info@qiec.com.au

www.qiec.com.au

1300 360 507

This information is of a general nature and does not take account of your individual financial situation, objectives or needs. Because of this you should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. You should obtain a Product Disclosure Statement (PDS) and consider the PDS before making any decision. If you require such specific advice, you should contact a licenced financial adviser. QIEC Super Pty Ltd (ABN 81 010 897 480), the Trustee of QIEC Super (ABN 15 549 636 673), is Corporate Authorised Representative No. 268804 under Australian Financial Services Licence No. 238507 and is authorised to provide general financial product advice in relation to superannuation. #SuperRatings Pty Ltd holds AFSL No. 311880. Go to www.superratings.com.au.

We are proud to support your industry and we are proud of our investment history. Our team of professional investment advisors are constantly striving for improvement. Recent times have certainly been tough but it has not swayed our resolve to deliver on our mission “to contribute to the financial security of members and their families during their working lives and in retirement.”

We know that many of our members are taking more interest in how their super is invested. That’s why we have 10 investment options to choose from:

• Balanced Growth

• Conservative Growth

• High Growth

• Socially Responsible Investment

• Infrastructure

• Property

• Fixed Interest

• Cash

• Australian Shares

• International Shares

You don’t have to put all your money into one option – you can mix and match them if you wish. With a total of 10 investment options, you now have greater control over your super.

So what are you waiting for...join QIEC Super today and become first in your class!

First in our class

contact:

p: 0402 111 084

e: michaelreiken@y7mail.com