Future trends in superannuationIn the current investment climate 12 November 2015

Sean Ellis – General Manager Strategy and Growth, Vision Super

The information contained in this presentation was current at the time of publication and is provided to help you understand Vision Super’s superannuation plans, products and services, and policies and procedures.

This presentation may contain general advice that does not take account of your financial situation, specific needs or objectives.

Before acting on the basis of anything contained in this document, you should consider whether it is appropriate to your needs and circumstances. We recommend that you seek professional advice, and read the relevant Product Disclosure Statement and Financial Services Guide before acquiring any financial product.

The information contained in this presentation should not be used as a substitute for legal or other professional advice, and please remember that the past performance of our financial products is not an indication of the future performance of these products.

General advice disclaimer

Vision Super Pty Ltd ABN 50 082 924 561 Australian Financial Services Licence 225054 and RSE Licence L0000239 is the Trustee of the Local Authorities Superannuation Fund ABN 24 496 637 884 and Vision Superannuation Fund ABN 79 327 289 195

Agenda1 Investment market update

2 Financial Services Inquiry

3 Tax whitepaper

4 Retirement product innovation

5 Insurance claims

6 The future of superannuation

About Vision SuperOne of Australia’s oldest superannuation funds:

> $7.5 billion in assets

> 102,000 members

Key Features:

> ‘Members first’ fund

> Run only to profit members

> History of strong investment performance

> Highest ranking from independent ratings agency (insert SR ratings)

Investment market update

Global Economy – GDP 2014 Projected 2015 Projected 2016 Difference from July 2015

World Output 3.4 3.1 3.6 -0.4Advanced economies 1.8 2.0 2.2 -0.4United States 2.4 2.6 2.8 -0.5Euro Area 0.9 1.5 1.6 0.0- Germany 1.6 1.5 1.6 -0.1- France 0.2 1.2 1.5 0.0- Italy -0.4 0.8 1.3 0.3- Spain 1.4 3.1 2.5 0.6Japan -0.1 0.6 1.0 -0.4United Kingdom 3.0 2.5 2.2 -0.2Canada 2.4 1.0 1.7 -1.2Other advanced economies 2.8 2.3 2.7 -0.5Emerging market and developing economies 4.6 4.0 4.5 -0.3

Investment market update

> US interest rate hike expected

> UK expected to follow

> Europe, Japan & Australia expected to ease rather than tighten

> Bond rate rise reducing bond returns

Investment market update Impact to super performance

> Future growth led by service sector

> Less demand for resources

> Rise in volatility

> Poorer returns for bonds

> Modest returns for equities

> Emerging markets best medium term prospects

> Commodity producers (including Australia) likely to remain under pressure

Financial Services Inquiry > Fundamental purpose of superannuation

> Post-retirement products (CIPR)

> Raising competency of financial advisers

> Board changes

> Potential for formal competitive process

> Removing choice of fund

Tax whitepaperRe:think, Re:consider, Re:form

> Imputation

> Superannuation

> GST

> Personal income, payroll, capital gains & corporate income tax

> Stamp duties

> Savings

Retirement product innovationComprehensive Income Product in Retirement (CIPR)

> Flexibility

> High income

> Risk management features

> Default from accumulation to de-accumulation

Insurance within super > Increase in premiums

> Product design

> Meeting member needs

The future of superannuation > More competitive and efficient (FSI)

> Fund mergers

> Auto member consolidation

> Superstream

> Policy change

Thank you