aon _corp_a_mem

AOn MASTER TRuST
cORPORATE SuPER
Member Guide
Trust
Aon Master Trust

Product Disclosure Statement — Part 1 of 2
ABN 68 964 712 340
RSE R1000566
phone 1300 880 588
fax 1800 010 435
Please read this document before making a decision to invest.
email contactcentre@aon.com.au
web aonmastertrust.com.au
Trustee and Issuer
Aon Superannuation Pty Limited
ABN 83 057 982 822
AFSL 237465
RSE L0000437
date issued 1 July 2008

TODAY. TOMORROW. READY.

ThE AOn
MASTER TRuST

SuPERAnnuATiOn iS A lOnG-TERM invESTMEnT. Your employer has chosen default investment and insurance
options for employees joining the Aon Master Trust. Full
ThE AOn MASTER TRuST OffERS YOu invESTMEnT
details of these options, including fees and charges, appear
AnD inSuRAncE OPTiOnS TO SuiT YOuR nEEDS.
in the PDS Part 2: Your Plan Outline.

The Aon Master Trust is a registered superannuation fund If, having read this PDS including Your Plan Outline, you
which invests for the benefit of members. would like to change your options or other details, please
complete the Change member details and options form
At 1 July 2008, the Trust has over $1.6 billion in assets, over
provided with this PDS or available from our website
60,000 members, and over 600 participating employers.
aonmastertrust.com.au and return it to us.
The Aon Master Trust is managed by Aon Superannuation
Our formal complaints resolution procedure is described on
Pty Limited, an approved trustee regulated by the Australian
page 44.
Prudential Regulation Authority (APRA). Aon Superannuation
Pty Limited (‘the trustee’) is a wholly owned subsidiary of Aon
Consulting Pty Limited, part of the Aon group of companies.
product ratings
Financial planning services are not provided by Aon
Aon Master Trust Corporate Super has been awarded a five
Superannuation Pty Limited.
star rating for 2008/2009 by The Heron Partnership (for
AIG Life is the insurer of certain benefits of most, but not more information on the ratings system used and to view
all, members. If you have received a PDS Part 2, AIG Life the Heron Financial Services Guide for superannuation fund
is your insurer. ratings services see heronpartners.com.au) and a Platinum
rating for 2008 by SuperRatings (for more information on
AIG Life has agreed to this Product Disclosure Statement (PDS)
the rating system used, see superratings.com.au). References
containing information about AIG Life in Insurance options on
to The Heron Partnership and SuperRatings in this PDS have
pages 22 to 31 and has not withdrawn its consent. AIG Life
been authorised by the trademark holders.
has not issued this PDS and has not approved any statements
in this PDS that do not refer to AIG Life. The analysis and information upon which ratings are based is
considered accurate at the time a particular product is rated.
However, ratings agencies give no guarantee or warranty
about this PDS and make no representation as to the product or accuracy
of the third party information provided to them. Ratings
are produced without taking into account any individual’s
This PDS describes the main features of the Aon Master Trust
financial needs, circumstances and objectives – any person
for Corporate Super members. It will help you compare
should assess the appropriateness of the advice in regard
the Aon Master Trust with other superannuation funds.
to their own financial situation and consult a licensed
Additional information is available if required – see Other
financial adviser.
important information on page 42.

If a person needs more information about a financial services
licensee, they will need to contact the financial services licensee.

The Aon Master Trust also offers Personal Super for individual
and self-employed members, spouses, or organisations with
less than five employees, a Pension for those interested
in purchasing a retirement income stream and a non-
commutable pension for those transitioning to retirement.
Contact us for more information.

TODAY. TOMORROW. READY. 2

cOnTEnTS

summary of features ................................. 4
your contributions .................................... 7
the nuts and bolts of investing .................. 9
investment options summary ................... 11
investment options pre-mixed ................. 12
investment options sector ........................ 14
information on SRI option ........................20
insurance options ....................................22
tax and super...........................................32
fees and other costs .................................34
accessing your super benefits...................39
other important information ....................42
what to do next .......................................45
forms .......................................................47

note
Fees and conditions in this PDS apply to members
who join Aon Master Trust Corporate Super on or
after 1 July 2008. Fees and conditions will change
over time and we will notify you of material changes.
Existing members’ fees and conditions are as notified.

The trustee reserves the right to correct any
omissions in this PDS. If there is a discrepancy
between this PDS and the trust deed, the trust deed
will be the final authority.

Member forms are also available on our website aonmastertrust.com.au.

The information in this document is general in nature. Your personal objectives, needs or financial situation were not taken into account when preparing this information.
You should consider the appropriateness of any general advice before acting on it, having regard to your own objectives, financial situation and needs. If the information
relates to a financial product, you should obtain and consider the relevant Product Disclosure Statement before making any decision to purchase that financial product.

This document has been prepared by Aon Consulting Pty Limited (ABN 48 002 288 646, AFSL 236667) a related body corporate of the trustee of the Aon Master Trust
(ABN 68 964 712 340, RSE R1000566), Aon Superannuation Pty Limited (ABN 83 057 982 822, AFSL 237465, RSE L0000437). This is a relationship that might reasonably
be expected to be capable of influencing Aon Consulting Pty Limited when the company provides financial product advice to clients in respect of the Aon Master Trust.

3

SuMMARY
Of fEATuRES

investment options
AOn MASTER TRuST cORPORATE SuPER iS fOR
cOMPAniES AnD ORGAniSATiOnS WiTh fivE
EMPlOYEES OR MORE ThAT SElEcT ThE AOn MASTER Your employer has nominated a default investment option
TRuST fOR ThEiR EMPlOYEES’ SuPER AnD/OR – see Your Plan Outline for details. You can choose an
inSuRAncE ARRAnGEMEnTS. investment option or mix of options that suits you other
than the default.

contributions There are over 30 options to choose from, arranged in two
categories – see pages 11 to 19.
Aon Master Trust Corporate Super can accept the following
pre-mixed options
º
contributions on behalf of members:
sector options.
º
employer contributions, including Superannuation
º
Guarantee (SG) contributions
insurance options
personal contributions
º
super benefits rolled over from other funds
º
Your employer selects the way your insurance is calculated.
government co-contributions
º There is a minimum level of death and total and permanent
disablement cover of $210,000* (indexed) on joining the
spouse contribution splits and payments made under
º
fund, provided you meet a number of conditions.
family law arrangements
spouse contributions.
º
See Your Plan Outline for details of your level of cover
and your benefits in the event of death or total and
Your spouse can also join Aon Master Trust Personal Super.
permanent disablement.

You have the option to adjust the level of cover to suit
super benefits your circumstances.

If your employer has chosen the Aon Master Trust as the
options to suit you
default fund for employer SG payments or yours is an
insurance-only plan to which you contribute, super benefits You can choose from three types of insurance cover and can
may be payable to you in a range of circumstances: combine cover (see pages 22 to 31):

retirement
º death
º
total and permanent disablement
º death and total and permanent disablement
º
total and partial disability
º income protection.
º
death.
º
Provision of all insurance cover is subject to acceptance of
cover by the insurer, AIG Life.
In addition you can choose to transfer your benefits
within the Aon Master Trust or roll over your benefits in
* Minimum cover reduces from $210,000 at age 42 to nil at age 65 – see graph
some circumstances. on page 22.


my ebenefits make the most of your
membership
A one-stop shop designed to save you time and money,
my ebenefits offers quality financial and lifestyle products
get your super together
and services including:
Rolling your super into one account may save you fees.
free tax and legal advice
º Send us a completed Request to transfer whole balance of
superannuation benefits between funds form at the back
insurance – including car, health, home and contents
º
of this PDS. Copies are also available on our website
lending – from over 40 different providers
º
aonmastertrust.com.au.
options for great leisure activities, gift ideas,
º
entertainment and travel. For more information see the factsheet Rollover options on
our website.

fees summary
boost your balance
compare our value with other super funds To make personal contributions to your super, send us a
establishment fee completed Lump sum contribution form available on our
website, or talk to your employer about salary sacrifice or
none.
personal (after-tax) contribution options by payroll deductions.
contribution fee
If you have an insurance-only plan (see Your Plan Outline),
none.
the Aon Master Trust is not your employer’s default fund for
transfer fee SG payment. However, you can still elect to make personal
none. contributions or have employer SG contributions (under
choice of fund) paid into your account.
investment switching fee
none. For more information see the factsheet Salary sacrifice on
our website.
member fee
$63 pa indexed.
your spouse can join too
asset administration fee
Your spouse can join the Aon Master Trust (see
up to 1.1% pa as negotiated by your employer.
page 43). They should obtain a copy of the
Aon Master Trust Personal Super PDS and complete
management fee
the Personal Super: Member application form.
between 0.43% and 1.32% pa depending on investment
options chosen (default option fee is 0.46% pa), plus any
performance fees which may be earned.
plan your investment strategy
withdrawal fee You can switch your current and/or future investments
$80 per payment. at no cost. You can do it online once you receive your
user name and password or you can send us a completed
adviser service fee Switching investment options – current members form or
up to 2% pa or up to $10,000 pa, as negotiated between a Change member details and options form.
you and your adviser, where applicable.

See Fees and other costs on pages 34 to 38.

5

choose the right insurance cover
website and online services
You receive a default level of insurance cover negotiated
by your employer. You can customise insurance cover and
Forms for change of details, voluntary contributions,
premiums according to your needs. The insurance factsheets
spouse membership, investments switches and
and calculator on our website aonmastertrust.com.au
super transfers are available on our website
may help you make a choice. You can also transfer existing
aonmastertrust.com.au.
insurance cover (from a retail policy or super fund) to the
Aon Master Trust. See pages 22 to 31 for more information
Once you become a member of the Aon Master
on insurance options and forms that you need to complete.
Trust you will receive secure online access to view
your account, including personal details, transaction
nominate your beneficiaries history, beneficiary information and investments. You
will also be able to switch investments, change your
To choose a binding death benefit nomination, complete
personal details including your non-binding beneficiary
and send us the Binding death benefit nomination form. To
nomination and obtain benefit quotations online with
make a non-binding nomination, complete the relevant
complete security.
section in the Change member details and options form. Both
forms are available on our website aonmastertrust.com.au. Call 1300 880 588. Our contact centre is open
The Trust makes anti-detriment payments to eligible Monday to Friday, 7am to 7pm Eastern Standard Time
dependants. For additional information on death benefit (excluding NSW public holidays).
nominations see pages 30 and 43 and the factsheet
Binding death benefit nomination on our website.

plan ahead for retirement
The Aon Master Trust offers you the option to purchase a
pension and a transition to retirement pension – see page
39. You can download a Pension PDS from our website or call
us on 1300 880 588 to have a copy mailed to you.

financial planning services
For details of a qualified adviser near you, call us on
1300 880 588.


YOuR
cOnTRiBuTiOnS

concessional contributions
ThE AOn MASTER TRuST cAn AccEPT
cOnTRiBuTiOnS fROM YOuR EMPlOYER (OR YOuR
cOMPAnY if YOu ARE SElf-EMPlOYED), YOu AnD employer contributions
YOuR SPOuSE, AS WEll AS TRAnSfERS fROM OThER Under Superannuation Guarantee (SG) laws, employers must
SuPERAnnuATiOn funDS. make super contributions based on a percentage of salary
or wages for most employees aged 18 to 70 who earn $450
or more (before-tax) in a calendar month. This percentage
is currently 9%. These contributions will count towards a
making your super grow member’s concessional contribution cap.

You can keep your benefits in super as long as you like and Your employer has nominated the Aon Master Trust as the
earnings will be taxed at concessional tax rates. You can default fund to receive your SG payments, unless you are
also contribute to super until you turn 75 as long as you are a member of an insurance-only plan. Under choice of fund
gainfully employed on at least a part-time basis (you must legislation, you can accept this nomination or nominate
work for at least 40 hours in 30 consecutive days in the another super fund for your employer to pay contributions into.
financial year in which you contribute) after you reach age 65.
If you choose another fund and your balance in the Aon
Making your own super contributions is optional but even Master Trust falls below $5,000, all insurance benefits may
small contributions may make a big difference to your cease and your benefit may be transferred to the Aon Eligible
benefits over time. Rollover Fund (ERF), if we do not receive instructions from
you – see page 39 for more information.
contribution < 65 years 65 but 70 but 75 years
If you have an insurance-only plan, Aon Master Trust Corporate
type < 70 years < 75 years or more
Super is not your employer’s default fund for SG payments
employer SG no restriction no restriction no restriction no restriction (see Your Plan Outline to find out if yours is an insurance-only
plan). However, you can elect to have employer SG payments
made to your insurance-only plan under choice of fund
voluntary no restriction must be must be cannot be
legislation – see page 5 for more information.
employer gainfully gainfully accepted
employed employed
on at least a on at least a
salary sacrifice contributions
part-time basis part-time basis
It is possible to arrange personal (before-tax) contributions
member no restriction must be must be cannot be
to your super (by way of ‘salary sacrifice’) if your employer
gainfully gainfully accepted
employed employed
agrees to making these contributions. You can also choose
on at least a on at least a
to have your bonus or pay rise paid into your super fund
part-time basis part-time basis
before tax is deducted, subject to employer approval. These
eligible spouse no restriction must be cannot be cannot be
contributions can be regular or one-off and may allow you
gainfully accepted accepted
employed to pay less income tax than if you made the same amount
on at least a
of personal (after-tax) contributions. Contact us or ask your
part-time basis
employer for more details. Contribution caps apply – see
next page.
Regulation 7.04(6) of the SIS Regulations allows a regulated superannuation
fund to accept a contribution in respect of a member if the trustee is reasonably
satisfied that the contribution is in respect of a period during which the fund
self-employed contributions
could have accepted the contribution, notwithstanding that the contribution is
If you are self-employed or substantially self-employed, you
made after that period.

are able to claim a full deduction for personal contributions
Concessional and non-concessional caps apply to contributions. See next page
for more information. you make to super until age 75. Contribution caps apply
– see next page.

7

non-concessional contributions rolling over money from other funds
If you have had different jobs, you may have money in a
personal contributions
number of different super funds. Moving or rolling over
You may make personal (after-tax) contributions if you are these balances into one account may reduce fees and
aged under 65. You may also make personal (after-tax) paperwork and will make it easier to keep track of your
contributions between 65 and 75, as long as you are super. To roll over balances from other funds to the Aon
gainfully employed on at least a part-time basis (you must Master Trust, complete the Request to transfer whole balance
work for at least 40 hours in 30 consecutive days in the of superannuation benefits between funds form at the back of
financial year in which you contribute). Contribution caps this PDS. If you need additional copies of the form, you can
apply – see below. download them from our website aonmastertrust.com.au.

One-off contributions can be made at any time using a You will need to provide a certified copy of a photo ID with
Lump sum contribution form available from our website or each request. See Completing proof of identity on page 2 of
by contacting us. Talk to your employer to find out if you the form for more information.
have an option to make personal (after-tax) payments by
payroll deductions.
contribution caps
If yours is an insurance-only plan (see Your Plan Outline) you
Tax concessions will be available only up to the concessional
can still make personal contributions to it.
and non-concessional contribution caps, unless you qualify
under transitional rules.
eligible spouse contributions
You can contribute to the Aon Master Trust on behalf You can make up to $150,000 per year in non-concessional
of your spouse if your spouse is aged under 65. A spouse contributions or up to $450,000 averaged over three years
between 65 and 70 must be gainfully employed on at least by bringing forward future annual limits (if you are under
a part-time basis to be eligible for spouse contributions. age 65 in the financial year).
This could mean that as a couple you will pay less lump sum
Concessional contributions to superannuation will be
tax. Your spouse must already be a member of, or must
limited to $50,000 per person per year.
join, the Aon Master Trust – see page 43.

These caps are indexed in line with movements in Average
Your spouse may also contribute to the Aon Master Trust
Weekly Ordinary Time Earnings (AWOTE). For more
for you subject to the conditions outlined above. See Tax
information refer to the factsheet Tax on super on our
rebates for spouse contributions on page 32 or contact us for
website, contact the Australian Taxation Office on 13 10 20
further details.
or visit ato.gov.au/super.

government co-contribution To help with retirement planning, a transitional period
will apply to members who are 50 or above and for those
The Government may pay a superannuation
members turning 50 before 1 July 2012. During the
co-contribution of up to $1,500 for you. The maximum
transitional period, the cap on concessional contributions
co-contribution amount is $1.50 for every $1.00 you add
will be $100,000 from the financial year the member turns
to your super as a personal (after-tax) contribution, as long
50 until 30 June 2012.
as your income is below the minimum threshold for that
financial year. Self-employed members may also qualify for
the co-contribution.

For more information, including the current thresholds, refer
to the Government co-contributions factsheet on our website
aonmastertrust.com.au, contact the Australian Taxation
Office on 13 10 20 or visit ato.gov.au/super. You may also
wish to use the co-contribution calculator on our website.


ThE nuTS AnD BOlTS
Of invESTinG

BEfORE lOOkinG AT YOuR invESTMEnT OPTiOnS, fixed interest investments are typically a loan between a
º
hERE ARE SOME kEY invESTMEnT PRinciPlES. borrower and a lender. The borrower (eg a government,
bank or company) promises to pay the lender specific
‘fixed’ interest payments over the term of the investment
and return the initial investment at the end of the loan.
key principles Although prices for fixed interest assets vary and may
occasionally be negative, they typically offer lower risk
and return than property or shares.
risk, return and asset classes cash is typically defined as short-term securities with a
º
A basic rule of investing is that the bigger the investment maturity date of less than one year. Cash investments
risk, the bigger the potential return over the long term. offer a low level of risk, but are likely to provide the
Investors typically structure investments across five asset lowest return of all asset classes over the long term.
classes. Each asset class has a different level of risk/return
See the factsheet Introduction to asset classes on our website
as outlined below:
aonmastertrust.com.au for more information.
shares represent part ownership of a company.
º
Typically, all investments in this asset class are ‘listed’
diversification
shares – ie traded on stock exchanges. Owning shares
can provide both capital growth and a proportion of Diversification means spreading investments across different
profits, called dividends. Share prices change frequently asset classes, managers’ products and/or investment
and share investments typically offer a high level of risk strategies. The aim is to reduce the overall portfolio risk
and return. while enhancing investment returns. A well-diversified
property trusts and managed property funds invest portfolio facilitates smoothing of the fluctuations in returns
º
of particular asset classes.
in commercial, retail, industrial, hotel and residential
real estate. Property investments offer returns based on
A diversified investment portfolio typically falls into one of
property valuations and a rental income stream. Property
three categories:
trusts can either be listed (ie a security tradeable on a
stock exchange) or unlisted. Property returns are cyclical
growth – invests mainly in assets aiming to provide a
º
and typically have a higher risk/return profile than fixed
higher return but with higher risk. Typical asset classes
interest and cash.
include shares, property and alternative assets.
alternative assets typically include hedge funds,
º
balanced – invests in a mix of all major asset classes
º
private equity and infrastructure. Hedge funds use
aiming to deliver a moderate return with a moderate
specialist investment strategies to trade shares and fixed
risk level.
interest assets. Private equity investments are made in
defensive – invests mainly in assets aiming to provide
º
companies not listed on a stock exchange. Infrastructure
a moderate return with lower risk. Typical asset classes
investments include utilities and other physical assets.
include fixed interest and cash. Defensive investments
These funds aim to achieve positive returns in both
may also include some growth assets.
rising and falling markets and are typically included in
diversified portfolios to reduce exposure to risk over
longer time frames.

9

index and active investments application of unit prices
Major considerations when investing include how a fund Unit prices are derived and applied in an equitable manner
manager can add value to exceed an underlying market that values members’ benefits and distributes investment
index or benchmark, the risk undertaken by the manager, earnings and losses equally. The trustee applies a forward
and the management fees. pricing mechanism to process transactions to/from the
Trust. This means that all transactions are processed using
Index fund managers seek to track the performance of a a unit price calculated after the Trust has received the
stock index. For example, the Australian Shares – Index transaction request. The practical implications for members
option is designed to closely match the performance of the are as follows:
S&P/ASX 200 Accumulation Index for Australian shares.
contributions – we process contributions within time
Index managers typically charge less than active managers. º
limits that conform to standards maintained by the
Active fund managers aim to outperform their benchmark trustee, using the price applicable on the date of
by using research, active portfolio management and trading processing. This is normally within five working days of
strategies. There is a risk, especially over short time horizons, receipt of a contribution and appropriate paperwork.
that an active manager may underperform the relevant
benefit payments – we use the unit price on the day
º
market index. Active fund managers typically charge more
benefit payments are processed. Benefits are normally
for taking this approach, but believe potential improved
processed within three to five business days after all
investment performance will justify the cost.
required information is received.
investment switches – we process investment switches
º
unit pricing policy and procedures no earlier than the third business day after receipt
of the completed request and normally within five
The trustee has adopted a formal unit pricing policy for the
working days. You will receive the unit price applicable
Trust. The trustee can change this unit pricing policy and any
to the date the switch is processed.
underlying procedures at any time. The calculation of the
unit price for each investment option is:
Unit prices fluctuate from day to day but in extraordinary
market conditions the price variations can be significant.
Net asset value* (of the relevant investment option)
Unit price =
The variations can also be significant in options which own
The number of units on issue for members
relatively small levels of assets compared to cash flows in and
for that investment option.
out. The trustee does not accept liability for any losses that
* The net asset value is equal to the gross asset value (ie market value of the
a member may perceive that he or she has suffered except
underlying investments and cash at bank for that investment option) as at the
where it is established that the published unit pricing policy
close of business on a given day, plus accrued income minus indirect expense
recoveries minus investment income tax provisions.
has not been applied.
The trustee reserves the right to suspend unit pricing
activities at its discretion in exceptional circumstances.
note
This includes the right to suspend unit prices (and therefore
processing contributions to/from the Trust) in extreme
Investment returns are not guaranteed and can
market conditions. The unit pricing policy conforms to
fluctuate over time. Past earnings are not an
standards issued by government regulators and relevant
indication of future earning rates.
industry bodies.


invESTMEnT OPTiOnS
SuMMARY

AOn MASTER TRuST MEMBERS MAY chOOSE OnE OPTiOn OR A Mix Of OPTiOnS fROM ThE liST BElOW
(MiniMuM 5% PER chOSEn OPTiOn). YOu cAn MAkE DiffEREnT chOicES fOR YOuR cuRREnT SuPER BAlAncE
AnD YOuR fuTuRE cOnTRiBuTiOnS.

Log into your account online once you receive your user name and password or send us a completed Change member details
and options or Switch investment options – current members form available from our website. For the latest investment returns,
visit our website aonmastertrust.com.au or call us on 1300 880 588.

PRE-MixED SEcTOR

º High Growth – Index Australian Shares – Index
º
º High Growth – Active Australian Shares – Diversified
º
Australian Shares – Core*
º
º Growth – Index Australian Shares – Socially Responsible*
º
º Growth – Active Australian Shares – Opportunities*
º

º Balanced – Index International Shares – Index
º
º Balanced – Active International Shares – Index ($A hedged)
º
International Shares – Diversified
º
º Capital Stable – Index International Shares – Core*
º
º Capital Stable – Active International Shares – Core ($A hedged)*
º
International Shares – Emerging Markets*
º
º Secure – Index International Shares – Opportunities*
º
º Secure – Active
Property – Australian Index
º
Property – Diversified
º
Property – Direct
º
Property – Global Listed ($A hedged)*
º

º Alternative – Diversified

Fixed Interest – Australian Index
º
Fixed Interest – International Index ($A hedged)
º
Fixed Interest – Diversified
º
Fixed Interest – Australian*
º
Fixed Interest – International ($A hedged)*
º

º Cash

º Diversified – Maple-Brown Abbott

* Option available from October 2008. Depending on the timing and size of initial cashflows, the investment performance of a new option may vary from the
underlying product.
The trustee reserves the right to close or terminate the options (either to refuse to accept new money or enforce reduction of assets) or change underlying products at any
time. The trustee will inform you as soon as possible if this affects your nominated choice.


invESTMEnT OPTiOnS
PRE-MixED

high Growth high Growth Growth Growth Balanced
– index – Active – index – Active – index

objective To provide a return To provide a return To provide a return To provide a return To provide a return
at least 5% above at least 5.5% above at least 4.5% above at least 5% above at least 4% above
CPI over rolling CPI over rolling CPI over rolling CPI over rolling CPI over rolling
five-year periods. five-year periods. five-year periods. five-year periods. five-year periods.

investment strategy Invests 100% of Invests 100% of Invests 85% of the Invests 85% of the Invests 70% of the
the portfolio in the portfolio in portfolio in growth portfolio in growth portfolio in growth
growth assets. growth assets. assets and 15% in assets and 15% in assets and 30% in
defensive assets. defensive assets. defensive assets.

risk/return profile Returns can be very Share market Returns are Returns are There is likely to
volatile over the investments can generally less generally less be volatility in
short to medium be very volatile volatile than the volatile than the returns in the short
term. Historically, over the short to High Growth High Growth term but they tend
shares have medium term but, portfolio but can portfolio but can to stabilise over
offered the highest historically, these still be very volatile still be very volatile longer periods.
long-term returns. investments have over the short to over the short to
offered the highest medium term. medium term.
long-term returns.

strategic asset
allocation1
32%
37.5%
46% 44% 39%
Australian shares
32%
37.5%
46% 44% 39%
International shares
6% 6%
8% 7% 7%
Property
4%
5%
0% 0% 0%
Alternative – growth
5%
0%
0% 0% 0%
Alternative – defensive
0% 0% 7.5% 12.5%
5%
Aust. fixed interest
12.5%
0% 0% 7.5% 5%
Int’l fixed interest
0% 5%
0%
0% 0%
Cash

management fee2 0.46% pa. 0.90% pa. 0.46% pa. 0.85% pa. 0.46% pa.

performance fee3 Nil. 0% to 0.20% pa. Nil. 0% to 0.20% pa. Nil.

Asset allocations shown are strategic benchmarks. Actual allocations may vary.
1

See Management fee in the table on page 35 for details.
2

Provided as a range of possible outcomes. Performance fees are paid only when an investment manager or product outperforms an agreed benchmark.
3

The fee is a small proportion of the overall outperformance and if returns fall short of benchmarks, no performance fees are paid.


Balanced capital Stable capital Stable Secure Secure
– Active – index – Active – index – Active

objective To provide a return To provide a return To provide a return To provide a return To provide a
at least 4.5% above at least 3% above at least 3.5% above at least 2% above return at least
CPI over rolling CPI over rolling CPI over rolling CPI over rolling 2.25% above
five-year periods. three-year periods. three-year periods. two-year periods. CPI over rolling
two-year periods.

investment strategy Invests 70% of the Invests 30% of the Invests 30% of the Invests 100% of Invests 100% of
portfolio in growth portfolio in growth portfolio in growth the portfolio in the portfolio in
assets and 30% in assets and 70% in assets and 70% in defensive assets. defensive assets.
defensive assets. defensive assets. defensive assets.

risk/return profile There is likely to Relatively low but Relatively low but The most stable The most stable
be volatility in stable returns. stable returns. returns. Generally returns. Generally
returns in the short There may be some There may be some lower returns than lower returns than
term but they tend short-term volatility. short-term volatility. the other options. the other options.
to stabilise over
longer periods.

strategic asset
allocation1
30% 12% 12% 0% 0%
Australian shares
30% 12% 12% 0% 0%
International shares
Property 6% 6% 6% 0% 0%
0%
4% 0%
0% 0%
Alternative – growth
5% 10% 5%
0%
Alternative – defensive 0%
30% 30%
25%
Aust. fixed interest 27.5%
10%
25%
10%
Int’l fixed interest 30% 30% 27.5%
Cash 5% 10% 10% 40% 40%

management fee 0.80% pa. 0.46% pa. 0.70% pa. 0.46% pa. 0.55% pa.
2

performance fee3 0% to 0.15% pa. Nil. 0% to 0.10% pa. Nil. 0% to 0.05% pa.

1

2

3


13

invESTMEnT OPTiOnS
SEcTOR

Australian Shares Australian Shares Australian Shares Australian Shares
– index – Diversified – core* – Socially Responsible*

objective To provide a return that To provide a return that To provide a return that To provide a return that
closely matches the exceeds the benchmark exceeds the benchmark exceeds the benchmark
benchmark return before index (before fees and index (before fees and index (before fees
fees and tax. tax) by 2% pa over tax) by 1.5% pa over and tax) over rolling
rolling five-year periods. rolling five-year periods. five-year periods.

benchmark index S&P/ASX 200 S&P/ASX 300 S&P/ASX 300 S&P/ASX 300
Accumulation Index. Accumulation Index. Accumulation Index. Accumulation Index.

investment strategy Fully replicates the Invests in shares listed Invests in shares listed Predominantly exposed
benchmark holdings in on the Australian Stock on the Australian Stock to shares or unit trusts
order to closely match Exchange and unlisted Exchange and unlisted listed or about to be
the benchmark risk and shares that will be shares that will be listed on the Australian
return characteristics. listed within six months listed within six months Stock Exchange. In
or related securities. or related securities. selecting shares or unit
trusts, consideration is
given to one or more
socially responsible
standards (eg social,
ethical or environmental
standards).

risk/return profile Returns can be very Returns can be very Returns can be very Returns can be very
volatile over the short volatile over the short volatile over the short to volatile over the short to
to medium term. to medium term. medium term. medium term.
Historically, shares have Historically, shares have
offered the highest offered the highest
long-term returns. long-term returns.

benchmark asset 100% Australian shares. 100% Australian shares. 100% Australian shares. 100% Australian shares.
allocation1

management fee2 0.45% pa. 0.90% pa. 0.80% pa. 1.32% pa.

performance fee3 Nil. 0% to 0.35 % pa. 0% to 0.20 % pa. Nil.

1

2

3

* Option available from October 2008 – see summary on page 11.


Australian Shares international Shares international Shares international Shares
– Opportunities* – index – index ($A hedged) – Diversified

exceeds the benchmark closely matches the closely matches the exceeds the benchmark
index (before fees and benchmark return before benchmark return before index (before fees and
tax) by 2.5% pa over fees and tax. fees and tax. tax) by 1.5% pa over
rolling five-year periods. rolling five-year periods.

benchmark index S&P/ASX 300 MSCI World ex Australia MSCI World ex Australia MSCI World ex Australia
Accumulation Index. Index (unhedged AUD, Index (hedged AUD, net Index (unhedged AUD,
net dividend reinvested). dividend reinvested). net dividend reinvested).

investment strategy Invests in shares listed Fully replicates the Fully replicates the Invests in shares listed
on the Australian Stock benchmark holdings in benchmark holdings in on stockmarkets around
Exchange and unlisted order to closely match order to closely match the world with partial $A
shares that will be the benchmark risk and the benchmark risk and hedging (generally less
listed within six months return characteristics. return characteristics. than 50%).
or related securities.

volatile over the short to volatile over the short volatile over the short volatile over the short
medium term. to medium term. to medium term. to medium term.
Historically, shares have Historically, shares have Historically, shares have
offered the highest offered the highest offered the highest
long-term returns. long-term returns. long-term returns.

benchmark asset 100% Australian shares 100% international 100% international 100% international
including unlisted shares shares. shares. shares, including
allocation1
that will be listed within emerging markets.
six months or related
securities.


performance fee3 0% to 0.70% pa.** Nil. Nil. 0% to 0.20% pa.

1

2

3

** Three of the six managers in the fund, managing 35% of the fund, are subject to performance fees. On average, this could result in an increase in fees of
approximately 0.14%.

15

international Shares international Shares international Shares international Shares
– core* – core ($A hedged)* – Emerging Markets* – Opportunities*

exceeds the benchmark exceeds the benchmark exceeds the benchmark exceeds the benchmark
index (before fees and index (before fees and index (before fees and index (before fees and
tax) by 1.5% pa over tax) by 1.5% pa over tax) by 2% pa over tax) by 2% pa over
rolling five-year periods. rolling five-year periods. rolling five-year periods. rolling five-year periods.

benchmark index MSCI World ex Australia MSCI World ex Australia MSCI Emerging MSCI World ex Australia
Index (unhedged AUD, Index (hedged AUD, net Markets Index. Index (unhedged AUD,
net dividend reinvested). dividend reinvested). net dividend reinvested).

investment strategy Invests in shares listed on Invests in shares listed on Invests in shares listed Invests in shares listed
stockmarkets around the stockmarkets around the on stockmarkets in on stockmarkets
world. No $A hedging. world. Full $A hedging. emerging markets. No in developed and
$A hedging. emerging markets. No
$A hedging.

volatile over the short volatile over the short volatile over the short volatile over the short
to medium term. to medium term. to medium term. to medium term.
Historically, shares have Historically, shares have Historically, shares have Historically, shares have
offered the highest offered the highest offered the highest offered the highest
long-term returns. long-term returns. long-term returns. long-term returns.

benchmark asset 100% international shares 100% international 100% emerging markets. 100% international
including emerging shares, including shares, including
allocation1
markets. emerging markets. emerging markets.


performance fee3 0% to 0.35% pa. 0% to 0.35% pa. Nil. Nil.

1

2

3



Property – Property Property Property
Australian index – Diversified – Direct – Global listed
($A hedged)*

closely matches the exceeds the benchmark exceeds the benchmark exceeds the benchmark
benchmark return before index (before fees index (before fees index (before fees and
fees and tax. and tax) over rolling and tax) over rolling tax) by 1.75% pa over
five-year periods. three-year periods. rolling five-year periods.

benchmark index S&P/ASX 200 – Listed Combination of 10-year bond yield + 3%. FTSE EPRA/NAREIT Global
Property Accumulation Australian listed, direct Real Estate Net Index
Index. and global listed indices. – $A Hedged.

investment strategy Fully replicates the Invests in property Invests in high quality Invests in property
benchmark holdings in securities listed, or Australian property. trusts and property
order to closely match due to be listed, on related securities
the benchmark return the Australian Stock listed on developed
and risk characteristics. Exchange and developed international markets.
international markets
exchanges, and direct
property holdings.

risk/return profile Returns can be Returns can be Returns can be Returns can be
volatile over the short volatile over the short volatile over the short volatile over the short
to medium term. to medium term. to medium term. to medium term.
Historically, property has Historically, property has Historically, property has Historically, property has
produced higher returns produced higher returns produced higher returns produced higher returns
than fixed interest and than fixed interest and than fixed interest and than fixed interest and
cash investments. cash investments. cash investments. cash investments.

benchmark asset 100% Australian property 50% Australian property 90–100% direct property. 100% global listed
securities. securities. property.
allocation1 0–10% cash.
25% direct property.
25% global listed
property.


performance fee3 Nil. Nil. Nil. Nil.

1

2

3


17

Alternative fixed interest fixed interest fixed interest
– Diversified – Australian index – international index – Diversified
($A hedged)

exceeds the benchmark closely matches the closely matches the exceeds the benchmark
index (before fees and benchmark return before benchmark return before index (before fees and
tax) by 2.5% pa over fees and tax. fees and tax. tax) by 0.6% pa over
rolling five-year periods. rolling three-year periods.

benchmark index UBS Warburg Australian UBS Australian Composite Citigroup WGBI ex Aust, 50% UBS Australian
Bank Bill Index. Bond Index. 100% hedged to AUD. Composite Bond
Index 0+Yr.
50% Lehmann Brothers
Global Aggregate Index
($A – Hedged).

investment strategy Invests in Uses index sampling Uses index sampling Invests in fixed interest
non-traditional assets techniques to techniques to assets across the credit
such as infrastructure, approximate the approximate the spectrum both in Australia
commodities, hedge benchmark in a range of benchmark in a range and internationally.
funds with some cash key risk areas. of key risk areas. Foreign
for liquidity. exchange contracts
are used to hedge
current exposures to
Australian dollars.

risk/return profile Returns are consistent in Relatively low but Relatively low but Relatively low but
the medium term and stable returns with stable returns with stable returns with
typically uncorrelated with some volatility. some volatility. some volatility.
traditional asset classes.

benchmark asset 40% multi-strategy. 100% Australian 100% international 50% Australian fixed
fixed interest. fixed interest. interest.
allocation1 25% infrastructure.
50% international fixed
25% commodities.
interest.
10% cash-enhanced.


performance fee3 0% to 0.40% pa. Nil. Nil. Nil.

1

2

3



fixed interest fixed interest cash Diversified
– Australian* – international – Maple-Brown Abbott
($A hedged)*

exceeds the benchmark exceeds the benchmark matches or exceeds the exceeds the average of
index (before fees and index (before fees and benchmark index (before other similar balanced
tax) by 0.5% pa over tax) by 0.75% pa over fees and tax) over any funds (as measured by
rolling three-year periods. rolling three-year periods. 12-month period. the benchmark index and
before fees and tax) over
rolling three-year periods.

benchmark index UBS Australian Composite Lehman Bros Global UBS Warburg Australia S&P Multi-sector 80
Bond Index. Aggregate – $A Hedged. Bank Bill Index. Wholesale Index.

investment strategy Invests predominantly Invests in fixed interest Invests in Invests in various asset
in Australian fixed assets across the credit short-term securities. classes and applies an
interest assets with the spectrum internationally. active value-based style
scope to invest across to select securities within
the credit spectrum each class. Tactical asset
both domestically allocation changes are
and internationally. implemented using a
value-based style.

risk/return profile Relatively low but Relatively low but Low but stable returns May outperform/
stable returns with stable returns with with minimal volatility. underperform in the
some volatility. some volatility. short term but volatility
is relatively low over the
long term.

benchmark asset 100% Australian 100% international 100% cash and 45% Australian shares.
fixed Interest. fixed Interest. short-term fixed
allocation1 15% international shares.
interest securities.
10% property.
20% fixed interest.
10% cash.

management fee 0.60% pa. 0.60% pa. 0.43% pa. 1.10% pa.
2

performance fee3 Nil. Nil. Nil. Nil.

1

2

3


19

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