Investment Option: Defensive⁶

From 1 November 2011
Suitability	This option may be suitable if you are prepared to accept a measured amount of risk by investing in a small amount of growth assests. Your priority remains the preservation of capital.
Objective	To provide a return of 1.5% p.a. (after fees and taxes) above the rate of inflation over a 1 year period.
Growth assets to defensive assets	15% growth and 85% defensive (growth range 10-20)
Interim strategic asset allocations as at 1 October 2011 (asset allocation ranges are shown in brackets)	Content goes here. Australian shares 3% (0-10%) Overseas shares1 4% (0-10%) Property 3% (0-10%) Alternative assets - growth 5% (0-10%) Fixed interest2 15% (0-40%) Cash 70% (50-90%)
Performance (period 1 July to 30 June)	Credit rate % p.a*
2010/11	1.06
2009/10	N/A
2008/09	N/A
2007/08	N/A
2006/07	N/A
3 years – compound average p.a.	N/A
5 years – compound average p.a.	N/A
Minimum suggested investment timeframe	1 year
Risk band#	1 – VERY LOW
Estimated number of negative annual returns#	Less than 0.5 over any 20 year period#

1. A policy of maintaining a benchmark currency hedge of 50% applies to overseas shares.
2. A policy of maintaining a benchmark currency hedge of 100% applies to overseas fixed interest.
3. Invested 100% in cash, therefore range is not applicable.
4. Short-term securities includes higher yield securities, corporate debt securities and similar financial instruments which may fluctuate in value.
5. The High Growth and Cash options commenced 1 October 2008. The returns for 2008/09 represents the 9 month year to 30 June 2009.
6. The Defensive option commenced on 1 April 2011 the returns shown represent the 3 month year to 30 June 2011.
* Past performance is not a reliable indicator of future performance and should not be relied upon for making investment decisions.
# The standard risk measure is based on industry guidance so that members can compare investment options and periods of negative annual returns over a 20 year period. The standard risk measure is not a complete assessment of all forms of investment risk, for instance, it does not detail the likely size of a negative return or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on a negative return. Members should still ensure they are comfortable with the risks and potential losses associated with chosen investment option/s.