Investments

Crediting Rates
Investment objectives
Investment strategy
Asset Allocation
Reserving and crediting rate policy

Crediting Rates

Since 1985 AUST(Q) has never credited a negative annual rate to members accounts. The average crediting rate over the last twenty-two years is more than 11% pa.*

The table below illustrates the Fund's crediting rates, compared against changes in the Consumer Price Index (CPI) over the last five years.

To obtain the most recent crediting rate, call the AUST(Q) Customer Service Centre on 1800 637 698.

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Investment objectives

The Fund aims to:

• Ensure that the per annum rate credited to members will exceed the annual rate of increase in the CPI in most years.
• Maximise the rate credited to members in excess of the CPI increase, after taking account of the risks associated with various types of investment. Consistent with this, the Trustee acknowledges that occasional negative returns may occur.
• Earn above median three year returns relative to the return in the Mercer Pooled Fund Survey.
  Over a one year period to out perform the notional return on the benchmark portfolio.

These objectives are intended to be consistent with any applicable legislation and regulations which, from time to time, may regulate the manner of investment of the Fund and may be modified accordingly.

Investment strategy

The investment strategy adopted is an asset allocation normally set within ranges by the Trustee. Professional investment managers may, if appropriate, be appointed who will actively vary the asset allocation of funds under their management within the Fund's overall asset allocation ranges set by the Trustee. The Trustee will regularly monitor the aggregate asset allocation of the Fund. The Fund does not have direct derivative exposure as the Fund invests in Pooled Investment Trusts.

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Asset Allocation at 30 June 2007

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Reserving and crediting rate policy

The Fund maintains an Investment Fluctuation Reserve. The Reserve will be used in periods of poor investment markets to increase the crediting rates to members, and will be added to in periods of above average returns. The Trustee having regard to the actual after-tax and expenses return and the amount in the Reserve will determine the actual rate to be credited to members' accounts. The Trustee may take into account other factors relevant to the maintenance of equity in the Fund. Interest will be credited at the applicable interim crediting rate if benefits are paid at other times.

*Between 1985 – 30 June 2007. Note: past investment performance is not a reliable indicator of future performance.