Defined benefit investment pool

If you are a Defined Benefit member, both amounts contributed by you and your employer to fund your Defined Benefit are invested in the Defined Benefit investment pool.  The amount credited to your Member Account is the Three Year Average crediting rate shown below.

Please note the following points:

• The Defined Benefit section of Energy Super is closed to new members
• If you are a Defined Benefit member and you make additional member contributions or rollovers these funds will be invested in the Defined Contribution investment option that applies to you (see investment options).

Objectives

Provide similar investment returns as the Balanced option

• Investment time horizon — five or more years
• Achieve returns (after tax and other costs) over rolling seven year periods 3% above inflation, and
• Chance of a negative return — one in five years.

Please note: the returns objective is an estimate only, it is not guaranteed.

Performance

12 months ending 30 June:

	2011	2010	2009	2008	2007
Net effective earning rate1 (%)	9,10	9.07	-12.58	-5.22	15.07
Crediting rate2 (%)	1.33	-3.32	-1.57	7.72	14.73
CPI3 (%)	3.8	3.2	2.0	5.1	2.6

	Over five years	Over ten years
Compound average net effective earning rate1 (% p.a.)	2.56	4.54
Compound average crediting rate2 (% p.a.)	3.57	4.84

Investments can go up and down. Past performance is not necessarily indicative of future performance.

1 Net effective earning rates are after tax and investment charges and are to 30 June 2011 (unless otherwise specified).

2 Referred to as the Three Year Average crediting rate and is applied to Defined Benefit Member Accounts.  For more information, refer to your Annual Statement.

3 Inflation is measured by the Brisbane Consumer Price Index (CPI).

Long term asset allocation

The DB Investment Pool is invested in the same way and in the same pool as the Balanced option.

How is your crediting rate calculated?

The Defined Benefit investment pool crediting rate is calculated by averaging the net effective earning rates for the last three years (subject to any adjustments the Trustee considers appropriate having regard to the financial position of the pool).  The crediting rate policy may be changed from time to time.