DB Investment Pool

The Defined Benefit investment pool is made up of amounts contributed by Defined Benefit members (held in their member account) and employers to fund the member's defined superannuation retirement benefit. Please note the following points:

• The Defined Benefit section of ESI Super is closed to new members
• Any additional member contributions or rollovers made by Defined Benefit members are invested in the investment options that apply to Defined Contribution members (see investment options).

Performance

The following graph shows the Net Effective Earning Rates (i.e. after tax and investment changes) of the Defined Benefit Investment Pool and the Crediting Rates applied to your member account over the five years to 30 June 2009. The inflation rate over the same period, as measured by the Consumer Price Index for the Capital City of Brisbane (CPI), is shown for comparison.

Please note: Past performance is not necessarily indicative of future performance.

The compound average net effective Earning Rate over the five years to 30 June 2009 was 4.58% p.a and the compound average Crediting Rate was 8.74%. The compound average net effective Earning Rate over the three years to 30 June 2009 was -1.57%. The compound average Crediting Rate for the same period was 6.75%. The three year objective for the Defined Benefit investment pool was 5.0% (CPI + 3%).

Objectives

The Trustee has set the following objectives for the investment of the Defined Benefit investment pool:
1. To provide similar investment returns to the Balanced option
2. Investment time horizon-five or more years*
3. Consumer Price Index Target over rolling three years-CPI + 3% and
4. Chance of a negative return-one in five years.

*This time horizon is indicative and for general information only No particular level of return can be guaranteed over any time horizon.

Long term asset allocation

The DB Invetment 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.