Investment choice gives you control over how your superannuation savings are invested. The current AustSafe Super Investment options are as follows:

	Balanced
	Capital Stable
	Super Growth
	Australian Equities
	International Equities
	Property
	Fixed Interest
	Cash

You can switch the way your existing account balance and future contributions are invested at any stage. You can select one option or any combination of two or more options, to create your own investment strategy. If you do not nominate an option, your assets and future contributions will remain in the Balanced Fund.

There are three 'pooled' investment options (Super Growth, Balanced and Capital Stable funds), which have a pre-selected asset mix, and five individual asset classes to choose from.

Each option provides a different level of risk and return based on the use of growth assets and defensive assets. Each option has different expectations of short and long term performance.

One of the features of AustSafe Super that makes it stand out from other superannuation funds is its consistent above average crediting rates to members.

Earnings are calculated on daily balances and credited to your account every 12 months. The actual rate which is credited to your account each year will be determined by the Trustee, having regard to the actual investment return on the Fund's assets, after tax and expenses, as well as the reserving policy of the Trustee. This applies to each of the investment options.

The effect of extreme fluctuations in returns on members' accounts may be cushioned by the use of the Reserve Account.

Interim crediting rates are determined for members receiving a benefit during the year - for example a member retiring from the fund.

This interim rate is determined periodically throughout the year in a manner consistent with the approach used to determine the end of year crediting rate.

The broad investment objective for each option is to maximise long-term investment returns, subject to constraints at containing fluctuations in returns over shorter periods within acceptable limits, having consideration to the risk profile and other relevant factors of each option. The performance of each option will be assessed against the notional return on the benchmark portfolio over one year periods.

AustSafe Super develops its strategic investment policy for all investment choices after considering the recommendation of its investment consultant. AustSafe Super then carries out its investment function through fund managers whose performance is regularly reviewed by the Trustee again with the advice of investment consultant.

Past performance is no indication of future performance.

The objective for the Balanced option is to achieve high returns over the longer term with low to moderate risk. Earnings should outperform the Consumer Price Index (CPI) by at least 3% per annum averaged over rolling 3 year periods.

AustSafe Super's current investment strategy for the Balanced Fund is set out below:

AustSafe Super declared an annualised crediting rate of 17.40%, after taxes and fees, for the year ended 30 June 2007, for the Balanced Fund option. When calculated over the 5 years, the average compound crediting rate is 11.71%.

The investment objective for this option is to achieve the highest returns of the four investment options over the longer term. Earnings should outperform the Consumer Price Index (CPI) by at least 5% averaged over greater than 5 year periods. The Fund will be expected to experience some volatility and an occasional negative return, due to higher risk and exposure to fluctuating investment markets.

The current one year investment strategy for the Super Growth option is set out below:

The crediting rate for the Super Growth option was 21.80% for the year ended 30 June 2007. The average compound crediting rate over the 5 years average is 13.51%.

The investment objective for the Capital Stable option is to achieve attractive but stable returns on a consistent basis with the lowest volatility of the choices. Earnings should outperform the Consumer Price Index (CPI) by at least 2% averaged over rolling 3 year periods.

The current one year investment strategy for the Capital Stable option is set out below:

The crediting rate for the Capital Stable option was 10.20% for the year ended 30 June 2007. The average compound crediting rate for the period ending 30th June 2007 is 7.86%.

The investment objective for this option is to achieve consistent stable returns with the lowest volatility of our options. Earnings should exceed inflation over rolling annual periods and in the medium term outperform the median cash manager over rolling 3 year periods.

The current one year investment strategy for the Cash option is set out below:

The crediting rate for the Cash option was 5.55% for the year ended 30 June 2007.

Click here to see the Investment Allocation of AustSafe Super as at 30 June 2007.

The Trustee of AustSafe Super receives regular performance reports from the Fund's appointed investment managers and an independent investment consultant. In reviewing these reports, the Trustee is able to:

	compare the performance of AustSafe Super's appointed managers against the performance of other relevant managers and market indices;
	ascertain the existence of any particular weakness in the manager; and
	continually assess the ability of the managers to successfully meet AustSafe Super's objectives

AustSafe Super maintains a reserve for these purposes:

	For prudential business reasons
	To smooth out the crediting rates in members accounts by supplementing low rates of earnings in the years of low investment returns
	To fund the cost of Member Benefit Protection for accounts with less than $1000 when earnings credited to the account are less than administration costs debited to the account

The Reserve consists of a surplus of administration fees over administration costs varied by any differences between investment earnings and the amount credited to members' accounts.

Given the growth component of the Fund and the volatility of the investment market, a Reserve should be maintained at a maximum of 3% of the members' accumulation accounts.