Strategy

Invest in Australian companies, usually listed on the Australian Stock Exchange (ASX).

10-Year Performance - Australian Shares

This is how the Australian Shares option performed over the ten years to 30 June 2011.

Net annual returns#	Superannuation	Pensions
30 June 2011	12.7%	13.2%
30 June 2010	12.7%	15.5%
30 June 2009	-16.5%	-18.9%
30 June 2008	-13.0%	-13.8%
30 June 2007	26.9%	34.1%
30 June 2006	20.2%	22.2%
30 June 2005	26.2%	24.7%

Comment on performance

The expected return from Australian equities is higher than some other asset classes but the risk is greater. The Fund receives franking credits from some Australian share investments. These are tax credits available to investors for income earned in the form of fully franked dividends by Australian listed companies.If a dividend is franked, it means it has been paid out of the company’s retained earnings after tax has been paid.

Comment on risk

Sharemarkets go up and down, but generally trend upward over the long term. The risk associated with share investments is linked to economic trends both here and overseas, interest rate movements, political change, consumer spending, employment levels, inflation, investor confidence - a complex mix of financial measures.

The long-term upward trend for sharemarkets is due to the growth in the capital value of companies. The risk, of course, is that some companies can shrink or disappear. That is why your share investments should diversify across a number of companies and industry sectors. The Diversified investment options and several Sector Specific options offer this diversification.

The long-term growth of shares makes some investment in Australian shares an important part of an investment strategy extending over five years or more. You may experience some years of zero or even negative returns in Australian equities but, if you can invest over time, they will generally deliver a positive return.