Benchmarks

Benchmarks are an important tool for measuring the performance of UniSuper’s investment options.

The benchmark return for a particular investment option is the average return of each benchmark index for the asset classes in which the option invests, weighted in line with the option’s strategic asset allocation to each of these asset classes. For comparison purposes, index returns are also adjusted for fees and taxes.

Recently, some changes were made to the particular benchmark indices used to measure various asset classes.

The indices that make up the benchmark portfolio for specific asset classes are:

• Australian shares: S&P/ASX 300 Accumulation Index
• International shares: MSCI World (ex-Australia) Accumulation Index (net Dividends), MSCI Emerging Markets Accumulation Index (net Dividends), MSCI AC Asia (ex-Japan) Accumulation Index (net Dividends), MSCI AC Small Cap Accumulation Index (net Dividends)
• Property: International shares: Mercer Unlisted Property Funds Index, S&P/ASX 300 Property Trusts Accumulation Index, FTSE ERPA NAREIT Rental Ex-Australia Index
• Alternative investments: S&P/ ASX 300 Accumulation Index, MSCI World (ex-Australia) Accumulation Index (net Dividends)
• Fixed interest: UBSA Government Index, Barclays Capital Global Aggregate Securitised (Hedged) Index, Barclays Capital Global Aggregate Corporate (Hedged) Index, UBSA Government Inflation Index 5+
• Cash: UBSA Bank Bill Index.

Date: 1 January 2010