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product disclosure statement pds for members and employers effective 1 april 2010 issued by csf pty limited abn 30 006 169 286 trustee of the catholic superannuation fund abn 50 237 896 957 afsl 246664.

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issued on 1 april 2010 by csf pty limited trustee company csf pty limited abn 30 006 169 286 acn 006 169 286 afsl 246664 fund registration numbers abn 50 237 896 957 spin csf0100au phone enquiries call member services on 1300 655 002 8:00am to 5:30pm aest monday ­ friday postal address gpo box 180 melbourne vic 3001 head office level 1 535 bourke street melbourne vic 3000 p 1300 655 002 f 03 9934 3465 w www.csf.com.au e info@csf.com.au need financial planning advice contact our salaried advisers at csf financial services pty ltd on p 1300 655 002 contents it pays to belong to catholic super joining catholic super · members · employers how your account works making contributions when can you access your super investments fees and charges tax and super insurance death and tpd cover what is income protection cover other things you should know about insurance cover with catholic super staying in touch financial and retirement planning advice don t lose track of your super maintaining an income in retirement enquiries and complaints your rights to privacy financial services guide fsg appendix 1 insurance scales forms to complete 3 4 10 12 24 28 31 35 37 41 43 44 45 46 47 48 49 52 54 1 2 disclaimer you should read this product disclosure statement pds carefully before you make a decision to join catholic super the information contained in this pds is general information only and does not take into account your personal investment objectives financial situation or needs it is not intended to be and should not be construed in any way as investment legal or financial advice we recommend you assess your own financial situation before making a decision based on the information contained in this pds to help you with your decision making you may wish to seek the help of a professional financial adviser neither the trustee nor any of the trustee s service providers guarantee the performance of catholic super the repayment of capital or any particular rate of return changes to the product disclosure statement pds from time to time the trustee may provide updates to the information contained in this pds via supplementary product disclosure statements where there are any material adverse changes to existing members we will advise you in writing at least 30 days prior to the change taking effect our staff will be pleased to answer your questions and provide information our contact details appear above.

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it pays to belong to catholic super catholic super is an industry fund and returns all profits to its members we have a long history of strong investment returns we have a range of investment options to cater for different investor profiles free investment switching allows members to change their investment strategy as their needs change our fees are competitive and offer value for money we have a number of low cost insurance options to suit our range of members we have secure online access for members and employers our online tools and features are designed to streamline your super transactions catholic super offers free seminars and workplace visits to make sure members are well informed and don t miss out on opportunities to improve their retirement savings we use a variety of print and online communications to keep members and employers informed catholic super members have access to low cost financial and retirement planning advice through catholic financial services pty limited other benefits of belonging include low cost home loans and banking services through me bank and lower health insurance premiums through medibank private about this guide this product disclosure statement pds explains the main features costs benefits and investment risks of catholic super the information contained in this product disclosure statement pds and the financial services guide is correct at the date of issue 1 april 2010 while the trustee has taken all due care in the preparation of this document it reserves the right to correct any error or omission changes to government legislation or superannuation rules made after this date may affect the accuracy of the documents from time to time the trustee may provide updates to the information contained in this pds via supplementary product disclosure statements updated information including updated performance of investment options may also be obtained via our website www.csf.com.au or by calling 1300 655 002 a trust deed governs the operation of catholic super from time to time this may need to be amended and members will be notified of any changes you can request a copy of the trust deed if there is any discrepancy between the trust deed and this pds the trust deed prevails any questions after reading this pds if you have any questions or would like more information about catholic super please don t hesitate to contact us you can call email fax or write to us using the contact details that appear on the inside front cover our salaried financial planners are available to help you with more complex financial issues and to provide you with personal financial advice on request 1

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joining catholic super superannuation helps you save for a financially secure retirement it also provides a financial benefit for you or for your family in the case of your death catholic super has been providing our members and employers with superannuation services since 1971 today we have more than 68,000 members approximately 6,100 participating employers and over $3.6 billion in assets if you are aged between 65 and 69 and · your spouse including de facto and same sex partner is an australian taxpayer wanting to make contributions on your behalf and · you have worked in paid employment for at least 40 hours in at least one period of 30 consecutive days during the financial year in which the contribution is made please note that an initial deposit or rollover of $200 is required to open your catholic super personal plan account members 1 employer sponsored members if your employer pays superannuation guarantee contributions on your behalf and agrees to pay those contributions to catholic super this is the plan you should join cooling off period personal plan you have a 14-day cooling off period from the date your application and contribution is received by catholic super personal plan within which you can cancel your membership and have the contribution refunded if you decide to cancel your membership within the 14-day period you must advise the trustee in writing although fees or charges won t be applied to your account the amount refunded will be adjusted for any increase or decrease in the investment value and any tax payable in respect of the contribution if you have transferred amounts from another fund during the cooling off period and you cancel your membership in that time any preserved or restricted non-preserved amounts cannot be refunded to you instead they will be transferred to another approved superannuation fund approved deposit fund or retirement savings account of your choice 2 personal plan members criteria for joining the catholic super personal plan depend on your age if you are less than 65 years old you should meet any of the following criteria · you are self employed · you have a rollover amount you wish to deposit including family law payment splits · you have a cash deposit · you have left work due to permanent invalidity · your spouse including de facto and same sex partner is an australian taxpayer wanting to make contributions on your behalf see page 5 for more details if you are aged between 65 and 74 years of age you should · be making personal contributions and · have worked in paid employment for at least 40 hours in at least one period of 30 consecutive days during the current financial year personal contributions can only be made in the year in which this work test is satisfied non-mandated employer contributions i.e irregular employer contributions or salary sacrificed bonus payments can be accepted provided you meet the work test described previously employers catholic super welcomes any employers interested in joining the fund we have a range of flexible payment options available including online options and we can assist in setting up your super administration processes catholic super staff are available to assist you and answer your questions just call 1300 655 002 or email info@csf.com.au 2

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identification requirements under the anti-money laundering counter terrorism act 2006 superannuation funds are required to identify monitor and mitigate the risk that the fund might be used to launder money or finance terrorism because of this you may be required to provide certified proof of your identity before you withdraw or rollover your benefit from catholic super or commence a pension with catholic super at a minimum you may be required to provide catholic super with evidence that verifies your full name your date of birth and your residential address we may need to identify · you we cannot process a withdrawal or rollover of all or part of your benefit until all relevant information has been received and your identity has been satisfactorily verified · your estate and/or beneficiaries if you die while you are a member of catholic super we may need to verify the identity of your legal personal representatives and/or your beneficiaries prior to paying your death benefit · anyone acting on your behalf this includes a person exercising your power of attorney catholic super reserves the right to request additional information or decide to delay or refuse any request or transaction in relation to your interest in catholic super if we are concerned that the transaction or request may cause us to commit or participate in an offence and we will incur no liability to you if we do so how your account works when you join catholic super an individual account is opened in your name what goes in · your employer s contributions usually 9 of your salary in accordance with superannuation guarantee legislation if applicable · your own personal contributions and salary sacrifice contributions see pages 4­5 for more information · any spouse contributions made on your behalf by your spouse if applicable ­ see page 5 for more information · government co-contribution if applicable ­ see page 6 for more information · any amounts you transfer in from other superannuation funds and · investment returns on your account net of fees and taxes may be positive or negative what comes out · tax and other government charges as applicable · administration fees and · insurance premiums if applicable a full explanation of fees and taxes appears on pages 24­30 insurance conditions and costs are explained on pages 31­42 and pages 52­53 can your account ever decrease in value catholic super offers member investment choice which means you can choose how your superannuation is invested each option has a different investment strategy and risk profile refer to the investment section on pages 12­23 it is very important that you understand how investment choice works and that you choose the right option for your personal circumstances in times of economic volatility it is possible that some options may provide negative returns and therefore it is possible that your account balance may decrease if you leave catholic super particularly within a short period of becoming a member your benefit may be less than the amount of contributions paid because of the rate of investment returns the fees charged the insurance premiums deducted and the tax paid on your contribution 3

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making contributions employer contributions superannuation guarantee the superannuation guarantee sg legislation requires employers to make contributions to a complying super fund on behalf of each eligible employee generally employers are required to contribute 9 of your ordinary time earnings ote as long as you earn $450 or more in a calendar month this applies to full-time part-time and casual employees ote is what you generally earn for your ordinary hours of work it includes over-award payments commissions shift allowances work-related bonuses and paid leave but does not include overtime your employer is not required to pay superannuation contributions in respect of any portion of your ote above a threshold of $40,170 per quarter threshold for the 2009/2010 financial year indexed annually making personal contributions superannuation is often the largest single asset people have when they retire to make the most of your super it is important to start planning as early as you can whether retirement is just around the corner or many years away there are some easy ways to build your super and make your investment work harder for you your super contributions whether before or after tax are subject to preservation rules see page 10 so you should consider all of your financial needs before making additional contributions which are likely to be inaccessible until retirement contributions both employer and personal are subject to annual caps see page 8 for more information personal contributions are one of the best ways to increase your super with family bills and expenses it can be difficult to spare any extra money to save for something that may seem very far away but even a small amount such as an extra $10 a week can make a big difference over time contributions by the self employed if you are self employed you can decide how much when and how you want to make contributions to your super account subject to the contribution caps outlined on page 8 contributions can be made as a lump sum or as regular fixed contributions via direct debit voluntary contributions voluntary contributions from your after tax salary have already been taxed at your marginal tax rate so they are not taxed when catholic super receives them or when they are withdrawn at retirement catholic super does not charge any fees to make extra personal contributions and there are several easy ways you can make payments 1 organise a payment through bpay contact us on 1300 655 002 for more information 2 arrange with your bank or credit union to make a regular contribution via direct debit from your account download the direct debit request form from our website www.csf.com.au or call us for a copy 3 ask your employer to deduct a specific amount from your pay to go into your catholic super account your employer can send the amount to us regularly with their own superannuation guarantee contributions 4 send your own contributions by cheque download the making a one off personal contribution to your super form from our website www.csf.com.au or call us for a copy to ensure we have enough details to identify your account correctly making after tax contributions could make you eligible for the federal government s co-contribution which will make your super grow even faster personal contributions can only be accepted if you have supplied catholic super with your tax file number tfn redundancy and other termination payments made by your employer in general you cannot roll over termination payments made by your employer directly into your super account although you can make additional contributions once you have received these payments as taxed income transitional arrangements which apply until 30 june 2012 may allow you to roll over an employer termination payment into your account if it is paid in accordance with a law or employment contract which was in force on 9 may 2006 please contact catholic super or the australian taxation office ato for more information 4

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salary sacrifice salary sacrifice means that you make an agreement with your employer to pay an agreed amount of your before tax salary into your super account these contributions are treated in the same way as employer contributions for taxation purposes this mean that salary sacrifice contributions are subject to the government s 15 contributions tax which is considerably lower than personal income tax rates for many members salary sacrifice contributions are not eligible for the government s co-contribution salary sacrifice contributions count towards the concessional contributions cap if you have not provided catholic super with your tax file number and contribute a large amount in this way you may have to pay more tax see page 8 for more information you can use one of our website calculators to make sure your contributions are as efficient as possible select calculators from the popular links section on our homepage then click on salary sacrifice calculator and follow the simple steps before entering into a salary sacrifice arrangement you should consider seeking professional advice spouse contributions catholic super can accept contributions on behalf of a spouse even if they are not employed in this context `spouse means a legal or de facto husband and wife and since 1 july 2009 it includes same sex couples a de facto relationship means that a person lives with you on a genuine domestic basis it does not include a person who lives separately and apart from you on a permanent basis even though you may be legally married once a spouse contribution is received it is fully vested in the receiving spouse.this means that the contributing spouse no longer has any right to the money and catholic super cannot refund it to them there is no limit on the amount of payments a spouse can make in a particular year the contributing spouse can be any age but must be an australian resident the receiving spouse must be an australian resident and under 65 when the payment is received or under age 70 if he/she has worked at least 40 hours in a period of not more than 30 consecutive days during the financial year in which the contribution is made spouse contributions are subject to preservation rules see page 10 for more information in some circumstances the contributing spouse may be eligible for a tax rebate of up to $540 on these superannuation payments for more information on the tax rebate see page 28 spouse members wishing to join catholic super who do not receive employer sg contributions should join our personal plan an application form is included at the back of this pds to make payments on a spouse s behalf the contributing spouse must complete a spouse contribution advice form with each payment copies of this form can be downloaded from the tools forms section of www.csf.com.au or obtained by calling catholic super on 1300 655 002 5

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making contributions cont the government co-contribution the government co-contribution can put an extra $1,000 into your super this year it is a federal government initiative designed to help people with lower incomes save for retirement to be eligible you must make personal after tax contributions to your super and you must meet all of the criteria listed below · your total income including salary sacrificed amounts is less than $61,920 per year · you are a permanent australian resident · you are less than 71 years of age at the end of the financial year · you lodge a tax return for the financial year and · you earn at least 10 of your total income from running a business or from an employer or a combination of both how does it work the co-contribution is calculated on a sliding scale depending on your income and how much you contribute to your super at incomes of $31,920 and under the full co-contribution applies i.e dollar for dollar matching of your own contributions up to a maximum of $1,000 the cocontribution decreases as your income increases cutting out at incomes of $61,920 and over these amounts apply for the 2009/10 tax year and are adjusted in line with the annual movement in average weekly ordinary time earnings awote how much will you receive for the 2009/10 financial year you will receive $1.00 for every dollar of your own personal contribution the maximum amount of $1,000 per financial year reduces by 5 cents for each dollar of income you earn over $31,920 up to an income of $61,920 where it phases out completely the following table shows the amount of co-contribution that applies to different income levels annual income $31,920 $36,920 $41,920 $46,920 $51,920 $56,920 $61,920 personal contribution required $1,000 $834 $667 $500 $333 $168 $0 government co-contribution $1,000 $834 $667 $500 $333 $168 $0 it may be in your best interests to refer to a financial adviser before making a decision on super co-contribution example james earns $36,920 contributes $834 to his super and meets all other criteria he will receive a co-contribution of $834 james can contribute more than $834 but the maximum co-contribution he can receive is $834 when is the payment made you don t have to apply for the co-contribution the australian tax office ato will use information from your personal tax return and contribution information from catholic super to work out whether you are eligible the ato will automatically calculate the amount of co-contribution deposit it into your super account and send you a letter of confirmation temporary reduction to the co-contribution in this year s budget the federal government announced a temporary reduction in the co-contribution matching rate for after tax contributions made in the five year period from the 2009/10 to the 2013/14 financial years contribution year 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 matching rate 150 100 100 100 125 125 150 maximum co-contribution $1,500 $1,000 $1,000 $1,000 $1,250 $1,250 $1,500 6

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consolidate your super accounts it is easy to wind up with several super accounts if you have ever changed jobs you probably have more than one super fund account if you have more than one account you could be paying fees to each fund why not put all of your money in one place and get your money to work harder for you you pay only one set of fees which helps you to save more for retirement it s also easier for you to keep track of your money and there will be less paperwork to deal with contribution splitting members have the option of having some of their super contributions transferred to their spouse s super account ­ either in the same fund or a different fund eligible contributions can be split between married and de facto couples including same sex couples after the completion of the financial year or earlier if the member is withdrawing their benefit only concessional contributions i.e super guarantee contributions salary sacrifice contributions and contributions made by the self employed are eligible for contribution splitting members can split up to 85 of their concessional contributions members cannot split personal after tax contributions amounts transferred from another super fund or amounts subject to a family law payment split contribution splitting is subject to contribution caps see page 8 catholic super must receive contribution splitting advice by 31 may for the previous financial year s contributions it s easy with catholic super you can do it online go to the catholic super website www.csf.com.au if you have your membership number simply select consolidate now online and follow the simple steps if you are not yet a member you can join online and transfer your other super as part of that process you can transfer your money from up to five funds at once if doing this online alternatively you can download the transfer your superannuation into catholic super form from our website www.csf.com.au you will need one form for each fund you re transferring from you can request the form by calling catholic super on 1300 655 002 once we receive your form we will contact your old fund and do all the work for you we ll write to you to confirm when we have received the money and deposited it to your account catholic super does not charge any fees for you to transfer other funds into your account however your previous fund may charge you a withdrawal fee superannuation splitting and family law legislation under australian law superannuation entitlements can be split between divorcing or separating couples the law allows the courts to order the splitting of superannuation in divorce cases or couples may make their own arrangements to do so the federal government passed amendments to the family law act in 2008 giving the family court power to split the property including superannuation of separated de facto couples the new law started operating from 1 march 2009 super splitting for separating de facto couples now applies in all states and territories except south australia and western australia upon request we are required by law to provide prescribed information about a member s superannuation to a spouse or to a potential spouse in the case of a pre-nuptial agreement we are not allowed to advise you that this information has been requested nor are we allowed to release your address to your spouse important things to consider before you decide to transfer other funds into catholic super you should consider the following · ask your previous fund if it will charge any fees or termination penalties for withdrawing your super and · if you have insurance cover with your old fund find out how transferring out will affect you you may be able to transfer your insurance coverage into catholic super some conditions apply see page 31 for catholic super s insurance options you may wish to obtain independent financial advice before making a decision 7

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making contributions cont contribution types and limits concessional before tax contributions cap concessional contributions are before tax contributions paid by employers and other eligible persons including employer contributions salary sacrifice contributions and contributions by self employed individuals your concessional contributions are capped at $25,000 per year indexed until 30 june 2012 if you are aged 50 or over on the last day of each financial year you will be eligible for a higher cap of $50,000 for that year not indexed contributions below the cap are taxed at 15 contributions that exceed the cap are taxed at the highest marginal tax rate if this happens you will be able to ask catholic super to release enough money from your super account to pay the excess contributions tax indexed from time to time to the movement in average weekly ordinary time earnings awote exceptions to the caps · contributions pertaining to certain proceeds from the sale of a business have a lifetime cap of $1,100,000 indexed from time to time · contributions pertaining to the proceeds from settlements for injuries resulting in permanent disablement do not count towards any cap provided they are contributed to super within 90 days of receipt · government co-contributions do not count towards any cap · transfers from an australian fund roll overs ­ for more information see page 7 do not count towards any cap · some employment termination payments for more information see page 28 can be rolled over into super until 30 june 2012 but only the taxable component of rollover amounts above $1,000,000 in aggregate will count towards the employer contributions cap · transfers from an overseas fund are subject to the personal contributions cap 150,000 or $450,000 except for any portion that you have elected to be treated as a taxable contribution by catholic super · spouse contributions count towards the receiving spouse s non-concessional contributions cap non-concessional after tax contributions cap non-concessional contributions are generally contributions made by or for a member that are not taxed in catholic super instead they are made from a member s after tax income such as personal contributions spouse contributions and some benefits transferred from overseas super funds these contributions are capped at $150,000 per year indexed those aged under 65 are allowed to contribute $450,000 in one year with no further contributions in the next two years contributions below the cap are not taxed when paid to a super fund contributions over the cap will be taxed at the highest marginal tax rate of 46.5 including the medicare levy catholic super will not accept contributions in excess of the cap if you do exceed the cap e.g by making large contributions to other superannuation funds in addition to catholic super you will personally have to pay tax on the excess contributions at the top marginal tax rate you will be required to ask catholic super or another superannuation fund to release enough money from your super account to pay the excess contributions tax indexed from time to time to the movement in average weekly ordinary time earnings awote tax on excess contributions after the end of each financial year catholic super like every other fund must report to the australian taxation office ato all contributions it received and credited to your account if the ato determines that your total contributions exceeded either cap during that year it will issue you with an excess contributions tax assessment notice stating the amount of extra tax you must pay if the non-concessional contributions cap is exceeded you must withdraw an amount equal to the extra tax from your catholic super account or from another super fund so it can be paid to the ato if the concessional contributions cap is exceeded you can choose to withdraw the extra tax amount from your catholic super account or pay the tax yourself to the ato 8

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what contributions can catholic super receive member age under 65 personal plan members you can contribute to the fund 65-69 you can contribute to the fund if you have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the same financial year in which the contributions are made you and your contributing spouse can make payments in to your account if you have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the same financial year in which the contributions are made your employer can contribute to the fund if · the contributions are mandated employer contributions or · you have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the same financial year in which the contributions are made you can contribute to the fund if you have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the same financial year in which the contributions are made 70-74 you can contribute to the fund if you have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the same financial year in which the contributions are made no contributions can be made 75 and over you cannot contribute to the fund spouse you and your contributing spouse can make payments in to your account no contributions can be made employer sponsored your employer can contribute to the fund on your behalf re employer contribution the same rules apply as for those aged 65 ­ 69 but superannuation guarantee contributions are not payable for those aged 70 and over your employer can contribute to the fund only if the contributions are mandated employer contributions you can make personal contributions to the fund you can contribute to the fund if you have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the same financial year in which the contributions are made you cannot contribute to the fund 9

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when can you access your super because superannuation is designed to provide you with an income in retirement there are government restrictions on when your benefit can be paid these restrictions are known as `preservation rules your superannuation benefit is split into preserved and non-preserved portions your annual member statement will show how much of your benefit is preserved or nonpreserved generally any superannuation contributions received on your behalf after 1 july 1999 are required to be preserved investment returns made to your superannuation account after that date will also be preserved according to legislation and the catholic super trust deed the preserved portion of your superannuation benefit if greater than $200 will not be payable until you meet one of the following conditions · permanently retire from the workforce on or after preservation age as per the preservation age table in column 2 · set up a pre-retirement pension after age 55 while still working conditions apply see page 46 · leave your employer on or after age 60 irrespective of whether or not you are retiring permanently from the workforce · reach age 65 · retire due to permanent disability · suffer financial hardship and obtain the required approval · qualify under specific compassionate grounds · permanently depart from australia having been an eligible temporary resident or · die your benefit will be paid to your estate or your dependants special consideration may be given in cases of severe financial hardship and on compassionate grounds but these are subject to government conditions please call us on 1300 655 002 for more information from 1 july 1964 onwards from 1 july 1963 to 30 june 1964 from 1 july 1962 to 30 june 1963 from 1 july 1961 to 30 june 1962 from 1 july 1960 to 30 june 1961 before 1 july 1960 temporary residents some members who entered australia temporarily on particular classes of visas and are departing permanently from australia may access their preserved superannuation benefit the payment of this benefit is subject to special rates of taxation if you are a temporary resident of australia and the holder of an eligible visa once your visa has expired and you have left australia you can cash your benefits you can contact us on 1300 655 002 for more information about eligible visas and an application form the australian taxation office ato can provide details about the tax treatment of such payments if you do not claim your superanuation benefit within six months of the date you depart australia catholic super is now required to pay your benefit to the ato you will then need to apply to the ato to claim your benefit after the deduction of tax if your benefit is paid to the ato catholic super will not provide you with an exit statement and you will no longer be a member of catholic super preservation age preservation age is gradually being increased as shown in the following table persons born preservation age 60 59 58 57 56 55 non-preserved benefits non-preserved benefits fall into two categories restricted non-preserved benefits can generally be paid to you upon satisfaction of any of the conditions of release listed in column 1 unrestricted non-preserved benefits can usually be paid to you at any time whether you leave employment or not 10

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transition to retirement when you reach preservation age currently 55 you can access your super even if you are still working the transition to retirement rules allow people who are over age 55 to access their super by setting up a non-commutable income stream also known as a pre-retirement pension while continuing to work either full-time or part-time for more information see the catholic super pension product disclosure statement binding death nominations to provide greater security about who will receive your super benefit if you die you can make a nomination which requires the trustee to pay your death benefit to a specified persons for more information see page 35 in the insurance section transferring your super to another account you may transfer part of your account balance from catholic super to another complying super fund if the amount you transfer does not reduce your catholic super account balance to less than $5,000 and you have not made a request to transfer funds in the last twelve months transferring your benefit may have an impact on your insurance cover as continuation is subject to maintaining sufficient funds to meet the cost of insurance premiums if your insurance cover lapses you will need to reapply for cover what happens when you reach retirement when you reach retirement there are several options available to you you can choose to leave your benefit invested with catholic super receive your benefit in a lump sum or consider purchasing an income stream product such as a pension you no longer have to cash in your super when you reduce your working hours or retire keeping your money in super indefinitely means you pay only 15 tax on investment returns if you decide to transfer your super account to a superannuation pension investment returns are tax free you should obtain independent financial advice before making a decision to ensure you are fully aware of tax and centrelink implications catholic super offers pension products for members aged 55 or more these products are briefly discussed on page 46 of this pds for more detailed information please call our pension service centre on 1300 730 327 to request a catholic super pension product disclosure statement one of our salaried financial planners will be pleased to discuss your requirements with you 11

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investments as a member of catholic super you can choose the investment style that is most suitable for you it is important that you choose an investment style that suits your personal situation some of the things you should consider before making a choice are · your age and the length of time your money will be invested · your attitude to risk and the level of risk you are comfortable with · other investments you may already have and your future financial plans · the amount of money being invested · the level of investment earnings you are looking for · the impact of inflation and · the benefits of compound interest it pays to do your research to help you with your decision making you should consider seeking the help of a professional financial adviser risk and return explained the risk of an investment is measured by the likely fluctuations i.e rises and falls in investment returns in general the higher the expected returns the higher the risk associated with the investment return refers to how much you earn on your investment this value changes as the market value of the assets within your chosen investment options rises or falls generally there is a relationship between risk and return as targeted returns increase the risk taken in achieving that return also increases timeframe everyone has a different attitude towards risk and return some people are able to tolerate negative returns in the short term to gain higher returns in the long term others prefer to invest very cautiously often trading off potential gains for the safety of conservative investments there are others who consider themselves to be somewhere in between if you believe that you will need to have access to your money soon you may want to shield it by investing more in lower risk areas even though this might result in lower returns over the medium to longer term the short term negative fluctuations which can occur when investing in higher risk assets such as shares may not be such a big concern to you if you will not be accessing your funds for many years this is because it is generally expected that over the long term these assets will produce higher returns 12

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investing risk all investments involve some level of risk investment risks include the chance that the value of your investment could fall as investment markets change other significant risks associated with your super include changes to super laws and tax laws risk can be managed and minimised but cannot be eliminated the following is a summary of some investment-related risks applying to investments in catholic super risk inflation individual investment market description inflation may exceed the return on your investment the investment option you choose may drop in value changes to investment markets may occur due to economic technological political or legal conditions and market sentiment changes to interest rates may influence the value on certain investment returns when catholic super invests in overseas investments and the currency of those countries rises or falls compared to the australian dollar the value of your investment will change super and tax laws change often and these changes may affect the tax-effectiveness or value of your investment or your ability to access it difficulty with converting an investment into cash with little or no loss of capital and minimum delay can affect an investment the failure of a company because of bankruptcy fraudulent activity or the business environment can see the value of an investment fall sharply the short term fluctuations in share prices exchange rates and interest rates can affect an investment the risk that another party will fail to perform its contractual obligations may result in financial loss to the fund diversification diversification is the term used for spreading risk this can be achieved by placing your investments in a mix of asset classes diversification can help reduce the risk of a low return in any year as a poor result in one asset class or with an individual manager may be offset by a good result in another put simply it means not putting all your eggs in one basket catholic super achieves diversification by selecting a range of investment managers within each class and by investing the managed choice options in a mixture of different asset classes a list of catholic super s managers as at the date of this pds can be seen on page 22 inflation inflation is defined as the change in the cost of living inflation decreases the value of your dollar meaning that over time you need more money to purchase the same goods if your investment does not earn the level of returns you need to keep up with the cost of living there is a chance you will not have enough to fund your retirement interest rate currency changes to tax or super laws compound interest over time small differences in the value of your benefit can turn into large differences with the power of compounding compounding is the process whereby your money earns interest on interest by choosing the right investment option for your super or choosing to make additional contributions into your account you can harness the potential of compound interest and watch your benefit grow liquidity security volatility credit 13

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