Socially Responsible (SRI) investment option

Please read all of the following information about this investment option.

General aim
To maximise long-term investment returns. More specifically, the investment objective for the Socially Responsible Investment option is to achieve net returns that exceed CPI increases by at least 6.0% pa over rolling four year periods. The investment benchmark for this option is the S&P/ASX 200 Accumulation Index and the objective is to outperform this index on rolling three year bases.

Comparison with other choices
The Socially Responsible Investment shares option is 100% Australian shares, and therefore, together with the Aggressive and other shares options, carries a higher level of investment risk. The value of your super will fluctuate in the short term. However past experience indicates that you can also generally expect an increased likelihood of higher investment returns over longer periods. The probability of the Socially Responsible Investment option earning a negative return is approximately one year in three.

Where the money is invested
The investment benchmark for the Socially Responsible Investment shares option is invested 100% in Australian shares. The investment manager for this option is AMP Capital Investors Limited. The investment manager for this option takes labour standards, and environmental, social and ethical considerations into account when considering whether to buy, hold or sell Australian shares.

The investment manager rates each company on a two dimensional assessment matrix which considers:
• industry by sustainability; and
• a company’s corporate social responsibility – assessing its workplace, community, value chain (including corporate governance and business ethics) and environmental issues, with each factor typically given a similar weighting.

In determining company inclusion, higher corporate social responsibility hurdles are applied to less sustainable industries.

The ranking process of AMP Capital Investor Limited results in the following selection characteristics:

1. Seeking out ‘Industry of the Future’ companies within sectors with the most socially and environmentally sustainable performance outcomes, including education and training, health care, renewable energy, waste management and mass transport.

2. Exclusion of those industries judged to be least sustainable on their social and environmental performance outcomes. This results in exclusions to companies with material exposure (at a maximum of 10% on financial criteria such as revenue) to the production or manufacture of alcohol, armaments, gambling, nuclear (including uranium), pornography and tobacco.

3. Higher hurdles for less sustainable industries such as forestry, oil and mining, companies are expected to take a proactive and leading approach to corporate social responsibility.

4. Active financial analysis is also used to seek to identify those stocks out of those considered for possible inclusion as part of this option which are expected to outperform.

AMP Capital Investor Limited also draws on guidelines including:
• The Social Accountability 800 standards and International Labour Organisation Core Labour standards.
• The ISO 14001 environmental management standard and CERES principles for environmental awareness and accountability.
• UN Global Compact and OECD Guidelines for Multinational Enterprises for corporate practices.
• Global Reporting Initiative for sustainability reporting.

AMP Capital Investor Limited monitors companies and reviews their suitability for inclusion as part of this option on an ongoing basis. If a company falls below AMP Capital Investor Limited SRI standards for investing, it is sold within six months.

More information about the SRI option can be found at http://www.ampcapital.com.au/institutions/australianshares/sri/sfas_fund.asp

Suitability
Many investors in this option are likely to be looking for the highest investment returns over the long term. They need to satisfy themselves that they have the time to ride out very wide investment fluctuations – even watching their super go through extreme variations in performance.

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