Happy birthday, IPE Super!

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					Happy birthday, IPE Super!
Welcome to IPE Super News – the quarterly newsletter for members of the
Incitec Pivot Employees Superannuation Fund.
It’s IPE Super’s first birthday, so we’ve packed this issue of IPE Super News full of
useful information to help you understand and manage your super better. Inside, we:
•	 Review	IPE	Super’s	first	year	to	see	how	we’ve	done;
•	 Tell	you	how	your	super	has	performed;
•	 Profile	JANA,	IPE	Super’s	investment	adviser,	and	how	they	manage	your	super;
•	 Provide	a	checklist	of	IPE	Super’s	many	features	and	benefits	to	help	you	grow	
   your	super;
•	 Tell	you	about	the	coming	IPE	Super	Policy	Committee	election;	
and more.
If you have a query about any of the information provided in this issue of IPE Super
News or an idea for an article in a future issue, please call the IPE Super Helpline
on 1800 257 135.

December 2007
Our first year
The Incitec Pivot Employees Superannuation Fund was born on 1 November 2006. Small but big on potential, the new Fund was immediately
registered and christened “IPE Super” by its proud parents (IPL and the Trustee). Friends and neighbours were delighted, with Government
regulators, insurers, investment managers and many others dropping by to have a look at the new fund and give their approval. The
newborn had many wonderful qualities (features and benefits – see pages 4 and 5) that made it the envy of its peers. Dressed in its new
clothes (Product Disclosure Statement (PDS), member booklets and a MySuper website), it wasn’t long before IPE Super was ready to venture
out into the wide world.
Yes, our story may be a little ‘corny’, but there are a lot of parallels between the birth of a new baby and creating a super fund. There’s a
name to choose, plenty of regulatory paperwork and lots of organising to do – although perhaps it’s not quite as painful!
Ultimately though, it’s a super fund’s ability to attract and retain members that’s important. For IPE Super, this process began on the Fund’s
birthday – 1 November 2006 – when the benefits of employees who were members of the Orica Flexible Benefits Super Fund (FBSF) were
transferred to IPE Super.
Soon after, an invitation was extended to the remainder of IPL employees to transfer their benefits to IPE Super, specifically those employees
who were members of the Incitec Pivot Super Plan and the WMC Super Plan (both with Plum).
At the end of our first eight months, the Fund had 989 members and $133.3 million in assets at 30 June 2007 – a great effort!
Another important aspect of managing a super fund is to obtain input from members – after all, it is your Fund. So, in early 2007,
an election was held to appoint two member-representatives to the Fund’s Policy Committee. As a result, Ken Thomas and Andrew Cox
were appointed as the first member representatives to the Committee. This Committee plays a vital role in assisting the Trustee to
manage the Fund – not only in representing members’ interests, but also in monitoring the performance of the Fund’s investments
and service providers. See page 6 for more information on the forthcoming Policy Committee election.
So, twelve months on, how have we done? We’ll let the figures speak for themselves – refer below.

                                                      F i r s t b i r t h d a November 2007)
                                                      sn   apshot (at 1 (over 95% of total
                                                                                 5         8
                                                                            ership base: 9
                                                        •	 S teady memb
                                                            employees)                             138 million
                                                                       increasing   asset base: $
                                                         •	 Steadily
                                                             at September                           The Fund’s
                                                                         vestment   performance:                          ons
                                                          •	 Strong in                                sset class opti
                                                                              investm ent options, a
                                                              pre-packaged                               ved strong
                                                                              Benefit sec tion all achie            06 to
                                                              and Defined                        November 20
                                                                             rns for the year 1                        tive
                                                               positive retu                         e Fund’s Ac
                                                                              007. F or example, th
                                                               31 October 2                            r the year,
                                                                              tion achie ved 14.9% fo                     nd.
                                                                Balanced op          * for the averag
                                                                                                       e Growth Fu
                                                                compared to                              ce Survey to
                                                                                                                      31 October 20
                                                                                                               t Performan
                                                                                                  Ltd Investmen
                                                                          son Wyatt Australia Pty
                                                             * Source: Wat
How your super has performed                                                                            How	JANA	helps	
The Australian share market started the financial year on a strong note, reaching a new                 the Trustee manage
high in mid July. However, the market finished down 2.09% for the month as concerns
about the US sub-prime mortgage market spread to Australia.                                             your super
Sub-prime mortgages are those issued to borrowers who have a higher risk of                             One of the IPE Super Trustee’s most important
defaulting on their loans. Recently, defaults on sub-prime mortgages in the US                          responsibilities is to manage your super. The
increased substantially due to a combination of poor lending standards, slowing                         Trustee is assisted in this role by the Fund’s
growth in the US housing market and higher US interest rates. This combined to                          investment adviser, JANA Investment Advisers
create poor market sentiment in US markets, which fell significantly during July.                       Pty Limited (JANA).
While the Australian share market returned positive results overall during August,                      JANA was established in September 1987
it fluctuated dramatically throughout the month and some shares continued to be                         with the objective of providing high quality
affected by the US sub-prime mortgage crisis. As a result, August was another                           investment advice to large asset holders,
uncertain month for the US share market which dropped early in the month, before                        typically superannuation funds and tax-exempt
rallying later.                                                                                         foundations, on all aspects of investments and
                                                                                                        asset management. JANA specialises in providing
In response, the Reserve Bank of Australia increased the official cash rate by 0.25%
                                                                                                        tailored investment advice based on extensive
to 6.50% during August. Fixed interest markets were down during the month, both in
                                                                                                        and detailed market and fund manager research.
Australia and internationally.
                                                                                                        As investment adviser to IPE Super:
September saw the Australian share market hit new highs, mainly due to the excellent
performance of the Resources sector. Markets in Europe and the US rebounded, while                      •	 JANA assists the Trustee in developing and
oil prices hit record highs amid hurricane fears.                                                          setting appropriate long-term objectives and
                                                                                                           strategies for investing the Fund’s assets;
Global share markets slowed during October, reflecting continuing investor uncertainty
over the US mortgage market and economic outlook. In contrast, the Australian                           •	 On an ongoing basis, JANA reviews and
share market made further gains, hitting another record high during the month.                             implements the relevant asset allocations for
Also in October, the Australian dollar rose to its highest level in 23 years against the                   IPE Super;
‘greenback’, exceeding US90 cents.
                                                                                                        •	 In implementing the Fund’s investment
The Australian economy is less exposed than many others to the US mortgage crisis                          strategies, JANA’s role includes appointing
and continues to perform strongly, supported by high commodity prices. On the back                         professional investment managers for
of this strong performance and in a bid to address inflationary pressures, the Reserve                     the Fund and continually monitoring their
Bank increased interest rates by a further 0.25% during November to 6.75%.                                 performance. If necessary, JANA also
                                                                                                           terminates the services of managers who are
Recent returns achieved by IPE Super’s investment options, asset class options and
                                                                                                           under-performing or whose investment style
Defined Benefit section are shown in the table below.
                                                                                                           no longer matches the Fund’s investment
IPE Super investment returns
                                                                                                        In managing IPE Super’s assets, JANA uses a
                                                                                                        multi-manager approach. This means that JANA
  Investment options                       Year-to-date                 Annual return
                                                                                                        appoints and combines one or more independent
  and asset class options                (1	Jul	07	to	31	Oct	07)      (1	Nov	06	to	31	Oct	07)
                                                  (%)                                                   investment managers to manage a single asset
                                                                                                        class. The aim of this approach is to reduce the
  Conservative                                    3.1                           8.5                     overall risk of market volatility (ups and downs)
  Active Balanced                                 4.5                          14.9                     by spreading the Fund’s investments across a
                                                                                                        number of managers. It also provides the Fund
  Assertive                                       5.1                          16.1
                                                                                                        with access to a range of investment styles,
  Assertive Plus                                  5.2                          17.0                     as well as different markets and investment
  Cash                                            1.8                           5.5                     opportunities. This multi-manager approach is
  Diversified Fixed Interest                      2.3                           3.2                     supported by JANA’s intensive manager research
                                                                                                        program. JANA commits 40% of its annual budget
  Australian Shares                               7.8                         25.3                      to investment research each year.
  International Shares                            0.7                           6.4
                                                                                                        To find out more about JANA’s approach to
  Defined Benefit section*                        4.0                          13.1                     investment management, visit their website at
Notes:                                                                                         Alternatively, see IPE Super’s
Investment returns shown in the above table are net of taxes, and administration and investment fees.   Annual Report for information on how your super
A table of the Fund’s latest investment returns can also be accessed on the Fund’s website at           is invested, including the Fund’s investment                                                                                    objectives and strategies.
* You should refer to the Member Booklet, Your Benefits in IPE Super for Defined Benefit Members,
  for information on how the Fund’s performance affects Defined Benefit members.
IPE Super features and benefits
can help you grow your super
As a member, IPE Super provides you with access to a range of features and benefits. Depending on your personal and financial circumstances,
you can use some or all of these features and benefits to:
•	 Give your super the best chance of growing into a substantial retirement nest egg; and
•	 Ensure that you and your family are financially protected should the unexpected happen.
Use the checklist below to find out if you are making the most of the Fund’s features and benefits to grow your super and protect your family.

Your choices                What you should know                                             What you need to do
                                                                       All members
Pay more money              You can make additional voluntary contributions from             To commence making additional voluntary contributions or
into super                  your before-tax salary (i.e. by salary sacrifice) with           change your existing voluntary contribution arrangement:
                            Company approval, or from your after-tax salary. Both
                                                                                             •	 Accumulation members – complete Parts A, E and F of an
                            types of contributions are subject to Government limits.
                                                                                                Application & Change Form for Accumulation Members.
                            You can also change your contribution rate at any time.
                                                                                             •	 Defined Benefit members – complete Parts A, C and E of a
                                                                                                Your Super Choices Form for Defined Benefit Members.
                                                                                             When complete, return your form as directed.

Transfer super              If you have super with other funds, perhaps relating to          Complete a Rollover Form (which is available from the Fund’s
from other funds            your previous employment, consider rolling over these            MySuper website at
into IPE Super              amounts into IPE Super. If so, your super will be easier to
                                                                                             You should complete a separate Rollover Form for each
                            keep track of and it also means potentially paying fees
                                                                                             rollover you wish to make.
                            to only one fund.
                                                                                             When you have completed the form, send it to your previous
                            IPE Super charges no fees for rollovers. However, you
                                                                                             super fund.
                            should check to see if your previous fund(s) charges
                            you an exit fee.

Help your spouse to         Spouse contributions are a convenient and easy way to            To find out more about spouse contributions, refer to the
save for retirement         help your partner to save, particularly if your spouse has       booklet, IPE Super and your Spouse, which is available from
                            taken time out of the workforce to study or raise your family.   the IPE Super website at To apply
                                                                                             to open a spouse account, you and your spouse should
                            If your spouse has a low assessable income, you may
                                                                                             complete the IPE Super Spouse Form at the back of this
                            be entitled to claim a savings rebate of up to $540 on
                                                                                             booklet and return it as directed.
                            your tax return.

Nominate	who	you	           If you die, the law requires the Trustee to investigate          To make or change your beneficiary nomination:
want to receive your        your personal circumstances prior to death and act in
                                                                                             •	 Accumulation members – complete Parts A, D and F of an
death benefit               the best interests of your dependants in paying your
                                                                                                Application & Change Form for Accumulation Members.
                            death benefit. While not binding on the Trustee, your
                            nomination will help the Trustee to make a decision,             •	 Defined Benefit members – complete Parts A, D and E of a
                            particularly if you have regularly reviewed your                    Your Super Choices Form for Defined Benefit Members.
                            nomination and kept it up-to-date.
                                                                                             Remember to specify the share of your benefit that you would
                                                                                             like each beneficiary to receive (i.e. shares must total 100%).
                                                                                             When complete, return your form to the Fund Administrator
                                                                                             as directed on the form.

If you’re about to retire   If you are retiring after age 60, you can choose to take         To find out more, refer to the PDS, Your IPE Super Allocated
or wish to access           your super as a lump sum or roll it over into an IPE Super       Pension Guide, which is available from the IPE Super website
your super while            Allocated Pension. You can also roll your super into an          at or by calling the IPE Super Helpline
continuing to work,         IPE Super Allocated Pension under the Government’s               on 1800 257 135.
consider applying for       “transition to retirement” laws if you are still working but
                                                                                             To apply for an Allocated or Transition to Retirement Pension,
an IPE Super Allocated      have reached your preservation age (between ages 55
                                                                                             complete an Application & Change Form for Allocated
Pension or Transition       and 60 depending on your date of birth).
                                                                                             Pension Members and return it as directed.
to Retirement Pension
 Your choices                 What you should know                                            What you need to do
                                                              Accumulation members only
 Choose an                    If you haven’t already, consider making an investment           To make or change your investment choice, complete Parts
 investment strategy          choice for your super that is consistent with your              A, B and F of an Application & Change Form for Accumulation
 for your super that          particular financial situation, taking into account:            Members and return it as directed.
 suits your personal
                              •	 Your financial needs in retirement;
 financial situation
                              •	 How long you have to save; and
                              •	 How you feel about investment risk.
                              IPE Super offers you a choice of four pre-packaged
                              investment options – Assertive Plus, Assertive, Active
                              Balanced and Conservative – or you can design your
                              own hybrid investment option by choosing from a range
                              of asset classes.
                              You can make or change your investment choice at any
                              time. The first switch each year is at no cost to you.
                              If you have not previously made an investment choice,
                              your super will be invested in the Active Balanced option
                              (the default option).

 Ensure your level            If you are a permanent employee* and you die or                 If you wish to change your level of death and total and
 of death and total           become totally and permanently disabled, you may                permanent disablement cover, complete Parts A, C and F of
 and permanent                be entitled to an insurance benefit in addition to the          an Application & Change Form for Accumulation Members
 disablement cover is         balance of your IPE Super account. This insurance               and return it as directed.
 enough to financially        benefit is calculated as:
 protect you and your
                                    A percentage – either 5%, 10%, 15% or 20%
                                (as chosen by you) X years to age 65 (pro-rata for
                                     complete months) X your super salary**.
                              You choose the percentage that best suits your needs.
                              If you don’t make a choice, you automatically receive
                              the Fund’s default level of cover (15%). If you choose 20%
                              cover, you then have the option of purchasing additional
                              voluntary insurance through the Fund if you feel that you
                              need extra protection.

 Purchase income              The Fund’s income protection cover provides a regular           To find out more about income protection cover, including
 protection cover             monthly income of up to 75% of salary** if you become           the premium that applies based on your age and gender,
 through the Fund             ill or suffer an injury and (in the insurer’s opinion) cannot   refer to the flyer, Optional Income Protection Insurance for
 to provide you with          work for a minimum period of three months.                      Accumulation Members.
 financial protection if
                              This benefit is payable for up to two years or to age           To apply for income protection cover, call the IPE Super
 you are temporarily
                              65 (whichever is earlier) and is reduced by any other           Helpline on 1800 257 135 to obtain the appropriate forms.
 disabled and cannot
                              sickness or accident benefits you may receive.                  This may include providing evidence of good health if
                                                                                              required by the insurer.

* Cover for death and total and permanent disablement is not available to casual employees.
** Your super salary means your annual salary at the time of your death or disablement.

For more information on any of the above features, refer to your PDS, Your Benefits in IPE Super. The PDS and the Fund’s forms are available from
the MySuper website at
Remember, if you need help in making or changing your super choices, speak to a licensed financial adviser. Refer to your PDS to find out how.
  Have a say in running your Fund
  If you would like to have a say in the management of IPE Super and represent the interests
  of your fellow members, consider standing as a candidate in the forthcoming Policy
  Committee election.
  Andrew Cox recently resigned from the Policy Committee and the initial one-year term of
  the other member-representative Policy Committee member, Ken Thomas, will soon expire.
  Now that all employees of the Incitec Pivot Group have had an opportunity to join IPE Super,
  the Policy Committee is being expanded to six members – three member representatives
  and three Company-appointed representatives. An election to appoint the three member-
  representatives will be held early in 2008.
  In the meantime, Richard Ibbott (Geelong) has been appointed (as the candidate with the
  next highest number of votes at the last election) to replace Andrew Cox in the lead up to
  the election.
  Information about the election, including a call for nominations for the three member-
  representative positions on the Committee, will be sent to all members in early 2008.
  In the meantime, if you would like to see a copy of the Fund’s election policy, call the
  IPE Super Helpline on 1800 257 135.

  IPE Super’s first Annual Review
  In September 2007, you received your first Annual Review Pack from IPE Super. Inside was:
  •	 IPE Super’s 2007 Annual Report, providing information on the Fund’s investment
     performance for the period 1 November 2006 (the date the Fund was established) to
     30 June 2007, the latest super news and up-to-date information on the fees and taxes
     that currently apply to your benefits in the Fund.
  •	 Your 2007 Benefit Statement, providing details of your personal benefits in IPE Super,
     including the balance of your account as at 30 June 2007 and the transactions into
     and out of your accounts since 1 November 2006. Your Benefit Statement also contains
     details of your benefits in the Fund should you die or become disabled, and your
     current beneficiary nomination(s).
  If you haven’t already, please read both documents carefully. If you have any queries about
  the information in your 2007 Annual Review Pack, or if you did not receive one, contact the
  IPE Super Helpline on 1800 257 135.

The information in this publication is general information only and does not take into account your particular objectives, financial circumstances or needs. It is
not personal or tax advice. You should consider obtaining professional advice about your personal circumstances before making any financial or investment
decision based on the information contained in this document. Please note that past investment performance is not an indication of future performance.

Issued by Watson Wyatt Superannuation Pty Ltd (ABN 56 098 527 256, AFSL 236049, RSE Licence Number L0000185), as Trustee of the Incitec Pivot Employees
                                                        Superannuation Fund (ABN 68 569 795 856, RSE Registration Number R1069631). December 2007.

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