THE FUND’S INVESTMENTS

Member investment choice

Up until 31 January 2009, the Fund did not offer investment choice to members. All of the Fund's assets were invested in accordance with the investment objectives and strategy described below for the "Trustee Option".

With effect from 31 January 2009, the Fund offers Main section and Rollover section members an investment choice, which is referred to as the "High Growth Option". You can elect to have all or part of your account invested in this option. You have the opportunity to switch into or out of the option twice a year, with effect from 30 June and 31 December. Any choice you make will apply to your current account balance and your future contributions.

If you wish to make an investment choice you need to complete the Member Investment Choice form at the back of the PDS and return it to the fund at least one week before the switch date.

The Trustee Option is the default option for the Fund. Members not electing to switch part or all of their account to the High Growth Option have their entire account balance invested in the Trustee Option.

Investment objectives for the Trustee Option

The aim of the Trustee Option is to ensure the security of your retirement money and to provide a reasonable rate of return above bank rates of interest over the medium and long-term without taking undue financial risk.

In order to achieve this aim, the following primary investment objectives have been established for the Fund:

• Avoid a loss; that is to be in a position to declare a positive rate of return each year (short-term financial objective)
• Beat inflation; that is to achieve a rate of return which exceeds the rate of inflation (as measured by the CPI) by at least 2% per annum, after allowance has been made for tax and fees over periods of three years or more (medium-term financial objective)

The investment objectives for the Trustee Option do not consitute, nor should they be treated as, a guarantee of future performance. There is the risk that if market conditions change, the investment objectives may not be achieved.

Investment markets can both rise and fall, and for this reason a positive return cannot be guaranteed. These objectives had been achieved over the 25 year plus history of the Fund, until unfortunately, the short-term financial objective to avoid a loss each year was not met in 2007/08 and 2008/09.

Investment strategy for the Trustee Option

MIESF invests your money in a variety of assets with the objective of achieving a sound rate of return each year with an acceptable level of risk.

In establishing the strategy for the Trustee Option, the Trustee and the Investment Committee take into consideration the needs of investors in MIESF and the stated investment objectives. The state of the economy and financial markets are also taken into account.

The Investment Committee meets every month to review the investments.

In order to achieve this balance, the Fund invests in a number of different asset classes including: property, Australian and overseas shares, private equity, infrastructure, bonds and cash.

Further information on the Fund's investments can be found in the Annual Report and the Main section PDS.

How the assets of theTrustee Option are invested

The following chart shows the asset allocation of the Trustee Option for the past two years:

Investment objectives for the High Growth Option

The aim of this investment options it to provide members with a "high growth fund" with an exposure to Australian and International Shares and Listed Property Shares of around 90%. This option is designed to deliver higher long term returns to members, but is likely to experience significantly higher volatility than the Trustee Option with the probability of a loss possibly as often as every three or four years. The option may be suitable for those members who can tolerate a higher degree of risk and are prepared to take an investment horizon of at least five to seven years.

The investment objectives of the High Growth Option are:

• To provide capital growth over the long-term by investing in a portfolio of predominantly growth assets with minimal defensive asset exposure; and
• To achieve a total return after fees that is greater than the median (middle ranking) return of diversified growth investment options in the SelectingSuper survey, over rolling five-year periods.

For the High Growth Option, the Trustee has agreed to select an externally managed pooled superannuation trust to meet these objectives. The initial investment will be into the Vanguard Life Strategy Index PST High Growth fund. The Fund's Investment Committee and Trustee Board will review the use of this fund from time to time and may vary this investment at their discretion.

The Vanguard fund has the following asset allocation strategy:

The actual allocation as at 30 June 2009 was the same as the benchmark allocation shown above except that Australian Shares were 45% and International Shares were 35% .