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PSSap Fund Performance for August 2006

Welcome to the monthly update on your Fund's investment portfolios.

ARIA's primary responsibility is the management and investment of the Fund in the equitable and best interests of all members. ARIA approaches this task by setting investment objectives for the Fund's investment options that maximise the real investment returns earned subject to tolerable levels of short-term volatility for each option.

Table 1: Asset allocations for pre-mixed investment options as at end August 2006 (% )

This table below shows the actual asset allocations of the four pre-mixed investment options at the end of August 2006. The other seven options are essentially single strategy options - see our product disclosure statement .

Asset Class	Conservative	Balanced 50/50	Trustee Choice	Aggressive
Cash	31	12	6	2
Bonds/Fixed interest	38	28	12	0
Market neutral strategies	0	10	10	8
Total Defensive Assets	69	50	28	10
Australian shares	17	20	33	43
International shares	10	14	22	31
Property	4	12	13	12
Long/Short equities	0	5	5	5
Total Growth Assets	31	50	72	90
Total	100	100	100	100

Table 2: Performance in 2006-07 as at end August 2006 (%)

The figures in the table are after taxes and fees. The first column shows performance for the 12 months ending June 2006. The second column shows the return in each option for a member who was invested for the period of August 2006.

Investment Option	Financial Year 2005-06	Jul to Aug 2006
Conservative	7.7	1.4
Balanced (50/50)	10.2	1.5
Trustee Choice	14.3	1.6
Aggressive	16.1	1.8
Cash	4.6	0.8
Bonds/Fixed interest	2.0	1.5
Australian shares	22.3	0.6
International shares (unhedged)	17.8	0.5
International shares (hedged)	15.4	2.3
Property	11.7	4.4
Sustainable	19.0	0.5

Commentary:

International equity markets have started the new financial year strongly, taking heart from an apparent peaking in US interest rates. Australian equities have been more mixed with a weak July more than offset by a bounce in August.

Global fixed interest markets have also benefited from the plateauing (for the moment at least) in US interest rates. The Australian dollar has been stronger in these early months of the new financial year, subtracting from returns in unhedged international equities. The Fund's property returns were boosted by some large revaluations.