More information to help answer your questions.

1. What has occurred?

We have identified and corrected a number of incorrect unit prices in some of the investment options within the Perpetual WealthFocus Super Plan (Super Plan) and Perpetual WealthFocus Pension Plan (Pension Plan), which occurred between 26 July 2006 and 25 May 2010.

We are writing to affected investors in late November with specific details about their investment.

The incorrect unit prices were primarily caused by delays in accounting for certain tax provisions.

For investors in the Plans who were materially affected by the incorrect unit prices, we have adjusted their accounts to restore them to the position they would have been in had the errors not occurred. These adjustments were effective 27 October 2010.

We have improved our unit pricing processes to address the issues identified in our review of the Plans’ accounting processes.

2. How do unit prices work?

Your holding in each investment option is pooled together with other investors in the same investment option and divided into units that reflect the value of the option’s assets. When you invest, you buy units in the investment option, and when you withdraw, you sell units. Units are priced each day. If you transact while a unit price is incorrect, you may be either advantaged or disadvantaged.

3. How have investors been impacted?

We have conducted a comprehensive review of the accounting processes and unit prices for the Plans, which included calculating the impact of all identified unit pricing errors on individual investors. Ernst & Young assisted us with this calculation.

After reviewing the combined impact of all issues, we are rectifying the position of affected investors as follows:

• Current investors
  Investors who have been materially affected had their unit holdings adjusted on 27 October 2010 to restore them to the position they would have been in had the errors not occurred. If they had subsequently switched to another investment option, their current unit holdings have been adjusted. All materially affected investors will be notified in writing in late November 2010. This means some investors have been credited with compensation and others have had units deducted.
• Investors who transferred to an external fund
  Investors who were adversely affected and have since transferred to an external fund will be notified in writing and compensation (including an additional amount, calculated using the Reserve Bank of Australia’s historical cash rates, from the date of exit until 30 November 2010 inclusive) will be paid to their account in the fund to which they transferred from Perpetual.
• Other exited investors
  Investors who were adversely affected are being compensated (including an additional amount, calculated using the Reserve Bank of Australia’s historical cash rates, from the date of exit until 30 November 2010 inclusive) and notified in writing.

4. How did the errors occur?

The following is a summary of the unit pricing errors.

Tax reconciliation process
After the end of each financial year a tax reconciliation process is conducted to address the differences between each investment option’s tax provisions reflected in the unit price, and the tax return submitted for that year. Delays in conducting this process for the 2006/2007 and 2007/2008 financial years resulted in unit price errors in the following investment options.

Product	Investment Option
Perpetual WealthFocus Super Plan	Aberdeen Core Plus (subsequently replaced by Schroder Fixed Income) #
	Blackrock Monthly Income #
	Credit Suisse Global Income #
	Macquarie Income Opportunities #
	Perpetual Australian Share *
	Perpetual Diversified Income #
	Perpetual Industrial Share *
	Perpetual Mortgage #
	Perpetual Property Securities #
	Perpetual Smaller Companies *
	RCM Global Equities #
	RREEF Global Property Securities #
	Vanguard Australian Fixed Interest Index #
Perpetual WealthFocus Pension Plan	Platinum Asia #
	Perpetual Mortgage #

# The errors were corrected on 26 June 2009.

* The errors were corrected on 3 December 2009.

Manual entries
A number of manual entries were incorrectly included in the calculation of daily unit prices for the following investment options:

Investment Option	Error date
Perpetual WealthFocus Pension Plan – Ausbil Australian Emerging Leaders	26 July 2006
Perpetual WealthFocus Super Plan – RREEF Global Property Securities	23 March 2007
Perpetual WealthFocus Super Plan – Platinum Asia	23 March 2007
Perpetual WealthFocus Super Plan – Perpetual Geared Australian	6 February 2008

These errors have been corrected as part of this rectification.

5. What methodology has been applied?

The rectification of these two errors has been a lengthy and involved process. We conducted a comprehensive review of accounting processes and unit prices, after which we corrected the errors. We then calculated the combined impact of all issues on individual investors and investment options so we could restore them to the position they would have been in had the errors not occurred. This calculation took many months as it required the development of a sophisticated computer model, and rigorous checking and testing.

Ernst & Young assisted us with calculating the impact of all identified unit pricing errors on individual investors.

The errors have been corrected and any compensation has been paid in accordance with the guidelines of the industry regulators Australian Securities and Investments Commission (ASIC) and Australian Prudential Regulation Authority (APRA), and industry body the Financial Services Council (FSC) as well as Perpetual’s Rectification Methodology.

In keeping with these guidelines, an error has been considered material when its impact on an investment option has resulted in a unit price error greater than shown below:

Super Plan and Pension Plan Investment Options	Materiality threshold
Cash and cash equivalent Investment Options	0.05% (5 basis points)
Fixed Interest Investment Options	0.05% (5 basis points)
All other investment options	0.30% (30 basis points)

The above materiality thresholds have been applied to both errors.

Where the net impact of all errors on an investment option was immaterial, we have not adjusted investors’ accounts or compensated exited investors. However, we have compensated the affected Investment Options.

Exited investors who have been adversely affected will be compensated, subject to a minimum of $20.

Any compensation payments to exited investors include an additional amount, calculated using the Reserve Bank of Australia’s historical cash rates, from the date of exit until 30 November 2010.

Any questions?

Phone our dedicated number 1800 093 068 during business hours (Sydney time).