Colonial Mutual Life Assurance unit pricing adjustments

19 December 2002

The Colonial Mutual Life Assurance Society Limited (CMLA) is writing to investors in a number of its products* regarding adjustments it has made to the unit prices of investment options.

No members or policyholders have been disadvantaged by these adjustments.

In carrying out a review of its unit pricing system and reconciliation processes, CMLA found it had not made sufficient allowance for imputation credits in determining unit prices for investment options in Australian equities since the 2000/2001 financial year. Some unit prices also needed to be increased to adjust for some pricing inaccuracies, which occurred during 2001.

Unit prices for affected investment options have now been increased to deal with these issues. CMLA is also in the process of identifying investors who have redeemed or switched options during the relevant periods and appropriate amendments to their unit redemption values or benefits will be made, where applicable.

Any shortfall that may flow from these adjustments is covered by existing provisions.

As well, CMLA has also increased unit prices for former Prudential investment products, reflecting the reversal of taxation provisions and a tax refund.

Members and policyholders seeking further information should call 13 27 78.

* Products subject to these unit price adjustments are: CPSL Master Fund (Personal Superannuation, Allocated Pension); Colonial SuperChoice MasterTrust (Corporate Superannuation, Personal Superannuation); Colonial Select Superannuation Plan (Corporate Superannuation); Colonial SuperTrace; Colonial Masterpac & Superpac; and the Colonial legacy product range.