Telstra 2012 Annual Report Download - page 189

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Telstra Corporation Limited and controlled entities
159
Notes to the Financial Statements (continued)
(d)
(e) Categories of plan assets
The weighted average asset allocation as a percentage of the fair
value of total plan assets for defined benefit divisions as at 30 June
are as follows:
Telstra Super’s investments in debt and equity instruments include
bonds issued by, and shares in, Telstra Corporation Limited. Refer
to note 29 for further details.
(f) Principal actuarial assumptions
We used the following major assumptions to determine our defined
benefit plan expense for the year ended 30 June:
We used the following major assumptions to determine our defined
benefit obligations at 30 June:
(i) The expected rate of return on plan assets has been based on
historical and future expectations of returns for each of the major
categories of asset classes over the subsequent 10 year period, or
longer. Estimates are based on a combination of factors including
the current market outlook for interest rates, inflation, earnings
growth and currency strength. To determine the aggregate return,
the expected future return of each plan asset class is weighted
according to the strategic asset allocation of total plan assets.
24. Post employment benefits (continued)
Telstra Super
HK CSL Retirement
Scheme
As at 30 June As at 30 June
2012 2011 2012 2011
%%%%
Asset allocations
Equity instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 57 46 53
Debt instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2244 40
Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 21 --
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3485
Private equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 12 --
Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21--
International hedge funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81--
Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4222
100 100 100 100
Telstra Super
HK CSL Retirement
Scheme
Year ended 30 June Year ended 30 June
2012 2011 2012 2011
%%%%
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6 5.1 2.5 2.4
Expected rate of return on plan assets (i) . . . . . . . . . . . . . . . . . . . . . 8.0 8.0 6.6 6.4
Expected rate of increase in future salaries . . . . . . . . . . . . . . . . . . . . 4.0 4.0 4.2 - 4.5 2.5 - 4.0
Telstra Super
HK CSL Retirement
Scheme
Year ended 30 June Year ended 30 June
2012 2011 2012 2011
%%%%
Discount rate (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6 5.2 1.0 2.5
Expected rate of increase in future salaries (iii) . . . . . . . . . . . . . . . . . . 4.0 4.0 4.0 - 5.0 4.2 - 4.5