The NZRDA Member Superannuation Plan

This presentation should be viewed in conjunction with the NZRDA Member

Superannuation Plan Investment Statement and Q & A and in no way should be considered a

substitute for the NZRDA Member Superannuation Plan’s Investment Statement.

Parties to the Plan

Trustee: Lighthouse Superannuation Nominees Ltd, a subsidiary of TOWER

Instigator: NZRDA Participating Employers: All DHB’s who have

signed to Participate in the Plan Members: Employees of the Participating DHBs

employed as Dental or Medical Officers Administration Manager: TOWER Investment Managers: ANZ Asset Management/

BNZ Asset Management/ Bankers Trust/ ING & TOWER Asset Management

Features & Benefits

What are the contribution levels?Member: 2% of your salary for the first year of the Plan, increasing to 4% for the second year and 6% for the third and subsequent yearsDHB: 2% of members salary for the first year of the Plan, increasing to 4% for the second year and 6% for the third and subsequent years

Note: members may also make lump sum investments or contribute at a higher percentage of salary from that shown above

When can the funds be withdrawn?Anytime after normal retirement age or early retirement age with Employer consentUpon resignation, redundancy, death or forced leaving of service due to ill healthMembers may withdraw their own contributions once every 5 years subject to a minimum withdrawal of $1,000Funds may also be withdrawn should a member resign from one DHB to take a position with another

Features & Benefits

Investment Options

What options do I have?There are 14 different options that you may choose from-9 Managed Funds and 5 Single Sector FundsThey vary in volatility from a conservative Cash Fund to a more aggressive NZ or International Shares FundThere are 5 different Fund Managers ranging from ANZ Asset Management (1), BNZ Asset Management (3), BT (2), ING (1) & TOWER (7)You May elect up to 4 different funds. A minimum of 25% in any one fund applies to contribution cashflowsRefer to the Investment Statement for details

Conservative Fund Example

%

Cash

60%

NZ Fixed

Interest

20%

Global Fixed

Interest

20%

Please note this graph is for illustrative Please note this graph is for illustrative purposes onlypurposes only

Balanced Fund Example

NZ Equities

10%

Global Fixed

Interest

20%

Property 10%

Cash10%

NZ Fixed

Interest

20%

Please note this graph is for illustrative purposes Please note this graph is for illustrative purposes onlyonly

International Equities 30%

Growth Fund Example

NZ Equities

25%

NZ Fixed

Interest 12.5%

International Equities 50%

Global Fixed

Interest

12.5%

Please note this graph is for illustrative purposes onlyPlease note this graph is for illustrative purposes only

The Best Performing Asset Classes

12.10

-21.61

5.64

8.67

10.46

0.88

2002

10.9316.00-1.8421.4213.0012.8013.080.4410.278.20Global Bonds6

-0.1123.271.2324.4823.0726.9724.3828.91-8.28-13.10Global Shares5

6.926.846.319.369.767.838.064.856.566.10NZ Cash4

11.9613.52-2.7913.238.806.7914.090.0611.124.75NZ Bonds3

-39.23-5.562.7913.8723.326.614.80-6.397.3412.12NZ Listed Property2

10.8447.84-7.1620.1217.334.30-4.4213.30-8.0313.39NZ Shares1

1992199319941995199619971998199920002001Asset class

Annual percentage returns by asset class*

*Based on the following indices: 1. NZSE 40 Gross Index; 2. NZSE Property Gross Index; 3. CSFB Government Bond Index; 4. CSFB 90 Day Bank Bill Index; 5. MSCI World Accumulation Index hedged in NZ$; 6. SSB World Government Bond Index (hedged).

US Market Returns 1928 - 2002

-50

-40

-30

-20

-10

0

10

20

30

40

50

19

28

19

31

19

34

19

37

19

40

19

43

19

46

19

49

19

52

19

55

19

58

19

61

19

64

19

67

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

OIL

CRISIS

GULF

WAR

DOT.CO

M

BUBBLE

1990’S

BOOM

VIETNAM

WAR ENDS

CUBAN

CRISIS

GREAT

DEPRESSION

WORLD

WAR II

*(Source: S&P500 - Bloomberg In US$ - To 31/12/02)

Time in the market (not market timing)

Source: S&P 500 Accumulation Index *Period studied: June 1992-June 2002

S&P 500 Acc Index*

1991-2001 Annualised Returns

All 2,608 trading days 9.27%

Minus 10 best days 4.66%

Minus 20 best days 1.26%

Minus 30 best days -1.48%

Minus 40 best days -3.89%

Minus 50 best days -6.06%

Minus 60 best days -8.09%

Minus 70 best days -9.97%

Joining the Plan

Complete the Application for Membership form and post it to NZRDA

Once registered with TOWER deductions will commence from your salary and TOWER will confirm your membership in writing

At the same time you will be advised of your web access number to ‘supersite’ so that you can monitor your membership accounts and investment returns

DHBs joining @ 1 July 2003 Waitemata, Auckland, Counties Manukau,

Waikato, BOP, Lakes, Tairawhiti, Taranaki, Whanganui, Hutt Valley, Capital & Coast, Nelson Marlborough, Canterbury & Otago

DHBs joining 30 June 2004 Northland, Hawkes Bay, MidCentral, Wairarapa,

South Canterbury, West Coast & Southland

Important Points To Note

This information is given in good faith and has been derived from sources believed to be accurate. However neither NZRDA nor any of their employees gives any warranty of reliability or accuracy nor accepts any responsibility arising in any other way for errors or omissions.

Past performance is not necessarily indicative of future performance.

The RDA, Participating Employers or the TOWER Group do not guarantee repayment of capital or future performance of any fund within the NZRDA Member Superannuation Plan.

This material has been prepared specifically for illustrative purposes only and is not a securities recommendation, it does not contain securities advice. In preparing this presentation, we have not taken any individual investor's personal circumstances into account. This presentation should not be relied upon as the basis for an investment decision. Investors considering investing in the Plan should obtain a copy of the current Investment Statement and consult their Financial Adviser.