3. Equities/unit trusts:3. Equities/unit trusts:

3. Equities/unit trusts:

All holdings in unit trusts are initially included in this section, before applying the look-through adjustments.

3.1 Held in Australia – directly as listed or unlisted equities

Include both listed (ownership interest in a company listed on the ASX or an overseas exchange) and unlisted equities that are held directly.

3.2 Held in Australia - directly in associated, subsidiary or controlled entities

Ownership interest in any associated, subsidiary and controlled entities, excluding preference shares.

Refer to the Life Insurance Act 1995 for definitions of associated, subsidiary or controlled entities.

3.3 Held in Australia - directly as convertible notes (Equity exposure)

All equities-related items such as convertible notes and other hybrid securities which, taking into account market conditions, have attributes that demonstrate exposure to equities markets.

3.7. Held directly – outside Australia

This differentiation refers to the territory where the asset is held, as opposed to the territory where the life insurance business is carried on (see Column headings).

3.9 Look-through adjustment for assets held indirectly via unit trusts etc.

Include look-through adjustment for Equities held indirectly via Listed Unit Trusts, Unlisted Unit Trusts or Controlled Unit Trusts.

3.10 Sub-total equities held effectively (unhedged positions) [derived item]

This represents the effective holding in Equity after adjustment for look-through of trusts and prior to adjustment for hedging.

3.11 Hedging adjustments to or from equities

The hedging adjustment item is intended to translate the aggregate Equities balance to the effective post-derivatives position.

3.12 Total equities held effectively (hedged positions) [derived item]

This represents the effective exposure to Equity after adjustment for look-through of trusts and also after adjustment for hedging.