ARIA Annual Report 2007/08
Chairman’s report
I am pleased to report on the performance of the Funds and the management and administration of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) and Public Sector Superannuation accumulation plan (PSSap). The PSS Default Fund recorded a return of -1.9% (after fees and taxes) and the CSS Default Fund recorded a return of -1.8% (after fees and taxes). Both the CSS and PSS Cash Investment Options achieved a net return of 6.1%. The CSS and PSS Default Funds’ longer-term performance exceeds their objectives. The PSSap’s Default Option, Trustee Choice, in which the majority of PSSap members invest, returned -2.1% (after fees and taxes). This result ranked the Trustee Choice option second in the Top 50 Super Funds - Balanced index, as assessed by leading independent researcher SuperRatings. ARIA is committed to delivering superior investment performance and understanding the riskiness of our environment, so that long-term the contribution ARIA’s Funds make to member superannuation outcomes is valuable. ARIA worked with its administrator, ComSuper, to educate members about the 2007/08 Budget reforms to the public sector schemes. From 1 July 2008, basic contributions to superannuation became voluntary for CSS and PSS members and PSS members were given the choice to cease PSS membership and join the PSSap or contribute to another fund. In 2007/08, the Trustee engaged Watson Wyatt to review its investment governance arrangements. As a result, the trustees have adopted world best practice standards of investment governance in respect of their core functions including investment beliefs, mission and vision and the clear delineation of board and executive roles. This process will continue throughout 2008/09. In 2008, ARIA and ComSuper moved to monthly allocation of earnings. Earnings are now allocated to members’ accounts monthly rather than only on exit and these amounts are now reflected on the member’s statement. I would like to thank the Minister and his department for their continued assistance throughout the year. I would also like to thank our key partners: ComSuper, JPMorgan, our advisors, all of our fund managers and other service providers for their work and commitment throughout the year. I commend and thank my fellow trustees for their assistance, advice and support. I would also like to take this opportunity to thank our former trustees Des Moore, Graham Rogers and Joy Palmer. They each have made valuable contributions to ARIA over the previous years and their support is appreciated. Mr Lochiel Crafter was appointed Chief Executive Officer of ARIA this year and started in May. Lochiel has extensive experience in the financial services industry and we welcome him to ARIA and being part of our future success. Finally, I would also like to thank ARIA employees for their continuing dedication and support through a challenging yet rewarding year.
Susan Doyle |
