How we performed in 2007/08

After four consecutive years of equity market  rises, 2007/08 broke the trend with both Australian and overseas equity markets recording large double digit declines. The weakness in global equity markets in the last year was due in the main to expectations of a marked slowing in global economic growth and a significant increase in inflationary pressures stemming from large rises in oil and food prices.

In such an environment, PSSap investment options that had a significant allocation to equity markets were unable to avoid a negative return. However, those options which had either modest or no exposure to equity markets were able to achieve positive returns.

July 2008 marked PSSap’s third anniversary. Since its inception, PSSap’s investment options have generally performed strongly, despite the global investment markets difficulties experienced in 2007/08. For the three years ending 30 June 2008, the Trustee Choice achieved a return of 9.3% p.a. which is comfortably above its objectives.

Objective

2007/08

2006/07

2005/06

3 year compound annual return

PSSap (Trustee Choice)

To outperform the CPI by at least 4.5% per annum over the medium to long term.

-2.0%

16.5%

14.3%

9.3%

CPI (inflation)

3.5%

 

 

 

 

Figures rounded to one decimal place. All returns for the period 1 July 2007 to 30 June 2008 are after fees and taxes.

How we stack up

PSSap’s 2007/08 Trustee Choice result was rated by leading independent researcher SuperRatings as second in the Top 50 Super Funds - Balanced Index for one year and fourth for the last three years to 30 June 2008.

Other PSSap investment options performance

Investment option

Performance 2007/08

Conservative

0.8%

Balanced 50/50

0.6%

Aggressive

-5.2%

Bonds/fixed interest

2.8%

Australian shares

-14.5%

International shares (unhedged)

-13.9%

International shares

-9.7%

Property

13.1%

Sustainable

-12.1%

Cash

5.9%

All returns are after fees and taxes.

Super is a long-term investment and past performance is no indication of future performance.

As we enter the 2008/2009 financial year, global and domestic investment markets remain volatile. ARIA’s portfolios are structured to deliver long-run returns and such volatility can provide opportunities to acquire assets for the long-run at attractive prices.

Find out more about investments and performance: