Monthly investment performance update

Fund Performance for July 2005

Welcome to the monthly update on your Fund's investment portfolios.

ARIA's primary responsibility is the management and investment of the Fund in the equitable and best interests of all members. ARIA approaches this task by setting investment objectives for the Fund's investment options that maximise the real investment returns earned subject to tolerable levels of short-term volatility for each option.  

Table 1: Asset allocations for pre-mixed investment options as at end July 2005 (%)

This table shows the actual asset allocations of the four pre-mixed investment options. The other seven options are essentially single strategy options - see our product disclosure statement .

Asset Class

Conservative

Balanced 50/50

Trustee Choice

Aggressive

Cash

30

12

12

2

Bonds/Fixed interest

40

28

8

0

Market neutral strategies

0

10

10

8

Total Defensive Assets

70

50

30

10

Australian shares

15

17

30

40

International shares

12

18

25

35

Property

3

10

10

10

Long/Short equities

0

5

5

5

Total Growth Assets

30

50

70

90

Total

100

100

100

100

Table 2: Performance in 2005-06 as at end July 2005 (%)  

The figures in the table are after taxes and fees and show the return for a member who was invested for the whole month in each option.

Investment Option

July

Financial Year to date

Conservative

0.8

0.8

Balanced (50/50)

1.2

1.2

Trustee Choice

2.3

2.3

Aggressive

2.4

2.4

Cash

0.4

0.4

Bonds/Fixed interest

-0.1

-0.1

Australian shares

2.5

2.5

International shares (unhedged)

3.5

3.5

International shares (hedged)

3.4

3.4

Property

0.4

0.4

Sustainable

-0.1

-0.1

Commentary:

Equity markets opened the new financial year on a very firm note and were led by a very strong US market which was buoyed by generally positive economic releases during the month. Outside the US , all major markets rose during the month. Europe (+4.1%) was the best-performing developed region while Japan was the worst-performing market with a return of 2.2%. Australia returned 2.7% while emerging markets returned 7.3%.

Bond markets were not as strong with the Australian market delivering sub-cash returns and international bonds actually falling in value in July.

André Morony
Chief Investment Officer
26 September 2005