PSSap Fund Performance for June 2006
Welcome to the monthly update on your Fund's investment portfolios.
The PSS Board's primary responsibility is the management and investment of the Fund in the equitable and best interests of all members. The Board 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 June 2006 (% )
This table shows the actual asset allocations of the four pre-mixed investment options at the end of June 2006. The other seven options are essentially single strategy options - see our product disclosure statement .
Asset Class |
Conservative |
Balanced 50/50 |
Trustee Choice |
Aggressive |
|---|---|---|---|---|
Cash |
33 |
12 |
8 |
2 |
Bonds/Fixed interest |
37 |
28 |
12 |
0 |
Market neutral strategies |
0 |
10 |
10 |
8 |
Total Defensive Assets |
70 |
50 |
30 |
10 |
Australian shares |
15 |
18 |
29 |
39 |
International shares |
12 |
17 |
26 |
36 |
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 June 2006 (%)
The figures in the table are after fees and taxes and show the return for a member who was invested for the whole month in each option.
Investment Option |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Financial Year to End-Jun |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Conservative |
0.8 |
0.7 |
1.3 |
-0.5 |
1.5 |
1.1 |
1.0 |
0.5 |
1.3 |
0.2 |
-0.9 |
0.4 |
7.6 |
Balanced (50/50) |
1.2 |
0.7 |
1.8 |
-0.5 |
1.9 |
1.3 |
1.6 |
0.5 |
1.6 |
0.4 |
-1.2 |
0.5 |
10.2 |
Trustee Choice |
2.3 |
1.2 |
2.7 |
-1.1 |
2.7 |
1.6 |
2.4 |
0.4 |
2.2 |
0.7 |
-2.1 |
0.6 |
14.3 |
Aggressive |
2.4 |
0.7 |
3.7 |
-1.9 |
3.6 |
1.9 |
3.0 |
0.2 |
2.8 |
1.0 |
-2.9 |
0.8 |
16.1 |
Cash |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
0.3 |
0.4 |
0.3 |
0.4 |
0.4 |
4.6 |
Bonds/Fixed interest |
-0.1 |
0.7 |
-0.2 |
-0.1 |
0.4 |
0.8 |
-0.2 |
0.9 |
0.4 |
-0.7 |
0.1 |
0.1 |
2.0 |
Australian shares |
2.5 |
1.9 |
5.0 |
-3.3 |
4.3 |
2.5 |
3.7 |
0.2 |
4.5 |
2.2 |
-3.8 |
1.0 |
22.3 |
International shares (unhedged) |
3.5 |
1.0 |
1.4 |
-0.3 |
4.3 |
3.3 |
1.7 |
1.4 |
5.5 |
-2.3 |
-3.0 |
0.3 |
17.8 |
International shares (hedged) |
3.4 |
-0.2 |
3.5 |
-1.6 |
4.3 |
2.5 |
3.5 |
0.4 |
2.4 |
0.9 |
-4.3 |
-0.1 |
15.4 |
Property |
0.4 |
-0.1 |
0.8 |
2.1 |
1.0 |
0.5 |
2.2 |
0.5 |
1.4 |
0.9 |
1.0 |
0.4 |
11.7 |
Sustainable |
-0.1 |
-0.1 |
4.1 |
-3.1 |
3.3 |
2.3 |
3.8 |
1.5 |
4.6 |
1.8 |
-2.8 |
2.4 |
19.0 |
Commentary:
The twelve months to the end of June marked the first full year of performance for each of the PSSap investment options. In this period, the absolute performance of the four pre-mixed options was strong, with the largest gains achieved by the options with the greatest exposure to equities. All the pre-mixed investment options exceeded their medium to long term investment objectives in this first year of operation. The single asset class options also generally delivered very strong absolute investment returns though most were a little behind their medium to long term objectives (which in the case of single asset class options are expressed relative to asset class benchmarks). The exception was the Bonds / Fixed Interest option, which delivered a low return but a return above its medium to long term relative to benchmark objective.
Andre Morony
Chief Investment Officer
31 July 2006
