PSSap Fund performance for June 2007

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

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 an investment objective to maximise the real returns earned on investments subject to a tolerable level of short-term volatility.

Table 1: The PSSap Options Earning Rate for the 12 months ending June 2007   

All Earning Rates are after fees and tax

Commentary:

Over the year ending June, the Australian equity market rose by 29%, with the strongest gains achieved by stocks within the information technology sector (up 55%), telecommunication sector (up 40%) and industrials sector (up 40%). International equities in hedged terms rose by 21%, a result that again lagged the Australian market’s rise. The Australian property market also posted very positive returns (listed up 26%, unlisted up 19%), but bond markets (Australia up 4.0%, international up 5.9%) underperformed cash (up 6.4%) due to a rise in global bond yields.

Alison Tarditi
CIO
12 July 2007