I am pleased to bring you the Annual Report for the 2008/2009 year. The first half of the past year continued with the pessimism of the 2007/2008 year. The second half was more positive and the Australian stock market recovered approximately 23% of the fall from the top in November 2007.
The strategy adopted by the Board to be active in our investment management resulted in an outstanding performance for the year with all our pre-mixed portfolios achieving top quartile performance.
Going forward
Although the stock market has recovered somewhat and Australia may avoid a serious recession, the “jury is still out” from a fundamental perspective. The issues causing the Global Financial Crisis (GFC) are still not fully resolved and the credit condition is still tight with the banks raising the bars for lending. However, we are seeing some easing of credit from 12 months ago. If this trend continues, we will see developed economies easing out of recession, and a recovery of confidence which should translate into a period of growth.
Retirement
We are pleased to announce that ACSuper will be launching a Retirement product and a Transition to Retirement Product shortly. This enables members reaching or about to reach retirement age to rollover their super into a pension type product without having to withdraw investments from the Fund. Further communication will be sent to all members when the final product is launched.
Investment
Whilst we are pleased with the Fund investment performance, we are not satisfied with the results in an absolute sense. The Board of Directors regularly undertakes an active review of the Fund investments (including our philosophy and strategy). The June 2009 member survey relating to investment preferences was part of the review process. More information will be forthcoming regarding the outcome of the review and the accompanying changes. The main objectives are to make investment choices simpler, meet the varying needs of the member base and also to minimise costs.
The Board have been working very hard to maintain investment value during one of the worst investment climates since the Great Depression, and have been successful to a large degree. I commend their efforts to members, and thank them for their continued efforts on behalf of all members.
On behalf of the Board may I take this opportunity once again to thank you for your continued support of ACSuper, and pray God’s blessing on you and your family for the coming year.
Ian Young
Chairman