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ARIA Annual Report 2008-2009
Trustee's report
In an investment environment unparalleled in recent history, ARIA continued its core business focus on investment returns and the provision on information and advice to members.
While negative, over the recent period, the funds’ longer-term performance remains competitive.
The CSS Default Fund recorded a return of -15.4% (after fees and taxes) and the PSS Default Fund recorded a return of -15.3% (after fees and taxes). Both the CSS and PSS Cash Investment Options achieved a net return of 4.6%.
The PSSap’s Default Option, Trustee Choice, in which the majority of PSSap members invest, recorded a return of -14.9% (after fees and taxes).
A focus of trustees’ attention during the year was the merger of the military superannuation boards with ARIA to start on 1 July 2010. This project will entail a change to the structure of the existing ARIA board, and an integration of the assets of military superannuation schemes into the ARIA Investments Trust. Much of the detailed implementation project work is yet to start, pending the introduction and passage of the relevant legislation to effect the merger.
The government announced in October 2008 the termination of the ComSuper IT modernisation program and a review of future scheme administration arrangements. ARIA trustees are vitally concerned that decisions made by the government in relation to scheme administration have a direct impact on the delivery of services to members. Trustees are also mindful of the ongoing risks associated with legacy computer systems and operating the defined benefit schemes, including the payment of fortnightly pensions.
ARIA’s Chairman, Susan Doyle, did not seek reappointment after finishing her term with the Trustee in late July 2009. Susan is very highly regarded within ARIA and the investment industry as a whole. We thank Susan for her leadership, support and valuable contribution and we wish her the very best for the future.
Joy Palmer, a former long-standing trustee of ARIA and its predecessor organisations, passed away in November 2008. She was a person highly regarded by all her colleagues at ARIA and in the wider superannuation industry and will be sadly missed.
David Connolly was a valued trustee with more than six years of dedicated service to ARIA. David completed his term as a trustee in late 2008 and was replaced by Brian Daley.
We thank our key partners: ComSuper, JPMorgan, our advisors, all of our investment managers and other service providers for their work and commitment throughout the year.
Finally, we acknowledge the efforts of Lochiel Crafter and the employees of ARIA and their commitment through a volatile and challenging year. It is their ongoing dedication that drives ARIA’s continued success.