[PDF] Super Scoop 2001 - QSuper - Queensland Government

How have investments
shaped up over the last 12
Members with an Accumulation account are able
to choose between five investment options. Of course,
if you have a Defined Benefit account, your benefits
are not affected by investment returns.
In short, it has been a year of subdued returns.
To look at the general picture though, the lower
returns for the 2000/2001 year were largely
caused by lower performance from share markets
around the world. In the long run, share market
investments give good returns, but there can be
some sharp rises and falls along the way. While
the results for this financial year are down on
previous years, this outcome is not
surprising if we look at the history
of investments over the past 100 or
so years. History also suggests that
switching to more conservative
investments after a market fall may
not be the best thing to do. It is
important to consider how long you
intend to have your funds invested
and to stick to your long-term plans
and goals unless your circumstances
suggest a need to change.
months?
by Gary Wilkinson
QSuper Trustee Gary Wilkinson talks
about investment returns over the last
12 months.
Gary Wilkinson is the
General President of the
Queensland Police Union
and has been a QSuper
Trustee since 1997. He is
a member of the Board
of the Police Federation
of Australia. Away from
work, Gary enjoys boating
and fishing.
On the plus side, during the 2000/2001 year, QSuper’s investment
manager, Queensland Investment Corporation (QIC), cushioned
the effect of overseas share market returns by outperforming
these markets. QIC’s goal is to produce consistent, solid
returns and, on a long-term basis, QIC compares very favourably with
competitors.
In summary, the 2000/2001 year has shown us the volatility markets
can be subject to. But, it also reminds us not to over-focus on short-term
results and to stick to our plan to achieve long-term goals. •
OBJECTIVE
NET
RETURNS *
ASSET
CLASSES
Allocation 30/6/2001
Cash 100%
Australian fixed -
interest
International fixed -
interest
Property -
Australian shares -
International -
shares
To credit members’ accounts, over 1 year
periods, with an average return of 0.5% p.a.
below the cash rate after administration fees,
but before tax.
2000/2001 4.86% 5.89%
1999/2000 - -
1998/1999 - -
1997/1998 - -
1996/1997 - -
Compound 4.86% 5.89%
average p.a.
(since introduced)
Cash
Returns 2000/2001:
Accumulation account 4.86%
Allocated Pension account 5.89%
• This option has a 100% allocation
to cash.
• Despite an environment of falling
interest rates, especially over the
latter half of the 2000/2001 year,
returns from cash investments
were solid.
Accumulation
account
Allocated Pension
account
6
SUPERSCOOP
Data on asset allocation and past returns is provided where the option has an investment history.
Net returns are for a member who remained in the option for the entire year and made no transactions, and is net of fees and tax.
QSuper 2001 Annual report to members