apr-11.pdf (2.07 MB) - Crown Ownership Monitoring Unit

Government Superannuation FundCHAIR » Keith TaylorBOARD » David May, Toni Kerr,Stephen Napier, Cecilia Tarrant,Mark VerbiestCHIEF EXECUTIVE »Alan Langford (CEO AnnuitasManagement Limited)ActivitiesThe Government SuperannuationFund Authority is an autonomousCrown entity that manages andadministers GSF and the GSFschemes.GSF was established in 1948 toprovide a way for state sectoremployees to save for theirretirement. GSF schemes wereclosed to new members from1 July 1992, except for personswho were eligible for membershipthrough their employment withcertain Pacific Island governments.Membership was closed to thesepersons in 1995.There are currently approximately66,000 members, made up ofapproximately 13,000 contributors,6,000 deferred pensions and47,000 annuitants. Since 1996,the number of annuitantshas exceeded the number ofcontributors. It is expected thatentitlements will continue to bepaid by GSF for the next 60 years.Financial performance measures$m 2007 2008 2009 2010 2011 5 YearFunds Under Management (FUM)Opening FUM 3,799 4,008 3,574 2,804 2,947 3,799+/- Investment returns 554 (210) (673) 383 392 446+/- Tax (199) (51) 89 (99) 58 (201)+/- Cash inflow/(outflow) (146) (173) (187) (142) (238) (886)Closing FUM 4,008 3,574 2,804 2,947 3,159 3,159Returns & Risk% paReturn* 15.9% (5.8%) (20.4%) 13.7% 13.7% 2.4%Objective** 4.3% 11.5% 12.3% 10.7% 9.2% 9.6%Passive benchmark 16.1% (5.3%) (19.4%) 12.3% 16.4% 3.0%Fund risk (volatility***) 13.0%Passive benchmark risk 13.6%Notes:* Before tax and after investment management fees (estimated prior to 1 July 2010)** The Fund has an objective of outperforming the New Zealand Government Stock Index (NZGS) plus 2.5%on an after tax basis. For comparison purposes we have used gross of tax returns for the objective ofNZGS + 2.5% pa in the above table*** Annualised standard deviation of quarterly returns. Indicative of expected variability of the return in any one yearAsset allocation – past five years% FUM■ Other Alternative Assets ■ Property ■ Overseas Equities ■ New Zealand Equities■ Overseas Bonds ■ New Zealand Bonds ■ CashReturn indexReturn index (based at 100 at end 2004/05 Q4)— GSF — ANZ NZ Govt Stock Index — MSCI World Equity (hedged to NZD)page | 56