AUSTRALIA - The Commonwealth Superannuation scheme posted impressive second half returns to finish the year ending 30 June at an estimated 13.7% increase, the fund's third consecutive double digit return.
The CSS had started the year poorly after it achieved an 8.4% return in the six months to year-end 2005 - lower than the 9.4% benchmark return - but came back strongly thanks to the Australian equity market, which rose by over 24% for the year ending June.
CSS chief executive officer, Steve Gibbs, said it had been another solid year for the fund in 2005/06 with the third consecutive year of double digit growth.
Although audited figures were not yet finalised, the latest figures give the fund a three-year performance rate of 13.7% per annum, a five-year rate of 7.4%, and a 10-year rate of 9.2%.
Despite the impressive figures, Gibbs stressed that past performance should not be viewed as an indication of future performance. Returns are volatile and it is impossible to predict if they will go up or down, he said.
The CSS finished the 2004/05 year with close to A$6bn under management, and comprehensive 2005/06 are expected at a later date.
By Damian Carkson
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point