How we performed in 2007/08

After four consecutive years of strong equity market advances, 2007/08 broke the trend with both Australian and overseas equity markets recording double digit declines. Expectations of a marked slowing in global economic growth and a significant increase in inflationary pressures stemming from large rises in oil and food prices have contributed to weakness in global equity markets.

As a consequence of this environment, the CSS Default Fund posted a negative return given its significant allocation to equity markets. However, performance over the longer-term remains very strong. In the three years to June 2008, the CSS Default Fund achieved a return of 8.2% p.a., while the figure for the five years ending June 2008 was 10.4% p.a. These figures compare favourably with the long-term objective of the CSS Default Fund.

Objective 1 year % p.a 3 years % p.a 5 years % p.a

CSS Default Fund

This Fund’s key investment
objective is to maximise
long-term real returns within some risk constraints.

-1.6

8.2

10.4

(CPI) inflation

  

3.1

Figures rounded to one decimal place. All returns for the period 1 July 2007 to 30 June 2008 are after fees and taxes.

If you are a contributing member, the member and/or productivity components of your benefit are affected by Fund earnings. However, if you leave as an age retiree, your CPI-indexed pension, the most significant part of your benefit, is not affected by investment performance because it is determined by your final salary for super purposes, length of membership and age at exit. Any money you have transferred from another fund may be affected by Fund earnings.

If you are a deferred benefit member, the member and/or productivity components of your benefit are affected by Fund earnings, as is the value of your CPI-indexed pension, which is calculated on the date your benefit is processed.

Find out more about our investments and performance.