Peter Lambert Chief Executive Officer Local Government Super. Shoalhaven Entertainment Centre, Nowra 25 October 2011

Transcription

1 Peter Lambert Chief Executive Officer Local Government Super Shoalhaven Entertainment Centre, Nowra 25 October 2011

2 But first, the fine print

3 But first, the fine print The information in this presentation is restricted to general information only and is not personal advice nor financial planning advice. You should not rely on this information to make investment decisions as it does not take into account your personal, financial or investment circumstances. Making investment decisions Before making any investment decisions, you should seek the assistance of a professional financial planner.

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5 Some reasons to be cautious about economic growth OECD World Growth Indicator Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

6 So why are we seeing such a lack of confidence again? Big banks lent money to many people who couldn t repay their loans.

7 So why are we seeing such a lack of confidence again? Big banks lent money to many people who couldn t repay their loans. Governments stepped in and bought massive amounts of assets from the banks.

8 So why are we seeing such a lack of confidence again? Governments launched multi-trillion dollar spending programs to rescue the economy. FuturePlus Super Financial Services

9 So why are we seeing such a lack of confidence again? Governments launched multi-trillion dollar spending programs to rescue the economy. Racked up enormous sovereign debt in USA, Japan, UK and Europe.

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11 Built on last year s results* with solid returns in % 15% 10% 5% 0% -5% -10% -15% -20% -25% * Performance results for the Accumulation Scheme. 2006/ / / / /11 High Growth Balanced Growth Balanced Conservative Cash

12 Recent returns reflect the downturn in the market 2% 0% -2% 0.7% Accumulation Scheme returns for July to September % -2.5% -4% -6% -5.3% -8% Cash Conservative Balanced Balanced Growth# -7.7% High Growth # Balanced Growth and Growth option have had the same asset allocation since July 2011.

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14 Better manage a range of risks Limit our exposure to companies which present a high environmental, social or governance risk.

15 Benefits of new investment opportunities Looking for investment opportunities as we move from old to new energy production.

16 Improves our investment returns Responsible investment overlay has improved our returns on Australian shares. 0.15% 0.10% 0.14% 0.05% 0.07% 0.00% 2010/11 5 year average - SRI portfolio market value

17 Margaret Street is running on 100% green power

18 Margaret Street is running on 100% green power NABERS rating has risen from a 4.5 to 6 Star rating by using 100% green power. First building in Sydney to run on the SMAC air-conditioning technology. Used technology to halve the building s total energy consumption since 2004.

19 We re turning this black Berry green

20 We re turning this black Berry green Upgrade will turn this 1985 office block into a 6 Star NABERS building. Emission levels will be 85% lower than the average commercial building. Using leading Australian technology, including power generation systems from Deniliquin.

21 We ve also been recognised with a few awards

22 Just a brief mention of the elephant in the room Legal action involving a number of councils and Local Government Financial Services (LGFS) continues in the Federal Court.

23 This presentation has been prepared by LGSS Pty Limited (ABN ) (AFSL ), as Trustee for Local Government Superannuation Scheme Pool A (ABN ) and Pool B (ABN ) collectively known as Local Government Super. The information contained in this presentation is of a general nature only and is not intended to be a substitute for advice. It does not take into account any individual s or organisation s investment objectives, financial situation or particular needs. If you require advice that is based on your own personal situation, we recommend you contact an authorised financial advisor. For more information about Local Government Super, contact Member Services on or go to to obtain a copy of the relevant Product Disclosure Statement pertaining to your membership.