There is no doubt that the scenes from the United States on the morning of Wednesday 12 September 2001, as witnessed by every scheme member, would have presented them with a series of reactions and feelings that were not unexpected.

They would no doubt have felt anger that such actions had been carried out. They would have felt fear and sorrow for their fellow Firefighters in New York and elsewhere in the United States and eventually they would have had some concerns related to their retirement savings both within the scheme and with other providers.

The Trustees of the scheme have deliberately chosen to wait for some time before appraising members with the short-term effects of these attacks. There have been some members who have criticised the scheme for this approach but the reality is that there is very little the scheme could have done immediately that wasn't done and advice received since that date confirms that to have ‘done nothing' was best.

At 8.00 am on 12 September 2001 it was suggested by former Independent Trustee Mark Weaver and Roger Wyatt,

the scheme's Investment Adviser, that withdrawals and benefit payments should be suspended. This suspension was put in place at 9.00 am that morning to protect all members of the scheme and to ensure that any benefit payments or withdrawals reflected the value of the scheme's assets at that time. The suspension was open-ended in that it applied until further notice.

At that time the Trustees were not aware that ANZ Asset Management and AMP Henderson Global Investors were suspending all withdrawals from the Funds that the Trustees invested in with them. If the Trustees had wanted to make withdrawals and benefit payments to members this would not have been possible because of the small amount of cash held by the scheme in its bank account at the time of the attacks.

All deferred members who had requested withdrawals from the scheme or any member who was awaiting a benefit payment were personally advised of the suspension by telephone.

The Trustees had the Investment Adviser closely monitor the global situation and on 20 September 2001 he was able to advise the Trustees of the effect of the attacks on the asset value of the scheme. He advised that from 01 April until 20 September 2001 the net asset value of the scheme's assets had fallen 4.78 per cent.

The Trustees had been advised that AMPHGI had reinstated withdrawals from the Funds the Trustees invest in from 19 September and ANZAM had done the same from 21 September 2001.

The Trustees resolved:

‘THAT withdrawals and benefit payments from the scheme are restored with effect from 9.00 am on Monday 24 September 2001, and THAT the interim interest rate has been reviewed and with effect from 9.00 am on Monday 24 September 2001 is set at negative five per cent.'

With regard to the scheme's investments in New Zealand and offshore equities and property the property assets have continued to provide a steady performance as expected.

Turning to the equity assets the New Zealand SE40 index has recovered significantly from its lows of post 12 September 2001. With regard to overseas sharemarkets Reuters reported on 14 October 2001 that the British FTSE100 index was now two per cent above its level before the 12 September attacks, that the Standard & Poor's 500 index was now within a point of its September 10 close and that the NASDAQ Composite index has topped the month-ago level.

Clearly the effects on the asset value of the scheme have not been as great as that expected in the hours immediately after the attacks.

Members are once again reminded that they should take a medium to long-term view of the scheme's investment performance and not review it on a short-term basis.

Normally this Supernews would contain a review of the investment performance of the scheme's assets for the first quarter of the new financial year.

Given the lead article of this Supernews it was felt that the investment performance of the scheme for this period had been overshadowed by recent events and that the publication of the scheme's performance should recommence with the September quarter later this year.

If you wish to have Supernews delivered to you individually by email from now on please supply your email address to the scheme Secretary at any of the contacts set out on the front page of this Supernews.

The Trustees are mindful of the pace of developing technology and of the need to be able to keep in touch with members on a personal level as quickly as possible.

It is with this in mind that Supernews is being made available to individual members by email.

All existing arrangements for the delivery of Supernews to members and stations will continue unchanged.

Members are advised that there was a slight error in the Trustee's Annual Report for the year ended 31 March 2001. On page four the illustration depicting the net returns since 1993 shows a return of negative 0.1 per cent for the year ended 31 March 1995. In fact the return for that year was positive 0.1 per cent.

Please accept the Trustees apologies for this error having made its way into the Report.

Members are reminded that before any benefit payment can be made all questions in Part 1 of the ‘Cessation Advice and Discharge' form must be completed and the form returned to the scheme at the address set out on it.

If the member follows this process and provides bank account details and a bank deposit form the benefit will be paid no later than ten working days after the cessation of employment with the Fire Service.

No benefit can be paid prior to your final day of service irrespective of any arrangements you may have made.