Number 63 17 April 2002

Interim interest rate increased

The Trustees, at their meeting on 04 December 2001, resolved that the interim interest rate would be altered

more regularly whilst the markets are volatile to ensure greater equity to all members of the scheme. Members are advised there have been four changes to the interim interest rate since that time and this has seen the rate increase from negative 2.5 % to negative 1.33 % at 26 March 2002. The rate at 26 March takes into account the estimated earnings of the scheme for the eleven months to 28 February 2002 but does not include the month of March 2002.

Members will be advised of an estimate of the final earnings rate of the scheme as soon as it is available.

The interim interest rate has reverted to zero from 01 April 2002 in accordance with the policy of the Trustees.

Members are further reminded the interim interest rate is the interest rate that is paid to members who are closing their membership of the scheme during the financial year. It is also a guide as to the performance of the scheme from 01 April until the time the rate is set.

For the quarter ended 31 December 2001 Melville Jessup Weaver has published the following performance for other retirement savings providers in their ‘Investment Manager Survey of Balanced units'. The Trustees thank MJW for allowing the scheme to use the survey results.

The after tax and expenses performance of the scheme is also included for comparison. The results in per cent are:

Alliance AXA +6.7

AMPHG Investors +3.9 ANZ Asset Mngt. +4.0 Armstrong Jones +4.3 Bank of NZ +4.3 Bankers Trust +4.2 Guardian Trust +4.2 NZ Fire Service +3.1 Tower Asset Mngt. +3.6

The scheme's after tax and expenses performance from 01 April to 31 December 2001 is estimated at negative 1.1%.

Members are reminded once again that investment performance should be judged over the medium to long-term and not short-term periods such as nine months.

At their December 2001 meeting the Trustees approved an amendment to the Trust Deed dealing with two matters. The first permits any monies or benefits, which are payable and remain unclaimed for two years, to be placed in Reserve Fund A of the scheme. This amendment will allow the Trustees to close inactive membership accounts and make savings by doing this whilst ensuring these funds can be paid to their rightful owner if they are able to traced by the scheme. A second amendment confirmed new Employees of the Commission are eligible to join the scheme whilst employed under training or from their first day of employment.

In previous editions of Supernews members were advised that the Trustees had agreed to:

• The New Zealand Property assets being reduced to five per cent of the scheme's total assets over time, and
• Invest ten per cent of the scheme's offshore equities in European equities.

At their meeting on 26 March 2002 the Trustees resolved to investigate reducing the property assets to the agreed level by withdrawing funds rather than by reducing these assets over time. They also resolved to make no investments in European equities at this time.

Leonce Jones resigned as a Trustee of the scheme with effect from 06 February 2002.

The New Zealand Fire Service Commission has advised the scheme that they have appointed Mr Allan Kerrisk of Whangarei to be Leonce's replacement.

Mr Kerrisk is the Chief Fire Officer of the Whangarei Fire District.

The Trustees have formally thanked Leonce for his time and effort during his time as a Trustee of the scheme.

Members are advised the Trustees have established a new policy from 01 April 2002 which will require all deferred members of the scheme to maintain a minimum balance of $ 2 000.00 in their deferred member account at all times.

Deferred members of the scheme have been sent an individual letter setting out this policy and the reasons for it.

Members are advised that over the last month the web site has had a few enhancements made to it.

Members are further advised if they access our web site from the Fire Service's K-Net homepage they will now have to go to ‘links' on the menu and then to the scheme's web site address to access the scheme's homepage.

Work will soon commence on the last stage of the scheme's web site development, which will allow members the ability to access personal details, account balances and other personal information through the scheme's web site. In order to have access to this service members will have to have a security password. Those who do not have a password should contact the scheme on 0800 MY SUPER (0800 69 78737) to establish one.

Members will be advised when the new access service commences.

Associated agencies

Members are advised that the Trustees have resolved to be involved with the New Zealand Fire Service and other associated agencies such as the Professional Firefighters Union, the Welfare Society, and Firefighters Credit Unions to establish policies and procedures to enhance the overall services provided to members of the Fire Service.

The Trustees are signatories to a ‘Statement of Co-operation' between the parties and to a ‘Memorandum of Understanding' between the Fire Service and a majority of Associated agencies to allow Spicers Financial Services to provide financial planning seminars to members of the Fire Service.

Members are advised that Spicers are currently working on a rollout of these financial planning seminars throughout New Zealand, following a successful trial in Wellington last year.

Members will be kept informed of the arrangements for these seminars.