Number 66 20 December 2002

Volatile performance since April

Since April 2002 the interim interest rate has been reviewed from zero to:

negative 2.69% from 02 July
negative 5.31% from 30 July
negative 6.67% from 09 September
negative 5.41% from 07 October
negative 7.80% from 05 November,
and negative 5.88% from 28 November 2002.

The current interim interest rate reflects the scheme's after tax and expenses performance for the period from 01 April until 31 October 2002 and the rate will continue to be reviewed on a monthly basis.

Members are 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.

Members are further reminded that the interim interest rate is also included in member account balances provided on the scheme's web viewer.

Performance to 30 September 2002

For the quarter ended 30 September 2002 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 -4.5

AMPHG Investors -5.5 ANZ Asset Mngt. -3.6 Arcus Inv. Mngt. -4.7

Bank of N Z -4.0 Bankers Trust -3.5 Guardian Trust -3.0

ING -4.2 NZ Fire Service -1.2 Tower Asset Mngt. -2.4

Average return -4.1 Index return -3.8.

When compared to those listed above the scheme's after tax and expenses performance for the three months to 30 September 2002 has to be regarded as excellent.

The after tax and expenses performance for the scheme for the six months to 30 September 2002 was negative 7.80 %. The after tax and expenses performance for the month of October 2002 was a positive 1.14 per cent.

Members are reminded that this performance has occurred against a backdrop where international sharemarkets have reduced in value almost 30 per cent since 01 April 2002.

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

Lost soul

If any member knows the whereabouts of John Tuke, formerly of Auckland, and now thought to be a resident of the South Island please ask him to contact the scheme at any of the contact addresses set out below. Thank you !

Investment issues

The Trustees have taken the following decisions with regard to the scheme's investments:

• New Zealand Property assets are being reduced to five per cent of the scheme's total assets by regular monthly withdrawals
• New Zealand shares are being increased from ten to fifteen per cent of the scheme's total assets. Half these assets will be invested passively and the other half will be invested actively, both by AMP Henderson Global Investors Ltd
• Offshore bonds are being reduced from twenty to seventeen per cent of the scheme's total assets. Half these assets will be invested passively by ING NZ Limited and the other half will be invested actively by Tower Asset Management.

Web viewer

Given the number of hits this site has received since going live in late November there is no doubt the decision to allow members to access their account details has been the right one.

Members are reminded that access to their account details and personal information is from this web site at www.firesuper.co.nz/access.htm

After entering the site members should click on the blue flame on the left which contains the words ‘Access Account Details' and follow the instructions from there.

Members will only be able to access this information if they have provided the scheme with a security password.

If you have forgotten your security password call the scheme on 0800 MY SUPER (0800 69 78737) to establish a new one.

Members are reminded again that their account balances viewed on the web viewer or provided by other means have the current interim interest rate applied to them.

THE TRUSTEES WISH MEMBERS AND THEIR FAMILIES ALL THE

BEST FOR THE COMING FESTIVE SEASON AND PROSPERITY FOR ALL

IN 2003.

Contact with the Trustees

Members are advised that as a result of some changes made to the Fire Service computer system those who wish to send an e-mail to the scheme can now do so directly from the Fire Service Outlook programme.

All that is required is to open Outlook as you would do to create a new e-mail message and type the scheme's email address — bcdent@ihug.co.nz — in the ‘To' box.

Continue normally as you would to create, check and send any other e-mail. You will notice that the address you have typed changes and the completed e-mail will be sent directly to the scheme.

Members who send e-mails by the Fire Service system to ‘Barry Dent' may experience delays as that address is not checked every day.

Members are also able to contact both the scheme and Trustees, through the writer, and Jacques Martin — the scheme's Administrator — by direct e-mail links through the scheme's web site.

BARRY DENT

SCHEME SECRETARY