Firesuper - About the Scheme

The Trustees are pleased to report that the scheme's performance has improved markedly and in line with the upward trend in markets both within New Zealand and overseas since 01 April.

In accordance with their current policy the Trustees have reviewed the interim interest rate from zero on 01 April 2003 to:

positive 1.48% from 27 May
positive 4.53% from 03 July
positive 6.29% from 21 July
positive 6.28% from 18 August
positive 8.15% from 15 September 2003.

The current interim interest rate reflects the scheme's after tax and expenses performance for the period from 01 April until 31 August 2003 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 June 2003

For the quarter ended 30 June 2003 Melville Jessup Weaver has published the following after tax and fees 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 Capital      5.3
AMPHG Investors 6.8
Arcus Inv. Mngt.    9.8
Bank of N Z           5.8
Bankers Trust 6.6
Guardian Trust           8.1
ING 7.6
NZ Fire Service 6.5
Tower Asset Mngt. 5.1

Average return 6.6
Index return 5.6.

When compared to those listed above the scheme's after tax and expenses performance for the three months to 30 June 2003 has to be regarded as very creditable

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

Trust Deed amended

Members are advised that the Trustees, at their meeting on 10 June 2003, accepted a proposed amendment to the Trust Deed from the New Zealand Fire Service Commission which provides a benefit to members who are required to retire from the Fire Service as a result of a 'Loss of Physical Fitness' that is the same as the 'Loss of Medical Fitness' benefit.

The benefit in both cases now provides for a payment that is the greater of the total of your retirement account or two years wages/salary.

All other conditions related to these two member benefits remain unchanged. Members can review the actual wording of the changes to the Trust Deed by clicking here.

Investment issues

The Trustees have resolved to invest five per cent of funds allocated to off-shore equities in a Fund of Funds Absolute Return Fund managed by New Zealand Assets Management Limited of Auckland.The overall allocation, which commenced on 01 August 2003, is two per cent of all the scheme's assets and at that time totaled $ 3.5 million.

This decision was taken, following advice, to reduce the volatility of returns to the scheme.The Trustees are also investigating the introduction of active off-shore equity products to replace a portion of the passive off-shore equity assets to further reduce the volatility of the returns.

Employees joining after three months

After a significant review of the current policy and seeking legal advice the Trustees have established new policy which may require an Employee who does not join the scheme within three months of their being employed by the New Zealand Fire Service to be subjected to a medical examination process.

This new policy will be introduced from 01 December 2003.The policy will require potential members to complete a Personal Medical Statement and a medical examination as required by the Scheme's appointed Medical Adviser - Doctor David Waite - of Wellington.

As a result of this examination Doctor Waite will report to the Trustees whether the potential member can:

- Become a member of the scheme without condition.
- Become a member of the scheme with conditions as established by Doctor Waite.
- Be declined membership of the scheme.

Current Employees are permitted to apply to join the scheme without medical evidence in accordance with the current policy of the Trustees until 30 November 2003.

Member meetings

Members are advised that meetings of members are being finalised as set out below:

Tuesday 04 November
Tauranga @ 9.30 am
Hamilton @ 1.00 pm

Wednesday 05 November
Taupo @ 8.30 am
Kawerau @ 2.00 pm

Thursday 06 November
Rotorua @ 8.30 am

Tuesday 11 November
New Plymouth @ 10.00 am
Wanganui @ 3.00 pm

Wednesday 12 November
Palmerston North @ 8.30 am
Masterton @ 1.00 pm

Tuesday 02 December
Lower Hutt @ 11.00 am
Johnsonville @ 2.00 pm.

Notices will be issued in each Brigade where meetings are being held closer to the meeting date. The meetings will be attended by at least one Trustee and the Investment Adviser to the scheme.Members are asked to note the dates and times in their dairy now to ensure attendance.

Member Statements & Annual Report

Members are advised that the Trustee Annual Report and member statements for the year ended 31 March 2003 were posted to member's last notified postal address on Monday 30 June 2003.

Any member who has not received these important documents yet should contact the scheme Administrators on
0800 MY SUPER
0800-69 78737
to correct their address and have a further copy of the documents sent to them.

Borrowing against your funds

From time to time members query whether they are able to borrow against the funds held on their behalf in the scheme. The Trust Deed states:'No person being entitled to any interest in any benefit payable under the scheme shall assign, charge, alienate, or borrow against the security of any such benefit.'

BARRY DENT - SCHEME SECRETARY