WA-based superannuation fund GESB today reported a 28 per cent increase in funds under its management, to $6.85 billion, up from $5.36 billion the previous year.
WA-based superannuation fund GESB today reported a 28 per cent increase in funds under its management, to $6.85 billion, up from $5.36 billion the previous year.
The annual report of the former Government Employees Superannuation Board showed growth was driven by strong investment performance and a substantial increase in voluntary contributions.
GESB recorded a 15.81% gross return across all investments in the period, with particularly strong returns from Australian Equities (+24.95%), International Equities (+20.09%) and International Property (+24.62%).
Chief Executive Officer Michele Dolin said GESB's growth was especially pleasing given the increased competition in a number of GESB's areas of activity.
"This is the third year in a row we have increased funds under management by more than 25 per cent," said Ms Dolin.
"We're outstripping sector growth and every single one of our plans is outperforming investment return benchmarks."
Ms Dolin said GESB has also been able to deliver the growth without increasing fees for its 275,000 members.
"We are aware that many of our competitors have experienced substantial cost increases during 2005-06 and we are pleased to have been able to freeze member fees through the year while continuing to improve services," she said.
Ms Dolin said growing community awareness of the need to provide adequately for retirement had led to voluntary contributions by GESB members almost doubling in the year.
"In addition, more GESB members are rolling over their money into GESB superannuation and retirement products than ever before due the combination of low fees and sound returns."
With the recent changes proposed by the Federal Treasury, superannuation is confirmed as a very tax-effective long-term savings vehicle and people will be able to leave their superannation in a low tax environment after retirement from July 2007.
Superannuation assets in Australia are now almost $1 trillion, with superannuation the most significant asset outside of the family home.
As the largest superannuation fund based in WA, almost 25 per cent of the State's workforce has superannuation with GESB.
"GESB has strengthened its capability and capacity as a leading provider of superannuation and retirement products during the past year. It will continue to build its capability to meet the changing needs of members in a rapidly changing marketplace," said Ms Dolin.