In these uncertain times, retirement fund members require the assurance that their funds are the solid and dependable partners they need to keep their retirement goals and dreams on track. The theme for the 2019/2020 LA Retirement Fund annual report provides members with the assurance that the fund has the experience, flexibility, practical expertise and world-class professionals needed to adapt to the changing and volatile global financial landscape, and ensure that the stay firmly on the retirement journey they have mapped out in order to achieve the future they want.
The theme of this 2018/19 LA Retirement Fund annual report is “Helping you build your better future”. The main aim of any retirement Fund is to help its members achieve the best possible retirement. At the LA Retirement Fund, we don’t consider this an objective, we see it as a promise. One we make to every member of our Fund, and that we work tirelessly towards delivering. To this end, every member of our Fund has access to all the essential building blocks they need to create the futures they desire, and deserve.
The theme of this 2017/18 LA Retirement Fund annual report is “Your retirement journey”. As we continue on our journey towards fully integrated reporting, this year’s theme speaks to the commitment by the Fund to being a trusted partner, on whom members can depend to walk with them on their journey to retirement and beyond – ultimately ensuring that members reach their desired destination fully prepared for the retirement they deserve.
This 2016/17 LA Retirement Fund annual report continues the integrated reporting journey started in our previous reporting period (2015/2016). While we recognise that there is still work to be done in terms of achieving fully integrated reporting standards, we have attempted to move this year’s report closer to this destination. In addition, this 2016/17 report reflects the concerted efforts of the LA Retirement Fund to align the Fund’s mission, practices and protocols with the world class governance standards set out in the King IV Report on Corporate Governance for South Africa.
2015/16 was a period of positive changes in which the LA Retirement Fund continued to evolve towards greater excellence by introducing innovative and cost effective benefits. We continued to build stakeholder relationships, remaining ready and compliant with retirement reform proposals and continuing to focus on reducing costs and maximising investment performance. Our focus remains on ensuring members have the best possible chance of achieving their desired retirement outcomes.
Our investments underlying the fund’s life stage investment strategy have performed well considering the incredibly volatile investment markets in which we operate and our liability driven investment (LDI) strategy underpinning the pensioner’s portfolio has achieved exactly what was intended. Whilst the returns earned on the accumulation phase over the 12 months seemed pedestrian at 7%, overall, the defined contribution returns for the 12 months ended 30 June 2015 exceeded its target of 10.8% (i.e. CPI + 6%) to return a total of 11.4%. The total accumulated defined contribution returns over the last 2 and 3 years ending 30 June 2015 exceeded the targets by 5.7% and 14.9% by achieving 31% and 55.1% respectively.
Despite highly uncertain market conditions, the fund had a very good year in terms of investment returns for the 2013/2014 year. The defined contribution section of the fund achieved an excellent investment return of 17.54% for the period 1 July 2013 to 30 June 2014, exceeding the target by 4.50%. The defined benefit section of the fund returned 18.91% over the same period exceeding the target by 8.02%.
Read more: 2013 – 2014 Annual Report
I am delighted to report that the fund managed to achieve all of our set goals during the past financial year. The board of trustees, with support from our principal officer and service providers, were very successful in addressing various challenges over the year. The most significant achievement was the performance of our investments over this period.
Read more: 2012 – 2013 Annual Repor8