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Risks
are worth taking
Vet chalks up 45 marchouts
A question of form
Hair-razing complaint
WRITE
TO US
Risks
are worth taking
I
WISH to state that I am not happy with two aspects of the MSBS High Growth
(HG) strategy, of which I am a member.
First, to record an 18.8 per cent rate for HG in FY 03/04 was fantastic.
To have the potential to make up for several bad years was then taken
away from me by a change of direction by the board to more conservative
investment.
I, and many like me, made that choice to “take the good with the
bad” and I believe that is what high growth, therefore high risk
investing is all about. If I, and no doubt many others, wanted more conservative
investing practices then we would have stayed in one of the lower investment
strategies.
Second, given the continuing high share market performance that has been
recorded since my election to transfer to the HG, I am not happy with
the 13.7 per cent return for FY 04/05. The growth and balanced funds were
only marginally lower than this. The reason I, and no doubt many others,
have elected to go with the HG strategy is to take the risk and place
my own future (and responsibility) in my own hands.
Not all of us who are contributing still have 10 or more years to serve,
therefore when the chance came about in 2003 to elect to transfer to any
strategy within MSBS I made the decision to take the risk and cross to
the HG strategy.
In summary, the current record share market performance has been evident
for some time. Therefore, I fail to see how the best interests of members
who elected to transfer to the HG strategy are best being served by the
MSBS failure to be more aggressive with investment strategy.
WO2 Kevin Warke
JLU (SQ)
Bulimba, Qld
John McCullagh, General Manager MSB Board, replies:
WO2 Warke is concerned with two matters. First, he believes the board’s
high growth investment strategy to be underperforming due to conservatism,
and second there is no significant differential between the return for
the various strategies for the last financial year.
At the outset I should state the board considers its revised investment
strategy to be forward looking. On the basis of investment advice of experts
the board has, as conveyed to members, taken a decision to reduce the
Fund’s exposure to listed equity markets. Instead the board is replacing
such investments with increased investments in a range of alternative
asset classes, such as private equity and property, whose return characteristics
are not directly linked to equity markets.
The high growth investment strategy has a 100 per cent exposure to growth
assets, with 70 per cent allocated to domestic and international shares.
The remaining 30 per cent is allocated to property, private equity and
hedge funds. It has no exposure to defensive assets such as cash, bonds
or infrastructure.
As WO2 Warke notes, the Australian share markets performed strongly during
2004/05 and MilitarySuper’s exposure to that asset class shared in
that performance by returning 23.3 per cent for the year. However, when
investing in international markets there are two elements of risk involved.
The first is the risk associated with changes in value of the share in
the native currency, due to normal market forces and the second relates
to the impacts of currency exchange on that performance.
During 2004/05 international equity markets returned 9.8 per cent in native
currency terms. However, when these returns were translated back to Australian
dollar the market return on an unhedged basis was only 0.06 per cent due
to the impacts of currency exchange.
Fortunately, as part of its strategic review the Fund moved from a 50
per cent to a 100 per cent currency hedge on all foreign currency exposures
during the year and this lifted the return from the international sector
to 8.7 per cent for the year. All funds with aggressive exposures to international
markets had similar experiences during 2004/05.
Ironically, during 2004/05 more defensive assets such as bonds performed
above expectation and therefore funds with more conservative investment
strategies (ie those with exposures only, or largely, to domestic equities,
bonds and cash) outperformed those with more aggressive strategies. This
also helps to explain why the balanced and growth strategy returns were
only marginally less than that of the high growth strategy; due to the
lower exposure of those two options to international shares and their
weightings to more defensive asset sectors.
The overall performance of any of the five investment options is made
up of the combined performance of each of the asset sectors in which the
option invests. Not all sectors have the same performance characteristics
and that is why super funds adopt diversified investment strategies in
order to spread investment risk. The overall return achieved by the high
growth option in 2004/05 was affected by the lesser returns achieved from
investments in international equities. However, the investment strategy
adopted is a long term strategy which is expected to show volatility in
returns from year to year given the more aggressive allocation to shares.
WO2 Warke may, however, be pleased to note the very strong performances
of each of the investment options during the first quarter of 2005/06
with High Growth achieving 6.2 per cent for the year to date. On an annualised
basis this equates to a return of 24.8 per cent.
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Vet
chalks up 45 marchouts
OUR unit, 2/6 Cdo Sqn, has been sponsoring 12 Pl at Kapooka for the past
12 years, which started as a result of being asked to sponsor a platoon
by Col Kibbey in 1993.
The original members were Fred Ashford, Bill Jeffery, Ozzie Ostara, Dick
Stevens and myself.
As sponsors, we travelled to Kapooka to meet the recruits and pass on
our proud unit history. It was my own intention, to impress upon these
young soldiers just how good the Aussie soldier was, and still is, and
what a proud history the Australian Army has achieved over more than 100
years.
We returned to watch them do “the challenge” and “march
out as soldiers” – a very proud day for us all.
During the 12 years, I have witnessed 45 marchouts (1600 recruits) and
travelled over 110,000km down and back to Kapooka.
Due to age and health, I cannot continue with the sponsorship.
To all associated with 12 Pl, thank you for your friendship, help and
support. Being involved with 12 Pl has been an honour and privilege.
Eric Williams
Ex-2/6 Cdo Sqn
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A
question of form
CAN anyone
from SCMA, DOCM-A, or APA tell me why we have two forms – AC729,
Application for discharge or transfer between forces of the Army, and
AC853, Application for resignation, discharge or transfer to the Reserves
– and why the different career management agencies require different
forms and, depending on who you speak to at each agency, why different
departments require different forms to achieve the same outcome?
What form do we use for a service transfer? (SCMA and APA-M gave different
answers to this question).
Can we have one form that covers all aspects (resignation, discharge,
transfer between forces in the Army and transfer between services) that
is accepted by all career management agencies?
Capt Stuart Purves
8/7RVR
Ballarat, Vic
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Hair-razing
complaint
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Hair-razing
complaint
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UPON joining
the ADF on January 23, 1995, my mullet was forcibly removed by the ADFA
barber. Not only was I ridiculed at the ADFA barber by my peers and superiors,
it continued with the main body of my mullet being posted on a notice
board within my accommodation and a reward offered if the owner was found.
As the owner of this mullet I reclaimed it, but never received the advertised
reward. Furthermore, I was never permitted to wear it again, and since
then I have had significant difficulty attempting to grow another, largely
thanks to the Army.
I believe my loyal service to the Army has thwarted my mullet aspirations,
first thanks to ASODS, and second due to the pressures of service life.
These pressures have lead to my balding and I am forced to use the body
of hair normally allocated to a mullet as a long-distance comb-over to
my forehead.
This issue is antagonised by DHA allocating housing to my wife and me
in mullet-rich environments such as Palmerston in Darwin and Tuggeranong
in Canberra; an affliction that injures me mentally on a daily basis.
I have attempted SAS selection course in a bid to be given the opportunity
to grow my hair longer, however, on realisation that I am 30kg overweight
and a pathetic officer these aspirations dissolved at the first sight
of sweat while training.
I feel that if the Army is to retain officers of my calibre, it will be
left with no other alternative than to amend ASODS. I appreciate mullets
can become unsightly, but I am sure this minor concern can be overcome
by adherence to a mullet template available from clothing stores. Pending
your endorsement, I am more than happy to model for the mullet template
within ASODS.
Business at the front
– fun at the back
WO1 Jeffrey Hansen, RSM Ceremonial - Army, replies:
Dear Business at the front – fun at the back,
First, let me congratulate you on completing 10 years’ service with
Army and I hope that you get what you have coming to you in the next 10
years.
I feel your pain when you say that you were ridiculed by your peers at
the ADFA barber. I, too, was the brunt of many a joke when I turned up
at Kapooka with a number two crew cut only to find out that we all got
a free number one whether we needed one or not.
As for having to endure the torturous postings in mullet-friendly Palmerston
and Tuggeranong, I recommend a pilgrimage to Dandenong – the birthplace
of the mullet. This may reduce the flashbacks and horrific nightmares.
After years of personal research, I have discovered that the mullet look
is not for everybody, although after studying the attached picture, I
am convinced that you have the truly perfect mullet head.
Due consideration has been given to your request but it has been decided
that the Army is not yet ready for the piscatorial mudflap.
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