MIESF ACHIEVES OBJECTIVES
The return from MIESF for the year ending June 30th 2003 has now been announced and it is has accomplished a positive result of 4.5% !
Thus, over the two years where many funds have lost value, MIESF has produced a return that is both positive and close to the return that could have been achieved if members had simply put the money in the bank. It also means that over the longer term, the average return is above 9%. The return from the last 3 years is over 5% per annum.
This result has been achieved through a continuation of a cautious investment strategy based on the Fund's stated objective, to preserve members' capital and to average a return above bank rates.
As MIESF is a self-managed Fund, it is possible to run the Fund in the interests of members rather than pay large fees to fund managers and insurance companies.
There are occasionally comments made by other funds and fund managers that the earning rate of MIESF is somehow "propped up". This has never been the case. MIESF, as a matter of strict policy, does not maintain a reserve and all of the earnings in a year are distributed to member's accounts in that year. Furthermore, external professional parties value all of the assets on an arms-length basis. The Fund's management and Board are not involved in this process.
Over the first six months of this year, the MIESF commissioned a prudential review of the Fund and was also subject to a prudential review by APRA and in both cases, the Fund's management and policies were found to comply with regulations.
Despite public criticism of superannuation, MIESF remains an effective method of saving for retirement with a low fee structure and modest stable returns. There are no entry or exist fees and your superannuation is portable as we allow rollins and rollouts without imposing a fee.
MIESF also offers a unique death cover to all members with a premium of $3.00 per week and a pay out of $100,000, irrespective of age or cause of death. This benefit is self insured and administered and if you keep up up to date regarding your dependents and family circumstances, the benefit is processed quite quickly.
One of the advantages of MIESF is our close association with the AMIEU with seven out of fourteen Directors being appointed by the Union. This means that your Union officials are kept updated on developments within the Fund and that the requirements from the workplace are taken into account in setting Fund policies. The Fund is professionally run by a small team from our offices in Melbourne.
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