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Legislative Assembly for the ACT: 2003 Week 8 Hansard (21 August) . . Page.. 3122..


The estimated change in market values of the SPA investments over the 2003-2004 financial year is approximately $9.375 million, reflecting the lowering of the estimated portfolio return for 2003-04 from 5% real to 3% real and the current asset allocation of the portfolio remaining heavily weighted to income securities.

(4) On what assumptions was the revised estimated outcome of the revenue from dividends and interest, earned from SPA investments, of $48.692 million based?


The estimated outcome of $48.692m from dividends and interest earnings was based on the fact that the portfolio would remain heavily weighted to income securities during the 2002-03 financial year, which was not the original budget assumption.


The estimates are derived from historic dividend yields applicable for local and international equity investments, as well as the coupon yields applicable to the income security portfolios of cash and fixed interest. Actual dividend and interest earnings for the 2002-03 financial year of $47.692 million were only $1.000m or (2%) below the estimated outcome.

(5) Why was this estimated outcome of revenue to be derived from dividends and interest, earned from SPA investments, increased by $16.278 million, or 50 per cent, over the estimate provided in the 2002-03 Budget?

Estimates of SPA investment earnings are driven by the anticipated asset allocation of the investment portfolio over the following financial year. The original budget had incorporated an asset allocation more geared toward growth assets (equities) due to the anticipated transition of the portfolio to the new Strategic Asset Allocation.

Due to the continued poor outlook for global equity markets over the year, a decision to not increase exposure to growth assets resulted in the investment portfolio asset allocations being substantially different to original budget assumptions.

Consequently, the forecast estimated outcome for revenue from interest earnings was increased for the year based on the actual asset allocation of the portfolio at that time.

(6) What is the estimate for the quantum of revenue to be generated from dividends and interest earned from SPA investments over the 12 months to 30 June 2004?

The estimate for dividend and interest earnings for the 2003-2004 financial year is $52.889 million, $37.385 million in interest earnings and $15.504 million in dividend earnings.

This estimate is based on the maintaining of the current asset allocations of the investment portfolio during 2003-2004 as at 30 June 2003.

Kathryn Grosvenor-reward

(Question No 839)

Mr Pratt asked the Minister for Police and Emergency Services, upon notice, on Wednesday, 20 August 2003:

In relation to a monetary reward regarding information leading to the arrest of person/s suspected to be involved in the death of Kathryn Grosvenor and that there are many flyers


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