| Objectives | Performance measures | Results for 2007/08 |
| To achieve cost effective funding for clients through management of TCorp’s funding program and balance sheet activities. | To ensure a cost effective funding mix through diversification of funding sources and professional implementation of the borrowing plan. | Strong demand and further investor diversification for TCorp’s Global Exchangeable Bonds were key features for the year. TCorp also launched its CPI Linked Bond program during the year, issuing over $900 million at very favourable yields for our clients. |
| To meet or exceed budgeted revenue from managing TCorp’s Balance Sheet risk activities. | Revenues from managing the market risks inherent in TCorp’s balance sheet were very strong and exceeded budget, aided by higher levels of liquidity maintained throughout the periods of market turmoil. | |
| To effectively execute portfolio assignments for clients through management of debt and asset management portfolios and Hour-Glass Investment Facilities. | To outperform benchmarks for managed debt portfolios. | TCorp performed significantly ahead of benchmark for the 20 managed debt portfolios. |
| To outperform the general market of fixed interest managers. | TCorp’s performance from duration management of debt portfolios was equivalent to first quartile performance measured against the broader universe of fixed interest managers. | |
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To achieve the debt interest cost forecast for the general government sector. |
The debt interest outcome was well within the agreed target range. |
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| To generate strong returns for the Hour-Glass Investment Facilities and outperform industry benchmarks. | The Medium and Long Term Growth Facilities outperformed benchmark for the year, although outright returns were negative due to retreating markets on the back of US sub prime driven concerns. The conservatively positioned Cash Facility underperformed its benchmark due to credit spreads widening to unprecedented levels. This underperformance is expected to be written back over the next 12 months as instruments mature. There were no defaults in any securities and no exposure to structured products such as CDOs. Specific client sector investments in the growth sectors also retreated with the ending of a four year 20%+ per annum return environment. | |
| To outperform benchmarks for discretely managed fixed income asset portfolios. | Discretely managed cash portfolios performed broadly in line with their individual benchmarks and the fixed income asset portfolios generated small underperformance to benchmarks. Given the conservative credit positioning of funds relative to the broader market, discretely managed cash and bond asset portfolios were in the top and second quartile compared against the broader universe of fixed interest managers. | |
| To effectively execute risk management and structured finance assignments for clients. | To add economic value through TCorp’s involvement in risk management and structured finance projects for clients. | TCorp assisted in assessing, implementing and managing a range of structured finance, asset procurement and public private partnership (PPP) transactions. TCorp has received positive feedback from NSW Treasury and other clients. |
| To meet client and market needs through enhanced resource management and allocation. | To provide cost efficient services to TCorp’s client base. | Cost effective lending, investment, portfolio management, reporting and advisory services were provided to a total of over 180 public sector clients, with continued business growth during the year. |
| To maintain or improve clients’ level of satisfaction measured by an annual survey. | The 2008 survey yielded excellent results, evidencing TCorp’s strong reputation and high service standards with clients across our business activities. |