Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZ Superannuation Fund Appoints GMO And Citigroup

For Immediate Release
2 February 2005


The Board of the Guardians of New Zealand Superannuation today announced the appointments of Grantham, Mayo, Van Otterloo & Co LLC and Citigroup Asset Management.

Grantham, Mayo, Van Otterloo & Co LLC (GMO) has been appointed to manage a growth-oriented global equity mandate.

With an initial allocation of NZ$140 million, the appointment of GMO complements that of Alliance Capital Management LP. The chosen benchmark for the portfolio is the S&P/Citigroup PMI World Growth Index.

Headquartered in Boston, GMO is a privately-held global investment management firm with US$82 billion under management as at 31 December 2004. This is the second mandate awarded to GMO. In July 2004 the firm was appointed to manage a portfolio of non-US small cap equities.

Citigroup Asset Management (Citigroup) has been appointed to manage a global emerging markets equity mandate.

The appointment of Citigroup complements that of WestLB Asset Management. Citigroup will receive an initial allocation of NZ$110 million, with the MSCI Emerging Markets Index as the chosen benchmark.

Citigroup, the asset management subsidiary of the global financial services group of the same name, has its headquarters in New York and had US$514 billion under management as at 31 December 2004.

The appointments of GMO and Citigroup bring the total number of external investment mandates to 18. The value of the Fund at 31 January 2005 was NZ$5.5 billion.


Notes for Editors:

About the New Zealand Superannuation Fund:

The New Zealand Superannuation Fund, which commenced investing at the end of September 2003, is designed to partially provide for the future cost of New Zealand superannuation. An ageing population means the cost of providing New Zealand superannuation is expected to double over the next 50 years. To prepare for this, the Government is allocating on average $2.2 billion a year to the Fund over the next 20 years while the cost of superannuation is relatively low. In the meantime, the Fund will invest the money on a prudent but commercial basis.

As the cost of superannuation escalates, the Government will progressively draw on the Fund to help smooth the impact on its finances. As at 31 January 2005 the value of the Fund was $5.5 billion. The Fund is expected to grow to around $100 billion by 2020.

For further information on GMO, visit

For further information on Citigroup Asset Management, visit

© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news