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

 


NZ Super Fund returns nearly 20 percent in 2012

NZ Super Fund returns nearly 20 percent in 2012

Jan 22 (BusinessDesk) - Investment returns from the New Zealand Superannuation Fund, the country's main savings vehicle to fund public pension entitlements, came in at 19.17 percent in the 12 months to Dec. 31, the fund's guardians report.

The monthly update shows the Fund finished the year at a record high value of $20.92 billion, up from $17.73 billion at the end of 2011, of which $3.49 billion is invested in a range of New Zealand assets including publicly listed shares, forests, farmland, commercial property and private companies.

Since its inception a decade ago, the Fund has achieved a 7.92 percent return on its investments, and contends that its active portfolio management policy has added $1.3 billion of the increased value, compared to returns if its funds were passively managed.

Unlike most other managed funds, the NZ Super Fund does not exclude tax payments from its calculation of returns, since tax paid is also regarded as a gain for the New Zealand government, which funds public pensions primarily from tax revenues and borrowing.

The long term performance so far means the fund has exceeded its own performance target of beating the interest rate return on 90 day Treasury Bills by at least 2.5 percent, with the current return standing at 2.84 percent above the bill rate.

The returns fluctuate, in part because the Fund is actively managed. Over the last three years, it has achieved a pre-tax rate of return of 11.54 percent, but in the five years covering the period of the global financial crisis, that return falls to just 4.02 percent.

Some 5 percent of its total assets are held in New Zealand shares, compared with global shares making up 61 percent of its portfolio. Some 36 percent of total funds are invested in North America, 23 percent in New Zealand, 19 percent in Europe, 17 percent in Australia, and 13 percent in Asia, including Japan.

A report for the Treasury's Crown Ownership Monitoring Unit last week said that government-owned savings entities, including the NZ Super Fund and Accident Compensation Corporation funds under management, were at close to saturation point on active ownership of New Zealand equities.

If they were to increase their holdings, less active management policies could be required.

Returns in the month of December were 2.33 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news