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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news