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


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>>


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>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news