EQC To Spread Portfolio Risk
Finance Minister Michael Cullen today allowed the Earthquake Commission to diversify its $4 billion Natural Disaster Fund to include up to 35 percent in global equities.
“It makes sense for the EQC to hold assets off shore,” Dr Cullen said.
“In the event of a major earthquake, these investments would provide an important buffer as they would hold their value and could be sold quickly.”
The remainder of the Fund would continue to be held in New Zealand in government stock and cash.
"EQC will be required to
invest the Fund on a prudent, commercial
consistent with best practice portfolio management.
“It will be required to maximise the return
on its investment without undue risk to the Fund as a whole
and without endangering New Zealand's reputation
as a responsible member of the world community.
will now work with its advisors to construct a
portfolio and appoint global equity managers," Dr Cullen said.