Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Cullen on NZSF investment strategy

Cullen on NZSF investment strategy

Finance Minister Michael Cullen said the investment strategy devised for the New Zealand Superannuation Fund by the Board of Guardians and made public today met the requirements of the law.

“The Fund was set up to ease the cost pressures of supporting in retirement an ageing population. The Board’s task, clearly defined in the legislation, is to maximise long term investment returns using best practice portfolio management principles.

“This must be their sole focus. They cannot be distracted by other objectives or allow themselves to be influenced by political pressure. For that reason, it is important that the Board guard jealously its independence of the government,” Dr Cullen said.

He had been impressed with the care the Guardians had taken in drawingup the Fund’s investment policy.

“They drew on a wide range of expert advice and subjected that advice to exhaustive analysis. The spread they have opted for strikes a prudent balance between growth and defensive assets.

“The decision to invest 22 per cent of the Fund locally tilts toward New Zealand while also acknowledging the constraints imposed by the potential size of the Fund relative to the size of the New Zealand market.

“New Zealand accounts for just 0.2 per cent of world markets. The Fund, by contrast, will be large by international standards and within ten years will be one of the largest – if not the largest – in Australasia.

“If too much was invested in New Zealand assets it would distort the market, pushing up prices artificially when the Fund bought and depressing them when the Fund sold. This would be in no-one’s interests,” Dr Cullen said.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news