Superannuation fund rises above break even

Last updated 05:00 18/06/2009

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The New Zealand Superannuation Fund made a profit 3.47 per cent, or $587 million in May, the same month the Government turned off the tap of contributions for the next decade.

The Labour government had planned to put about $2 billion a year in the "Cullen fund" to build up a fund that would partly pay for pensions.

The fund is now just above break even $27m above state contributions since it started in 2003, despite the huge international sharemarket slump last year. The Super fund has received $14.46b in Crown contributions.

In recent months, world shares have bounced back and returns have improved on overseas bonds.

Meanwhile, strong performances by the Australian and New Zealand sharemarkets also helped lift most KiwiSaver accounts into the black in the March quarter.

New Zealand shares were up 10 per cent, Australia's 14 per cent and world shares about 3 per cent in the period.

 

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- © Fairfax NZ News

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