$15b fund's happy anniversary

BY KRIS HALL
Last updated 05:00 30/10/2009

Relevant offers

Politics

Smoke alarm and insulation regulations for rentals will lead to rent rises, landlords say Brexit: Foreign Minister Murray McCully offers trade help to Britain Lifeline faces closure as Government rejects pleas for funding Former councillor Bruce Smith enters mayoral race IRD urged to lift veil of secrecy over big company tax Veil of secrecy to be lifted on surgeons' performance by 2021 Tax expert John Shewan sheds welcome light on trusts Foreign trust review brings out the worst in our political leaders Child killer Peter Holdem 'a long way from being a realistic candidate for parole' From Mother Teresa to Richard Nixon, historical documents go under the hammer

Solid investment gains for September made for a happy sixth anniversary for the New Zealand Superannuation Fund, which has grown to $15.23 billion since its inception.

Created in September 2003 to help pre-fund the future cost of superannuation, the fund endured a torrid time in the financial year to June, reporting a pre-tax loss of $3.2b after a 22.1 per cent drop in returns.

But the fund has since returned to winning ways and followed its strong start to the new financial year with a solid September, during which its coffers swelled by a further $348 million before tax.

In the year to date New Zealand's retirement nest egg has returned an absolute 11.98 per cent, or $1.64b; the fund's $15.23b paper value is the highest monthly or annual figure since its launch by the Labour government.

Over its six-year lifespan, the fund has received after-tax contributions from the Crown totalling $13.52b, while its managers have added a positive $1.71b through investment returns.

Its return to form comes as the fund considers heavier investment in rural land, state-owned enterprises and large infrastructure projects, while resisting a Government directive to plough 40 per cent of its funds into New Zealand.

Ad Feedback

- BusinessDay

Special offers
Opinion poll

Should the speed limit be raised to 110kmh on some roads?

Yes

No

Vote Result

Related story: 110kmh limit moves closer

Featured Promotions

Sponsored Content