Bumper 14pc returns for super fund
The New Zealand Superannuation Fund has chalked up a bumper month of gains, with its exposure to growth assets delivering higher returns as global share markets rally.
The fund delivered a return of 14 per cent in the year ending October excluding foreign currency hedging.
Over a three-year period, assets under management returned 11.8 per cent, while over five years it delivered a gain of 2.4 per cent.
The fund was set up as means to pay for a sharp rise in the number of baby boomers expected to hit retirement in the next 10 years, whose drawdown on universal pension payments would outstrip the tax revenue set aside to pay for it.
The fund said the returns underscored the value of its long-term investment approach, which allowed it to hold a greater portion of growth assets. Fairfax NZ
Taranaki Daily News