The New Zealand Superannuation Fund's investments helped soften the impact for the Government of falling tax revenue and lower-than-forecast economic growth in the four months ended October.
The Crown accounts released yesterday showed the operating balance excluding gains and losses (obegal) was $1.9 billion higher than expected at $4.4 billion.
The result was partly softened by gains made on investment portfolios.
The super fund, commonly called the Cullen Fund after its founder, former Labour finance minister Michael Cullen, contributed gains of $1.1 billion higher than forecast while net gains made by ACC were $287 million above forecast.
Treasury said both investment gains were due to strong global equity markets.
Craigs Investment Partners broker Chris Timms said the recovery from the market lows of the global financial crisis had been good for the Government's investment portfolios and had come at a fortunate time with the deficit rising.
"The Cullen fund, not wanted by National in the first place, is now helping the Government benefit in ways it possibly didn't anticipate," Mr Timms said.
However, the strong recovery in global markets had been tempered by the strong New Zealand dollar.
Although the investments, measured in New Zealand dollars, were performing well, value was lost when repatriating the money.
At the same time, imports were cheaper to buy, helping push up the deficit, he said.
