The New Zealand Superannuation Fund reached a month-end
high of $22 billion in February after returning 1.31% in the
Figures released yesterday showed the fund had 24.1% of
assets in New Zealand, including owning half of Z Energy,
which is contemplating a listing on the NZX later this year.
The fund returned 17.58% in the past 12 months, 13.66% in the
past three years and 6.26% in the past five years. Since
inception in September 2003, the fund had returned 8.41%.
The New Zealand Superannuation Fund is also known as the
Cullen Fund, after its founder, former treasurer and finance
minister Sir Michael Cullen. The current Government cut
contributions to the fund when surpluses in the current
account turned to deficits.
The fund was established by Sir Michael to help pay for the
costs of the baby boomer retirement bubble. The fund has
received no contributions in the past three years.
It received $3.22 billion in the past five years and nearly
$14.9 billion since inception.
A note attached to the latest figures said fund returns were
unaudited and calculated before New Zealand tax and after
''We consider tax paid as a return to the Crown.''
The fund guardians said that because of weighting to growth
assets, the fund could experience large short-term movements.
''As a long-term investor, we have greater-than-average
ability to withstand this volatility.''
Shifts in value from month to month must be seen in the
context of the fund's long-term purpose and performance, the
The fund's long-term performance expectation was it would
beat the Treasury bill rate by at least 2.5% over rolling
20-year periods. Since inception, the fund has exceeded the
bill rate by 3.38%.
The fund has 61% of its assets in global equities, 10% in
fixed income, 6% in each of infrastructure, timber and
property, 5% in New Zealand equities, 2% in other private
markets and private equity and 1% in rural farmland.
By geography, it has 36% of its investments in North America,
24% in New Zealand, 19% in Europe, 8% in Australia and 4% in