New Zealand Superannuation Fund
|New Zealand||US$ 18.5 Billion|
Transparency Rating: 10
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Firm Investment Style: Mixed
Entity Structure: Fund
Population Est.: 4.45 million – 2013
Wealth Per Capita Est.: $4,156
Established under the New Zealand Superannuation and Retirement Income Act 2001, the New Zealand Superannuation Fund (Fund) was created to partially provide for the future cost of funding New Zealand Superannuation payments. Like many countries around the world, New Zealand has an aging population, with the number of retired people expected to double by 2050.
Strategy & Objectives
The Fund’s mandate is to invest on a prudent, commercial basis consistent with best-practice portfolio management, maximizing return without undue risk and avoiding prejudice to New Zealand’s international reputation. This translates into a three-step investment process the Guardians believe is consistent with the mandate and the Fund’s purpose. It comprises determining a blueprint for an optimal mix of market exposures, which the Guardians call the “reference portfolio”; identifying an equivalent portfolio of low-cost “passive” market exposures for the Fund; then adding value to the passive portfolio through active management. Active management includes investing in private markets, strategic tilting and public markets security selection. The Guardians also actively deviate from the passive portfolio by making investment decisions in line with an embedded Responsible Investment Policy.
Sovereign Wealth Enterprises include:
- CNI Timber Operating Company Limited
- NNZSF Rural Investments (No 1) Limited