New Zealand Superannuation Fund

New Zealand Superannuation Fund

Country: New Zealand

Established: 2003

US$ Billion: $12.1

Origin: Non-commodity

Firm Investment Style: Index

Entity Structure: Investment Fund

Transparency Rating: 10

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.

The Crown plans to allocate around $2 billion a year to the Fund over the next 20 years. It is a Crown-Owned fund financed by capital contributions from the Government.

The Fund is governed by a separate Crown entity called the Guardians of New Zealand Superannuation. All decisions relating to the business of the Guardians are made under the authority of the Board of the Guardians of New Zealand Superannuation.

News and Updates

N.Z. Superannuation Fund ends agreements with ING, Smartshares
Bloomberg states, " The New Zealand Superannuation Fund, which manages money the government will use to help pay future pensions, has ended agreements with ING (NZ) Ltd. and Smartshares Ltd. to reduce costs. The Auckland-based fund will manage these mandates internally, giving it greater flexibility and utilize its own resources, it said in a statement posted on its Web site. New Zealand Superannuation had NZ$13.1 billion ($8.6 billion) under management at May 31."
read more: Bloomberg

Super Fund to divest from cluster bomb companies
The article states, "the New Zealand Superannuation Fund will announce in December which investments it is pulling out because of their involvement in the manufacture of cluster bombs. Fund chief executive Adrian Orr said the divestments would cover a range of small and large companies, making up a very small part of the fund's $14.5 billion worth of investments. The announcement would coincide with the signing of an international treaty banning cluster bombs. New Zealand was among 111 countries that in Dublin, Ireland, adopted a draft treaty banning cluster bombs."
read more: National Business Review

New Zealand Pension Fund Should Invest 40% at Home, National Party leader John Key says
New Zealand's state-run pension fund should invest as much as 40 percent of its money in New Zealand assets and companies, National Party leader John Key said. National will amend legislation that oversees the NZ$14.5 billion ($9 billion) New Zealand Superannuation fund to allow the Finance Minister to set the target, Key said in a statement on the party Web site. National leads the governing Labour Party in opinion polls ahead of the Nov. 8 election.
read more: Bloomberg

Chief investment officer, Paul Dyer fired after $860 million income drop
The investment chief for the Government's New Zealand Superannuation Fund has been made redundant less than a month after the fund revealed that the past seven months have been the worst in its four-year history. Now, the fund is being restructured and the position of chief investment officer Paul Dyer is being eliminated. Mr Dyer had been with the Super Fund since 2004, when he left his position as chief investment officer at AMP Capital Investments.
read more: The New Zealand Herald

Superannuation fund's ROA forecast down by $1.5b
The treasury this morning revealed that the Crown's operating balance for the seven month period to January 31 was a deficit of $394 million -as much as $4.2 billion away from the forecast surplus of $3.8 billion. The super fund's returns on its assets, which include international shares, were $1.5 billion lower than forecast over the seven month period, ACC's were $700 million short and the Earthquake Commission's were $300 million below.
read more: The New Zealand Herald

Kiwi diplomats urge fund to remove investments in weapons
Disarmament and Arms Control Minister Phil Goff urged the New Zealand Superannuation fund to pull investments from companies making cluster bombs if efforts to ban the devices were successful. The investments involving cluster bombs currently reside in America and Europe.


New Zealand

1. All figures quoted are from official sources, or, where the institutions concerned do not issue statistics of their holdings, from other publicly available sources.

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