NZ Super Fund Posts 20.7% Return for June 2017-Year
The New Zealand Superannuation Fund posted a 20.7% return (after costs, before New Zealand tax) for a 12-month trailing period ended June 30, 2017. A good portion of the return was carried on by a prolonged rally in global equity markets. When it came to surpassing the passive benchmark, NZ Super outperformed by utilizing its strategic tilting program. NZ Super increased weights toward its North Island forestry business Kaingaroa Timberlands and the Guardians’ internally-managed credit mandates – giving the fund a leg up.
According to the news release, “Since inception in 2003, active investments by the Guardians have generated an extra $6.2 billion (1.4% p.a.), over what an entirely passive strategy would have done.”
In the same news release, NZ Super Chair Catherine Savage, “The Fund is generating world class returns and creating significant wealth for New Zealanders on a sustained basis. It should not, however, be measured on its short-term returns. We are here to create long-term value for New Zealand taxpayers. The Fund has now returned 10.2% p.a., more than double the cost to the Government of contributing to it,* over a period of nearly 14 years.”
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