The New Zealand’s Superannuation Fund has experienced a strong start to its financial year with a 6.3% rise in July, followed by a 2.8% return in August.
While managed funds are a long-term investment, last year was not a strong one for the fudn, dropping from $14.3 billion in July 2008 to $13.3 billion the following year.
But that drop has now been wiped out by gains in the first few months of the 2010 financial year, with $845 million coming into the fund in July, followed by another $421 million in August.
September is keeping up that trend, with an unaudited return of 3.07% in the first 17 days of the month, bringing the fund to $15.3 billion.
This represents an unaudited return of 33.34% or $3.6 billion since the market trough in early March, when the fund sat at just $11.5 billion.
The fund aims to exceed, before tax, the interest rate on New Zealand treasury bills by at least 2.5% per annum over rolling 20-year periods.
The fund was started in September 2003 with $2.4 billion in cash, with the Government contributing $14.88 billion since then, while $1.36 billion has been returned in tax.
By the end of August, the fund had total assets of $14.9 billion, including more than $5 billion in international equities, $2.3 billion in international fixed income and just over $1 billion in New Zealand equity.
As part of this year’s budget announcements, Finance Minister Bill English axed contributions to the New Zealand Superannuation Fund until the books head back into surplus, ten years away in 2020.
He also issued a directive to invest 40% of its worth in New Zealand, although this was framed as an expectation rather than an attempt to enforce such a limit.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Trilogy International CEO Angela Buglass on tripling her profit
- Eroad CEO Steven Newman talks about his company's revenue increase
- What do the latest terrorism attacks in Mali and Israel mean? Nathan Smith discusses the latest foreign affairs news
- NZ Windfarms departing director Michael Stiassny speaks out after board exit
- James Mayo talks about SOS Hydration's growth plans after Snowball offer
- Michael Wood on whether he would run in Mt Roskill
- SAFE's Abi Izzard quizzed over protest of a caged hen operation at Pukekohe
- Nevil Gibson talks about Editor's Insight on the planned $US150 million merger between Pfizer and Allergan
- Taupo Beef’s Mike Barton on how to extract sustainable profit from farming
- Will the government lose on RMA reform? Rob Hosking outlines the PM's speech
- How could bookmakers recoup $16 million? Racing Board chief executive John Allen explains
- Nevil Gibson breaks down the latest aviation news