The New Zealand Superannuation Fund recorded a gain in July after two months of negative returns, as equities markets improved.The fund, in which the government has suspended automatic contributions to avoid further increasing debt, made a return of 4.76%
The New Zealand Superannuation Fund recorded a gain in July after two months of negative returns, as equities markets improved.
The fund, in which the government has suspended automatic contributions to avoid further increasing debt, made a return of 4.76% last month, after a negative 1.54% in June and negative 4.82% in May.
The absolute returns were after fees but before tax, which the fund regards as a return to the Crown.
Since its inception on September 30, 2003 the super fund has returned 6.14% on an annualised basis. The size of the fund -- which peaked in value at $16.7b in April 2010 -- was up from June to $16.44 billion at the end of July.
The fund said the main factor influencing its return in July was a recovery in equities markets, with global and New Zealand equities comprising a little over 69% of the portfolio by New Zealand dollar economic exposure as at July 31.
Global equities accounted for 63.1% of the fund value, or $10.36b, at the end of July, while at the end of June international equities had been recorded as making up 45.1% of the fund, or $7.06b.
International fixed income was 7.1% of the fund, or $1.17b, at the end of July, compared to 16.7% and $2.6b at the end of June.
Global listed property was down to 4.3% or $710m at the end of July, from 7.5% or $1.17b a month earlier.
