The big New Zealand Superannuation Fund has substantially exceeded its statutory investment target for its first nine months of operation, returning 10.4 per cent.
The Board of Guardians of the fund say that the primary investment target is to exceed, before tax, the risk-free rate of return by an average of at least 2.5 per cent a year over rolling 20 year periods.
They say that during its first nine months of operation this target was exceeded with an annualised time-weighted return of 10.4 per cent compared to a risk-free rate calculated on the same basis of 5.3 per cent.
The Guardians’ Chairman, David May says however that not too much should be read into the performance because of the short time-frame and the long-term nature of the Fund’s investment program.
However he says that the fund has accomplished what it set out to achieve in its first nine months.
“Over the first nine months, the portfolio was gradually transitioned from cash to be fully allocated to investment managers,” May says. “There are now 15 managers appointed covering a range of mandates in fixed interest and equities.”
