Government Superannuation Fund, Wellington, New Zealand, would be allowed to invest in equities if legislation pending in Parliament passes. The bill is not expected to be passed before next year. Currently, the NZ$3.5 billion (US$1.4 billion) fund is 70% invested in government bonds, with the remainder in other forms of fixed income. The fund has an unfunded liability of NZ$4.9 billion.
Its proposed portfolio subject to decisions by a yet-to-be-appointed board, Finance Minister Michael Cullen and investment consultants would be a diversified portfolio of equities, domestic and international fixed income, and property.
The decision is not connected with the previously announced plan by Mr. Cullen to establish a national superannuation fund that could reach NZ$240 billion over 50 years. But, he said, the move to diversify the fund for civil servants had relevance for the wider superannuation debate.