New Zealand Superannuation Fund, Auckland, returned a net -4.92% on its investments for the year ended June 30, losing NZ$716.5 million (US$487.9 million), according to a news release on the funds website.
However, the funds assets grew to NZ$14.1 billion, up 7.7% from a year earlier, the result of a net government contribution of NZ$2.1 billion.
The turbulence in global equity markets affected the fund despite its lack of significant exposure to the subprime market, the finance company sector, or to the liquidity strains suffered by many financial institutions, David May, chairman of the funds Board of Guardians, which oversees the fund, said in the news release.
The fund returned about 0.23% from July through August, Adrian Orr, Guardians CEO, said in the release.
We are going through a significant and rapid rearrangement of the global financial system. These are dramatic and unsettling times, Mr. Orr said. Even then, however, the aggregate impact on the fund, while not pleasant, is not outside the bounds of our long-term expectations to date.