New Zealand Superannuation Fund on Tuesday announced a record 25.83% return for its fiscal year through June 30.
Despite a 0.67% decline for the month of June, the value of the NZ$23 billion (US$18 billion) New Zealand Superannuation Fund's portfolio, before payments of roughly NZ$800 million in taxes to the government, rose 25.83% from its pretax value as of June 30, 2012, confirmed spokeswoman Catherine Etheredge.
The latest gain exceeded the fund's previous record of 25.1% for the fiscal year ended June 30, 2011, while lifting annualized gains since Auckland-based New Zealand Superannuation's launch in 2003 to 8.84%.
In an e-mailed statement, Adrian Orr, New Zealand Superannuation's CEO, said the fund's heavy weight in growth assets, including global equities, was a big factor driving its latest strong returns.
As of June 30, 2013, and before accounting for the fund's “strategic tilting program” aimed at taking advantage of market opportunities, New Zealand Superannuation's allocation to global equities came to 61% of its overall portfolio, up from 60% the year before.
Fixed income accounted for the next biggest chunk at 9%, up from 7%.
The next three asset segments had allocations of 6% apiece, with property unchanged from the year before, timber down from 7% and infrastructure down from 9%.
New Zealand equities and “other private markets,” meanwhile, held steady at 5% and 3%, respectively.
Private equity saw its allocation rise one percentage point to 3%, while farmland held steady at 1%.