New Zealand Superannuation Fund had a record return of 26.07% in 2013, the fund announced Wednesday.
The gain exceeds the 25.83% return the NZ$25.2 billion (US$20.99 billion) fund reported for its fiscal year ended June 30.
“The fund’s strong performance over the 2013 calendar year is pleasing, although as a long-term fund we like to place a greater importance on longer time frames than a year when assessing performance,” said Acting CEO Mark Fennell in an e-mail.
“The outperformance over the calendar year relative to our passive benchmark was driven primarily by our strategic tilting strategy, which included overweight allocations to global equities. The year was also notable for the successful IPO of NZ transport energy company Z Energy.”
As of Dec. 31, prior to the fund accounting for the strategic tilting strategy, which is aimed at taking advantage of market opportunities, New Zealand Superannuation’s allocation to global equities came to 62% of its overall portfolio, up from 61% six months earlier. Fixed income had the next largest allocation at 11%, up from 9% six months earlier.
Following were property at 6% and timber, infrastructure and New Zealand equities at 5% each. Private equity and other private markets were at 3% each, and rural farmland at 1%.