The New Zealand Super Fund announced a record 29.6% return for its fiscal year ended June 30. The gain lifted the value of its portfolio to NZ$59.8 billion ($41.9 billion).
With New Zealand’s government not looking to begin drawing on the fund to cover national superannuation outlays until the mid-2030s, “we’ve built a growth-oriented portfolio that will generate strong returns over the long term and performs strongly in periods of market expansion,” said CEO Matt Whineray in the news release.
New Zealand Super’s passive reference portfolio — its starting point before the fund’s investment team makes active investments where it believes it can add value — calls for equity exposure of 80% and bond exposure of 20%.
For the 12 months through June 30, the fund topped that reference portfolio by NZ$757 million, or 1.73%, an achievement, noted Mr. Whineray, for a year where global equity markets delivered stellar returns.