New Zealand's Government Superannuation Fund Authority, Wellington, has retained Willis Towers Watson to conduct a statutory five-yearly review of the organization, a spokeswoman confirmed.
The review will include what New Zealand's Minister of Finance Grant Robertson termed a "deeper dive" with regard to how GSFA's investment framework is approaching ESG-related issues, such as climate change, confirmed Tim Mitchell, WTW's Wellington-based global head of governance consulting.
GSFA's latest annual report showed the fund listing investment assets of NZ$4.3 billion ($2.8 billion) as of its June 30 fiscal year close.
The statutory review must be delivered to New Zealand's Treasury by mid-May.
A Willis Towers Watson news release said the review will also evaluate GSFA's "statements of investment policies, standards and procedures for their appropriateness and compliance, as well as the fund's investment performance."
For the 12 months through June 30, the fund's investment returns of -1.7% before tax and after investment management fees bested its reference portfolio's -4.5% return but trailed the 5.7% return of New Zealand government bonds.
Over the past two years, meanwhile, GSFA's reference portfolio completed a shift favoring risk assets, with allocations to global equities rising to 70% from 60%, while global fixed interest dropped to 20% from 30%. Cash held steady at 10%.
