Sharechat Logo

New Zealand Superannuation Fund grows on back of sharemarket rally

Tuesday 15th December 2009

Text too small?

The New Zealand Superannuation Fund has grown to just over $15.6 billion at the end of November, making a return of almost 14.7% in the five months since the end of June.

In a performance and portfolio update the fund has reported a net paper-based gain in the past five months of just over $2 billion, reflecting an increase in global share prices domestically and around the world. In November alone, it made a net gain after fees and before tax of $404 million.

Gains in the so-called Cullen Fund, set up by previous Finance Minister Michael Cullen as a means to reduce the taxpayer burden of an aging population nearing retirement, exceeded Treasury expectations in the four months ended Oct. 31, helping prop up sagging tax revenue as the economy comes out of its deepest recession in 28 years.

The fund reported a 22% decrease to $13.3 billion for the year ended June 30, again mostly a reflection of drop in world and New Zealand share prices.

As a passive investor in stocks based on index values the fund reports on its holdings in particular New Zealand and overseas companies when it is a Substantial Security Holder.

At Nov. 30 the Super fund held 9.75% of Auckland International Airport, 6.02% of Mainfreight Ltd and 5.02% of Skellerup Holdings.

In May, Finance Minister Bill English put payments on hold until the government books return to surplus, something which wasn’t expected until 2020, though today’s Half-Year Economic Update has brought that forward to 2016. No withdrawals can be made from the fund until 2041.

 

Businesswire.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report