Sharechat Logo

Kiwi fund managers rescued by Super Fund

By Duncan Bridgeman

Friday 15th August 2003

Text too small?
Embattled fund managers received a much-needed shot in the arm yesterday despite a less-than-expected local allocation of the New Zealand Superannuation Fund.

The fund, set up to pre-fund government superannuation of the baby-boomer generation, got off to a poor start when strategy details were obtained through a premature release on the fund's website on Wednesday.

The fund's guardians confirmed yesterday the bulk of the investment would be offshore, with 67% invested in shares, 20% in fixed interest securities and 22% in New Zealand-based assets.

The initial $2.4 billion fund was forecast to be worth about $50 billion in 25 years' time.

Superannuation Fund chairman David May said the asset spread offered "the best opportunities for long-term growth without the need to take undue risk."

The 67% investment in equities reflected the fund's long-term investment horizon, he said. But only 7.5% was to be invested on the local sharemarket ­ about half of what the Stock Exchange had hoped for.

Mr May said the size of the fund restricted its ability to invest a large portion in the local share market.

Overall, 13% of the fund will be invested in the local and international property markets, private equity and "growth assets. "

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

22nd July 2019 Morning Report
NZ dollar treading water as markets focus on Iran
MARKET CLOSE: NZ shares extend gain as passive funds bolster prices; Tourism Holdings climbs
NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured
Air NZ to amend booking engine after lawyer’s complaint

IRG See IRG research reports