NZ Super Fund stumbles in May

Thursday 17th June 2010

The New Zealand Superannuation Fund made a paper loss of $844.9 million, or 4.8%, last month, when global markets got the jitters over Europe's sovereign debt crisis.

The so-called Cullen Fund, which was set up by Labour Finance Minister Michael Cullen to partially fund pensions for an aging population, halted a three-month gain in a month when markets threatened to cause a 'double-dip' recession amid fears sovereign debt issues in Europe could trip up the global economic recovery.

The fund reduced the value of its New Zealand equity holdings by $89.3 million, $51.5 million of which came from its top ten locally listed holdings.

The NZX 50 index sank 6.8% in May.

Auckland International Airport stayed the fund's biggest local stock, valued at $251 million, down from $268.5 million in April, while Telecom Corp.'s value shrank $11 million to $89.6 million in May.

The NZ Super Fund has grown $2.32 billion, 17.3%, after fees in the financial year to date, and has increased 5.8% to $15.86 billion since its inception in September 2003.

The fund boosted its holdings of global bonds and large cap international shares to 16.9% and 37.2% of the fund's value, from 15.3% and 35.1% in April respectively.

The value of its holding in ASX-listed toll road developer, Transurban Group, fell $49.3 million to $227.8 million. Westpac Banking Group dropped off its list of top 10 international equity holdings, where the lowest value was $34 million.

Businesswire.co.nz

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