Sharechat Logo

Super funds deliver worst return in 20 years

Friday 31st January 2003

Text too small?
Superannuation funds lost 10% in calendar year 2002, slashing an estimated $2 billion value off the total amount of accumulated retirement savings of New Zealanders in superannuation funds. It was the worst recorded in more than a decade.

"Over the past three calendar years the median return was -1.3% pa, the poorest three-year return to December in the past 20 years and the only time a negative result has been recorded over such a period," Mercer Investment Consulting executive director Louis Boulanger said.

Mercer survey results showed that despite the lacklustre performance of global markets, the New Zealand sharemarket performed relatively well, with the gross benchmark index returning 0.9% over the past 12 months.

Property returns for the 2002 calendar year were 9.9% and fixed interest investment returned 8.7% domestically, and 12.1% globally if foreign currency exposures were fully hedged back to the New Zealand dollar.

Mercer survey results showed Arcus Investment Management achieved the highest return for the final quarter of 2002 with 4.4% return.

Mr Boulanger said Arcus' success was attributed to hedging its fund's exposure to the pound and the US dollar.

  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:

Fonterra farmers urge MPs to unshackle cooperative
NZ dollar benefits as EU likely to grant Brexit extension
24th October 2019 Morning Report
OPINION: All the questions the convention centre fire asks
MARKET CLOSE: NZ stocks drop as investors dump power companies on smelter scare
NZ dollar eases after another Brexit failure
SkyCity, Fletcher won't name their insurers
NZ stocks smacked by smelter review, SkyCity fire
No govt cash for Tiwai Point - Woods
Strong dairy exports narrow Sept trade deficit

IRG See IRG research reports