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
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:

Investore Property Limited (Investore) today announced its financial results for the twelve months ended 31 March 2020 (FY20).
Rabobank GDT Analysis - Event 261
SkyCity Entertainment Group Limited - Update on COVID-19 Impacts and Recent Trading
ANZ announces sale of UDC Finance
Foley Wines Limited Announces Harvest Result, Earnings Outlook and Development in Martinborough
JUST MY VIEW - BRENT KING
BLIS delivers substained profitable growth
Infratil - Full year results announcement for the year ended 31 March 2020
COMVITA LIMITED Announces NZ$50 Million Equity Raising to improve balance sheet flexibility and build resilience
GMT’s delivers statutory profit of $284.4 million before tax

IRG See IRG research reports