NZ Super Fund talks down future expectations
Super Fund can't maintain above average performance.
The New Zealand Superannuation Fund generated a return of almost 15% in the past financial year, beating its benchmark, but warned the above-average performance won't go on forever.
The fund returned 14.6% after costs and before tax in the 12 months ended June 30, growing to $29.54 billion, the fund's manager, Guardians of New Zealand Superannuation says.
That beat its reference portfolio benchmark by 4.45% in the year, and below the 19.4% return a year earlier.
Since the fund's inception in 2003, it has generated an annual return of about 10.1%, or $19.31 billion.
"Returns in the 10-20 % range are at the higher end of our expectations and will not continue indefinitely," chairman Gavin Walker says. "Over the long term we expect the fund to earn, on average, 8-9 % per annum."
In July, the fund's latest five-year review found the portfolio's current mix of 80% equities and 20% fixed income assets remains appropriate given its long-term investment horizon.
The fund was established to help pre-fund universal pension benefits largely for the baby boomer generation.
Guardians chief executive Adrian Orr says increased volatility in global markets will impact on the fund in the short-term, but it is able to manage that uncertainty "and will look to take advantage of market disruptions as they occur."
The fund's annual report will be published in October.
(BusinessDesk)
Paul McBeth
Wed, 16 Sep 2015
Wed, 16 Sep 2015
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NZ Super Fund talks down future expectations
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