NZ Super Fund adds $9.3 billion as global markets surge

The New Zealand Superannuation Fund, overseen by the Guardians of New Zealand Superannuation, recorded a $9.3 billion rise in assets, reflecting robust global share markets. For the fiscal year ending 30 June, the fund delivered a net return of 14.17% after costs and before tax, well above the 2.71% return on 90-day Treasury bills and only 0.1 percentage points below its reference benchmark, which is heavily equity-focused.

Jo Townsend, the fund’s chief executive, said the diversified mix of listed equities, timber, real estate and private-market assets performed well and underscored the long-term advantage of diversification. Over the past two decades the fund has outperformed its passive benchmark, achieving an average annual return of 9.68% versus 8.19% for the reference portfolio. The Guardians recently reduced the expected long-term return to 7.2% from 7.8%, citing lower future equity expectations and adjusting the active risk budget. Treasury uses the fund’s projected value to determine government contributions and the timing of future withdrawals, now projected to begin in 2054, with the fund already contributing positively to the Crown’s balance sheet.