NEW ZEALAND - The national Superannuation Fund experienced its worst monthly performance of the fiscal year in November 2007, with a negative -3.52% return.
In the fund's 2007 annual report, Adrian Orr, CEO, said the management would carry out "an overall assessment of the responsiveness of our investment activities to changing markets and new opportunities".
Returns on the New Zealand Superannuation Fund have not beaten 2.09% since the beginning of the 2008 financial year, starting out with a negative -1.18% in July 2007.
The fund's year to date return stood at a negative -0.8%.
The trustees or guardians of the fund stated their investment objective was "to generate at least 2.5% per annum over the risk free rate which would be (measured as the rolling yield on 90 day Treasury bills) over rolling 20 year periods".
Asset allocation favoured international equities, with the fund holding 47.8%, mainly in large cap stocks.
International fixed income made up 11.4% of the portfolio with a further 5.7% in domestic bonds.
Infrastructure, real estate, commodities, cash and timber took the remainder of the fund's assets.
This week's edition of Professional Pensions is out now.
Nearly 60% of UK employers consider defined contribution (DC) master trusts to be the "most suitable" pension fund for their employees, according to research by Buck.
Companies which have tried to dodge their pension duties by changing their identities are being "hunted" by The Pensions Regulator (TPR) in a crackdown on non-compliance with auto-enrolment (AE).
Removing liquidity restrictions would enable DC funds to capitalise on the potentially higher and safer returns that DB schemes have benefitted from, says Patrick Marshall.