NEW ZEALAND: The New Zealand Superannuation Fund announced its investment in a diversified mix of commodity futures.
The investment was made by entering into swap agreements with Morgan Stanley Capital Group and AIG Financial Products. The agreements provide for the returns from a basket of commodity futures, as represented by Goldman Sachs Commodity Index (GSCI) to be paid to the fund.
The GSCI is derived from a production weighted basket of commodity futures and includes exposure to 24 individual commodities spanning the energy, industrial, precious metals, and agricultural sectors.
The fund is designed to collateralise the value of all exposure against a portfolio of New Zealand dollar money market securities. That money market portfolio is managed by ING NZ Limited.
The fund’s exposure at the end of September as was 5%, in line with its planned allocation by June 2007.
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.