NEW ZEALAND - The Government Superannuation Fund (GSF) Authority has reported a pre-tax surplus of NZ$553m, representing a return of 14.9%.
Basil Logan, chairman of the GSF board, said that for the year ending 30 June 2007, the fund’s surplus after tax, had exceeded the Investment Performance Measure (IPM) over the year by 5.8%; and over the last three years by an average of 4.3% per annum.
This out performance added value of $600m above the returns that would have been made had the portfolio continued to invest only in government stock.
The after tax return for the year of 9.5% compared favourably with the after tax return of the median superannuation scheme in the Mercer Investment Performance Survey, which covered 65 superannuation schemes, and was 6.4% for the year ended 30 June 2007.
Commenting on the fund's performance, Logan said: “The authority takes a long term view of its investment strategy for the fund. It is confident that, by investing in a diversified portfolio, in the long run the effects of volatility will be minimised and the IPM will be achieved.”
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