NEW ZEALAND - The NZ$10.1bn New Zealand Superannuation Fund recorded an impressive 19.2% return for the year ended June 2006 thanks to "bouyant" global equity markets.
The fund enjoyed significant growth over the year, increasing from $6.6bn to $10.1bn net of current and deferred tax, thanks largely to a $2.3bn government contribution and $1.4bn in pre-tax investment income.
The fund said it had generated a higher rate of return than the previous year's 14.13% return. Since the investment of fund assets began on 30 September 2003, the return has averaged 14.89% a year, and David May (pictured), chairman of the board of the guardians of New Zealand Superannuation said:
"This is our third year of very good results thanks, largely, to buoyant global equity markets."
May sad the fund had deliberately invested relatively heavily in those markets they were expected to outperform more stable investments , over the long term.
"We expect, as a consequence, that there will be shorter periods of substantial out performance and of substantial underperformance," he said. "We have been fortunate that our first three years have been ones of out performance."
May said the fund had made significant strides in diversifying its investments, and had for he first time allocated to property, infrastructure, commodities and private equity.
In March last year we set ourselves the target of increasing the investment in these more diverse asset classes to 20% of total assets by June 2007, he said.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.