NEW ZEALAND - The New Zealand Superannuation Fund increased its global equities exposure from 45.1% to 63.1% over the month to July 31 and reported pre-tax returns of 4.76%.
The NZ$16.4bn ($11.6bn) fund's NZ$700m profit for the month follows losses of 1.54% in June and 4.82% in May.
The fund ramped up its holdings in global equities to NZ$10.7bn of total assets in July, with about two-thirds held indirectly through derivatives and one-third invested directly in stocks.
The allocation exceeded the mandated 40.5% holding in the asset class it set itself under its strategic asset allocation plan in December 2007.
The New Zealand Herald reported that the shift in asset allocations comes as part of the fund's new Statement of Intent for 2010 to 2015, and is a response to shifts in the financial and economic landscape after the global financial crisis.
Details of the revised asset allocations are expected to be available in October, when the fund's financial results are released to parliament, it said.
The move into global equities was matched by shift out of international fixed income, with the fund decreasing its holding in offshore bonds to 7.1% of total assets, or NZ$1.2bn, from 16.7% in the previous month.
As of July 31, the fund also had a 6% exposure to New Zealand equities, a 1.3% holding in private equity, 4.3% in global listed property, 7.8% in infrastructure and a 7.4% allocation to timber.
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