NEW ZEALAND - The New Zealand Superannuation Fund returned 4.42% in December 2010, up from -0.38% in the previous month, due to an increase in global equities.
The fund's assets increased to NZ$18.21bn ($14.12bn) at the end of the year, from NZ$17.43bn at the end of November.
Returns have fluctuated since July's 4.76%, declining to -1.37% in August, increasing to 6.11% in September and decreasing again to 2.66% in October.
Earnings for the fiscal year starting June 2010 stood at 17.08%.
Strong global equity market was the main cause of the fund's growth which allocated NZ$10.94bn or 60.1% to the asset class in December. It allocated 10.4% to fixed income, 5.2% to domestic equity, 5.7% to property, 7.9% to infrastructure, 6.6% to timber, 2.4% to other private markets, 1.2% to private equity and 0.5% cash, collateral and foreign exchange hedges.
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.