The New Zealand Superannuation Fund has made less than 2% on its investments in the year to June, reflecting the negative returns from global equities. Source: Radio New Zealand
The fund, which is designed to help pay for national superannuation payments from 2032, grew 1.89% by just over $500 million to $30.1 billion in the year ended in June, with strong contributions from its investments in timber and infrastructure.
Its 42% stake in forestry business Kaingaroa Timberlands grew 5.8%, by $82m, to $1.49bn.
Chief executive Adrian Orr said the global investment environment remained challenging with slow economic growth. However the fund made a 3.7% return in July, and 1.2 percent in August.
“Overall investment returns are likely to be volatile and on a low trajectory for some time, ” he said.
Since inception in 2003, the Super Fund has been one of the world’s best performing sovereign wealth funds, with a 9.7% return as of 31 August.
