NZ Super Fund bounces back, but still behind target

Super fund chief executive Adrian Orr. Photo / Steven McNicholl.

The New Zealand Superannuation Fund continues to bounce back
from its losses but is still behind on its long term target.

The fund, which was set up in 2003 by the Labour-led Government
to help provide for the future costs of retiring New Zealanders, was up
2.4 per cent last month bringing its size to a new record level of $15.96 billion.

Since the start of its financial year, in July 2009, the fund has grown
17.44 per cent - a marked turnaround on the 22.14 per cent drop in the 2008/2009 financial year when it was pummelled by the global financial crisis.

But the fund remains 0.06 per cent short of its target of exceeding the rate of return on Treasury bills by 2.5 per cent over rolling 20-year periods.

The Government has contributed $14.88 billion to the fund since it was
launched but also taxes the fund's investment returns each year.

The $15.96 billion total value takes into account the tax paid since the fund was launched.

Last year the Government put contributions to the fund on hold.