Telecom dip fails to dent Superfund

The New Zealand Superannuation Fund produced a 1.88 per cent return in February even though the value of its holding in Telecom fell.

Currently 7 per cent of the fund is invested in New Zealand equities and Telecom is its third-largest investment behind Auckland International Airport and Fletcher Building.

The fund's investment in Telecom was worth $107.7 million as at February 28, down from $111 million a month earlier. On February 26 Telecom's share price was $2.33, and yesterday the price was at an all-time low of $2.13, suggesting the fund will experience losses from its Telecom investment if the current price prevails until the end of this month.

The fund's return in the year-to-date in February is 17.24 per cent.

The fund recorded a 1.97 per cent loss in January, bringing its performance in the first seven months of its financial year to 15 per cent. The fund's value lifted by $296 million in February, to $15.94 billion.

The fund has received a total of $14.88 billion in government contributions including $250 million this financial year, and has produced annualised absolute returns of 6.04 per cent since its inception.

In last May's Budget the Government revealed plans to suspend payments to the fund for at least a decade to help reduce Crown debt.

- NZPA