World sharemarkets boost NZ Super Fund returns

File photo / NZ Herald

The New Zealand Super Fund posted an improved 4.4 per cent return in December, thanks to gains in world sharemarkets.

The fund, which is at present not receiving contributions from the Government, has grown to be worth $18.2 billion, including pre-tax returns so far for the 2010/11 financial year of $2.68 billion, or 17 per cent.

It posted a loss of 0.38 per cent in November.

The fund has posted annualised returns of 7.4 per cent since its start in September 2003, ranging from a 22.1 per cent loss in 2008/09 to a 19.2 per cent gain in 2005/06. The fund returned 15.5 per cent last year.

The largest asset classes include global equities, making up 60.1 per cent of the fund's value, international fixed income at 10.3 per cent and infrastructure at 7.9 per cent.

The fund has stakes in 10 listed New Zealand companies, with the largest in Auckland Airport - 1.6 per cent of the fund's total value - and Fletcher Building - 0.7 per cent.

The fund was created to help finance New Zealand's future superannuation costs.

- NZPA