Details of superannuation soon

By ELLEN READ

The eagerly awaited details of the New Zealand Superannuation Fund will be made public on August 14.

Fund chief executive Paul Costello confirmed yesterday that the asset allocation and rationale for it, along with market entry strategies for the fund, would be released then.

He said the fund remained on track to start investing by the end of September.

Interest will centre on how much of the money - which starts at $2.4 billion and will grow to about $150 billion in 30 years - will be invested in New Zealand.

Stock exchange chief executive Mark Weldon has pitched for up to 30 per cent of the money to be placed in local company shares, saying there is evidence to show this is financially sensible and is not just him touting for business. Most superannuation funds allocate about 15 per cent to New Zealand equities.

Costello said while the fund Guardians had taken a long-term view, asset allocation would be reviewed at least annually. Mercer Consulting is the fund's primary adviser, supported by Frank Russell Company. Costello said work was continuing on appointing fund managers to do the investing once the allocation decisions were finalised.