‘Doesn’t make sense’ - Super Fund CEO’s departing wish

The outgoing chief executive of the NZ Superannuation Fund says its near-$10 billion total tax bill is nonsensical and he’d like it to have tax immunity status.

“My wish would be that we didn’t pay tax because I think that would solve a few issues for us,” Matt Whineray told Markets with Madison in an exclusive exit interview.

“It’s pretty hard to get people’s heads around that because they think we’re trying to take something away from them and we’re not.”

He said returning money to the Crown in tax, when the Crown contributed to the fund annually anyway, was effectively washing money and didn’t make taxpayers better off.

“If I take my wallet out of this pocket and put it in this pocket, I haven’t got richer.”

The problem was exacerbated if the Crown stopped contributing to the fund completely - as it did for almost a decade between 2009 and 2017.

Whineray has led the $62b sovereign wealth fund since 2018, when he took over from former CEO turned Reserve Bank Governor Adrian Orr.

Since it was founded in 2001 and began investing in 2003, the fund has earned an average annualised return of 9.59 per cent - well above its benchmark measure of Treasury bills.

It owned international and local stocks, and was involved in private equity, venture capital and large-scale infrastructure.

Its bid to fund the Auckland light rail project failed so it was now eyeing an offshore wind farm off the coast of Taranaki alongside a Danish fund - in line with its sustainable finance focus.

In this interview, Whineray discusses how the fund’s growth-focused investment mix may need to change as it edges closer to the Government withdrawal date, and if it prioritises sustainability over returns.

Get investment insights from the experts on Markets with Madison every Monday and Friday on the NZ Herald.

Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.

Stake is the proud sponsor of Markets with Madison. Stake your claim today at HelloStake.com.

Madison Reidy is the host of New Zealand’s only financial markets show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.