New Zealand Super Fund to buy back the farm?

Adrian Orr, Chief Executive of the New Zealand Superannuation Fund. Photo / Steven McNicholl

I apologise in advance for directing you to a powerpoint display but from what I understand not many people were on hand at the Annual Superfund Summit in Auckland to hear Adrian Orr, head of the New Zealand Superannuation Fund (NZS) deliver this address.

But Orr's powerpoints are occasionally interesting, and usually include some clues about where the NZS is headed. (He didn't, however, break the news that NZS head of strategy, the well-respected Tore Hayward, has resigned and gone to work at the ACC fund – but I just told you.)

Quite a bit of Orr's presentation focused on justifying why the NZS is good for the country in ways other than its main stated purpose of bolstering the security of future superannuation commitments.

"Did you know," the NZS website asks. "If you are currently aged 44, you and other eligible New Zealanders of the same age will be the first to have part of the cost of your New Zealand Superannuation met from the Fund."

I can't hardly wait but along the way the NZS "Deepens NZ capital markets, enhances our productivity", as the powerpoint language puts it.
The presentation also refers to Bill English's infamous directive for NZS to invest more in New Zealand, pointing out: "There is no prescribed Fund minimum [to invest in NZ], as such it is not inconsistent with our mandate to invest on a prudent commercial basis."

As I recall, English wanted the NZS to put 40 per cent into New Zealand and, according to Orr's slides the fund is almost 30 per cent invested here (although about half of that is in cash). This figure "does not include commitments made but not yet called (c$270 million)".

You also may not know that the NZS is currently "assessing feasibility of global rural land strategy... if strategy proceeds will include, and possible start, with NZ". So maybe, the fund will start buying back those dairy farms from the Chinese.

This is possibly a good thing. For an alternative view on the NZS, you can read actuary Michael Littlewood's thrillingly-titled article 'Pre-funding a government's future financial obligations – the New Zealand Superannuation case study' in the academic journal New Zealand Economic Papers. I haven't got around to reading it yet but I may before I retire.