The outgoing CEO of New Zealand’s Superannuation Fund says its liquidity levels will need to change in the next decade and he hopes its tax bill will too. He explains how its investments have resulted in a 9.69 per cent average annualised return.
Video / NZ Herald
The body that runs the near $70 billion state-owned New Zealand Superannuation Fund has a new chairman starting this week, but the fate of its chief executive is still unknown.
Auckland-based investor John Williamson, the current chairman of KKR-owned Ritchies Transport, will take up the chair’s seat with the Guardians of New Zealand Superannuation on Friday March 1, replacing Catherine Drayton, who’s been with the fund for about five years.
Williamson has been on the board since May 2016 and chaired its employee policy and remuneration committee since April 2021.
He has his own investment companies Sale Street Holdings, Three Oaks Capital and Paddock Holdings.
His previous roles included chief executive of ACG Education and chief executive of NZX-listed Hellaby Holdings, former owner of Hannahs and Number One Shoes.
Williamson has also held senior leadership positions at Fletcher Building and Bendon.
He said in a release announcing his latest appointment that the Super Fund’s responsibility was taken very seriously.
“Our purpose, sustainable investment delivering strong returns for all New Zealanders, sets out clearly and simply why we are here and who we are working for.”
The Super Fund's new chair John Williamson has held roles with once NZX-listed Hellaby Holdings, Fletcher Building and Bendon.
When he starts in charge of the Super Fund, he has one big job to do - appoint a new chief executive.
No one has been announced as the successor to Matt Whineray, who left the fund on December 8 after announcing his resignation in May last year.
The fund’s general manager of strategy Paula Steed was placed in the role on an interim basis in December.
At that time, fund chairwoman Drayton said the board’s search for a permanent chief executive was progressing well and that she expected to be able to make an appointment that year.
The Herald understands staff have not been given any update on the leadership role’s progression, despite an imminent announcement being suggested last year.
Announcing the chair succession, Williamson and Finance Minister Nicola Willis thanked Drayton for her service to the fund, including through the volatility of returns during the pandemic.
“Catherine Drayton has made a significant contribution to the fund, helping to steer it through extremely challenging waters. I thank her for her service,” Willis said.
Drayton wrote her own public departing message too, saying it was a privilege to work for the fund and being there to celebrate its 20-year anniversary was a proud moment.
“To survive and thrive through two decades as we have done clearly demonstrates the guardians’ ability to create significant value for the country over the long term.
“I am pleased to have played a part in that, and I believe John and the team will continue to build on what the Guardians [of the Superannuation Fund] has already achieved.”
The Super Fund has returned 9.8 per cent annually on average before tax.
Its objective was to earn investment returns to help fund the future cost of superannuation payments from around 2035.
Madison Reidy is the host of the NZ Herald’s investment 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.
