NZ super funds' year end return boosted by global sharemarkets

1.00pm

New Zealand's superannuation funds recorded a median return for the year ended March of 20.4 per cent according to Mercer Investment Consulting.

Arcus topped the table of 11 wholesale superannuation fund managers in the survey, with an annual return of 25.7 per cent, while BNZ Investment Management came in last spot with a 15 per cent return.

Mercer said four consecutive months of positive returns from global sharemarkets had helped boost returns.

Despite the super funds' strong showing over the past 12 months, median returns for the three years ended March were down at 3.8 per cent per annum, compared to 8 per cent per annum for the three years ended March 2001.

On a quarterly basis, Guardian Trust Funds Management posted the highest return for the three months ended March, with 3.7 per cent, followed by Tower Asset Management with 3.4 per cent.

The median return for the quarter was 3.1 per cent.

Mercer said comparing the fund managers' asset allocations as at March 31 this year, compared with the same time in 2001, the average exposure to overseas equities has fallen 0.9 per cent to 36.1 per cent.

The lowest exposure to overseas equities was BNZ with 29.4 per cent, with all other managers holding at least 32 per cent.

The average exposure to domestic equities has increased from 16.5 per cent in 2001 to 17.4 per cent at the end of March this year.

- NZPA