NZ Super claws back recession losses

The New Zealand Superannuation Fund has clawed its assets back to the level they were before the recession hit.

The fund began being hit by falling returns from investments at the beginning of 2008 and took some serious hits as the world markets were rocked by the financial crisis and the worldwide recession.

Its total asset base peaked at $14.5 billion in August 2008, following that it investments were knocked by a collapse in international share prices and other markets.

The low point came in February 2009 when the value of the fund fell to $11.2b.

Since then it has been racking up positive returns on a monthly basis.

The latest unaudited figures for August 2009 reported a 2.8 per cent return with the fund now worth $14.8b, compared to $14.5b in July.

The fund was set up by the previous Government to pre-fund part of the future cost of superannuation payments.

The incoming Government suspended payments into the fund, saying it would not borrow to invest in it.

The Government's books are currently not forecast to return to surplus for 10 years.

- NZPA