"The Guardians actively invest in growth-related assets so as to best ensure the fund is able to act as a buffer to the future rising cost of New Zealand Superannuation," Guardians chief executive Adrian Orr says. "Since the Guardians began investing in September 2003, the fund's annualised return has been 14.8% per annum. This result is roughly two times the risk-free rate of return, that is, the interest rate the Crown pays on its short-term debt issuance."
"We are acutely aware that this extended period of positive investment return has been unusual and will not be sustained every year. The ongoing challenge for the Guardians is to continue to diversify the investments through both positive and negative investment climates, so as to meet our objective."
Over the course of the year the Guardians have invested in new publicly listed mandates and have made private market investments. The Guardians now have 39 investment mandates covering a very wide range of asset classes and geographies. Almost all asset classes performed strongly over the course of the year, albeit with a wide variation. The risk-reducing benefits of this return variation will become more evident over time as the investment climate alters."
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