NZ Super Fund: Returns will fall

Thursday, February 22nd 2018, 11:25AM

The NZ Super Fund returned 19.8 per cent over 2017 but there’s a warning that won’t last.

Catherine Savage, the Chair of the Guardians of New Zealand Superannuation, told the government’s finance and expenditure committee the Guardians was in good heart. “The board is strongly committed to the fund’s long-term, growth-oriented investment strategies, and to its opportunistic approach to active investment.

“We remain focused on identifying attractive active investments in New Zealand, with recent highlights including a $100m investment in New Zealand insurer Fidelity Life.

“As is appropriate for a long-term investor with known cash flows, the fund is heavily weighted towards growth assets, such as shares. While growth investments can be volatile over the short term, we can ride out and profit from any future market downturn.

“Looking forward, the global economic outlook is better than it has been for several years. However, with many asset classes globally at or above full value, we do not expect annual returns in the teens and 20s to persist.”

Tags: equities NZ Super Fund

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