Review shows Super Fund on right track

After a tumultuous 2020, The Guardians of the New Zealand Superannuation Fund (the Guardians) have decided to make next to no changes to their reference portfolio following a white paper review.

The reference portfolio is the basis on which the majority of the fund is invested, and represents the single biggest driver of returns. It is designed to gain broad, low cost access to listed global investment markets, in order to maximise returns without undue risk.

The portfolio has served as the NZ Super Fund's benchmark for active investment since its adoption in 2010. It is an alternative portfolio to the actual portfolio the fund invests in and is designed with the fund's objective and mandate in mind.

Stephen Gilmore, chief investment officer at NZ Super told Good Returns, "It’s a sign of confidence that the reference portfolio’s risk profile, risk and return being the two most important characteristics of any investment portfolio, matches the long-term objective of the fund. While 2020 may have been tumultuous, we don’t think in terms of individual years when making decisions on the reference portfolio. From the perspective of long-term investors like the Guardians, it’s the long-run risk and return characteristics that are of most relevance."