Auckland (12 March 2008) - The Guardians of New Zealand Superannuation today announced a new business structure. This is a result of the Chief Executive Officer's ongoing assessment of the Guardians' business needs.

Mr Adrian Orr, Chief Executive Officer, said: "The new business structure has no implications for the Guardians' strategic asset allocation or mode of investment. New positions have been created and some positions have been made redundant. Those decisions simply reflect the business requirements of the Guardians, and in no case, reflect on individual or market performances.

"Our business units enable us to better manage the growth of the New Zealand Superannuation Fund and evenly spread the workload. Our structure achieves this while maintaining a sharp focus on accountabilities and responsibilities.   "Our General Manager Corporate Strategy is charged with identifying and embedding global best practices, including our ongoing focus on responsible investment initiatives, across the organisation. Our General Manager Risk is charged with ensuring our activities are legally, operationally and financially robust.   "Our position of General Manager Portfolio Research is responsible for developing the Fund's investment strategy and policy. He will work closely with the General Managers of Public Markets and Private Markets who continue to be responsible for implementing that strategy through the appointment of external investment managers."   The organisation structure is available on the Fund's website www.nzsuperfund.co.nz. 

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Contact details regarding this release: Karine Fox, Head of Communications, New Zealand Superannuation Fund, 09 373 8963, 021 351 141  

Notes for Editors:

About the New Zealand Superannuation Fund:

The New Zealand Superannuation Fund, which commenced investing at the end of September 2003, is designed to partially provide for the future cost of New Zealand superannuation. An ageing population means the cost of providing New Zealand superannuation is expected to double over the next 50 years.  To prepare for this, the Government plans to allocate around $2 billion a year to the Fund over the next 20 years while the cost of superannuation is relatively low.  In the meantime, the Fund will invest the money on a prudent but commercial basis.

As the cost of superannuation escalates, the Government will progressively draw on the Fund to help smooth the impact on its finances.  As at 31 January 2008 the value of the Fund was $13.2 billion. The Fund is expected to grow to around $109 billion by 2025.

In addition to best-practice management portfolio, and to avoid prejudice to New Zealand's reputation as a responsible member of the world community, the Fund's objective is to maximise returns without undue risk to the Fund as a whole. The Guardians expect the return on the Fund to exceed, before tax, the yield on 90-day Treasury bills by an average of at least 2.5% p.a. over rolling 20-year periods.