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Auckland (13 March 2008) - The Guardians of New Zealand Superannuation today announced their voting decision on the Canadian Pension Plan Investment Board's (CPPIB) offer for Auckland International Airport shares.

Mr Adrian Orr, Chief Executive Officer, said: "After considering the advice of our investment managers, we voted to approve CPPIB making a partial offer for Auckland International Airport, and have tendered our shares into their offer.

"Our decision is made in accordance with our mandate. We must invest the New Zealand Superannuation Fund (Fund) on a prudent, commercial basis. As such, we manage the Fund in a manner consistent with best-practice portfolio management. This involves maximising returns without undue risk, and avoiding prejudice to New Zealand's reputation as a responsible member of the world community," concluded Mr Orr.

The Fund holds a minority stake in Auckland International Airport. As at 11 March, the Fund held 76.7 million Auckland International Airport shares, which represent just over 6% of the airport company.


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.


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