NZ Super Fund performance report for January 2015
POSTED ON: 20 February 2015
The New Zealand Superannuation Fund returned 1.17% ($240 million) in January 2015, ending the month at $27.78 billion - a record high for a month end return (before NZ tax, after costs).
For the financial year to date, the Fund has returned 7.88% or $1.82 billion.
Chief Executive Officer Adrian Orr said “I am particularly pleased to be able to report that the Fund grew by $240 million in January, despite the challenges we face with the Bank of Portugal.”
Over the last 12 months the Fund has returned $3.74 billion through a combination of strong market returns and additional value-add returns made by our active investment strategies.
Returns remain exceptionally strong despite the $US150 million precautionary write down we have made to the Oak Finance loan, which was factored into our December and January results.
“This money is not lost,” Mr Orr said. “We know exactly where it is.”
“We intend to get our money back through legal action we are taking against the Bank of Portugal due to their unprecedented and illegal actions of recent weeks. We are very confident of our position.”
“The 18.78% p.a. return we have averaged over the last 3 years, and 9.98% we have averaged since inception (September 2003), remains ahead of our performance expectations. The Fund has returned $11.6 billion more than Treasury Bill return."
Mr Orr said that Fund volatility was an expected part of Fund returns and reiterated comments made in regard to the 2014 calendar year result when he warned that future returns would not continue at the exceptional rate of the last three years.
“The Fund is being well rewarded over time for the prudent level of financial risk being borne. This statement is well supported by domestic and global risk and return, and cost, comparisons. “