The Board of the Guardians of New Zealand Superannuation today announced that it has selected Vanguard Investment Australia Ltd to manage an international government bond mandate for the New Zealand Superannuation Fund.

Vanguard's mandate is to manage a portfolio of government bonds which closely replicates the Citigroup World Government Bond Index. Authorised investments include bonds issued or guaranteed by sovereign nations. In line with the Fund's currency hedging policy, the international government bond portfolio will be fully hedged.

Under the Fund's strategic asset allocation, 10 per cent of total assets are allocated to international bonds. Of this, half (i.e. five per cent of total assets) is allocated to government bonds under the Vanguard mandate and half will be invested in corporate bonds. The selection of an international corporate bond manager is planned for the middle of 2004.

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For more information please contact:

Paul Costello, CEO, New Zealand Superannuation Fund, 021 661 014 or 09 300 6980 Daniel Riordan, Media Relations, New Zealand Superannuation Fund, 0274 921 221