Investment performance
We measure the Fund's investment performance in two ways:
- relative to the NZ 90 day Treasury Bill return — the reward for taking market risk
- relative to a passive reference portfolio benchmark — the value added by the Guardians' active management.
Given our long-term mandate, we expect to return at least the Treasury Bill return + 2.8% over any 20-year moving average period. This is our long-term performance expectation.
The below graph shows how the first dollar invested in the Fund has grown over time, versus our Reference Portfolio and Treasury Bill benchmarks.
|
Performance as at |
Oct 2022 |
Last 12 months |
Last 5 years p.a. |
Last 10 years p.a. |
Since inception p.a. |
|
Actual Fund Return (after costs, before NZ tax) |
4.02% |
-9.27% |
6.59% |
11.29% |
9.46% |
|
Reference Portfolio Return (after costs, before NZ tax) |
4.22% |
-17.67% |
4.47% |
8.70% |
7.83% |
|
Value-added (actual return less Reference Portfolio Return) |
-0.21% |
8.40% |
2.12% |
2.59% |
1.63% |
|
Estimated $ earned relative to Reference Portfolio |
($112 million) |
$5.19 billion |
$5.14 billion |
$11.10 billion |
$13.52 billion |
|
NZ income tax (paid) / received |
$0 billion |
($0.02 billion) |
($3.41 billion) |
($7.15 billion) |
($9.47 billion) |
|
Treasury Bill Return |
0.28% |
1.44% |
1.10% |
1.80% |
3.36% |
|
Net Return (actual return less Treasury Bill Return) |
3.74% |
-10.71% |
5.49% |
9.49% |
6.10% |
|
Estimated $ earned relative to Treasury Bills |
$2.02 billion |
($6.64 billion) |
$11.97 billion |
$30.56 billion |
$34.28 billion |
|
$ change in net asset position |
$2.55 billion |
($3.12 billion) |
$19.66 billion |
$36.69 billion |
$56.86 billion |