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 |
Jul 23 |
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) |
1.74% |
8.45% |
7.92% |
10.62% |
9.81% |
|
Reference Portfolio Return (after costs, before NZ tax) |
1.91% |
6.86% |
6.26% |
8.63% |
8.29% |
|
Value-added (actual return less Reference Portfolio Return) |
-0.17% |
1.60% |
1.66% |
1.98% |
1.52% |
|
Estimated $ earned relative to Reference Portfolio |
$(0.11) billion |
$0.92 billion |
$4.70 billion |
$10.21 billion |
$15.30 billion |
|
NZ income tax (paid) / received |
$(0.19) billion |
$(0.19) billion |
$(3.23) billion |
$(6.36) billion |
$(9.66) billion |
|
Treasury Bill Return |
0.45% |
4.07% |
1.52% |
1.97% |
3.40% |
|
Net Return (actual return less Treasury Bill Return) |
1.29% |
4.38% |
6.40% |
8.65% |
6.41% |
|
Estimated $ earned relative to Treasury Bills |
$0.84 billion |
$2.75 billion |
$16.61 billion |
$34.44 billion |
$42.62 billion |
|
$ change in net asset position |
$1.10 billion |
$7.37 billion |
$26.24 billion |
$43.04 billion |
$66.49 billion |