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 7.2% p.a. 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 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) |
-2.17% |
7.72% |
7.43% |
9.37% |
9.37% |
|
Reference Portfolio Return (after costs, before NZ tax) |
-2.61% |
6.36% |
5.55% |
7.20% |
7.75% |
|
Value-added (actual return less Reference Portfolio Return) |
0.44% |
1.36% |
1.88% |
2.17% |
1.62% |
|
Estimated $ earned relative to Reference Portfolio |
$287 million |
$795 million |
$5.12 billion |
$10.66 billion |
$15.49 billion |
|
NZ income tax (paid) / received |
$0 billion |
$(0.19) billion |
$(3.33) billion |
$(6.36) billion |
$(9.66) billion |
|
Treasury Bill Return |
0.48% |
4.84% |
1.72% |
2.05% |
3.43% |
|
Net Return (actual return less Treasury Bill Return) |
-2.64% |
2.88% |
5.71% |
7.33% |
5.94% |
|
Estimated $ earned relative to Treasury Bills |
$(1.7) billion |
$1.59 billion |
$13.85 billion |
$28.78 billion |
$38.54 billion |
|
$ change in net asset position |
$(1.22) billion |
$6.28 billion |
$23.99 billion |
$38.35 billion |
$63.14 billion |