The Super Fund's portfolio currently holds around 7 percent in listed NZ equities and about a further 8 percent in other New Zealand assets.
The New Zealand Superannuation Fund is sticking with a strong weighting to equities following a five-year review of its passive reference portfolio, which forms the basis for most of the fund's investments.
Fund manager, the Guardians of New Zealand Superannuation, expects the reference portfolio, introduced in 2009, to return 7.7
percent over 20-year periods, 2.7 percent above the risk-free Treasury bill interest rate.
The five-year review has found the portfolio's current mix of 80 percent equities and 20 percent fixed income assets remains appropriate, given the fund's long-term investment horizon. The fund, established in 2001 to help pre-fund universal super benefits, is not projected to start paying out money until 2031/32.
Guardians chair Gavin Walker said setting the reference portfolio was the most important decision the board makes, given it provides both economic return and a benchmark for active investment.
"We are prepared to weather volatility in fund returns as asset prices fluctuate in the short-term - indeed, as the fund experienced during the global financial crisis - in order to maximise long-term performance," he said.
