Super Fund drops Infratil for Chorus, sheds value in November

Z Energy co-investor Infratil has been dropped by the Super Fund from its top ten NZX investments in favour of Chorus. Photo / Dean Purcell

The New Zealand Superannuation Fund, which was set up to help pre-fund a ballooning pension bill for baby boomers, dropped Infratil from its top 10 locally listed investments after Chorus was carved out of Telecom last year.

The fund held $37.3 million of shares in the telecommunications network operator as at November 30, making up 0.2 per cent of the fund's total value, according to its latest update.

That pushed out Wellington-based infrastructure investor Infratil from the fund's top 10 NZX-listed investments, which was sitting at $28.7 million at the end of October. The fund and Infratil are co-investors in assets including Z Energy.

The so-called Cullen Fund, named for its architect former Finance Minister Michael Cullen, shed 0.5 per cent in November due to "falling equity markets," with a closing balance of $17.64 billion. The fund has lost some 5.7 per cent in value so far in the latest financial year after weaker global stock markets coincided with an increased exposure to international equities.

The fund had its best year ever in the 12 months ended June 30 2011, returning 25 per cent as global stock markets rallied. Since its inception in 2003, the fund has returned 6.7 per cent. That's 1.2 per cent in excess to Treasury bills, which it aims to beat by 2.5 per cent.

As at November 30 the fund held about 59 per cent of its assets in global equities, followed by 10 per cent of its cash in infrastructure investments, and 7.5 per cent in timber assets.

Some 6.7 per cent of the fund was allocated in fixed income investments, 6.2 per cent in property, 5 per cent in New Zealand stocks and 3.2 per cent in other private markets.

Private equity investments were 1.8 per cent and rural farmland investments made up 0.4 per cent of the fund.

The fund lifted its holding in Melbourne's CityLink tollway operator Transurban Group to $316.8 million as at Nov. 30, from $293.6 million a year earlier, making it the fund's biggest listed investment.

Last year, the fund participated in a A$2.17 billion takeover of Australian toll road operator ConnectEast Group, putting up A$12.4 million to subscribe to the CP2-led deal.