The New Zealand Superannuation Fund was worth $2.71 billion at November 30 this year according to the first of the fund's monthly performance updates.
The report said Treasury bills valued at just over $2.4 billion were transferred to the fund on September 30 and since then there had been regular contributions
of just under $70 million per fortnight.
By November 30 approximately one third of these assets had been invested.
The report shows that of the fund's total assets of $2.71 billion, $1.81 billion was in Treasury bills and cash, $575 million was in international equities, $226 million was in New Zealand fixed interest securities, and $102 million was in New Zealand equities.
The fund's chief executive Paul Costello said it would some time before the money planned for allocation to each asset class was fully invested.
"We need to allow for the process of selecting and appointing investment managers", Mr Costello said in a statement.
"The first appointment was made in September and work will continue during 2004. Our aim is to have the fund close to fully invested by June 2004."
The fund's major performance target is to exceed, before New Zealand tax, the risk-free rate of return (i.e. the interest rate payable on cash) by an average of at least 2.5 per cent per year over rolling 20-year periods.
While the fund was likely to exceed this target in some years, it may not reach it in others, Mr Costello said.
He said it was unlikely to reach the target in its first year (2003/2004) of operations, due to such a large proportion of its assets being held in cash while investment managers are appointed.
- NZPA
