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English marks NZ Super Fund's 10th anniversary

Contributor:
Fuseworks Media
Fuseworks Media

Finance Minister Bill English today congratulated the New Zealand Superannuation Fund on achieving its tenth anniversary, and having built a world-class sovereign wealth fund in that time.

The New Zealand Superannuation Fund, which invests to assist in meeting some of the long-term cost of New Zealand Superannuation, started in 2003 with $2.5 billion in cash. Since then it has returned an average of 8.84 per cent per annum and the fund now stands at $23 billion.

"I congratulate the guardians of the fund, both past and present, on their achievement," Mr English says.

"The New Zealand Superannuation Fund is recognised as one of the best-structured sovereign wealth funds in the world, and was named the most innovative sovereign wealth fund by aiCIO magazine last December.

"The guardians can be very pleased with their achievements on behalf of current and future New Zealand taxpayers."

To date, the Government has contributed $14.8 billion to the fund. The Government suspended contributions in 2009 because with fiscal deficits and government debt already increasing, it was imprudent to borrow more to invest in global financial markets.

"It remains our intention that contributions to the fund will resume once net debt has reduced to 20 per cent of GDP which is forecast for 2020," Mr English says.

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