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NZ Super Fund Reaches Record High of $76.6 Billion

Strategic Insights

— 1 min read

The New Zealand Super Fund has surpassed a new milestone, reaching a record high of $76.6 billion at the end of the 2024 financial year. This represents a significant increase from the $65.4 billion recorded a year earlier. The strong investment returns have also led to the Fund paying $1.5 billion in New Zealand tax on July 29, 2024. The Fund's investment portfolio, managed by the Guardians of New Zealand Superannuation, has consistently outperformed its Treasury Bills benchmark, with a return of 14.94% for the year to June 30.

Key Takeaways:

  • The NZ Super Fund has reached a record high of $76.6 billion at the end of the 2024 financial year, up from $65.4 billion a year earlier.
  • The Fund posted a return of 14.94% after costs and before NZ tax for the year to June 30.
  • The strong investment returns led to the Fund paying $1.5 billion in New Zealand tax on July 29, 2024.
  • Government contributions to the Fund during the year were $1.6 billion.
  • The Fund has outperformed the Treasury Bills benchmark by 9.33% for the year, and has outperformed this benchmark by 6.50% p.a. or $50.1 billion since its first investment in 2003.
  • The Fund's active investment strategies have added significant value over the lifetime of the Fund, outperforming the Reference Portfolio benchmark by 1.46% p.a.
  • The growth in global equities has been driven by a small subset of technology stocks, dubbed the Magnificent Seven in the US, which have a market capitalisation nine percent larger than the entire European equity market.

Statistics:

  • NZ Super Fund: $65.4 billion (previous year), $76.6 billion (record high)
  • Return on investment: 14.94% after costs and before NZ tax for the year to June 30
  • Government contributions: $1.6 billion
  • Tax paid by the Fund: $1.5 billion on July 29, 2024
  • Outperformance over Treasury Bills benchmark: 9.33% for the year
  • Outperformance over Reference Portfolio benchmark: 1.46% p.a.

Sources:

  • New Zealand Superannuation Fund
  • The Guardians of New Zealand Superannuation
  • "NZ Super Fund Reaches Record High" (no date)
  • Contify.com
  • milnz.co.nz/mil-osi-aggregation/ - Copyright 2024 Multimedia Investments Ltd

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