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KiwiSaver

Home market bias in Super Fund

Friday 15th of August 2003

Event

The NZ Superannuation Fund has announced its asset allocation model and will commence investing at the end of September 2003.

Impact

A home bias is evident, as 7.5% of the fund will be invested in NZ equities which account for only 0.1% of the MSCI world index. NZ equities have under-performed most other major markets over the long-term, so this strategy could make achieving its 8.0% nominal annual return target a little more challenging.

Analysis

The Guardians of New Zealand Superannuation (GNZSF) have announced its broad asset allocation as follows:

Asset class

% of fund

NZ$ m invested in first year*

NZ$ bln invested by 2023

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