It has been a hugely volatile year so far for world markets. So imagine the stress of managing tens of billions of dollars of New Zealanders’ money? That is what the NZ Super Fund is doing.
It has just released its January figures.
Investments totalled $28.33 billion. That was a fall of just over 1 billion dollars in a month, or -3.57%. But the Fund did slightly better than the "reference portfolio" that it is judged against. The benchmark fell by just over four percent.
The Fund managers have not been spooked by the recent selloff in the markets. They have been selectively buying stocks for the Fund.
The NZ Super Fund rose 1.28 percent over the past twelve months. That compares to -1.35 percent for the reference portfolio.
The Fund has averaged 9.21 per year since its launch in 2003.
So is there a lesson for Kiwisaver investors? The NZ Super Fund managers have not been rattled by the recent fall in the markets. If you are in your 20s or 30s, or older, you should focus on your long term savings goals. It is worth checking with your provider to make sure that you are in the right fund for your age and goals.
