Stronger global equity and commodity markets have boosted returns at the Government Superannuation Fund.
The closed fund, which provides pensions for civil servants, made an after-tax surplus of $385 million for the year to June, compared with a $285 million profit in the previous year.
The Government Superannuation Fund Authority says local equities performed strongly, but because of greater exposure to foreign currencies it did not earn as much as it could have.
Chairman Keith Taylor says that's because the New Zealand dollar surged strongly in the period against the exchange rates of major trading partners.
The fund's assets rose 8% to $3.2 billion. It has more than 66,000 members.