21 Apr 2011

Super Fund's performance improves

7:53 am on 21 April 2011

The Government says it will not start putting money into the New Zealand Superannuation Fund again just because the Fund has improved its performance.

Contributions stopped when the Government's finances went into deficit, and Ministers said it made no sense to borrow to invest in the sharemarket.

In the past financial year, the Fund has put poor performances behind it and made a return of more than 23% in the 2010 year.

Critics say the Government was unwise not to have continued making contributions in light of this success.

An official in the Finance Minister's office says the Government's decision on contributions was never about how the Super Fund was performing.

The fund helps meet future pension costs for large numbers of elderly people.

The fund made a return of 0.4% in March, as private market assets improved slightly, and of 23.4% in the 2010 year. The fund is now worth $18.82 billion.

More than 60% of the fund is invested in global equities and 5% in New Zealand equities.