New Zealand Superannuation Fund
{{Short description|Sovereign wealth fund of New Zealand}}
{{Use New Zealand English|date=November 2013}}
{{Use dmy dates|date=August 2020}}
{{Infobox company
| name = New Zealand Superannuation Fund
| logo = SVG image of the current (Sept 2020) logo of the New Zealand Superannuation Fund.svg
| type = State-owned
| foundation = {{start date and age|2001}}
| founder = Michael Cullen
| location_city = Auckland
| location_country = New Zealand
| location =
| locations =
| key_people = *Nicola Willis - Minister of Finance
- John Williamson - Chair of the Board
- Jo Townsend - Chief Executive Officer
- Stephen Gilmore - Chief Investment Officer
| industry = Institutional investment (sovereign wealth fund)
| products =
| services =
| revenue =
| operating_income = {{increase}} NZ$4.0 billion (year to June 2018){{Cite web |url=https://ar2018.nzsuperfund.nz/ |title=2018 New Zealand Superfund Annual Report|access-date=11 October 2018 |archive-date=25 January 2019 |archive-url=https://web.archive.org/web/20190125025544/https://ar2018.nzsuperfund.nz/ |url-status=dead }}
| assets = {{increase}} NZ$72.2 billion (February 2024)https://nzsuperfund.nz/
| equity =
| owner = Government of New Zealand
| num_employees =
| parent = Guardians of New Zealand Superannuation{{cite web|url=http://www.oag.govt.nz/2010/performance-audits/nz-superannuation-fund.htm |title=Guardians of New Zealand Superannuation: Governance and management of the New Zealand Superannuation Fund – Office of the Auditor-General New Zealand|accessdate=2 December 2016}}
| divisions =
| subsid =
| slogan =
| homepage = {{URL|https://www.nzsuperfund.nz}}
| footnotes =
| intl =
}}
The New Zealand Superannuation Fund ({{langx|mi|Te Kaitiaki Tahua Penihana Kaumātua o Aotearoa}}) is a sovereign wealth fund in New Zealand. New Zealand currently provides universal superannuation for people over 65 years of age and the purpose of the Fund is to partially pre-fund the future cost of the New Zealand Superannuation pension, which is expected to increase as a result of New Zealand's ageing population. The fund is a member of the International Forum of Sovereign Wealth Funds and is therefore signed up to the Santiago Principles on best practice in managing sovereign wealth funds.{{cite web |url=http://www.ifswf.org/members |title=IFSWF Our members |author=International Forum of Sovereign Wealth Funds |access-date=24 September 2016 |url-status=dead |archiveurl=https://web.archive.org/web/20160927094338/http://www.ifswf.org/members |archivedate=27 September 2016}}
Foundation
The Superannuation Fund was created by the New Zealand Superannuation and Retirement Act 2001{{cite web |url=http://legislation.govt.nz/act/public/2001/0084/latest/DLM113924.html |title=New Zealand Superannuation and Retirement Income Act 2001 |date=7 July 2010 |accessdate=12 May 2011}} on 11 October 2001 by Michael Cullen, who was then Minister of Finance under the Fifth Labour Government, and is colloquially known as the "Cullen Fund".{{cite web |url=http://www.chapmantripp.com/publications/Pages/Nationals-KiwiSaver-and-Cullen-Fund-policies.aspx |publisher=Chapman Tripp |title=National's KiwiSaver and "Cullen Fund" policies |date=13 November 2008 |accessdate=12 May 2011}}
The sovereign fund posted a record 25.8% return in the twelve months till 30 June 2013."[http://www.swfinstitute.org/swf-news/new-zealand-superannuation-fund-posts-record-25-8-return-for-2012-2013/ New Zealand Superannuation Fund Posts Record 25.8% Return for 2012-2013]". Sovereign Wealth Fund Institute. Retrieved 3 September 2014. In the 2009 New Zealand budget the National Government suspended payments to the fund.[https://www.nzsuperfund.co.nz/nz-super-fund-explained-purpose-and-mandate/contributions-suspension "CONTRIBUTIONS SUSPENSION"] {{Webarchive|url=https://web.archive.org/web/20140915072858/https://www.nzsuperfund.co.nz/nz-super-fund-explained-purpose-and-mandate/contributions-suspension |date=15 September 2014 }}, nzsuperfund.co.nz/ Contributions were proposed to resume in 2020/21 when the Government's net debt to GDP was forecast to fall below 20% again.{{cite web|url=http://www.budget.govt.nz/budget/pdfs/fsr/b15-fsr.pdf |title=Budget 2015 - Fiscal Strategy Report|date=21 May 2015|url-status=dead|archiveurl=https://web.archive.org/web/20150522141121/http://www.budget.govt.nz/budget/pdfs/fsr/b15-fsr.pdf |archivedate=22 May 2015}} Instead, the new Labour-led government started payments into the superfund again in December 2017.{{cite news|title=Jacinda Ardern and Grant Robertson restart Super Fund payments|url=http://www.newshub.co.nz/home/politics/2017/12/jacinda-ardern-and-grant-robertson-restart-super-fund-payments.html |archive-url=https://web.archive.org/web/20171216223425/http://www.newshub.co.nz/home/politics/2017/12/jacinda-ardern-and-grant-robertson-restart-super-fund-payments.html |url-status=dead |archive-date=16 December 2017 |accessdate=9 May 2018|date=15 December 2017}} The New Zealand Government had contributed $21.8 b to the fund as at 31 March 2022.{{cite web |date=10 May 2022 |title=NZ Super Fund Story |url=https://www.nzsuperfund.nz/about-the-guardians/nz-super-fund-story/our-story/ |work=NZ Super Fund |accessdate=10 May 2022}}
NZ Super Fund announced a preferred partner agreement with the Māori Investment Fund in March 2018.{{cite press release |title=Te Pūia Tāpapa Fund and NZ Super Fund commit to preferred partner relationship |date=13 March 2018 |work=NZ Super Fund |url=https://www.nzsuperfund.nz/news-and-media/te-puia-tapapa-fund-and-nz-super-fund-commit-preferred-partner-relationship/ |accessdate=15 December 2022}}
Investments
A full list of investments for current and previous years can be seen at the [https://www.nzsuperfund.nz/publications/annual-equity-listings Annual Equity Listing] page at the New Zealand Super Fund's website.
=LanzaTech =
The Fund invested US$60 million into Chicago based LanzaTech in December 2014. On March 8, 2022, LanzaTech announced its initial public offering through a special-purpose acquisition company in a deal that valued the company at $2.2 billion.{{Cite news |last=Ramkumar |first=Amrith |date=2022-03-08 |title=WSJ News Exclusive {{!}} Carbon-Transformation Startup LanzaTech is Going Public in $2.2 Billion SPAC Deal |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/carbon-transformation-startup-lanzatech-is-going-public-in-2-2-billion-spac-deal-11646740801 |access-date=2022-03-17 |issn=0099-9660}}
=View | Dynamic Glass =
During August 2015, The New Zealand Superannuation invested US$75 million into American-based electrochromic glass company View with a percentage owned not being released.{{cite web|url=http://i.stuff.co.nz/business/71106123/nz-super-fund-invests-in-us-smart-glass-company |title=NZ Super Fund invests in US smart glass company|date=13 August 2015|accessdate=2 December 2016}}
===Kaingaroa Timberlands Partnership===
On Feb, 28th 2014, The Fund sold 2.5% of its stake in the Kaingaroa Timberlands Partnership to the Kakano Investment Limited Partnership, reducing its share from 41.25% to a 38.75% stake in the Kaingaroa partnership.
=Other Investments=
Other investments include a 7,943,351 share (0.71%) stake in partially state-owned and controlled (51.95% - state-owned portion) company Air New Zealand.{{Cite web|url=https://www.business.govt.nz/companies/app/ui/pages/companies/104799/shareholdings |title = Shareholdings}} The Super Fund also holds a 37.59% stake in Datacom Group.{{cite web|url=https://www.business.govt.nz/companies/app/ui/pages/companies/132513/shareholdings |title=Shareholdings|accessdate=2 December 2016}} The Fund occasionally cooperates with outside companies to develop projects.{{cite web |title=New Zealand Sovereign Wealth Fund Forms Offshore Wind Partnership with CIP |url=https://www.offshorewind.biz/2022/03/29/new-zealand-sovereign-wealth-fund-forms-offshore-wind-partnership-with-cip/ |website=Offshore Wind |date=29 March 2022}}
=Exclusions=
The Superfund maintains a list of excluded companies similar to the Government Pension Fund of Norway.[https://www.nzsuperfund.co.nz/sites/default/files/documents-sys/Exclusions%20List.pdf "Companies excluded from the New Zealand Superannuation Fund as at 26 September 2014"] {{Webarchive|url=https://web.archive.org/web/20150115001134/https://www.nzsuperfund.co.nz/sites/default/files/documents-sys/Exclusions%20List.pdf |date=15 January 2015 }}, nzsuperfund.co.nz/ The Superfund will not invest in the companies within the list.
The list includes,
- Companies in the tobacco industry;
- Companies involved in the production of nuclear weapons, cluster munitions and anti-personnel mines;
- Companies involved in the Grasberg mine in West Papua;
- Companies involved in the processing of whale meat;
- Tokyo Electric Power Company;
- Companies involved in developing settlements in the Israeli-occupied territories;
- Companies involved in the manufacture of civilian automatic and semi-automatic firearms.{{Cite web|url=https://www.stuff.co.nz/business/112002076/automatic-and-semiautomatic-weapon-ban-for-nz-super-fund|title=Automatic and semi-automatic weapon ban for NZ Super Fund|date=12 April 2019}}
Controversies
=Banco Espírito Santo=
In February 2015 the Superfund wrote off a $150 million loss in a Goldman Sachs organised loan to the Portuguese Banco Espírito Santo. The loss represented 0.7% of the total value of the Superfund's investment portfolio at that time.{{cite web |url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11404653 |title=NZ Super Fund loses $200m after 'risk free' loan to Portuguese bank|date=19 February 2015|work=The New Zealand Herald |accessdate=23 March 2015}} Managers of the Superfund appeared before Parliament's commerce select committee on 26 February 2015 where they confirmed that legal action had been commenced against the Bank of Portugal to recover the lost money.{{cite web |url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11408634 |title=Super Fund confirms Portugal bank legal case|date=27 February 2015|work=The New Zealand Herald |accessdate=23 March 2015}}
=Divestment=
The Superfund's investment portfolio is the subject of ongoing debate. Labour Party MP David Shearer called in August 2014 for divestment from a company manufacturing white phosphorus which is used by the Israeli Defence Force as a weapon.{{cite web |url=http://www.stuff.co.nz/business/money/10341818/NZ-Super-Fund-has-deadly-portfolio |title=NZ Super Fund has deadly portfolio|date=3 August 2014|work=Sunday Star-Times |accessdate=23 March 2015}}
In February 2015 Green Party MP Russel Norman called for the Superfund to divest $676 million from fossil fuel companies.{{cite web |url=http://www.stuff.co.nz/business/industries/66147767/greens-want-nz-super-fund-to-drop-fossil-fuels |title=Greens want NZ Super Fund to drop fossil fuels|date=13 February 2015|work=Stuff |accessdate=23 March 2015}}
In August 2017 the Superfund quit or reduced holdings in 300 fossil fuel companies, making 40% of all Superfund investments carbon neutral. Companies include: ExxonMobil, Anadarko, Shell, BP, Statoil, New Zealand Oil & Gas, Genesis Energy, Alliant Energy, Berkshire Hathaway, Chevron, Rio Tinto, ConocoPhillips, Mitsubishi and Occidental Petroleum. Chief investment officer Matt Whineray stated, "We think that climate change represents a material risk, one that is not being properly priced by the markets."{{cite web
|url=http://www.radionz.co.nz/news/national/337218/super-fund-sells-shares-to-cut-climate-change-exposure |title=Superfund Sells Shares to Cut Climate Change Exposure|date=15 August 2017|work=Radio-NZ|accessdate=20 September 2017}}
Fossil fuel divestment campaign organisation 350.org Aotearoa had been campaigning for the New Zealand Superfund to divest from fossil fuels for one year.{{cite web |url=http://www.scoop.co.nz/stories/PO1708/S00306/super-fund-divestment-shows-real-climate-leadership.htm |date=15 August 2017|title=Superfund Divestment shows real climate leadership|work=scoop.co.nz|accessdate=20 September 2017}} 350 Aotearoa and Greenpeace Aotearoa New Zealand supported the decision, calling it a "turning point for New Zealand."{{cite web
|url=http://www.greenpeace.org/new-zealand/en/press/Super-Funds-fossil-fuel-divestment-an-aha-moment-for-NZ-economy/ |title=Super Fund's $950m fossil fuel divestment an "aha" moment for NZ economy|date=15 August 2017|work=greenpeace.org/new-zealand/en|accessdate=20 September 2017}}
References
{{Cleanup bare URLs|date=August 2022}}
{{Reflist|30em}}
External links
- {{Official website|http://www.nzsuperfund.co.nz}}
- [http://www.legislation.govt.nz/act/public/2001/0084/latest/DLM113924.html New Zealand Superannuation and Retirement Income Act 2001] on the New Zealand Legislation website.
{{Authority control}}
Category:Government of New Zealand
Category:Sovereign wealth funds
Category:Retirement in New Zealand