Latest / Early Edition with Ryan Bridge / Jonathan Eriken: Superannuation expert on the record-high investment return from the NZ Super Fund

Transcript

Jonathan Eriken: Superannuation expert on the record-high investment return from the NZ Super Fund · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: The value of the New Zealand Superfund has reached a
• 0:02
  Speaker 1: record high seventy six point six billion dollars at the
• 0:06
  Speaker 1: end of financial year twenty four. It's up from sixty
• 0:08
  Speaker 1: five odd billion a year earlier. Posted an investment return
• 0:12
  Speaker 1: of almost fifteen percent after costs but before tax for
• 0:16
  Speaker 1: the year thirtieth of June. It means the fund paid
• 0:18
  Speaker 1: one point five billion in tax. The government contributions to
• 0:21
  Speaker 1: the fund during the year were one point six billion.
• 0:24
  Speaker 1: Jonathan Erickson's the superannuation and superfund expert with us this morning. Jonathan,
• 0:28
  Speaker 1: Good morning morning, Ryan. This sounds great. Are they just
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  Speaker 1: riding the stock market wave here or is this a
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  Speaker 1: specific strategy that's netting the result.
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  Speaker 2: Now it is the stock market wave, Ryan, but they're
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  Speaker 2: exploiting that wave very well. They've always gone into a
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  Speaker 2: wide range of assets all around the world, but they
• 0:50
  Speaker 2: are playing it extremely well and the results this year
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  Speaker 2: make up for a very poor return which everybody had
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  Speaker 2: when the markets went down in twenty twenty five too,
• 1:00
  Speaker 2: So in that sense, fifteen percent is a great return.
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  Speaker 2: That The key one from my point of view is
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  Speaker 2: that over the life of the fund, which has been
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  Speaker 2: going for over twenty years now they've got over ten
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  Speaker 2: percent peranum and that's a superb result because it's consistent
• 1:17
  Speaker 2: as well.
• 1:19
  Speaker 1: When it comes to real estate infrastructure Timber. These are
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  Speaker 1: things that the part of the active investment strategy that
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  Speaker 1: they have is that is that a significant part.
• 1:28
  Speaker 2: Of this No, it's a relatively small part. The bulk
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  Speaker 2: of it is the global share market run that's done
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  Speaker 2: so well. But all these little things on the side help,
• 1:39
  Speaker 2: and especially in New Zealand. I think the best example
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  Speaker 2: I've got right, and it's an old one now, but
• 1:45
  Speaker 2: Shell sold its downstream assets and the New Zealand super
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  Speaker 2: Fund and Infantol joined up and boards z and now
• 1:53
  Speaker 2: we've got zed petrol stations throughout the country and they're
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  Speaker 2: making a much better profit than when Shell owned them.
• 2:00
  Speaker 2: So it is adding value in a whole lot of
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  Speaker 2: different ways. But as I say, the key to it
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  Speaker 2: is the superb run that the stock markets had since
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  Speaker 2: about October last year.
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  Speaker 1: What does this mean for us in terms of, you know,
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  Speaker 1: our fortunes and retirement.
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  Speaker 2: Ah, it's superb because it means that everybody can enjoy
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  Speaker 2: their retirement from age sixty five without feeling that, you know,
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  Speaker 2: the country owes us money or the taxes having to
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  Speaker 2: go up. And that's the best bit. I mean, if
• 2:32
  Speaker 2: it wasn't for the New Zealand super Fund, we'd be
• 2:35
  Speaker 2: paying more tax.
• 2:36
  Speaker 1: It's almost like we should have done it earlier. Jonathan.
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  Speaker 1: Thank you Jonathan Ericson with our superannuation and super fund
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  Speaker 1: experts and good news for your Tuesday morning. For more
• 2:46
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• 2:49
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• 2:51
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