The New Zealand Superannuation Fund achieved a 14.17% return after costs and before tax for the year ending June 30, 2026, increasing its total value by $9.3 billion to $94.4 billion. This performance was largely attributed to the robust global share markets and the fund's diversified investment strategy, which includes holdings in listed companies, timber, real estate, and private market investments.
Chief executive Jo Townsend of the Guardians of New Zealand Superannuation described the result as satisfying, highlighting that the fund's mix of assets performed exceptionally well. She emphasized the long-term benefits of a diversified portfolio over a concentrated one, noting that over the past 20 years, the fund has generated $22 billion more than its passive benchmark, with an average annual return of 9.68% compared to the reference portfolio's 8.19%.
While the fund's 14.17% return outperformed the 2.71% return from 90-day Treasury bills, it slightly lagged its reference benchmark portfolio by 0.1 percentage points. The reference portfolio is heavily weighted towards 80% equities, whereas the Super Fund itself maintains a more diversified approach. The fund's value has increased by $34.6 billion, or 57.9%, over the last five years from $59.8 billion in June 2021.
Looking ahead, the Guardians lowered the fund's long-term expected annual return earlier this year from 7.8% to 7.2%, anticipating a potential reversion to the mean for global equity returns. Despite this, the fund has been a significant contributor to the New Zealand government, paying $2.5 billion in tax last year, which is expected to exceed government capital contributions by over $1 billion annually for the next five years, potentially reaching over $2 billion in 10 years.
