Investment performance
We measure the Fund's investment performance in two ways:
- relative to the NZ 90 day Treasury Bill return — the reward for taking market risk
- relative to a passive reference portfolio benchmark — the value added by the Guardians' active management.
Given our long-term mandate, we expect to return at least 7.2% p.a. over any 20-year moving average period. This is our long-term performance expectation.
The below graph shows how the first dollar invested in the Fund has grown over time, versus our Reference Portfolio and Treasury Bill benchmarks.
|
Performance as at |
Feb 24 |
Last 12 months |
Last 5 years p.a. |
Last 10 years p.a. |
Since inception p.a. |
|
Actual Fund Return (after costs, before NZ tax) |
2.80% |
16.04% |
9.27% |
10.32% |
9.90% |
|
Reference Portfolio Return (after costs, before NZ tax) |
3.22% |
18.36% |
7.98% |
8.40% |
8.43% |
|
Value-added (actual return less Reference Portfolio Return) |
-0.42% |
-2.32% |
1.29% |
1.92% |
1.47% |
|
Estimated $ earned relative to Reference Portfolio |
$(0.29) billion |
$(1.42) billion |
$3.92 billion |
$10.60 billion |
$16.21 billion |
|
NZ income tax (paid) / received |
$0 billion |
$(0.19) billion |
$(3.26) billion |
$(6.09) billion |
$(9.66) billion |
|
Treasury Bill Return |
0.43% |
5.39% |
1.97% |
2.15% |
3.47% |
|
Net Return (actual return less Treasury Bill Return) |
2.37% |
10.65% |
7.29% |
8.17% |
6.43% |
|
Estimated $ earned relative to Treasury Bills |
$1.66 billion |
$6.59 billion |
$19.93 billion |
$35.76 billion |
$46.74 billion |
|
$ change in net asset position |
$2.00 billion |
$11.53 billion |
$31.05 billion |
$46.73 billion |
$72.24 billion |