The Guardians of NZ Superannuation, the Crown entity that manages the NZ Super Fund, has published a paper on its strategic tilting programme for investment – how it works, how it aligns with the fund’s endowments & investment beliefs, and the performance to date.
The authors of the paper, the fund’s head of asset allocation, David Iverson, & strategic tilting manager Alex Bacchus, say the strategy has performed above expectations since inception on 1 April 2009 through to 30 April this year, returning about 1.2%/year (or about $2 billion): “This exceeds our expectations of 0.4%/year return (estimated since inception).
“Tilting returns have been uncorrelated with the reference portfolio returns since we began, and the strategy has only marginally increased the fund’s realised risk during this period. However, we acknowledge that the 8 years since inception is a relatively short timeframe for performance evaluation of a long-term strategy.”
NZ Super Fund, 3 July 2017: How we invest white paper: Strategic tilting
Attribution: Fund release & paper.