NZ Super Fund hit hard by global market volatility

In a just-released update for stakeholders, the guardians of the fund say rising interest rates are weighing heavily on equity markets as central banks seek to tame inflation. Complicating their task are high commodity prices which increase inflationary pressure and crimp global growth.

The Super Fund now stands at $57b – about the same level as at the end of April 2021.

As with previous market downturns, the guardians say they are focusing on long-term horizons, “investing in a contrarian style and buying assets when we consider them to be cheap”.

The fund, the brainchild of the late Sir Michael Cullen, was set up by the Labour government in 2001 to help cover the ongoing costs of universal superannuation. The fund is not due to start paying out to cover super costs until the early 2030s.