Wikipedia

New Zealand Superannuation Fund

The New Zealand Superannuation Fund (Māori: Te Kaitiaki Tahua Penihana Kaumātua o Aotearoa) is a sovereign wealth fund of New Zealand. The country provides universal superannuation to people over 65 years of age and the purpose of the Fund is to partially pre-fund the future cost of the New Zealand Superannuation pension, which is expected to increase as a result of New Zealand's ageing population. The Government is expected to begin withdrawing money from the fund in around 2035/36.[2] The fund is a member of the International Forum of Sovereign Wealth Funds and is therefore signed up to the Santiago Principles on best practice in managing sovereign wealth funds.[3]

New Zealand Superannuation Fund
Company type
State-owned
IndustryInstitutional investment (sovereign wealth fund)
Founded2001; 25 years ago (2001)
FounderMichael Cullen
Headquarters
Auckland
,
New Zealand
Key people
  • Nicola Willis - Minister of Finance
  • John Williamson - Chair of the Board
  • Jo Townsend - Chief Executive Officer
  • Stephen Gilmore - Chief Investment Officer
Increase NZ$11.2 billion (year to June 2024)
Total assetsIncrease NZ$76.6 billion (June 2024)
OwnerGovernment of New Zealand
ParentGuardians of New Zealand Superannuation[1]
Websitewww.nzsuperfund.nz

In 2019, the New Zealand Superannuation Fund was ranked second out of 64 sovereign wealth funds, with a score of 94 out of 100, in the Sovereign Wealth Fund Transparency and Accountability Scoreboard published by the Peterson Institute for International Economics.[4]

History

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The Superannuation Fund was created by the New Zealand Superannuation and Retirement Act 2001[5] on 11 October 2001 by Michael Cullen, the Minister of Finance in the Fifth Labour Government. It is colloquially known as the "Cullen Fund".[6]

The sovereign fund posted a record 25.8% return in the twelve months to 30 June 2013.[7] In the 2009 New Zealand budget the National Government suspended payments to the fund.[8] Contributions were proposed to resume in 2020/21 when the Government's net debt to GDP was forecast to fall below 20% again.[9] Instead, the new Labour-led government started payments into the superfund again in December 2017.[10] The New Zealand Government had contributed $21.8 billion to the fund as at 31 March 2022.[11]

NZ Super Fund announced a preferred partner agreement with the Māori Investment Fund in March 2018.[12]

In 2023, Matt Whineray stepped down from his position as chief executive after holding the position since 2018.[13] He was replaced by Jo Townsend.[14]

In September 2024, the fund reported an income of $11.2 billion for the financial year, an increase of almost 15% compared to the previous year. The total value of the fund reached $76.6 billion.[15][16]

Investments

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A full list of investments for current and previous years can be seen at the Annual Equity Listing page at the New Zealand Super Fund's website.

LanzaTech

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The Fund invested US$60 million into Chicago based LanzaTech in December 2014. On 8 March 2022, LanzaTech announced its initial public offering through a special-purpose acquisition company in a deal that valued the company at $2.2 billion.[17]

View | Dynamic Glass

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During August 2015, The New Zealand Superannuation invested US$75 million into American-based electrochromic glass company View with a percentage owned not being released.[18]

Kaingaroa Timberlands Partnership

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On 28 February 2014, The Fund sold 2.5% of Kaingaroa Timberlands Partnership to the Kakano Investment Limited Partnership, reducing its share from 41.25% to a 38.75% stake in the Kaingaroa partnership.

Other Investments

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Other investments include a 7,943,351 share (0.71%) stake in partially state-owned and controlled (51.95% - state-owned portion) company Air New Zealand.[19] The Super Fund also holds a 37.59% stake in Datacom Group.[20] The Fund occasionally cooperates with outside companies to develop projects.[21]

Exclusions

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The Superfund maintains a list of excluded companies similar to the Government Pension Fund of Norway.[22] The Superfund will not invest in the companies within the list.

The list includes,

Controversies

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Banco Espírito Santo

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In February 2015 the Superfund wrote off a $150 million loss in a Goldman Sachs organised loan to the Portuguese Banco Espírito Santo. The loss represented 0.7% of the total value of the Superfund's investment portfolio at that time.[24] Managers of the Superfund appeared before Parliament's commerce select committee on 26 February 2015 where they confirmed that legal action had been commenced against the Bank of Portugal to recover the lost money.[25]

Divestment

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The Superfund's investment portfolio is the subject of ongoing debate. Labour Party MP David Shearer called in August 2014 for divestment from a company manufacturing white phosphorus which is used by the Israeli Defence Force as a weapon.[26]

In February 2015 Green Party MP Russel Norman called for the Superfund to divest $676 million from fossil fuel companies.[27]

In August 2017 the Superfund quit or reduced holdings in 300 fossil fuel companies, making 40% of all Superfund investments carbon neutral. Companies include: ExxonMobil, Anadarko, Shell, BP, Statoil, New Zealand Oil & Gas, Genesis Energy, Alliant Energy, Berkshire Hathaway, Chevron, Rio Tinto, ConocoPhillips, Mitsubishi and Occidental Petroleum. Chief investment officer Matt Whineray stated, "We think that climate change represents a material risk, one that is not being properly priced by the markets."[28]

Fossil fuel divestment campaign organisation 350.org Aotearoa had been campaigning for the New Zealand Superfund to divest from fossil fuels for one year.[29] 350 Aotearoa and Greenpeace Aotearoa New Zealand supported the decision, calling it a "turning point for New Zealand."[30]

In March 2021, the Guardians of New Zealand Superannuation excluded five Israeli banks from investing in the NZ Super Fund due to their suspected involvement in illegal settlement construction in the West Bank. The five affected banks were the First International Bank of Israel, the Israel Discount Bank, Bank Hapoalim, Bank Leumi and Bank Mizrahi-Tefahot.[31][32]

On 16 April 2026, High Court Justice Simon Mount found that the Super Fund had failed to adequately address human rights issues when investing in companies operating in the Occupied Palestinian Territories. Mount's decision would require the Guardians of New Zealand Superannuation to rewrite policy documents, standards, procedures and investment policies regarding where New Zealand pensions funds are invested, particularly in companies accused of contributing to human rights abuses. Companies that were covered by Mount's judgement included Airbnb, Booking.com, Motorola and Expedia, which have invested in rental homes, surveillance and transport infrastructure in the Occupied Territories.[33] Mount had ruled in favour of the activist group Palestine Solidarity Network Aotearoa's (PSNA) judicial review of the Super Fund's investment policies. He also ordered the Guardians to pay the PSNA's legal fees.[34]

References

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  1. ↑ "Guardians of New Zealand Superannuation: Governance and management of the New Zealand Superannuation Fund". Office of the Auditor-General New Zealand. Retrieved 2 December 2016.
  2. ↑ "Purpose and mandate". New Zealand Superannuation Fund. Retrieved 11 November 2025.
  3. ↑ "Our members". International Forum of Sovereign Wealth Funds. Retrieved 11 November 2025.
  4. ↑ Maire, Julien; Mazarei, Adnan; Truman, Edwin M. (February 2021). "Sovereign wealth funds are growing more slowly, and governance issues remain" (PDF). Peterson Institute for International Economics Policy Brief. 21–3. Washington, D.C.: Peterson Institute for International Economics. Retrieved 11 November 2025.
  5. ↑ "New Zealand Superannuation and Retirement Income Act 2001". 7 July 2010. Retrieved 12 May 2011.
  6. ↑ "National's KiwiSaver and "Cullen Fund" policies". Chapman Tripp. 13 November 2008. Archived from the original on 25 July 2011. Retrieved 12 May 2011.
  7. ↑ "New Zealand Superannuation Fund Posts Record 25.8% Return for 2012-2013 Archived 1 December 2013 at the Wayback Machine". Sovereign Wealth Fund Institute. Retrieved 3 September 2014.
  8. ↑ "CONTRIBUTIONS SUSPENSION" Archived 15 September 2014 at the Wayback Machine, nzsuperfund.co.nz/
  9. ↑ "Budget 2015 - Fiscal Strategy Report" (PDF). 21 May 2015. Archived from the original (PDF) on 22 May 2015.
  10. ↑ "Jacinda Ardern and Grant Robertson restart Super Fund payments". 15 December 2017. Archived from the original on 16 December 2017. Retrieved 9 May 2018.
  11. ↑ "NZ Super Fund Story". NZ Super Fund. 10 May 2022. Retrieved 10 May 2022.
  12. ↑ "Te Pūia Tāpapa Fund and NZ Super Fund commit to preferred partner relationship". NZ Super Fund (Press release). 13 March 2018. Retrieved 15 December 2022.
  13. ↑ "Former Superannuation Fund head Matt Whineray to chair FirstCape Group". RNZ. 23 April 2024. Retrieved 15 May 2025.
  14. ↑ "NZ Super taps Australia Funds SA's ex-CEO Jo Townsend as new chief". Asia Asset Management. 28 March 2024. Retrieved 15 May 2025.
  15. ↑ "Surging markets push Superannuation Fund to new high". RNZ. 9 September 2024. Retrieved 15 May 2025.
  16. ↑ "World-Beating New Zealand Sovereign Wealth Fund Posts 15% Annual Return". Bloomberg. 8 September 2024. Retrieved 15 May 2025.
  17. ↑ Ramkumar, Amrith (8 March 2022). "WSJ News Exclusive | Carbon-Transformation Startup LanzaTech is Going Public in $2.2 Billion SPAC Deal". Wall Street Journal. ISSN 0099-9660. Retrieved 17 March 2022.
  18. ↑ "NZ Super Fund invests in US smart glass company". 13 August 2015. Retrieved 2 December 2016.
  19. ↑ "Shareholdings".
  20. ↑ "Shareholdings". Retrieved 2 December 2016.
  21. ↑ "New Zealand Sovereign Wealth Fund Forms Offshore Wind Partnership with CIP". Offshore Wind. 29 March 2022.
  22. ↑ "Companies excluded from the New Zealand Superannuation Fund as at 26 September 2014" Archived 15 January 2015 at the Wayback Machine, nzsuperfund.co.nz/
  23. ↑ "Automatic and semi-automatic weapon ban for NZ Super Fund". 12 April 2019.
  24. ↑ "NZ Super Fund loses $200m after 'risk free' loan to Portuguese bank". The New Zealand Herald. 19 February 2015. Retrieved 23 March 2015.
  25. ↑ "Super Fund confirms Portugal bank legal case". The New Zealand Herald. 27 February 2015. Retrieved 23 March 2015.
  26. ↑ "NZ Super Fund has deadly portfolio". Sunday Star-Times. 3 August 2014. Retrieved 23 March 2015.
  27. ↑ "Greens want NZ Super Fund to drop fossil fuels". Stuff. 13 February 2015. Retrieved 23 March 2015.
  28. ↑ "Superfund Sells Shares to Cut Climate Change Exposure". Radio-NZ. 15 August 2017. Retrieved 20 September 2017.
  29. ↑ "Superfund Divestment shows real climate leadership". scoop.co.nz. 15 August 2017. Retrieved 20 September 2017.
  30. ↑ "Super Fund's $950m fossil fuel divestment an "aha" moment for NZ economy". greenpeace.org/new-zealand/en. 15 August 2017. Archived from the original on 20 August 2017. Retrieved 20 September 2017.
  31. ↑ "Guardians excludes five banks on responsible investment grounds". NZ Super Fund. 2 March 2021. Archived from the original on 28 March 2026. Retrieved 23 April 2026.
  32. ↑ Andrew, Michael (5 March 2021). "NZ Super Fund drops Israeli banks for funding settlements in Palestine". The Spinoff. Archived from the original on 20 January 2026. Retrieved 23 April 2026.
  33. ↑ Davison, Isaac (16 April 2026). "'Shockwave' court ruling finds NZ Super invested in Airbnb and other companies under 'unlawful'rules". The Post. Stuff. Retrieved 23 April 2026.
  34. ↑ MacDuff, Keiller (16 April 2026). "$86 billion Super Fund failed to properly address human rights abuses, court rules". RNZ. Archived from the original on 16 April 2026. Retrieved 23 April 2026.
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