The New Zealand Superannuation Fund invests money, on behalf of the Government, to help pay for the increased cost of universal superannuation entitlements (New Zealand Superannuation) in the future.
By doing this the Fund adds to Crown wealth, improves the ability of future Governments to pay for superannuation, and ultimately reduces the tax burden of the cost of superannuation on future New Zealanders.
The Fund is managed by a Crown entity, the Guardians of New Zealand Superannuation.
Since 2003, the Government has contributed $14.88 billion to the Fund which, as at 28 February 2013, was worth $21.99 billion. The Guardians have successfully invested the Government’s contributions in New Zealand and overseas, returning 8.41% per annum, after costs and before tax, since the inception of the Fund. This rate of return is around 3.4% per annum higher than the rate of return on Government debt.
Since inception, the Fund has paid $2.57 billion in tax to the New Zealand Government. The Guardians include New Zealand tax paid in measurements of the Fund’s performance because we consider it to be a return to the Crown.