The Superannuation Fund was created by the New Zealand Superannuation and Retirement Act 2001 on 11 October 2001 by Michael Cullen, who was then Minister of Finance under the Fifth Labour Government, and is colloquially known as the "Cullen Fund". The New Zealand Government had contributed $14.88b to the fund by 2012. The sovereign fund posted a record 25.8% return in the twelve months till 30 June 2013. In the 2009 New Zealand budget the National Government suspended payments to the fund. Contributions were proposed to resume in 2020/21 when the Government's net debt to GDP falls below 20% again. Instead, the new Labour-led government started payments into the superfund again in December 2017.
Investments
A full list of investments for current and previous years can be seen at the page at the NZ Super Fund's website.
LanzaTech
The Fund invested US$60 million into Chicago based LanzaTech in December 2014.
View | Dynamic Glass
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.
The Fund has had a high profile in New Zealand after it and Infratil acquired Royal Dutch Shell's downstream assets in New Zealand, since renamed Z Energy. The superannuation holds a 20% share in Z Energy.
Metlifecare Limited
New Zealand Super Fund hold a 19.93% share of Metlifecare Limited, one of New Zealands largest retirement village providers. Metlifecare currently own and operate 25 retirement villages throughout the North Island. Metlifecare is also dual listed as main components on both the NZX and ASX main boards. They are competitors to Ryman Healthcare.
Kaingaroa Timberlands Partnership
On Feb, 28th 2014, The Fund sold 2.5% of its stake in the 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
Other investments include a 7,943,351 share stake in partially state-owned and controlled company Air New Zealand. The Super Fund also holds a 37.59% stake in Datacom Group.
Exclusions
The Superfund maintains a list of excluded companies similar to the Government Pension Fund of Norway. The Superfund will not invest in the companies within the list. The list includes,
In February 2015 the Superfund wrote off a $150 million loss in a Goldman Sachs organised loan to the Portuguese Banco Espirito Santo. The loss represented 0.7% of the total value of the Superfund's investment portfolio at that time. 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.
Divestment
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. In February 2015 Green Party MP Russel Norman called for the Superfund to divest $676 million from fossil fuel companies. In August 2017 the Superfund quit or reduced holdings in 300 fossil fuel companies, making 40% of all Superfund investments carbon neutral. Companies include: Exxon Mobil, 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." Fossil fuel divestment campaign organisation 350.org Aotearoa had been campaigning for the New Zealand Superfund to divest from fossil fuels for one year. 350 Aotearoa and Greenpeace Aotearoa New Zealand supported the decision, calling it a "turning point for New Zealand."
