New Zealand Superannuation Fund
Encyclopedia
The New Zealand Superannuation Fund is a sovereign wealth fund
in New Zealand
. New Zealand currently provides universal superannuation for 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. It was created by the New Zealand Superannuation and Retirement Act 2001 on 11 October 2001 under the leadership of Michael Cullen, Minister of Finance
in the Fifth Labour Government
, and is colloquially known as the "Cullen Fund".
The Fund began investing in 2003, and had approximately NZ$
19.2 billion in assets at 31 May 2011. Unlike many of the sovereign wealth funds that have been established in recent years, its source of wealth is not commodities
.
In 2009, the National Government
suspended payments to the fund. Forecasting by the New Zealand Treasury projects that contributions will be resumed from 2016/17.
The Fund has recently had a high profile in New Zealand after it and Infratil
(a publicly listed New Zealand company) acquired Royal Dutch Shell
's downstream assets in New Zealand, since renamed Z Energy.
Sovereign wealth fund
A sovereign wealth fund is a state-owned investment fund composed of financial assets such as stocks, bonds, property, precious metals or other financial instruments. Sovereign wealth funds invest globally. Some of them have grabbed attention making bad investments in several Wall Street financial...
in New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
. New Zealand currently provides universal superannuation for 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. It was created by the New Zealand Superannuation and Retirement Act 2001 on 11 October 2001 under the leadership of Michael Cullen, Minister of Finance
Minister of Finance (New Zealand)
The Minister of Finance is a senior figure within the government of New Zealand. The position is often considered to be the most important Cabinet role after that of the Prime Minister....
in the Fifth Labour Government
Fifth Labour Government of New Zealand
The Fifth Labour Government of New Zealand was the government of New Zealand between 10 December 1999 and 19 November 2008.-Overview:The fourth National government, in power since 1990, was widely unpopular by 1999, with much of the public antagonised by a series of free-market economic reforms,...
, and is colloquially known as the "Cullen Fund".
The Fund began investing in 2003, and had approximately NZ$
New Zealand dollar
The New Zealand dollar is the currency of New Zealand. It also circulates in the Cook Islands , Niue, Tokelau, and the Pitcairn Islands. It is divided into 100 cents....
19.2 billion in assets at 31 May 2011. Unlike many of the sovereign wealth funds that have been established in recent years, its source of wealth is not commodities
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
.
In 2009, the National Government
Fifth National Government of New Zealand
The Fifth National Government of New Zealand is the current government of New Zealand. It is led by Prime Minister John Key.After the 2008 general election the National Party and its allies were able to form a government, taking over from Helen Clark's Fifth Labour Government. The National party...
suspended payments to the fund. Forecasting by the New Zealand Treasury projects that contributions will be resumed from 2016/17.
The Fund has recently had a high profile in New Zealand after it and Infratil
Infratil
Infratil Limited is a New Zealand-based infrastructure investment company. It owns several airports, electricity generators and retailers, and a public transport business, with operations in New Zealand, Australia and Europe. Infratil was founded by Lloyd Morrison, a Wellington-based merchant...
(a publicly listed New Zealand company) acquired Royal Dutch Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
's downstream assets in New Zealand, since renamed Z Energy.