apr-11.pdf (2.07 MB) - Crown Ownership Monitoring Unit

Longer-term performance has been below expectationsTotal funds under management have grown from $29.2 billion at the start of 2006/07 to$45.3 billion at the end of 2010/11. In 2010/11, funds under management increased by$5.9 billion owing to $5.6 billion of net (after tax) returns and net inflows of $228 million.Table 3 – Summary of managed funds$m 2007 2008 2009 2010 2011 5 YearFunds Under Management (FUM)*Opening FUM 29,215 33,740 34,878 34,299 39,460 29,215+/- Investment returns 3,164 (757) (3,608) 4,465 6,538 9,802+/- Tax (812) (219) 525 (467) (894) (1,867)+/- Cash inflow/(outflow) 2,172 2,115 2,504 1,163 228 8,182Closing FUM 33,740 34,878 34,299 39,460 45,332 45,332Returns% paWeighted return** 10.7% (2.3%) (9.8%) 12.8% 16.7% 5.1% paLonger-termperformancehas generallybeen belowexpectations* Totals may not add owing to rounding.** Sum of returns for each fund weighted by the proportion of that fund in the portfolio.The five-year return on the CFI portfolio’s assets has been 5.1% pa. This compares withthe return on the New Zealand Government Stock Index of 7.1% pa and the averageyield on 10-year Government Bonds of 5.8% pa over the five-year period.Figure 4 shows the total long-term returns (on an annualised basis) for each CFI, eachfund’s passive benchmark or reference portfolio return and each fund’s long-termreturn objective 4 .Figure 4 – Long-term CFI returnsReturn (%)■ Return ■ Passive Benchmark ■ Fund ObjectiveSource: COMUReturn periods in Figure 4 are as follows: NZSF from 1 October 2003, ACC from1 July 2001, EQC from 1 January 2004, GSF from 1 January 2002 and NPF from1 July 2006.All of the CFIs are showing positive returns over these periods. ACC has outperformedboth its passive benchmark and return objective over the period; NZSF hasoutperformed its passive reference portfolio but is behind its return expectationsince inception; returns for EQC, GSF and NPF are at or below benchmark over therespective periods, with EQC and GSF well behind their individual fund objectives.4 NPF is an aggregate of 11 separate schemes, each with its own investment strategy and passive benchmark.As such, NPF does not have an overall objective.page | 15