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

National Provident FundCHAIR » Catherine SavageBOARD » Paul Foley, Roger Kerr,Graeme Mitchell, Noeline Munro,Fiona OliverCHIEF EXECUTIVE »Alan Langford (CEO AnnuitasManagement Limited)ActivitiesThe Government has guaranteedsuperannuation schemes managedby NPF. The main provision is theexpected DBP Annuitants Schemedeficit, reflecting a pensionobligation of $992 million andassets of only $43 million (as at30 June 2011).The Board of Trustees of NPFadministers the 11 superannuationschemes and manages theinvestments held on behalf ofthe schemes (through the GlobalAsset Trust) in the best interests ofthe members, taking into accountthe interests of the employercontributors, and the Crown asguarantor of the benefits payableby the schemes.The Board of the GovernmentSuperannuation Fund Authority andthe Trustees of NPF have formeda joint venture company, AnnuitasManagement Limited to providemanagement and secretarialsupport for the schemes.Financial performance measures$m 2007 2008 2009 2010 2011 5 YearFunds Under Management (FUM)Opening FUM 2,181 2,114 1,932 1,619 1,778 2,181+/- Investment returns 184 65 (118) 265 110 506+/- Tax (54) (21) 0 (0) (46) (121)+/- Cash inflow/(outflow) (197) (226) (195) (107) (58) (783)Closing FUM 2,114 1,932 1,619 1,778 1,784 1,784Returns & Risk% paReturn* 11.5% 1.1% (1.3%) 11.1% 6.6% 5.7%Objective**Passive benchmark 12.2% 0.9% 0.7% 9.3% 8.9% 6.3%Fund risk (volatility***) 4.8%Passive benchmark risk 4.4%Notes:* Before tax and after investment management fees** No stated overall objective*** Annualised standard deviation of quarterly returns. Indicative of expected variability of the return in any one yearAsset allocation – past four years*% FUM■ Other Growth Assets ■ Property ■ Overseas Equities ■ New Zealand Equities■ Overseas Bonds ■ New Zealand Bonds ■ CashReturn index*Return index (based at 100 at end 2006Q1)— NPF — ANZ NZ Govt Stock Index — MSCI World Equity (hedged to NZD)* Quarters based on NPF year end of 31 Marchpage | 58