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

Fund composition and performanceEach scheme has its own specific asset allocationdepending on its liability profile, and its level of funding.The Global Asset Trust is actively managed by externalinvestment managers.Investment performance to 30 June 2011 varies byscheme. In aggregate, since 2006/07, NPF has had a highweighting in fixed interest investments (approximately75%). Investment returns over the past year havesignificantly underperformed the passive benchmark,mainly as a result of the impact of the rising New Zealanddollar on the Fund’s lower currency hedge position. Overthe past 10 years, however, investment returns haveclosely matched the aggregate passive benchmarks.NPF is a closed fund. A number of schemes have aguaranteed minimum rate of return. If the actual return isless than this and there are insufficient reserves to top upreturns to the minimum level, then the Crown is requiredto fund the shortfall. This is a contingent liability on theCrown.page | 59