Fund size: NZ$27.11 billion
Fund return: 1.47% during October
Total return of 9.92% p.a. since inception (after costs, before NZ tax) compared to Reference Portfolio return of 8.75% p.a.
Total return of 14.78% over last twelve months, compared to Reference Portfolio return of 12.65%
This provoked some discussion on Twitter. If National hadn’t stopped our contributions to the fund it would now be worth $15.2b more than it is currently. There would have been extra costs for higher levels of borrowing, but even so NZ would be $4.8 billion net better off.
Cutting the contributions was stupid, short term thinking from National, and many people said so at the time. (Interesting to read an old Keith Ng post demolishing Farrar on this.) National’s supposed competence on economic matters is pure fantasy. We could have used the $4.8 billion that they just chucked away.