Find out why we invest, our objectives behind our investments and how we measure performance.
ACC’s investment portfolio exists to help us meet the costs of injury claims.
ACC invests funds to meet the future costs of injuries that have already occurred, without the need for New Zealanders to pay more levies for these claims in the future.
We favour long-term investments that can deliver relatively certain income streams over long periods of time. These investments match our long-term cash flow requirements, and also help offset the risk of declines in interest rates.
If interest rate declines occur, we may need to put aside more money in the present to fund every dollar of future claim costs.
We manage our investments to achieve the best possible balance of return and risk in the following ways:
- We continually review our strategic asset allocations to ensure we maintain the best possible balance of risk and expected returns.
- We actively manage our portfolio to gain better risk-adjusted returns than we would achieve from passive investment.
We take a number of other factors into consideration when deciding what to invest in, including, but not limited to, our ethical investment policy. This policy requires us to consider the ethical implications of our investments alongside operational risk.
Our Service Agreement and Annual Report have further details on how we manage our investment activities.
As at June 2016, ACC’s investment fund had approximately $35 billon funds under management.
Our investment performance is evaluated by looking at the extent to which investments have achieved the objectives of enhancing returns and reducing risk, and how our performance compares with the performance of global investment market.
We have recorded our 21st consecutive year of outperforming market benchmarks and, to the best of our knowledge, no other investment fund in the world has matched that achievement.
We aim to achieve returns after costs greater than 0.30% above the benchmark for our investment portfolio. Our investment management costs are measured as a proportion of total funds under management.
Published: 25 August 2016