Why we invest
A lesser-known fact about ACC is that it is one of New Zealand’s largest investment fund managers – and arguably one of its most successful.
Money collected in levies is invested by ACC’s in-house investment team and external funds managers (appointed by ACC) in local and global markets, over a range of asset classes such as shares, bonds and property.
ACC’s success as a fund manager is important because there is always a gap between the present and future cost of injuries, and the amount of money collected in levies.
Each year ACC collects levies that cover the ‘lifetime’ costs of the injuries that happen in that year. Some injuries require ongoing rehabilitation, medical or earnings replacement costs many years after they occur. And in some cases the injured person may never fully recover and will need daily help for the rest of their lives.
When we set the annual levy rate for each Account we consider the potential investment income for the year.
ACC’s investment performance
Investment performance is measured each year against ACC’s internally set benchmarks. While ACC reviews its returns against other fund managers there is no fund similar within NZ.
Over the last 15 years ACC has consistently out-performed this benchmark in respect of its investment returns.
ACC’s investment funds as at year end ($billion)
Actual |
Forecast | ||||
|---|---|---|---|---|---|
2006-07 |
2007-08 |
2008-09 |
2009-10 |
2010-11 |
2011-12 |
9.6 |
10.1 |
11.2 |
13.7 |
17.3 |
20.0 |
Our investment strategy
As well as achieving a good return on investment, while minimising risk, ACC also seeks to ensure that it does so in an ethical manner.
This means ACC conducts an ethical investment policy and avoids investing in activities that are repugnant to the laws of New Zealand. It is a signatory to the United Nations Principles for Responsible Investment.
Summary of investment performance and benchmark returns
Download the file below to see a summary of ACC’s various investments and the value and weight of each. The summary also shows the most recent monthly and year to date return by investment asset class and the corresponding benchmark return.
Last updated: 5 July 2011