Find out why ACC invests, our investment objective and how we measure our performance.
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Why does ACC invest?
ACC’s investment portfolio exists to help us meet the costs of injury claims.
Our investment income ensures that we can meet all the future costs of injuries that have already happened, 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. If not offset by strong investment returns, a decline in interest rates may create a need for levy increases.
Our investment objective
We manage our investments to achieve the best possible balance of return and risk in the following ways:
- we continually review strategic asset allocations to ensure they provide the best possible balance of risk and expected returns.
- we actively manage our investment portfolio to gain better risk-adjusted returns than we would achieve from passive investments.
We take a number of other factors into consideration when deciding what to invest in, including, but not limited to, an ethical investment policy. This policy requires us to consider the ethical implications of our investments alongside operational risk.
Download our service agreement and policy for further details on how we manage our investment activities.
Principles for Responsible Investment (PRI)
We've signed the internationally-recognised Principles for Responsible Investment, which demonstrates our commitment to responsible investment.
The ACC investment fund currently has approximately $40 billion funds under management as at June 2018.
Our investment performance is evaluated by looking at the extent to which ACC’s investments have achieved the objectives of enhancing returns and reducing risk, and how our performance compares with global investment markets’ performance.
We have outperformed market benchmarks for 25 of the past 26 years. To the best of our knowledge, no other investment fund anywhere in the world has ever outperformed market-based benchmarks on such a consistent basis.
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.
Impact Investment Fund
We're combining our established expertise in injury prevention, with the proven management of our investment fund in our Impact Investment Portfolio.
The Private Markets team manages the $50 million portfolio. We aim to invest in companies that are making a positive difference to the health, safety, and wellbeing of New Zealanders.