Independent Investment Review highlights ACC’s strong investment function
The ACC Board and Board Investment Committee (BIC) have welcomed the findings of the first independent review of ACC Investments, describing the outcome as reassuring and a strong endorsement of the organisation’s investment capabilities and performance.
The review, undertaken by global consultancy Willis Towers Watson (WTW), highlighted that ACC Investments is a "strong investment organisation that is fit-for-purpose across the board", with robust governance, effective investment practices and operational capabilities that are aligned with both its organisational objectives and legislative mandate.
ACC Investments Independent Review
BIC Chair Mark Cross says the Board Investment Committee and Management are pleased with the review’s findings.
“We’re reassured by the independent review’s confirmation that ACC Investments is performing its legislative and investment objectives effectively,” he says.
“It’s a clear recognition of the capability, culture and professionalism of the investment team.”
The review assessed how well ACC Investments manages its $50.8 billion investment fund to meet the unique liability structure of the organisation. It acknowledged the complexity involved in balancing liability-matching with achieving long-term investment returns.
“The review reinforces our confidence in our investment strategy and its execution through the investment function,” ACC Chief Investment Officer David Iverson says.
“It shows that ACC Investments is navigating a complex mandate with sophistication and discipline, while delivering strong long-term outcomes for levy payers.”
WTW highlighted ACC’s consistent delivery of excess returns after costs over the past three decades, with a long-run return of 9.29 per cent per annum — outperforming its benchmark by over 1.2 per cent annually since inception.
The review also praised the strength of the investment team’s culture and its collaborative approach, as well as the clarity of governance structures.
The Board Investment Committee have committed to carefully considering the recommendations of the review for further strengthening ACC Investments’ operational capacity and long-term financial sustainability.
“We’re proud of the team’s performance and the culture of integrity and inquiry they’ve cultivated over the years,” ACC Chief Executive Megan Main says.
“This review validates that, and we look forward to working with Treasury on the suggested recommendations to continue the high standards within Investments for the benefit of all New Zealanders.
“While pleased with these findings, we know we have a lot of work ahead of us to alleviate the financial pressures facing the organisation as a whole.”
About ACC’s Investment Fund
ACC’s $50.8 billion Investment Fund is designed to meet the future costs of accidents that have already occurred. Our investments reduce the risk that future levy payers will have to pay for past injuries.
Returns from the fund help meet the costs of the ACC scheme and ensure levies aren’t higher than they would otherwise need to be.
ACC’s Private Markets portfolio has investments as diverse as community housing, solar power and partnerships with iwi, and provides funding that helps support infrastructure across New Zealand.
ACC’s Investment Fund is guided by our Ethical Investment Policy and we’re a signatory to the UN-supported Principles for Responsible Investment (PRI), which sets out six principles to provide an accepted and credible framework for incorporating ESG issues into ACC’s investment decision-making processes and ownership practice.
