MELBOURNE, September 11, 2024 – A recent statutory review of the Guardians of New Zealand Superannuation, manager of the $75 billion New Zealand Superannuation Fund (NZ Super or the Fund), by WTW (NASDAQ: WTW), a leading global advisory, broking, and solutions company, concluded that the Fund has attained the WTW Global Best Practice rating. This puts NZ Super into a small group of leading asset owners globally.
The review included areas where improvement can be achieved with seven recommendations where the Guardians would benefit from adopting these. It also included four suggestions which can be considered as ‘coaching points’ for the Guardians to consider adopting.
The WTW report noted that constant attention to improvement has been a defining characteristic of the Guardians and this would be required to address gathering headwinds. NZ Super faces several large challenges ahead, such as embedding new leadership and better leadership continuity; responding to adverse capital market conditions; maintaining strong culture in a larger and more complex organisation; and undergoing a technology transition.
The WTW best practice assessment is both relative (compared with global peers, which was conducted with reference to the 2024 Thinking Ahead Institute Peer Study) and absolute (well-equipped to meet the mandate). The central design of the review involved two ‘lenses’ being combined. A top-down analysis of three component settings based on the Design, Edge and Identity features of the organisation; and a bottom-up assessment of five component models, i.e. Business, Governance, People, Investment, Systems Model. (See diagram in pdf file below.)
“Through the review process, we identified an organisation that is extremely sure-footed, and we believe has set itself on the best tracks for the future through visionary governance and strong self-reflection.”
Roger Urwin | Global Head of Investment Content, WTW
Commenting on the review, Roger Urwin, Global Head of Investment Content at WTW, says, “We really appreciated the level and quality of engagement that the Treasury gave us in this review, and likewise with the independent Nominating Committee and with Guardians’ Management and the Board. Through the review process, we identified an organisation that is extremely sure-footed, and we believe has set itself on the best tracks for the future through visionary governance and strong self-reflection.”
“Most asset owners can benefit from independent reviews of their investment frameworks, processes and new approach to ensure they are operating at their highest level of potential for their respective stakeholders,”
Martin Goss | Go-Head of Governance and Senior Director, Investments Australia WTW
“The New Zealand government displayed significant foresight in setting up NZ Super as an autonomous Crown entity that operates independently from the Government of the day, including the requirement for an independent review every five years to determine how effectively and efficiently the Guardians is performing,” says Martin Goss, Co-Head of Governance and Senior Director, Investments Australia, WTW. “With a growing variety of external factors, opportunities and threats, we believe that most asset owners can benefit from independent reviews of their investment frameworks, processes and approach to ensure they are operating at their highest level of potential for their respective stakeholders,” adds Martin.
The full review and summary report of the Guardians of New Zealand Superannuation by WTW are publicly available here.
WTW was appointed on 25 January 2024 to conduct the one-in-five year statutory review of the Guardians by the Treasury of New Zealand. More information on the appointment can be found here.
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| Title | File Type | File Size |
|---|---|---|
| NZ Super ratings using WTW dual lens methodology | .2 MB |
