The New Zealand Superannuation Fund (NZSF) has unveiled a significant shift in its strategic asset allocation. It plans to significantly increase its alternative assets targets from 7% to 25% and property from 6% to 10%. At the same time, it plans to reduce its global equities targets from 59.5% to 42.5% and fixed interest target from 20% to 15%. The changes will be phased in over a number of years with a transitional goal of 13% alternative assets and 7% property by June 2005.

The alternative assets exposure will comprise five sub-sectors: infrastructure, private equity (including venture capital), commodities, forestry, and absolute return strategies....