[8 November/ New Zealand Herald]

The NZ Super Fund announced it had made its first offshore farm investment in a leading Australian beef stud. This investment totals the fund’s rural land portfolio to 33 farms worth $340 million; just under 1 percent of the Super Fund’s total assets. Chief Investment Officer Matt Whineray said the Super Fund sees rural land as an attractive long-term investment and a good portfolio diversifier. Super Fund Rural Portfolio Manager Neil Woods noted the original projections for dairy farms were a total-long term return of 8 percent- 5 percent cash and 3 percent capital growth. Mr Woods added the Super Fund is confident that these expected total returns were achievable in this sector across geographies and assets with focussed management. Mr Woods said although the Super Fund’s rural portfolio is 90 percent invested in dairy, it is actively looking into the beef and horticultural sectors for additional opportunities.