The Treasury

Global Navigation

Personal tools

Financial assets

Forecast through to 2015

Figure 34 - Forecast movements in financial assets
Figure 34 - Forecast movements in financial assets.
Source:  The Treasury

Figure 34 shows that financial assets are forecast to increase from $60 billion to $68 billion over the period.

The movement in financial assets is the result of forecast increases in market value and any capital injections from the Crown less any payments paid out of these organisations.

  • ACCs financial assets are set to increase as higher ACC levies are invested and as the ACC fund moves towards becoming fully funded.
  • NZSF increases are owing to forecast investment returns. The Government has temporarily ceased making contributions to NZSF until such time as sufficient operating surpluses are achieved.
  • RBNZ assets were built up during the global financial crisis and are expected to unwind as the economy stabilises. NZDMO financial assets decrease in line with NZDMO's standard forecasting assumptions. The actual level of liquid assets is subject to future policy decisions.

Projections into the longer term under current policy settings

ACC is forecast to continue to build its asset base until 2019 to match liabilities, at which point the ACC levy will be able to be reduced and both assets and liabilities will continue to grow until the Scheme matures.

NZSF financial assets are expected to grow through generated returns only until 2019 when the Crown is forecast to generate a sufficient operating surplus to be able to resume contributions to the Fund.

Financial asset growth is therefore forecast to be driven largely by investment returns and a small level of retained EQC and ACC levies until NZSF contributions restart in 2019, which will then drive stronger growth in these assets into the longer term.

Page top