Note 8: Cash and Marketable Securities, Deposits and Equity Investments
| Forecast | Actual | |||
|---|---|---|---|---|
| Original Budget $m | Estimated Actual $m | 30 June 2006 $m | 30 June 2005 $m | |
| By Category | ||||
| 2,446 | 3,319 | Total Cash | 4,168 | 3,710 |
| 19,026 | 26,468 | Marketable securities and deposits (MSD) | 27,668 | 21,464 |
| 13,042 | 15,267 | Equity investments (eg, shares) | 15,394 | 10,896 |
| 662 | 281 | Reserve position at the IMF | 458 | 702 |
| 32,730 | 42,016 | Total MSDs and Equity Investments | 43,520 | 33,062 |
| 35,176 | 45,335 | Cash and MSDs and Equity Investments | 47,688 | 36,772 |
| By Portfolio Management: | ||||
| 12,997 | 18,714 | Reserve Bank and NZDMO managed funds | 19,284 | 14,776 |
| 8,350 | 9,240 | NZS Fund | 8,555 | 5,571 |
| 3,187 | 3,370 | Government Superannuation Fund | 3,959 | 3,233 |
| 5,757 | 7,398 | ACC portfolio | 7,882 | 5,987 |
| 1,649 | 2,241 | EQC portfolio | 1,943 | 1,675 |
| 790 | 1,053 | Other holdings | 1,897 | 1,820 |
| 32,730 | 42,016 | Total MSDs and Equity Investments | 43,520 | 33,062 |
The asset values above are net of any cross-holdings. For example, the asset portfolios of the NZS Fund, GSF, EQC and ACC currently all hold amounts of New Zealand Government stock. For financial reporting purposes these amounts are eliminated within the combined financial statements. The total portfolios, including cross-holdings of New Zealand Government stock, are shown below, along with commentary on the restricted nature of some of the assets (for example the GSF assets are only available for the payment of GSF benefits – because of the restricted nature of these assets they are excluded from the definition of net core Crown debt).
Nature of financial assets – some are restricted in their purpose
Within the financial assets above, several portfolios are restricted in their nature in that they are only available to meet very specified purposes and are not available (by statute or other reasons) for general use by the Crown. It is for this reason that such assets are excluded from the definition of net core Crown debt – one of the Crown’s key fiscal policy indicators.
New Zealand Superannuation Fund
The assets of the NZS Fund is the Government’s means of building up assets to partially pre-fund future New Zealand superannuation expenses and may only be used for New Zealand Superannuation. The assets in this fund total $10.2 billion as at 30 June 2006. The Government’s contributions to the NZS Fund are calculated over a 40-year rolling horizon to ensure superannuation entitlements over the next 40 years can be met.
Government Superannuation Fund
The GSF Authority administers the portfolio of the GSF totalling $4.2 billion. These assets result from contributions by beneficiaries built up through time and can only be applied to the ongoing payment of GSF benefits (as provided by the GSF Act). Also refer Note 16.
EQC – Natural Disaster Fund (NDF)
The EQC is New Zealand’s primary provider of seismic disaster insurance to residential property owners. The EQC administers the NDF, comprising capital and reserves. The EQC draws on the NDF money to pay out claims for damage caused by natural disasters.
ACC portfolio
ACC manages the ACC scheme. At present there is a substantial outstanding claims liability associated with past claims of around $12.7 billion. To manage the payment of these claims in the future, ACC is building up a matching portfolio of assets. The target is to have the residual claims fully funded by 2014. Also refer Note 17.
| 9,278 | 10,242 | NZS Fund | 9,726 | 6,555 |
|---|---|---|---|---|
| 3,587 | 3,744 | GSF financial assets | 4,166 | 3,521 |
| 8,314 | 8,798 | ACC portfolio | 9,080 | 8,123 |
| 4,837 | 5,273 | EQC portfolio | 5,232 | 4,557 |
