Earlier this year, the New Zealand Meat Board proposed moving from its current “conservative” approach (all fixed interest) to a “balanced” approach (50% fixed interest, 50% equities); and to protect the reserves from inflation. More than 760 submissions were received during the consultation. 92% of respondents supported inflation proofing reserves, 90% supported moving to a balanced portfolio from an all cash conservative fund and 87% supported the Reserves Policy.
The Board made some minor amendments as a result of the responses received but is essentially moving ahead with a strategy based around a balanced portfolio and the inflation-proofing of reserves. It is now working with Investment Advisor Cambridge Partners to select a fund manager.
Based on the research and comparison with other funds, the Board believes that with a little more risk improved returns can be achieved that will see the reserves grow into the future, while at the same time provide for enhanced industry good funding in the medium term.
More information is available on the New Zealand Meat Board's website.