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Investment of the Natural Disaster Fund

Ministerial Direction

Ministerial Crest. Office of Hon Bill English
Minister of Finance
Minister for Infrastructure
Deputy Prime Minister


 


Mr Michael Wintringham
Chair
The Earthquake Commission
PO Box 790
Wellington 6140


Dear Mr Wintringham

Thank you for your letter of 16 October 2001. Pursuant to Section 12 of the Earthquake Commission Act 1993 I now issue a new direction regarding investment of the Natural Disaster Fund. The direction will take effect from 1 November 2001, on which day I intend to lay a copy of it before the House of Representatives.

 

Yours sincerely
Signature, Bill English.

Hon Bill English
Minister of Finance

Direction to the Earthquake Commission pursuant to Section 12 of the Earthquake Commission Act 1993

  1. This direction comes into effect on 15 September 201O.
  2. As of 15 September 2010, paragraph 2 of the direction dated 30 October 2001 is revoked and replaced with the following:
    1. The Earthquake Commission (the Commission) shall invest the Natural Disaster Fund (the Fund) in:
      1. New Zealand Government securities comprising Treasury bills and/or Government stock and/or Inflation-Indexed Bonds tradeable only through the New Zealand Debt Management Office;
      2. global equities; and
      3. New Zealand bank securities, including New Zealand bank bills and deposits, held only in Banks which are registered under the Reserve Bank of New Zealand Act and which have a short term credit rating of A-1 or higher; Prime 1 or higher; and if rated by both Moody's and Standard and Poors, ratings from both which equal or exceed the foregoing ratings. Funds invested in New Zealand bank securities shall be held across a number of banks.
  3. As of 15 September 2010, paragraph 9 of the direction dated 30 October 2001 is revoked and replaced with the following:
    1. The Commission must consult with the Minister if it intends to modify the portfolio composition of the Fund from the following:
      1. New Zealand Government securities;
      2. up to a maximum of 35% of the market value of the Fund in global equities; and
      3. up to a maximum of $2,000 million of New Zealand bank securities.
  4. All other parts of the direction dated 30 October 2001 are unchanged and remain in effect.
  5. This direction is in effect from 15 September 2010 to 14 September 2011. As of 15 September 2011 this direction is revoked.

Signature, Bill English.

Hon Simon William English
Minister of Finance
14 September 2010

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