13 July 2005

New Zealand Superannuation Fund Appoints Overlay Asset Management

The New Zealand Superannuation Fund today announced that Overlay Asset Management has been appointed to manage a passive currency overlay mandate.

Under the mandate, Overlay Asset Management, a subsidiary of BNP Paribas Asset Management, will be responsible for ensuring that foreign currency exposure is managed in line with the Fund's policy.

Presently, 72.5% of the Fund's exposure in the global growth assets sector - equities, property and alternative assets - and 100% of the global fixed interest portfolio is hedged back to New Zealand dollars.

The appointment of Overlay Asset Management brings the total number of investment mandates to 24. The value of the New Zealand Superannuation Fund as at 31 May 2005 was $6.4 billion.

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About the New Zealand Superannuation Fund:

The New Zealand Superannuation Fund, which commenced investing at the end of September 2003, is designed to partially provide for the future cost of New Zealand superannuation. An ageing population means the cost of providing New Zealand superannuation is expected to double over the next 50 years. To prepare for this, the Government plans to allocate on average $2.26 billion a year to the Fund over the next 20 years while the cost of superannuation is relatively low. In the meantime, the Fund will invest the money on a prudent but commercial basis.

As the cost of superannuation escalates, the Government will progressively draw on the Fund to help smooth the impact on its finances. As at 31 May 2005 the value of the Fund was $6.4 billion. The Fund is expected to grow to around $100 billion by 2020.

About Overlay Asset Management:

Overlay Asset Management (OAM) is a subsidiary of BNP Paribas Asset Management one of the leading players in European Fund Management with EURO 211 billion** of AUM. OAM provides currency management and related services to institutional investors. OAM's core competency is based on a proprietary model developed by mathematical and statistical researchers, with the input from experienced market practitioners.

OAM has developed a range of currency products that all derive from the same quantitative management style and process which includes, Currency overlay passive and active management, Tactical currency allocation, Pure alpha products.

OAM currently has 22 employees and has AUM in excess of EURO 5.7 billion*. Currently OAM is servicing clients globally from offices in Paris, London and Hong Kong.
www.fxoverlay.com.

*Figures as at *July 1st, 2005
**Figures as at end March 2005

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