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Labour on Economy
Economy · In depth

A New Zealand Future Fund

In depth — from Labour’s policy document

Labour proposes a state investment fund that would sit alongside, but separate from, the New Zealand Super Fund. It would be seeded with a small number of Crown-owned assets plus an initial capital contribution, run by the Guardians of the Super Fund with the Minister of Finance as sole shareholder, and invest in infrastructure and New Zealand businesses. The assets it is seeded with would be barred from sale by law.

What it is
A state investment fund
Separate from the New Zealand Super Fund
Run by
Guardians of the Super Fund
The existing body that manages the Super Fund
Shareholder
The Minister of Finance
Sole shareholder, but cannot pick investments
Seeded with
Crown assets and capital
Assets with a commercial and public good purpose
Seed assets
Protected in law
Sale prevented by legislation
Invests in
Infrastructure and NZ businesses
For financial and social returns
What it would do
  • Invest in infrastructure and innovative New Zealand businesses
  • Hold Crown-owned assets that have both a commercial and a public good purpose
  • Invest and borrow in its own right
  • Take returns that are social as well as financial — the document gives community renewable energy and high-tech start-ups as examples
What it could not do
  • Sell the assets it is seeded with — the document says this would be prevented in legislation
  • Sell its other assets without explicit Ministerial approval
  • Be told by the Minister of Finance which individual investments to make

How it would work

Separate from the Super Fund, run by the same people

The fund would sit alongside the New Zealand Super Fund rather than inside it, and be governed by the Guardians of the Super Fund — the existing body that runs it. The Minister of Finance would be sole shareholder.

How it would be seeded

The document describes a foundation of existing government assets plus an initial capital contribution. The assets would be a small number of Crown-owned ones with both a commercial and a public good purpose, giving the fund dividend income, a base to borrow against, and something to invest from.

The seed assets would be locked in law

Those assets would be protected in legislation so they cannot be sold and stay in public ownership. Assets the fund acquires later would need explicit Ministerial approval before any sale.

What independence would mean in practice

The fund would operate under legislation and a public policy statement. The Minister of Finance would set broad objectives through a letter of expectation but would have no power to direct individual investments — the same arm’s-length arrangement the Super Fund uses.

Returns measured two ways

The document is explicit that some investments may not deliver the returns of global markets, and argues they would create national value instead — stronger communities, lower costs, more resilient industries, and keeping talent and ideas in New Zealand.

The comparisons it draws

The case is made against three reference points, all figures from the document itself.

  • Singapore’s Temasek: began in 1974 with S$354 million, now worth more than S$434 billion
  • Australia’s superannuation: grown to A$4.2 trillion
  • New Zealand’s own Super Fund: $85 billion, of which the document says only 11 percent is invested in New Zealand

In their own words

“It will be independently governed by the Guardians of the Super Fund, with the Minister of Finance as sole shareholder.”

New Zealand Future Fund · How the Future Fund works

“The Minister of Finance will set broad objectives through a letter of expectation, but will have no power to direct individual investments.”

New Zealand Future Fund · How the Future Fund works

“The Future Fund will have the authority to invest and borrow, but any sale of seeded assets will be prevented in legislation.”

New Zealand Future Fund · How the Future Fund works

What the document doesn’t settle

Points the document defers or leaves undefined. These are gaps in the document, not criticisms of the policy.

  • The document does not say how large the initial capital contribution would be.
  • It does not name which Crown-owned assets would be used to seed the fund.
  • No target size, return or timeframe is given for the fund.
  • No start date is stated, and the document does not say what legislation would be needed first.
Summarised from New Zealand Future Fund, published by New Zealand Labour Party. Authorised by Rob Salmond, 2 Gilmer Terrace, Wellington. Read 2026-08-14.
Read the full document
Back to Labour on Economy

Coverage at a glance

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National
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Labour∅∅∅∅∅∅
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ACT
NZ First
Te Pāti Māori
TOP
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Women’s Rights
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ALCP
Conservative
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Te Tai Tokerau∅