The Board of the Guardians of New Zealand Superannuation today announced that Vanguard Investments Australia Ltd has been appointed to manage a global listed property securities mandate.

With an initial allocation of NZ$100 million, the appointment of Vanguard Investments Australia Ltd represents the Fund's first commitment to property.

Vanguard Investments Australia Ltd, a wholly owned subsidiary of the Vanguard Group Inc, will manage the mandate on a passive basis, with the UBS Global Real Estate Investors Index (in New Zealand dollars) as the chosen benchmark. The Index represents approximately 200 companies whose revenue is predominantly driven by property rental income, and provides broad diversification by region and sector.

New Zealand Superannuation Fund Chief Executive, Paul Costello, said: "Property is an important part of our long-term investment strategy, and today's announcement is the first step in building the Fund's portfolio. Looking ahead, we will turn our attention to unlisted property, both within New Zealand and overseas, and to further considering the role of active management in the listed market."

This is the second mandate awarded to Vanguard Investments Australia Ltd. In November 2003 the firm was appointed to manage an international government bond mandate.

Commenting on the appointment, Vanguard's Chief Investment Officer Eric Smith, said: "We are delighted to have been chosen to manage additional assets for the New Zealand Superannuation Fund.

Global property securities are a rapidly evolving asset class attracting a lot of attention from investors in the region. We appreciate the Fund's recognition of our experience, knowledge and exceptional level of ongoing service in awarding us this mandate, and look forward to the continued development of our relationship."

The appointment of Vanguard Investments Australia Ltd brings the total number of external investment managers to 19. The value of the New Zealand Superannuation Fund as at 31 January 2005 was $5.5 billion.

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For more information please contact:
Paul Costello, CEO, New Zealand Superannuation Fund, + 64 9 300 6980 Daniel Riordan, Media Relations, New Zealand Superannuation Fund, + 64 274 921 221
Eric Smith, Chief Investment Officer, Vanguard Investments Australia Ltd, +61 3 9928 3760 or Scott Lawrence, Head of Institutional Sales & Client Relationship Management, Vanguard Investments Australia Ltd, +61 3 9928 3813

Notes for Editors:
About Vanguard Investments Australia Ltd:
Vanguard has over 25 years' experience in Indexing, with a reputation for high quality, low cost funds management. The Vanguard Group, Inc. is one of the largest providers of mutual funds in the United States with over US$808 billion under management and 18 million investor accounts as at 31 January 2005. Vanguard Investments Australia Ltd is the Australian arm of The Vanguard Group, Inc. and has established a reputation in Australia as an index specialist, with over A$30 billion under management.
For further information on Vanguard, click here.