The international investments of the Fund include international cash, international term deposits, international listed equities, international unlisted equities, and international property. The total international portfolio holding as at 31 December 2016 was approximately 15.20% of the Fund.

During the year Trustees reviewed the international investment strategy for the Fund. As a result of this review, a number of changes have been made, so as to improve diversification of the Fund.

The Fund has an allocation to international assets of 25.0% as part of the agreed SAA. Within this allocation, the Trustees have decided to split the exposure, so that 10.0% of the SAA is now allocated to international bonds and 15.0% to international equities.

Foreign exchange shortages, due to the controls imposed by BPNG, remained a constraint on the ability of the Fund to fully implement its offshore asset allocation. Initially, the Fund will implement the international equities component of the SAA, and then follow that up with international bonds, once foreign exchange is available for investment.

International Listed Equities as at 31 December 2016

Listed Equities
Black Rock Wholesale Indexed Australian Equity Fund Australia Market ( ASX 300)
Black Rock Wholesale Indexed International Equity Fund Global Fund ex Australia
Vanguard International Shares Index Fund Global Fund ex Australia
Acadian Global Managed Volatility Equity Fund Global Managed Volatility Fund

Source: KFM, NSL, Black Rock, Vanguard, Acadian

The investment held in Whitehelm Capital, previously Access Capital Advisors, was sold during the year.