Pursuant to section 12 of the Earthquake Commission Act 1993:
1. This direction comes into effect on 15 September 2011.
2. As of 15 September 2011, paragraph (ii) of the direction dated the 30th day of October 2001* is revoked and replaced with the following:
"(ii) The Earthquake Commission ("the Commission") shall invest the Natural Disaster Fund ("the Fund") in:
(a) 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;
(b) global equities; and
(c) 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 2011, paragraph (ix) of the Direction dated the 30th day of October 2001* is revoked and replaced with the following:
"(ix) The commission must consult with the Minister if it intends to modify the portfolio composition from the following:
(a) New Zealand Government securities:
(b) up to a maximum of 35% of the market value
of the Fund in global equities; and
(c) up to a maximum of $2,000 million of
New Zealand bank securities."
4. All other parts of the Direction dated the 30th day of October 2001* are unchanged and remain in effect.
5. This Direction is in effect from 15 September 2011 to
14 September 2014. As of 15 September 2014, this Direction will be revoked.
Dated at Wellington this 13th day of September 2011.
HON BILL ENGLISH, Minister of Finance.
*New Zealand Gazette, 15 November 2001, No. 155, page 3830