The New Zealand Superannuation Fund's defence of a $1.4 billion loss in August is winning support from within the retirement industry.
Despite making a 14.6 percent return in the last year and 17 percent on average over five years, the fund hit turmoil in August as trouble in China spread to other markets.
The company's return for the month was down by 4.3 percent, equating to a loss of $1.36 billion.
The fund is aimed at helping to pay for New Zealand's pension bill from 2030 onwards.
Fund chief executive Adrian Orr said monthly volatility was unimportant for long term investors, and Michael Littlewood of the Retirement Policy and Research Centre at Auckland University agrees.
He said the loss might seem big in the space of one month, but returns needed to be assessed over at least a year to be measured properly.
Michael Littlewood said volatility was to be expected when people invested in shares abroad.
Listen to Adrian Orr