The 10-year return fell to 14.3 percent from 26.2 percent in the previous quarter and from 33.9 percent a year earlier.
The reason for the drop: Returns for the first half of 1999, when the exit market was especially active and profitable, are no longer included in the 10-year calculation.
Many New Zealand companies continue to attempt to raise capital in the United States and face the additional challenge of being perceived as a non-United States firm by investors.
For investors concerned about boosting sagging returns, the chance of them taking the perceived additional risk of investing in a firm which did not originate in the United States is likely to decrease further.
Source: National Venture Capital Association
