Wednesday, May 9, 2018

Super Fund Investing In A Black Hole

As a New Zealand citizen, and therefore an investor in and potential beneficiary of the Super fund, I am 100% opposed to this investment which is stupid in the extreme.  Surely the role of the Superfund is to provide the best possible returns to the benefit of all New Zealanders and not to invest loss making ventures like Auckland Light Rail?

I consider the Trustees and Management of the Superfund are abdicating from their obligations and responsibilities if they allow this investment to proceed.  My wife and I hold KiwiSaver funds which are largely invested off shore and returning in the order of 20% after tax over the last 5 years. Obtaining similar returns should be the objective of Superfund Trustees, not investing in known black holes as they are proposing.  In saying that, I acknowledge they will make mistakes and have investments that return a loss from time to time, but knowingly entering into such an investment is a different matter entirely. 

Finally they should not allow an incompetent finance minister to become involved in their investment strategies and processes.

4 comments:

Adolf Fiinkensein said...

Quite so, PDM. Incompetence seems to have adopted the trickle down theory.

alwyn said...

I wonder if this could have anything to do with Orr leaving the Fund to become the Reserve Bang Governor?
Perhaps he had been told that the Fund, under the current Government, were going to be told where they had to invest the money, ie in stupid areas, and he didn't want to be connected to the mess?

pdm said...

Could be Alwyn.

Both Robertson and Twyford are saying it was an unsolicited approach but, who knows what directives were given to Orrs replacement.

If you are right though Orr is probably not going to enjoy the Reserve Bank with both Robertson and Peters telling him how to do his job, Neither of them with a clue on good governance.

Anonymous said...

Alwyn, that was Winston's policy as I recall.