Super Fund ducks for cover over Cullen’s musings

The New Zealand Super Fund is staying mum on suggestions that it should invest more of its pot into the domestic economy.

Among the Labour party’s economic policies released today is the idea of encouraging the Fund to lift its investments in New Zealand.

Labour’s policy was also tentatively worded – rather than suggesting any specific changes, it said the party would discuss with the fund what changes might be needed to bring in higher local investment.

Deputy leader Michael Cullen said the changes would not affect the fund’s focus on getting the best return on investments.

A spokeswoman for the Super Fund said she could not comment on potential government policy. “We have a strong commitment to invest in New Zealand,” she said.

A chunky 23% of the fund’s $14 billion is already invested domestically.

The fund is still preparing its response to similar ideas mooted in a report by NZX chief executive Mark Weldon and NZ Institute chief David Skilling at the end of last week.

They suggested the Super Fund and other government savings pots (including ACC and Earthquake Commission funding) should be merged and directed to place a specified proportion of investments in New Zealand.

“The current crisis creates a case for examining whether these assets are being invested in a way that maximises the national interest,” they said. It would not need to sacrifice performance.

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THIS IS SO TYPICAL OF THE ECONOMIC MISMANAGEMENT OF GOVERNMENT DEPARTMENTS. WAIT FOR THE MARKET TO CRASH TO AN ALL TIME LOW AND THEN TALK ABOUT BRINGING THE MONEY BACK FROM OVERSEAS AND INVEST IT IN NZ INFRASTRUCTURE ASSETS.
THE EARTHQUAKE COMMISSION INVESTED ITS MONEY OVERSEAS WHEN OUR DOLLAR WAS AT 36 CENTS TO THE US SO I BET THEY ARE PRAYING THE NZ DOLLAR IS GOING TO REALLY FALL.
IF ALL THIS MONEY HAD STAYED IN NZ IN THE FIRST PLACE WE WOULD HAVE FIRST WORLD INFRASRUCTURE INSTEAD OF THIRD WORLD.

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Why am I not surprised by these 'musings' of Cullen. It was obvious from day one that the fund would be 'redireted' by a Labour govt when the govt was short of funds to cover irresponsible promises. NZ had this form of 'Command economy' way back mid last century, but for a different reason.
THINK DEC POST ELECTION MINIBUDGET as promised by Helen. This is the tiem when taxes - top rate will be raised, and Funds such as kiwisaver/ Superannuatoin will be 'directed' in investment policy, in the future interests of NZ

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Cullen, Labour et al, have finally realized the tax payers are maxed out. Where can I get some money from is his only thought.

His proposal is, sell assets (those that are at a low point in the cycle) in a diversified portfolio and reinvest in a focused portfolio. The assumption is that he will invest wisely, but the problem we can all see after the PREFU was released is that Labour have not been good custodians of our money.

We are looking a huge deficits for 10 years, and these did not just arrive because of the financial crisis. These deficits were already in the pipe line 18m ago. The current Government do not have the skills to take NZ forward, they can spend (but so can anyone), we need a Government that can steward our economy.

Get the kid out of the candy store, he only wants our sweats.

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Now Key having raised this proposal and Labour Lackys Mocked it Now! Cullen pretends he has the Idea himself!

Pahahahahaha!

PAhahahaha...
Cullen if you want to stop taking Key as your advisor Give him your seat and you can shine his shoes..
The Rich Pri-ck knows how to balance a Budget and invest.
Not like the Looser Cullen Fund!

Lost how many Milion to date??

Last idea you copied from Keys advice; the Bank Guarantee plan...
Would you mind getting on the phone to your next boss and ask him how it works. The Banks and every one know full well you have gotten it wrong and have made a "Go to Aussie with your $$$ scheme". Just please call Key and he can teach you a few basics of international finance and he can help you fix up your copied idea that missed the detail.

Idea less reactionary tax collector needs Culling

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