Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

No excuse for poor super fund performance


No excuse for poor super fund performance

Green co-leader Rod Donald today called for a change in investment strategy for the Government Superannuation Fund following massive losses on the international sharemarket.

The first year report for the Government Superannuation Fund Authority, which controls the savings of current and former public servants, show the fund has lost $240 million in its overseas share dealings for the eight months to June.

This represents a 2.55 per cent pre tax loss for the period October to June, compared to a 3.1 per cent profit for the previous four months when the fund was still invested in New Zealand fixed interest bonds.

"The net effect of the Government's gamble is that the fund is now worth $207 million less than it was at the start of the year and $248 million less than the Government was forecasting," said Mr Donald.

"This is the first time in the history of the GSF that it has lost money. The justification in the report that the losses were less than the losses of other major superannuation funds is a poor excuse.

"This fund was invested on the share market after September 11, Enron and WorldCom - when all the other funds were pulling back. I want the Government to tell us how long it will take to recover these losses, let alone reach the projected returns of 9.6 per cent," he said.

"Now is not the time to be sinking public money into fragile global markets. Yet incredibly the authority that controls this fund wants to lift its holding in international shares from 33 per cent to 52 per cent.

"I urge the Government to say enough is enough, admit their mistake and reinvest this money back into the New Zealand economy before it loses any more."


Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.