You TubeFacebookTwitterflickrGoogle plus
Tuesday, 26 March 2019 06:15 pm

Cullen Fund not bound for NZ stock exchange

Feb 24th, 2009 | By | Category: Latest News, News

nzsfmainTHE GOVERNMENT is under pressure to explain its intentions for the New Zealand Superannuation Fund, but one thing is certain – it has not directed the fund to invest in companies on the NZ stock exchange.

Information received by NewsWire under the Official Information Act says the Government has not advised the fund’s investors to redirect investment into companies listed on the NZX.

“We have not received any advice, edicts, or direction from the Government on the re-direction of investment by the Guardians into companies listed on the New Zealand Stock Exchange,” says communications administrator Jolene Stack.

Prime Minister John Key failed to rule out cutting payments to the fund, set up by former Finance Minister Michael Cullen to partially pay for the country’s aging population, according to reports in the Dominion Post.

The prospect of Government bailouts for New Zealand companies was raised last week when the Prime Minister did not dismiss a rescue package for ailing whiteware manufacturer Fisher & Paykel Appliances.

The National Party campaigned in last year’s election on allowing the Minister of Finance to direct the guardians of the fund in relation to the proportion of domestic investment, and increasing the Super Fund’s target for New Zealand investment to 40%.

Treasury’s briefing to incoming Finance Minister Bill English criticised the 40% target, saying it was not the best way to develop capital markets as it may displace existing investment in equities, and could lead to a less liquid market due to its long-term investment outlook.

Labour Party leader Phil Goff says his party will strongly oppose any cuts in investment to the fund, and has called on the Prime Minister to retain the fund as it currently stands. 

“Tinkering with it by reducing the Government investment levels will only lead to reduced entitlements for future generations,” he says.

Tags: , , , , , , , , , , , , ,

is a graduate of Whitireia NewsWire. He's a reporter for BusinessWire (yes - he does like the wire theme), where he writes daily stories updating currency movements. And he still spends far too much time reading blogs.
Email this author | All posts by

Leave Comment

You must be logged in to post a comment.

Radio News