GSF investment strategy could be damaging the NZ economy
United Future finance spokesman, Gordon Copeland, is querying whether the Government Superannuation Fund’s investment strategy is damaging the New Zealand economy.
Friday, November 8th 2002, 12:02PM
United Future finance spokesman, Gordon Copeland, is querying whether the Government Superannuation Fund’s investment strategy is damaging the New Zealand economy.
He questioned the GSF’s chairman Basil Logan and board member Tim McGuinness at this week’s Finance and Expenditure select committee concerning their decision to invest 73.5% of their funds overseas.
He pointed out that an AMP report entitled “How much foreign currency?” concluded that, to offset the nation’s reliance on imports, New Zealand funds should hold around 40 - 50 % of the their funds offshore.
“I can see no good reason why the Government Superannuation Fund should go beyond that to a figure of 73.5%,” Copeland said. “If they were to reduce their overseas allocation to 40%, an additional $1.155 billion would be invested in New Zealand giving a significant boost to the revitalisation of the capital markets in this country. It would assist our economy to expand at a faster rate to the benefit of all New Zealanders including the beneficiaries of the Government Superannuation Fund.”
The GSF representatives replied that they would be undertaking a full and complete review of the appropriate level of overseas investment within their portfolio.
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