Comments on: Is it time for another Australian sovereign wealth fund? http://www.shareswatch.com.au/blog/economy/is-it-time-for-another-australian-sovereign-wealth-fund/?utm_source=rss&utm_medium=rss&utm_campaign=is-it-time-for-another-australian-sovereign-wealth-fund Views about the Australian stock market, shares, the economy, investing, politics and world events. Fri, 10 Feb 2012 09:23:14 +0000 hourly 1 http://wordpress.org/?v= By: Greg Atkinson http://www.shareswatch.com.au/blog/economy/is-it-time-for-another-australian-sovereign-wealth-fund/#comment-7429 Greg Atkinson Fri, 29 Apr 2011 23:09:49 +0000 http://www.shareswatch.com.au/blog/?p=121#comment-7429 Hi Senator. I reckon a new Sovereign Wealth Fund (SWR) would have been a better place to invest than pink batts that's for sure. For me the big advantage is you take money away from the government and prevent them for using it as a re-election slush fund which is often what a lot of economic stimulus spending really is anyway. Then in the years ahead you have income which you can then use to fund infrastructure projects on a long term and continual basis where dare I say it, a cost benefit analysis has be done before money is thrown at the project as has happened with the NBN. In addition the government could take small stakes in start up technology companies for example to help give the sector a lift and help diversify our economy. Hi Senator. I reckon a new Sovereign Wealth Fund (SWR) would have been a better place to invest than pink batts that’s for sure. For me the big advantage is you take money away from the government and prevent them for using it as a re-election slush fund which is often what a lot of economic stimulus spending really is anyway.

Then in the years ahead you have income which you can then use to fund infrastructure projects on a long term and continual basis where dare I say it, a cost benefit analysis has be done before money is thrown at the project as has happened with the NBN.

In addition the government could take small stakes in start up technology companies for example to help give the sector a lift and help diversify our economy.

]]> By: Senator13 http://www.shareswatch.com.au/blog/economy/is-it-time-for-another-australian-sovereign-wealth-fund/#comment-7428 Senator13 Fri, 29 Apr 2011 12:58:26 +0000 http://www.shareswatch.com.au/blog/?p=121#comment-7428 It is interesting looking back at this older post. According to the Future Fund website today it is valued at $74.62 billion and this includes $1.63 billion worth of Telstra shares. $8.4 billion of this is now in Australian Equities and $8.0 billion in cash. http://www.futurefund.gov.au/ Over the last 12 months or so I recall seeing articles reporting the Future Fund offloading its Telstra shares on a fairly regular basis. Wonder if this has anything to do with how the Future Fund board view the NBN? Telstra has been in a long term decline and the NBN sure has not changed that trend. It is also interesting comparing an investment in the NBN in contrast to that of a SWF. A SWF just seems to me a better way of earning instead of using taxes. Greg - Seems your idea of a new fund back in 2009 is still looking good even in 2011. Too bad they were not doing the foundation work back in 2009 to get one set up to face the challenges that are ahead. It is interesting looking back at this older post.

According to the Future Fund website today it is valued at $74.62 billion and this includes $1.63 billion worth of Telstra shares. $8.4 billion of this is now in Australian Equities and $8.0 billion in cash.

http://www.futurefund.gov.au/

Over the last 12 months or so I recall seeing articles reporting the Future Fund offloading its Telstra shares on a fairly regular basis. Wonder if this has anything to do with how the Future Fund board view the NBN? Telstra has been in a long term decline and the NBN sure has not changed that trend.

It is also interesting comparing an investment in the NBN in contrast to that of a SWF. A SWF just seems to me a better way of earning instead of using taxes.

Greg -- Seems your idea of a new fund back in 2009 is still looking good even in 2011. Too bad they were not doing the foundation work back in 2009 to get one set up to face the challenges that are ahead.

]]> By: Barry L http://www.shareswatch.com.au/blog/economy/is-it-time-for-another-australian-sovereign-wealth-fund/#comment-7414 Barry L Thu, 28 Apr 2011 20:55:51 +0000 http://www.shareswatch.com.au/blog/?p=121#comment-7414 Seems like the IMF also believes Australia should have a sovereign wealth fund according to this report by David Uren: Don't waste the mining boom: IMF - http://www.theaustralian.com.au/business/markets/dont-waste-the-mining-boom-imf/story-e6frg926-1226046573990 Seems like the IMF also believes Australia should have a sovereign wealth fund according to this report by David Uren: Don’t waste the mining boom: IMF -- http://www.theaustralian.com.au/business/markets/dont-waste-the-mining-boom-imf/story-e6frg926-1226046573990

]]> By: Greg Atkinson http://www.shareswatch.com.au/blog/economy/is-it-time-for-another-australian-sovereign-wealth-fund/#comment-7179 Greg Atkinson Sun, 27 Feb 2011 22:39:18 +0000 http://www.shareswatch.com.au/blog/?p=121#comment-7179 Some support for another sovereign wealth fund according to an article in the Australia today: "Professor McKibben said Australia should have been generating budget surpluses to direct into a sovereign wealth fund as the terms of trade has surged to record highs. And should have been deregulating the job market to help the economy digest the looming terms of trade reversal." See: <a href="http://www.theaustralian.com.au/business/bigger-bubble-is-building-says-rba-director-warwick-mckibbin/story-e6frg8zx-1226013167028" rel="nofollow">Bigger bubble is building, says RBA director Warwick McKibbin</a> Some support for another sovereign wealth fund according to an article in the Australia today: “Professor McKibben said Australia should have been generating budget surpluses to direct into a sovereign wealth fund as the terms of trade has surged to record highs. And should have been deregulating the job market to help the economy digest the looming terms of trade reversal.”

See: Bigger bubble is building, says RBA director Warwick McKibbin

]]> By: Greg Atkinson http://www.shareswatch.com.au/blog/economy/is-it-time-for-another-australian-sovereign-wealth-fund/#comment-412 Greg Atkinson Thu, 23 Apr 2009 00:40:53 +0000 http://www.shareswatch.com.au/blog/?p=121#comment-412 Thanks Pete..that was an interesting article. China is hard to work out because there are a lot of problem just under the surface that could really cause problems. For example I read one report that said the health costs caused by pollution in many major Chinese cities will be crippling in 20-30 years time..so who knows what the true story is? Thanks Pete..that was an interesting article. China is hard to work out because there are a lot of problem just under the surface that could really cause problems. For example I read one report that said the health costs caused by pollution in many major Chinese cities will be crippling in 20-30 years time..so who knows what the true story is?

]]> By: Pete http://www.shareswatch.com.au/blog/economy/is-it-time-for-another-australian-sovereign-wealth-fund/#comment-376 Pete Mon, 13 Apr 2009 13:51:45 +0000 http://www.shareswatch.com.au/blog/?p=121#comment-376 Good points guys. I did understand the basic premise of the Future Fund in the first place, but I did not like how it was invested, and the fact that we used the USA to invest it for us. On a semi related note, here is a very interesting article about China's future economic prospects. I found it a good read: http://www.theatlantic.com/doc/200904/chinese-innovation (note that it is spread over three pages) Good points guys. I did understand the basic premise of the Future Fund in the first place, but I did not like how it was invested, and the fact that we used the USA to invest it for us.

On a semi related note, here is a very interesting article about China’s future economic prospects. I found it a good read:
http://www.theatlantic.com/doc/200904/chinese-innovation
(note that it is spread over three pages)

]]> By: Greg Atkinson http://www.shareswatch.com.au/blog/economy/is-it-time-for-another-australian-sovereign-wealth-fund/#comment-365 Greg Atkinson Fri, 10 Apr 2009 12:53:51 +0000 http://www.shareswatch.com.au/blog/?p=121#comment-365 Pete, I would not use the SWF to bailout companies as that would not be included in the mandate given to the investment managers. But I do see sense in having a fund able to snap up stakes in companies in times like these rather than these assets being snapped up by another nation's SWF. In any case, I would much prefer governments put money in a SWF than throw cash around via tax payer rebates, which is in effect nothing more than vote buying, no matter what side of politics does it. Pete, I would not use the SWF to bailout companies as that would not be included in the mandate given to the investment managers. But I do see sense in having a fund able to snap up stakes in companies in times like these rather than these assets being snapped up by another nation’s SWF. In any case, I would much prefer governments put money in a SWF than throw cash around via tax payer rebates, which is in effect nothing more than vote buying, no matter what side of politics does it.

]]> By: Senator13 http://www.shareswatch.com.au/blog/economy/is-it-time-for-another-australian-sovereign-wealth-fund/#comment-361 Senator13 Fri, 10 Apr 2009 10:43:16 +0000 http://www.shareswatch.com.au/blog/?p=121#comment-361 As at 31 December 2008 the Future Fund was valued at $59.62 billion. This included $7.65 billion worth of Telstra. It has a bit over $24 billion in cash and only $4.4 billion in Australian equities. It seems to be performing fairly well given the global conditions. I think the Future Fund is a good idea. I think it is a smart investment of tax payers money to invest into a fund to finance future liabilities. I would have been a big fan if they created another SWF instead of just cash hand outs. Good article. As at 31 December 2008 the Future Fund was valued at $59.62 billion. This included $7.65 billion worth of Telstra.

It has a bit over $24 billion in cash and only $4.4 billion in Australian equities.

It seems to be performing fairly well given the global conditions.

I think the Future Fund is a good idea. I think it is a smart investment of tax payers money to invest into a fund to finance future liabilities. I would have been a big fan if they created another SWF instead of just cash hand outs. Good article.

]]> By: Pete http://www.shareswatch.com.au/blog/economy/is-it-time-for-another-australian-sovereign-wealth-fund/#comment-359 Pete Fri, 10 Apr 2009 02:29:03 +0000 http://www.shareswatch.com.au/blog/?p=121#comment-359 Thanks Susan, it's nice to know people read this :) My question about this article is - do we have any idea of what the size of the future fund is? It was being managed by US fund managers...(not Australian ones) and undoubtedly bought US shares too (I assume). The way markets have gone, perhaps that $60B is now more like $30B or less? Then we might need to consider: what impact would "selling" of all the Telstra shares have on the economy? Would Telstra suffer? Perhaps the Gov. would need to leave that bit of the fund be. But then the total amount we have is reduced...perhaps only $20B or so? It soon becomes a bit of a joke I think, but again I am just speculating here. Personally I am against Sovereign Wealth Funds (SWFs) used to buy or bailout local businesses UNLESS it is to directly counter an offer from an overseas purchaser. SWFs should be used to purchase overseas assets and to generate leverage for Australia in these international markets (I don't mean leverage as credit). This is what China is doing, and it's fantastic for them. Thanks Susan, it’s nice to know people read this :)

My question about this article is -- do we have any idea of what the size of the future fund is?

It was being managed by US fund managers…(not Australian ones) and undoubtedly bought US shares too (I assume). The way markets have gone, perhaps that $60B is now more like $30B or less?

Then we might need to consider: what impact would “selling” of all the Telstra shares have on the economy? Would Telstra suffer? Perhaps the Gov. would need to leave that bit of the fund be. But then the total amount we have is reduced…perhaps only $20B or so?

It soon becomes a bit of a joke I think, but again I am just speculating here. Personally I am against Sovereign Wealth Funds (SWFs) used to buy or bailout local businesses UNLESS it is to directly counter an offer from an overseas purchaser.

SWFs should be used to purchase overseas assets and to generate leverage for Australia in these international markets (I don’t mean leverage as credit).

This is what China is doing, and it’s fantastic for them.

]]> By: Susan Kishner http://www.shareswatch.com.au/blog/economy/is-it-time-for-another-australian-sovereign-wealth-fund/#comment-358 Susan Kishner Thu, 09 Apr 2009 06:47:21 +0000 http://www.shareswatch.com.au/blog/?p=121#comment-358 You know, I have to tell you, I really enjoy this blog and the insight from everyone who participates. I find it to be refreshing and very informative. I wish there were more blogs like it. Anyway, I felt it was about time I posted, I?ve spent most of my time here just lurking and reading, but today for some reason I just felt compelled to say this. You know, I have to tell you, I really enjoy this blog and the insight from everyone who participates. I find it to be refreshing and very informative. I wish there were more blogs like it. Anyway, I felt it was about time I posted, I?ve spent most of my time here just lurking and reading, but today for some reason I just felt compelled to say this.

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