About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Saturday, September 24th, 3:39PM
rss
Latest Headlines

MP says super board should listen to minister

Government MP says super fund board would be foolish to ignore investment directions from finance minister.

Wednesday, April 18th 2001, 1:08AM

by Philip Macalister

One of the biggest concerns over the Government's proposed multi-billion superannuation fund is that it will be a tempting target for politicians to either raid or invest in their pet projects.

Technically the scheme has been designed so it can be free from political interference. The board is being appointed on a double arms length basis. This, as reported earlier, is a new development for Government owned businesses.

The board will develop and execute the investment strategy on a basis that is consistent with best portfolio management techniques and in a way that seeks to maximise returns without undue risk.

The World Bank, which favours prefunding of state pensions as opposed to funding them on a pay-as-you-go basis, says the investment strategy is vitally important to the success of a fund. Its research shows that prefunding schemes that are subject to political interference or are used to achieve objectives other than paying pensions run into trouble.

Consequently comments made by the chairman of the Finance and Expenditure Select Committee, Mark Peck, have raised some concerns.

He says the finance minister can't direct the board over how it should make investment decisions.

"Because the board will be independent from the Crown, it will be required to have regard to rather than give effect to directions from the government," speech notes prepared for the recent BIIA Managed Funds conference say.

"There is therefore limited capability for the government of the day to make directions and those that are given must not be contradictory to the fund's prudent commercial investment rule."

He notes that any directions will be transparent as the minister must present a copy to Parliament.

However, when questioned about what would happen if the board ignored directions from the minister he provided a different answer.

Peck says the board would be "foolish" if they didn't follow the minister's directions.

"I think it would foolish of them to do that because the minister's opinion is shaped by public opinion."

Guardian Trust Funds Management managing director Anthony Quirk, who spoke after Peck, says his comments raised some concerns "that the minister does know best."

"It's an issue in terms of political interference going forward," he says.

Do you believe investment decisions made by the board of the Big Cullen Fund will be free of political interference? Vote Here

For all the latest Superannuation news and information visit www.supertalk.co.nz

You can read Philip's blog here: http://www.goodreturns.co.nz/blog/

« News Round UpSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Dormant products drive replacement business: Adviser
    “There is a standard tension in business. The insurers desire to maximize profit, they do that by having the highest prices...”
    2 days ago by Licensed Adviser
  • Volatility hits NZ Super Fund
    “Peter Urbani I don't understand your comment where is the "government guarantee"? It appears to me that the NZ Super Fund...”
    2 days ago by NoNoCents
  • Volatility hits NZ Super Fund
    “Peter there might be another rationale for that super aggressive asset allocation and that is maybe people‚Äôs performance...”
    2 days ago by Brent Sheather
  • Ethics can't be left to rules: Report
    “The funeral pyre of burnt finance companies were littered with CAANZ member Directors and Auditors. ...”
    3 days ago by mike6156@gmail.com
  • Volatility hits NZ Super Fund
    “Swinging for the fences (80% Growth 20% Income) because government guaranteed may be a viable business strategy but it has...”
    3 days ago by Peter Urbani
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.59 4.75 4.79 4.99
ANZ Special - 4.25 4.29 -
ASB Bank 5.55 4.69 4.75 4.89
ASB Bank Special - 4.25 4.29 4.34
BankDirect 5.55 4.69 4.75 4.89
BankDirect Special - 4.25 4.29 4.34
BNZ - Mortgage One 6.25 - - -
BNZ - Rapid Repay 5.70 - - -
BNZ - Special - 4.29 4.29 4.49
BNZ - Std, FlyBuys 5.64 4.85 4.89 4.99
BNZ - TotalMoney 5.64 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 5.95 4.99 4.99 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 5.60 4.85 4.90 -
Housing NZ Corp 5.55 4.69 4.75 4.89
HSBC Premier 5.75 4.19 4.19 4.49
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - 3.79 -
ICBC 5.60 4.39 4.69 4.99
Kiwibank 5.25 4.70 4.75 4.29
Kiwibank - Capped - - - -
Kiwibank - Offset 5.25 - - -
Kiwibank Special - 4.19 4.19 -
Liberty - - - -
Napier Building Society 6.50 5.80 6.70 -
Nelson Building Society 6.10 4.85 4.99 -
NZ Home Loans 5.45 4.69 4.75 4.75
NZ Home Loans - Specials - - - -
Lender Flt 1yr 2yr 3yr
NZ Home Loans - Specials - 4.19 4.19 4.29
Perpetual Trust 7.70 - - -
Resimac 5.19 4.94 4.90 4.91
SBS Bank 5.54 4.75 4.89 4.99
SBS Bank Special - 4.25 4.15 4.55
Sovereign 5.65 4.69 4.75 4.89
Sovereign Special - 4.25 4.29 4.34
The Co-operative Bank 5.45 4.25 4.35 4.49
TSB Bank 5.54 4.75 4.75 4.99
TSB Special - 4.25 4.19 4.59
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 5.65 4.79 4.85 4.99
Westpac - Capped rates - 5.15 5.25 -
Westpac - Offset 5.65 - - -
Westpac Special - 4.25 4.29 4.49
Median 5.65 4.69 4.75 4.89

Last updated: 16 September 2016 10:00am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com