jackovesk
18th October 2011, 08:10
The Future Fund's exposure to the tumultuous euro zone has been revealed in Senate estimates
October 18, 2011
AUSTRALIA'S de facto sovereign wealth fund has almost half a billion dollars tied to Europe's most debt-ridden nations, including Greece.
Future Fund officials told a Senate committee hearing in Canberra that the $75 billion fund, created to finance public service superannuation liabilities, currently held $178 million of debt and $315 million in shares across Greece, Ireland, Portugal, Spain and Italy.
But its exposure to listed equities throughout Europe was far higher at $2.8 billion.
The Future Fund's new general manager Mike Burgess, fronting his first Senate estimates hearings, said the fund's portfolio had also taken a hit in the September quarter of nearly three per cent.
Such a decline would wipe about $2 billion off the value of its investments.
But Mr Burgess said the fund was well placed to deal with global market volatility.
"Financial markets are clearly challenging. At this point in time, it is well positioned for a volatile investment environment," he said.
European officials will meet in Brussels on October 23 to try to thrash out a wide-ranging eurozone rescue plan and head off the spread of Greece's sovereign debt crisis to larger debt-laden European economies.
They have failed to far to achieve a lasting solution to the crisis, disappointing financial markets and sending international share prices down about 14 per cent from July to September.
Mr Burgess confirmed the fund had $147 million invested in the tobacco industry and $179 million invested in weapons stocks.
Australian Greens Senator Richard Di Natale asked how the fund reconciled those holdings with its stated policies requiring environmental, social and governance risk management.
Mr Burgess responded that the fund was "comfortable with its position as it currently stands''.
"If tobacco and nukes can still make the grade, the bar on ethical investment is obviously set way too low,'' said Senator Di Natale said.
"By investing in tobacco the fund is undermining the government's own plain packaging reforms.''
http://www.theaustralian.com.au/national-affairs/the-future-funds-exposure-to-the-tumultuous-euro-zone-has-been-revealed-in-senate-estimates/story-fn59niix-1226169816538
PS - Unfortunately Australia will go down with the 'Debt Titanic' just as the Fabian Socialists and their Partners in Crime the UN NWO Globalist buddies had planned it..!
In 2007 the Labor Govt. started with $20Billion in the Kitty, now we are $200Billion in Debt and STILL borrowing $100Million per/day..!
http://www.davidicke.com/images/stories/October20116/27106.jpg
Going Going....Almost Gone..!
October 18, 2011
AUSTRALIA'S de facto sovereign wealth fund has almost half a billion dollars tied to Europe's most debt-ridden nations, including Greece.
Future Fund officials told a Senate committee hearing in Canberra that the $75 billion fund, created to finance public service superannuation liabilities, currently held $178 million of debt and $315 million in shares across Greece, Ireland, Portugal, Spain and Italy.
But its exposure to listed equities throughout Europe was far higher at $2.8 billion.
The Future Fund's new general manager Mike Burgess, fronting his first Senate estimates hearings, said the fund's portfolio had also taken a hit in the September quarter of nearly three per cent.
Such a decline would wipe about $2 billion off the value of its investments.
But Mr Burgess said the fund was well placed to deal with global market volatility.
"Financial markets are clearly challenging. At this point in time, it is well positioned for a volatile investment environment," he said.
European officials will meet in Brussels on October 23 to try to thrash out a wide-ranging eurozone rescue plan and head off the spread of Greece's sovereign debt crisis to larger debt-laden European economies.
They have failed to far to achieve a lasting solution to the crisis, disappointing financial markets and sending international share prices down about 14 per cent from July to September.
Mr Burgess confirmed the fund had $147 million invested in the tobacco industry and $179 million invested in weapons stocks.
Australian Greens Senator Richard Di Natale asked how the fund reconciled those holdings with its stated policies requiring environmental, social and governance risk management.
Mr Burgess responded that the fund was "comfortable with its position as it currently stands''.
"If tobacco and nukes can still make the grade, the bar on ethical investment is obviously set way too low,'' said Senator Di Natale said.
"By investing in tobacco the fund is undermining the government's own plain packaging reforms.''
http://www.theaustralian.com.au/national-affairs/the-future-funds-exposure-to-the-tumultuous-euro-zone-has-been-revealed-in-senate-estimates/story-fn59niix-1226169816538
PS - Unfortunately Australia will go down with the 'Debt Titanic' just as the Fabian Socialists and their Partners in Crime the UN NWO Globalist buddies had planned it..!
In 2007 the Labor Govt. started with $20Billion in the Kitty, now we are $200Billion in Debt and STILL borrowing $100Million per/day..!
http://www.davidicke.com/images/stories/October20116/27106.jpg
Going Going....Almost Gone..!