The NZ Superannuation Fund, known as the Cullen Fund, has lost 25% of its value in just a few months.
This $2.8 billion loss is more than $1,000 per household.
Of course all investment funds have done badly, but the Cullen Fund is compulsorily funded by taxpayers, which means you lose your choice of putting money in a bank instead of the Cullen Fund.
The Cullen Fund had some merit when NZ was producing large surpluses. Not a lot, but some.
Now that we are having to borrow billions of dollars, just so we can invest it into the Cullen Fund, it has almost no merit. Think about it – borrowing billions to invest in global sharemarkets.
We should wind up the Cullen Fund, and use it to give $6,000 to every household. That is the sort of fiscal stimulus that will help the economy.Tags: NZ Super Fund