Cullen Fund loses 25%

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.

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