Thank you, you are now logged in. x

Sovereign Wealth Fund urged for Australia


Australia should establish a Sovereign Wealth Fund to secure its future wealth and prosperity, according to Investec Asset management global strategist, Michael Power.

Power said that the Sovereign Wealth Fund should be created in addition to the existing Future Fund but, instead, be funded out of foreign capital inflows and not occasional government surpluses.

He said Australia had one of the most sophisticated and well-funded retirement savings platforms in the world, but this in itself was not enough to secure the country’s future wealth and economic prosperity.

“Such a solid savings foundation should not lull Australians into a false sense of long term security,” Power said.

He said there was a risk that Australia would allow today’s gold opportunities to slide by in circumstances where the current terms of trade would not last forever nor the resources that underpin those terms of trade.

“In reserving some of the current massive inflows that otherwise might have been added to foreign exchange reserves or even, if unsterilized, driven up the value of the Australian dollar even further, why not create an offshore fund for the benefit of future generations,” Power said.


Click here to get Money Management for iPad FREE






Featured jobs

View more jobs »

Sign up for our FREE email newsletters

Get the news, views, comments and opinions on the issues that matter to you.