Even in the $40 billion portfolio of the super fund, this light rail project is still a major exposure to a single high risk investment
There have plenty of stories in the last couple of days about the expressed wish of the New Zealand Superannuation Fund to become owner, or part-owner, of new light rail projects.
There has been a range of reactions, from the gushingingly enthusiastic to the rather more sceptical. Count me at the extremely sceptical end of that spectrum. In fact, it is the sort of story that confirms – again – my longheld fears about NZSF.
Towards the gushing end of the spectrum was Stuff politics journalist Henry Cooke, whose piece ran under the heading “Super Fund gives huge vote of confidence to light rail plans”, when it is nothing of the sort.
This is a massive vote of confidence in the viability of the project from some of the savviest investors in the country.
Their proposal would see another huge sovereign wealth fund – Quebec’s – join them…
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