Cullen Fund gambles on proven loser

green-party

Wed Apr 16 2003 12:00:00 GMT+1200 (New Zealand Standard Time)

Cullen Fund gambles on proven loser

Wednesday, 16 April 2003, 3:14 pm
Press Release: Green Party

The Green Party today warned that the appointment of Frank Russell as an independent advisor to the Cullen Super Fund is another nail in its coffin.

The Guardians of the New Zealand Superannuation Board today announced that the Frank Russell Company would offer a second opinion on investment advice.

However, Green Co-Leader Rod Donald said bringing Frank Russell on board is a case of the dumb hiring the dumber.

"How stupid can you get? Frank Russell's appalling advice to invest heavily on overseas sharemarkets has already cost the Government Superannuation Fund $328m in the 14 months to December," said Mr Donald.

"NZ Superannuation Fund chair David Hay ought to know better - he is also a deputy chairman of the Government Superannuation Fund Authority. I would have thought he would have learnt from his mistakes.

"You could get better investment advice from a Turf Digest.

"Frank Russell have a reputation for over-investing in US Stocks. This proved to be a disastrous mistake for GSF and for the Community Trust of Otago, which have also used Frank Russell and have also lost substantial sums on their share portfolios.

"Dr Cullen should intervene before Frank Russell tells the fund to take another losing punt on the sharemarket with our money."

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