So the Future Fund named itself the ”Board of Guardians”. This Fund was the brain child of former Liberal Party Treasurer Peter Costello and was set up to stop any future Labor Government from “squandering” the once only windfall gain from the sale of Telstra. The Future Fund was intended to cover unfunded superannuation liabilities, for which no provision had been made by a succession of previous governments.
There have been reports that the Future Fund has lost significant amounts of money on high risk investments including Greek sovereign debt. Posted returns from the Fund have averaged 4.2 per cent until May 2006 but have steadily declined since that time and in calendar 2011 the return was down to just 1.6 per cent. In the final six months of the year it was minus 3.1 per cent.
Peter Costello has been reported as being “miffed” at missing out on being promoted to the job of Chairman. Based on performance, the whole board including Peter Costello should be replaced. The Future Fund is not some private company where share holders have to put up with out of control company directors “squandering” money.
What we have here is another example of failed Liberal Party financial management.