Posted 11/13/2023, 1:15:08 AM
Outgoing chair cautions against spending Australia's $130B wealth fund, warns it risks credit rating
- Outgoing chair of Australia's $130B sovereign wealth fund warns spending it would weaken financial position and risk credit rating
- Fund was created in 2006 with proceeds from Telstra privatization to offset government debt and pension obligations
- Chair expects pressure to spend fund on political projects as population ages and tax revenue declines
- Existence of fund buttresses Australia's AAA credit rating, which could be at risk if spent
- Fund underperformed pension funds last year and held more cash, less equities than peers