Dear All,
1. Kevin Rudd was reported in the Western Australian Newspapers yesterday as having told the fund managers who are managing the A$1 trillion Australian Superannuation Fund to invest in the real estate markets in Latin America.
2. In his article, "Trusts wary of Latin nations" Anthony Klan writes in The Australian Newspapers today that
"The Honorary Consul of Panama has welcomed Kevin Rudd's suggestion that Australian funds managers should encourage people to invest in Latin American real estate.".
"Analyst John Freedman, with leading property trust UBS, said many listed property groups were looking into emerging markets but none had yet headed to Latin America."
"There are players looking into emerging economies such as Russia, India and China but none of the Australian trusts has got into South America to my knowledge," Mr Freedman said."
"According to the Global Property Guide, the recent rise of left-wing politics in Latin America has made many countries in the region far more volatile for investors. Uruguay was one of the least volatile countries for investment, while Venezuela was one of the most risky, with 683 "property invasions" - where squatters simply seized control of properties - recorded in 2005."
http://www.theaustralian.news.com.au/story/0,25197,22788095-25658,00.html
3. I am wondering if Kevin Rudd has personally invested in the Latin America's real estate markets and succeeded in his own investing there?
4. On the surface, Kevin Rudd appears to be merely suggesting that Perth should stimulate its local fund management industry, so as not to be overly dependant on its mining industry.
5. However, at a deeper analysis and by implications of the existing public statements made by Kevin Rudd, his intended underlying real messages which is left un-said, can be interpreted to be as follows:
a. The resource boom has more or less ended and therefore Perth should start to consider developing viable alternatives for its continued economic growth instead of being wholly too dependant on its mining industry.
b. Perth can effectively build up its finance industry to rival that of Sydney and provide itself as an fast-emerging alternative economic capital for Australia.
c. that it is safe and profitable for the Perth fund management industry to invest in the highly volatile but presently un-tested Latin America's real estate markets;- ( as an alternative to investing in the local Australian property markets?)
d. that Kevin Rudd himself is not "risk-averse" by his "daring"/ "reckless?" suggestion for Australian and the the local fund managers to invest in the un-tested and highly volatile real estate markets in Latin America.
6. Personally, I am wondering whether the present highly popular Kevin Rudd, is in effect, carrying himself too far in trying to bring home the message of providing an "alternative" ALP Govt to John Howard's Liberal Coalition Govt in this election campaign?
7. For your further comments and discussion, please.
8. Thank you.
Cheers,
Kenneth KOH