Australia will not set up a sovereign wealth fund, Channel News Asia reports. Prime Minister Julia Gillard said the country’s mandatory pension savings are an “anchor” in volatile economic situations.
A superannuation guarantee unveiled two decades ago mandated employer contributions towards a worker’s pension fund at a rate equivalent to 9 percent of an employee’s pay. There have been suggestions from industry that a sovereign fund be created to capture the earnings of a mining boom stimulated by demand from Asia.
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